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Further concession for Division 7A sub-trust arrangements maturing in 2019
In brief: Presumably because of the deferral of proposed amendments to Division 7A, now aimed to commence from 1 July 2019, the Commissioner has extended the additional concession for maturing sub-trust arrangements to those maturing in the 2019 year of income. So those using the 7 year term under Option 1 in PS LA 2010/4, and which term expires in the 2019 year of income, will be able to effectively extend repayment by putting in place a complying 7 year loan ‘between the sub-trust and the private company beneficiary prior to the private company’s lodgement day’ for the 2019 year.
More: This extension has been incorporated into Practical Compliance Guideline PCG 2017/13, which now applies to sub-trust arrangements maturing in the 2017, 2018 and 2019 years of income. That is, the amended Guideline applies to Option 1 arrangements entered into prior to 1 July 2012.
The proposed amendments to Division 7A stem from the Board of Taxation’s post-implementation review of Division 7A, provided to the Government in November 2014. They were announced in the 2016-17 Federal Budget, but full details have not yet been released. (Practical Compliance Guideline PCG 2017/13)
31 Aug 2018
Topic: Income tax
06 Jun 2016
Topic: CGT/Income tax/Business and investment structures/Trusts
18 Apr 2016
Topic: CGT/Business and investment structures
17 Feb 2016
Topic: Trusts/Business and investment structures/State Taxes
07 Dec 2015
Topic: Business & investment structures/CGT/Trusts
03 Nov 2015
Topic: CGT/Estate Planning/Income Tax