Make trustee resolutions for trust distributions by 30 June
Discretionary trust trustees must validly resolve to distribute trust income before the end of the FY.
Who must comply
Trustees of discretionary trusts.
What triggers it
End of each financial year.
When due
By 30 June (or earlier deed-specified date).
Evidence required
Written trustee resolution, financials, accountant sign-off.
Max penalty
Trustee assessed at 47%; potential reassessment and interest if late resolutions challenged by ATO
Summary
For discretionary trusts, trustees must validly resolve to distribute trust income (and capital gains for streaming) by 30 June each year (subject to trust deed timing). Failure means default beneficiaries (often the trustee taxed at 47%) bear tax. ATO TR 2012/D1 + PCG 2018/4 guidance applies.
Enforced by
Source legislation
Entity types
Topics
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Frequently asked questions
- Who must comply with Make trustee resolutions for trust distributions by 30 June?
- Trustees of discretionary trusts.
- What triggers Make trustee resolutions for trust distributions by 30 June?
- End of each financial year.
- When is Make trustee resolutions for trust distributions by 30 June due?
- By 30 June (or earlier deed-specified date).
- What is the maximum penalty for Make trustee resolutions for trust distributions by 30 June?
- Trustee assessed at 47%; potential reassessment and interest if late resolutions challenged by ATO
- What evidence is required for Make trustee resolutions for trust distributions by 30 June?
- Written trustee resolution, financials, accountant sign-off.
Source: https://ato.gov.au/businesses-and-organisations/trusts/trustees-and-beneficiaries. Rules Mate is not a law firm. Always verify against the live regulator source before acting.