How to keep your family trust out of ATO trouble
The ATO’s renewed focus on Section 100A means family trusts that move income between relatives or entities could face top-rate tax penalties. Here’s what it means for investors, property owners and families.
Family trusts often hold residential property — but the ATO is warning that income must flow to the right beneficiaries. (Image source: Inside Creative House/Shutterstock.com)
If you use a family trust to manage income or investments, you may have seen the term Section 100A appearing more often in tax discussions.
It sounds technical, but the idea is simple: the Australian Taxation Office (ATO) wants to ensure that trust income is going to the people for whom it is meant, not being redirected to someone else to reduce tax.
In recent years, the ATO has increased its focus on how families distribute trust income, parti…
