Bills Digest No. 110   1997-98 Family Trust Distribution Tax (Secondary Liability) Bill 1997

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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.


Passage History

Family Trust Distribution Tax (Secondary Liability) Bill 1997

Date Introduced: 1 October 1997
House: House of Representatives
Portfolio: Treasury
Commencement: Royal Assent


To impose formally tax on trustees and, when a trust is a company the directors of the company, that will be payable by non-resident trusts where the Commissioner is of the opinion that the non-resident trust will not or has not paid tax that is due.


The Taxation Laws Amendment (Trust Loss and Other Deductions) Bill 1997 provides for the assessment of tax where a non-resident family trust makes a distribution to a person outside the family group. It is proposed that the rate of tax will be 100% of the unpaid amount. This Bill is necessary as section 55 of the Constitution requires that a Bill imposing tax deal only with the imposition of tax.

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.

Main Provisions

Clause 3 will impose formally the tax on unpaid tax due from non-resident family trusts.

Clause 4 provides that the amount of tax payable under this Bill will be equal to the amount of unpaid tax.

Contact Officer and Copyright Details

Chris Field
19 November 1997
Bills Digest Service
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ISSN 1328-8091
© Commonwealth of Australia 1997

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Published by the Department of the Parliamentary Library, 1997.

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Last updated: 21 November 1997

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