Sladen Snippet – Back to the future – public trading trust rules will not apply for super funds from 1 July 2016

Further to our snippet in April the changes to the public trading trust rules have passed into law. This means that, from 1 July 2016, the fact that self managed superannuation fund(s) (SMSFs) hold more than 20% of the units in a unit trust will not cause the unit trust to be a public trading trust. It also means that existing unit trusts that are public trading trusts merely because SMSFs hold more than 20% of the units will cease to be public trading trusts (and taxed like companies) from 1 July 2016. 

As part of the changes certain transitional rules apply. This includes that existing franking credits of former public trading trusts must be used by the unit trust before 1 July 2018. 

For further information please contact:

Phil Broderick
Sladen Legal
+61 3 9611 0163  |  +61 419 512 801

Melissa Brazzale
Sladen Legal
+61 3 9611 0161