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: 20 September 2017