The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

4.12.2.10 Attribution Percentages

Date of effect

This topic has effect to controlled private trusts and controlled private companies from 1 January 2002.

In this topic

This topic contains the following information:

  • summary, and
  • determining attribution percentages.

Summary

Attribution of the assets (1.1.A.290) and income of controlled private trusts and controlled private companies should be determined according to the individual/s, or members of a couple (1.1.M.120) who control the structure.

When making a decision as to the percentage of attribution of a structure to a stakeholder, the delegate MUST refer to the relevant (attribution) decision making principles.

Act reference: SSAct section 1207X Attributable stakeholder, asset attribution percentage and income attribution percentage, section 1207V Controlled private trusts, section 1207Q Controlled private companies, section 1209E Decision-making principles, section 4(2) Member of a couple-general, section 8(1)-'income'

Social Security (Attributable Stakeholders and Attribution Percentages) Principles 2017

Social Security (Attribution of Assets) Principles 2017

Social Security (Attribution of Income) Principles 2017

Policy reference: SS Guide 4.12.1.20 Determining a Controlled Private Trust from 01/01/2002, 4.12.1.30 Determining a Controlled Private Company from 01/01/2002

Attribution percentages

When determining the attribution percentage to an individual/s of a controlled private trust or controlled private company the assessor should also have regard to the following:

If the individual/s is/are…. Then….
a sole attributable stakeholder of a controlled private company or controlled private trust (other than a concessional primary production trust), attribute 100% of the assets AND income of the structure to the sole attributable stakeholder.
members of a couple who are the ONLY attributable stakeholders of a controlled private company or a controlled private trust (other than a concessional primary production trust), attribute 100% of the assets AND income of the structure to the couple (in the percentage determined by the level of control exhibited by each member of the couple).
multiple stakeholders of a controlled private company or a controlled private trust (other than a concessional primary production trust),

attribute the assets AND income of the structure to the stakeholders in the percentage determined by the level of control exhibited by the individuals.

Example: 2 persons with control powers = 50% each

3 persons with control powers = 33.33% each. (Although unusual the percentage need not be an equal amount, e.g. 60/40%).

Exception: The delegate may determine that the attribution percentage of an individual may be reduced to any percentage lower than 100%, including 0%.

Example: Where the trust is a concessional primary production trust.

Note: In some rare situations or situations involving primary production concessions, an attributable stakeholder's asset attribution percentage and income attribution percentage need not be the same percentage.

Note: See 4.12.7 for information on the treatment of the income and distributions of a private trust or private company.

Act reference: SSAct section 1208U Concessional primary production trusts

Policy reference: SS Guide 4.12.11.20 Qualification provisions for the primary production concession

Last reviewed: