UPDATE 66
SEPTEMBER 2013
A–Z OF TRUSTS
Anna Ziaras
Highlights

New author, Anna Ziaras, has continued the ongoing revision of the
commentary in A–Z of Trusts. She has further updated the
commentary, improved the overall structure of the material by writing
more descriptive headings and consolidated various aspects of the
discussion. You can expect more excellent new material from Anna in
the future.

The 50% CGT discount for foreign individuals has been removed.
Refer to the Recent Developments bulletin.

Integrity rules for small business CGT concessions and scrip for scrip
rollovers have been strengthened. Refer to the Recent Developments
bulletin.

Further changes to the new managed investment trust (MIT) regime
have been proposed by the Government. Refer to the Recent
Developments bulletin.
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
The exemption for MITs regarding streaming rules has been extended
until 30 June 2014 so as to maintain the current tax treatment until the
new regime starts on 1 July 2014. Refer to the Recent Developments
bulletin.

Loss carry-back rules are to apply to companies, including trusts that
are taxed like companies such as corporate unit trusts and public
trading trusts. Refer to the Recent Developments bulletin.

Part IVA amendments have been enacted to deal with deficiencies in
the operation of the “tax benefit” concept and the way it interacts with
the “dominant purpose” test. Refer to the Recent Developments
bulletin.

Certain large entities, including trusts, are required to submit pay-asyou-go instalments monthly rather than quarterly from 1 January 2014.
Refer to the Recent Developments bulletin.

The statutory definition of charity has been enacted and will apply to all
Commonwealth legislation from 1 January 2014. Refer to the Recent
Developments bulletin and 7~2760.

Tax concession entities will generally need to show that their activities
are carried out in Australia. Refer to the Recent Developments bulletin.

Measures to prohibit the transfer of assets between self managed
superannuation funds and related parties were removed from recently
passed legislation. Refer to the Recent Developments bulletin.

Superannuation fund trustees can now dispose of pension assets on a
tax-free basis to fund the payment of death benefits. Refer to the
Recent Developments bulletin.

The interaction between the consolidation rules and trusts is the
subject of a recent report, which described four major
recommendations for reform in this area. Refer to the Recent
Developments bulletin.

Revised exposure draft legislation containing the final element of the
investment manager regime for widely held foreign funds has been
released. Also, read the updated commentary about the investment
manager regime. Refer to the Recent Developments bulletin and
17~4000.

Read about the Commissioner’s decision that only capital gains and
franked distributions can be streamed. Refer to 8~1270.

There is new commentary on recording specific entitlements under the
streaming rules. Refer to 8~1675.
A–Z of Trusts
2

The general anti-avoidance rules commentary has been rewritten
following important amendments to this area. Refer to 8~2500.

There is a new discussion about deduction issues concerning loans
that involve trusts. Refer to 9~5000.

The income tax concessions available to beneficiaries of trusts that
carry on primary production businesses are newly summarised. The
concessions include primary producer averaging and the farm
management deposit scheme. Refer to 9~6000.

Find out more about topical issues regarding Div 7A compliance, and in
particular, discover how to prevent deemed dividends from arising.
Refer to 11~1000.

Look over the new overview of administrative issues and requirements,
such as the lodgment of tax returns, rates of tax and PAYG
implications. Refer to 14-1000.
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