This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Family Trust Distribution Tax (Primary Liability) Bill
Date Introduced: 1 October 1997
House: House of Representatives
Commencement: Royal Assent
To impose tax on distributions by family trusts to people who
are not members of the family group for the trust and to set the
rate of that tax.
The Taxation Laws Amendment (Trust Loss and Other Deductions)
Bill 1997 proposes to impose tax on a family trust that makes a
distribution outside the allowable family group. It is proposed
that the rate of tax will be 48.5%, the highest marginal rate
including the Medicare levy, on any distribution made outside the
family group. This Bill is necessary as section 55 of the
Constitution requires that a Bill imposing tax deal only with the
imposition of tax. This Bill will impose formally the tax on
distributions outside the family group.
For further information on the general issue of family trusts,
refer to the Digest for the Taxation Laws Amendment (Trust Loss and
Other Deductions) Bill 1997.
Clause 3 of the Bill will impose formally the
tax on distributions outside the family group.
Clause 4 will set the rate of tax at 48.5%.
19 November 1997
Bills Digest Service
Information and Research Services
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Last updated: 21 November 1997
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