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Streaming under the trust deed

Last updated 12 October 2020

For tax purposes, a trustee can stream capital gains or franked distributions provided it has the power, either express or implied, under the trust deed.

  • An express power to stream may arise where the trust deed empowers the trustee to separately account for distinct classes of income or capital, and where beneficiaries' entitlements may then relate to those classes.
  • A streaming power may be implied if the trust deed empowers the trustee to distribute income or capital at their absolute discretion and there is nothing further in the trust deed, or trust law in the relevant jurisdiction, that limits that power.