Income tax, CGT and entities

Family trust

A family trust is a trust, usually a discretionary one, set up to hold assets or run a business for the benefit of members of a family. The trustee decides each year how to distribute the trust's income among the beneficiaries named in the trust deed. A trust can make a family trust election, which gives access to certain tax concessions, such as for carrying forward losses, and makes the trust subject to the rules about who can receive distributions. The ATO publishes guidance on family trusts and the compliance risks it looks at, including how distributions are made and documented. The deed and the trustee's records are the starting point.

General information, not tax advice. The rules change, so check the source page above for the current position. Fedix is developed by Tax7 R&D Pty Ltd.