Managing the distribution and tax process for a Family Trust has become extremely complex in recent years. 

The most fundamental of issues are being debated and amended and interpreted on a regular basis.

The latest view of the Australian Taxation Office (ATO) is that discretions to allow distribution minutes up to 31st August, will no longer be affective.

The ATO’s view is by the 30th June each year, trustees resolutions must establish which beneficiaries have a present entitlement to trust income.  If there is no evidence, then either the trustee or the default beneficiaries will be assessed on the trust income.

Some trust deeds require that the minute be in a particular form and by a particular date.  What evidence is required of present entitlement will vary in every situation.

Already the ATO is advising some taxpayers of impending review activity, so being alert to your own circumstances now would be a sensible precaution.