In a significant development, the ATO has released a draft taxation ruling and draft practical compliance guideline setting out the ATO’s new compliance approach with respect to section 100A of the ITAA 1936, which is an anti-avoidance provision that has been around for over four decades.

The ATO’s new guidance will challenge traditional family trust distribution strategies and impact the required thinking around resolutions as early as from 30 June 2022.

As we await finalisation of the ruling, we do remind clients that the guidance is in draft form at this stage. Prior to the closure of the draft ruling on 8th April, accounting and industry leaders are expected to lodge submissions with the ATO, expressing concerns in relation to various aspects.

Please be assured that we will continue to monitor developments in relation to the family trust measures and will address them in relation to your individual circumstances when we conduct your pre 30 June tax planning.