4.12.3.10 Discretionary Trusts

Date of effect

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

In this topic

This topic contains information on the following:

  • discretionary trusts established before 7.30 pm 9 May 2000, and
  • discretionary trusts established at or after 7.30 pm 9 May 2000.

Discretionary trusts established before 7.30 pm 9 May 2000

If assets (1.1.A.290) have been transferred to a discretionary trust before 7.30 pm 9 May 2000, attribution among the attributable stakeholders of the trust should be determined according to the degree of control capable of being exercised in the trust by the stakeholder/s.

Discretionary trusts established at or after 7.30 pm 9 May 2000

If a discretionary trust:

  • is established after 7.30 pm 9 May 2000, OR
  • contributions have been made to a trust after that time,

the determination of attribution among attributable stakeholders should be made with regard to the SOURCE of the assets of the trust.

If the delegate is satisfied that attributing the assets or income, or both, of the structure to the source would produce an inappropriate result, attribution should be determined according to the degree of control capable of being exercised in the trust by the stakeholder/s.

Act reference: SSAct section 1207V(2) Control test, section 1207V(3) Source test, section 1207X Attributable stakeholder, asset attribution percentage and income attribution percentage

Policy reference: SS Guide 4.12.1.20 Determining a Controlled Private Trust from 01/01/2002, 4.12.1.40 The Source Test, 4.12.2.10 Attribution Percentages

Last reviewed: 9 November 2015