18.104.22.168 Summary of Assessable Income from Trusts pre-01/01/2002
This topic summarises the assessable income from BOTH discretionary (1.1.D.200) AND non-discretionary trusts (1.1.N.100). Assessable income from ONLY one or the other kind of trust is covered elsewhere in this section.
Note: For the income test treatment of general business items also see 22.214.171.124. The assessment of general business items applies to all business structures including sole traders, partnerships, private trusts and private companies.
Act reference: SSAct section 8(1)-'income'
Policy reference: SS Guide 126.96.36.199 Income from Private Companies & Trusts, 188.8.131.52 Assessable Income from Discretionary Trusts pre-01/01/2002, 184.108.40.206 Assessable Income from Non-discretionary Trusts pre-01/01/2002
Summary table of assessable income for pensions & allowances
The following table summarises the assessment of income from discretionary AND non-discretionary trusts.
|Trust profit (1.1.P.428)||The trust profit is not assessed. Only income paid to the income support recipient, and deeming, are assessed.|
The distributions are maintained as income for 12 months from the date of resolution to distribute.
Explanation: Distributions are shown in the:
Imputation credits (1.1.I.25) paid with distribution are income for the purposes of the pensions or allowances income test.
Explanation: Distributions not received by the beneficiary but held in the trust.
|Not a financial investment, and therefore, not subject to deeming.|
|Wages or salary||The trust may pay wages or salary to the income support recipient. As with any wages or salary, the amount assessed as income is the current rate of earnings converted to an annual figure. For allowances, the income is assessed on a fortnightly basis.|
|Loan to trust||The balance is added to the income support recipient's other financial assets and is subject to deeming.|
|Assets gifted to the trust||Deeming provisions apply and deprived assets (1.1.D.110) are maintained in the assessment.|
|Managed investments and shares sold/transferred to the trust||Deemed income is assessed in respect of any deprivation, if the income support recipient has not received adequate financial consideration (1.1.A.55).|
Are assessed as the:
|Fees paid for the use of plant or equipment owned by an income support recipient||Are assessed as income.|
|Rent paid to an income support recipient||
Are assessed as rental income. Allowable deductions reduce the assessable amount.
220.127.116.11 Income from Real Estate
Is assessed as the amount stated on the most recent:
Act reference: SSAct section 9(1)-'financial asset', section 9(1)-'financial investment'