Income tax, CGT and entities

Trust distribution

A trust distribution is the share of a trust's income or capital that the trustee allocates to a beneficiary for the year. Beneficiaries who are presently entitled to trust income are generally taxed on their share, and the trustee can be assessed on the share of any beneficiary who is not, or on income not distributed. The trust deed governs how income may be distributed, and the trustee must follow it and make the decision, usually by a resolution, by the time the deed requires. The ATO publishes guidance on trust income, losses and capital gains, and on the records it expects. Distributions are reported in the trust return and the beneficiary's own return.

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.