Do you have a Discretionary Trust (aka a Family Trust)? If yes, you need to be aware that you must complete your Trust Distribution Resolutions before 30 June. Why? To avoid paying extra tax at up to 47% on Trust profits.
WHAT IS A TRUST DISTRIBUTION RESOLUTION?
Trust Distribution Resolutions are ‘resolutions’ made by the Trustee, in accordance with the Trust’s Deed, to establish who the Trust income is to be distributed to on or before year end.
If a Trustee of a Trust fails to make a resolution to distribute the income of the Trust before the end of the financial year, the Trustee may be assessed by the Australian Taxation Office (ATO) on the Trust income at the highest marginal tax rate of 47%, rather than at the rate of the intended beneficiary(s).
How can we help you?
Preparing a Trust Distribution Resolution before the end of the financial year can be quite complex, however we can help ensure that you both comply with the recent changes to trust taxation laws, and maximise your distribution opportunities to minimise the amount of tax payable.
Business Wise can undertake the required steps, including:
- Review of your prior year Trust Distribution Resolution
- Confirmation with you of the estimated Trust income of your Trust for the year ended 30 June 2018
- Review potential beneficiary’s, and advise on the most tax effective distribution of the estimated Trust income
- Review your Trust Deed to ensure that the income definition and distribution clauses in your Trust Deed allow for the distributions proposed in the Trust Distribution Resolution for 30 June 2018
- Preparation of the Trust Distribution Resolution and ensuring it is signed by the Trustees and effected PRIOR to 30 June 2018
Contact us today! to book your personal Tax Planning Session. This session will be tailored to your individual needs and requirements. The sooner we get started, the sooner we can help you save tax. You need to act now, to allow sufficient time to implement your tax saving strategies before the 30th of June 2018.
Imagine what you could do with your tax saved!
- Reduce your home loan
- Top up your super
- Have a holiday
- Deposit for an investment property
- Pay for your children’s education
- Upgrade your car
Don’t miss out!
NOW is the time to discuss with us the actions you can take before 30thJune to reduce your tax and grow your wealth.
Call us on 4922 6128 to get started!