What is the minimum distribution allowed under the transitional rules?



This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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A former PPF distributing under the transitional rules must as a minimum:

  • distribute during a financial year 5% of each gift received in the previous financial year
  • distribute its trust income within the financial year in which it is derived, unless otherwise allowed by the Commissioner.

A former PPF distributing under the transitional rules can retain an amount of trust income to maintain the capital of the fund calculated at the start of a financial year to reflect movements in the CPI published by the Australian Statistician for the previous financial year.

If the fund is subject to a continuing agreed accumulation plan, it may continue to act in accordance with that plan until one of the following occurs:

  • when the plan expires
  • when the fund meets its target amount
  • the end of the 2013–14 financial year

the start of a financial year for which the fund chooses to not apply the transitional rules.

Find out more

For more information, refer to private AF guidelines 52 to 55.

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Last modified: 04 Jul 2014QC 41203