WARNING:
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
Bill.
CONTENTS
Family Trust Distribution Tax (Primary Liability) Bill
1997
Date Introduced: 1 October 1997
House: House of Representatives
Portfolio: Treasury
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%.
Chris Field
19 November 1997
Bills Digest Service
Information and Research Services
This paper has been prepared for general distribution to
Senators and Members of the Australian Parliament. While great care
is taken to ensure that the paper is accurate and balanced, the
paper is written using information publicly available at the time
of production. The views expressed are those of the author and
should not be attributed to the Information and Research Services
(IRS). Advice on legislation or legal policy issues contained in
this paper is provided for use in parliamentary debate and for
related parliamentary purposes. This paper is not professional
legal opinion. Readers are reminded that the paper is not an
official parliamentary or Australian government document.
IRS staff are available to discuss the paper's contents with
Senators and Members
and their staff but not with members of the public.
ISSN 1328-8091
© Commonwealth of Australia 1997
Except to the extent of the uses permitted under the
Copyright Act 1968, no part of this publication may be
reproduced or transmitted in any form or by any means, including
information storage and retrieval systems, without the prior
written consent of the Parliamentary Library, other than by Members
of the Australian Parliament in the course of their official
duties.
Published by the Department of the Parliamentary Library,
1997.
This page was prepared by the Parliamentary Library,
Commonwealth of Australia
Last updated: 21 November 1997
Back to top