4.12.3.20 Fixed (Non-discretionary) Trusts

Date of effect

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

Fixed (non-discretionary) trusts

Under pre-1/1/2002 rules, the income and assets (1.1.A.290) generated by fixed trusts, including fixed testamentary trusts, are fully assessed against the trust beneficiaries in the fixed proportions laid down by the trust deed. The practice of assessing the asset value based on net asset backing and the income on actual distributions to beneficiaries will continue for fixed trusts established before 7.30 pm 9 May 2000. Fixed trust established after 7.30 pm 9 May 2000 will be assessed under the post-1/1/2002 rules.

Also, if after 7.30 pm 9 May 2000:

  • a trust is varied or altered in accordance with a trust deed, OR
  • additional funds are contributed to a trust, OR
  • there are changes to the beneficiaries entitled under a trust,

the delegate should determine attribution among the attributable stakeholders of the trust as if the trust had been established after that date if, in the circumstances, the delegate considers it appropriate to do so. An exception would be if a beneficiary of the trust passes away and a refixing of the entitlements of the beneficiaries is required.

Act reference: SSAct section 8(1)-'income', section 1207P Designated private trusts

Last reviewed: 9 November 2015