Units trusts and cost base resets under the TBC

Units trusts and cost base resets under the TBC

The new superannuation laws have recently been passed by the federal government.1 The new laws include the introduction of the transfer balance cap (TBC). The TBC limits the amount a member can transfer into a pension account in a super fund. The initial cap will be $1.6m.

Deemed to be a “fixed trust” – draft guidelines

Deemed to be a “fixed trust” – draft guidelines

During a panel discussion at The Tax Institute‘s National Convention in March 2016, Second Commissioner Andrew Mills mentioned that the ATO was considering publishing guidance regarding the manner in which the Commissioner would exercise his discretion to treat beneficiaries as having fixed entitlements in trusts for the purpose of s 272-5(3) of Sch 2F to the Income Tax Assessment Act 1936 (Cth) (ITAA36).

Real life examples of problematic variation clauses

Real life examples of problematic variation clauses

There are a number of reasons why the trust instrument of a discretionary trust might need to be amended. These include, but are not limited to, succession planning, tax planning and/or the general modernisation of the provisions of a trust deed to account for changes in trust and tax laws.