Tax Solutions

Tax Solutions is a series of videos giving you practical solutions and tips for issues that commonly arise in tax practice - pure tax matters as well as associated planning solutions for business and investment structures, trusts, SMSFs, etc. Please click on the links below for recent issues. You may also like to peruse Tax Solutions by topic category - topics are listed below to the right.

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  • Problems with wide beneficiary classes in discretionary trusts

    Widely drafted beneficiary classes in discretionary trusts can create headaches in dealing with various State taxes. A recent example is Victoria’s new 3% additional duty on foreign buyers of residential property – where a trustee is the buyer and a family beneficiary lives overseas. A starker example that applies in all States and Territories is payroll tax grouping of businesses controlled by family relatives, where at least one of the businesses is operated by a discretionary trust.

    Having extraordinarily wide beneficiary classes is an outdated practice that creates problems, rather than serving any useful purpose. There is really no point in including a whole range of relatives who are never intended to benefit. A narrow class of beneficiaries is required, with a simple and practical mechanism to add others to whom it is desired to distribute.


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    17 Feb 2016

    Topic: Trusts/Business and investment structures/State Taxes