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Chapter 2: Transferor trust and related measures

Last updated 4 December 2006

This chapter:

  • helps Australian residents who have transferred, or are deemed to have transferred, property or services to a non-resident trust estate to:
    • determine whether, under the transferor trust measures, any income or capital gains derived by the trust estate should be attributed to them for inclusion in their assessable income
    • work out the amount to be attributed
  • helps Australian beneficiaries who have received a distribution from a non-resident trust estate to determine whether an interest charge applies to the distribution.


The transferor trust measures operate to accruals tax residents of Australia who have transferred property or services to a non-resident trust estate on certain profits derived by the trust.

Related measures also operate to impose an interest charge on certain trust distributions from non-resident trusts that are included in the assessable income of a resident beneficiary. Broadly, the interest charge applies if the profits of the trust from which the distribution was made were not subject to tax:

  • in a broad-exemption listed country, or
  • on an attribution basis under the transferor trust measures.

Refer to the glossary in appendix 2 to find the meaning of certain words and expressions used in this chapter.

Summary of chapter 2

Part 1

Are you subject to the transferor trust measures?

Part 2

Interest charge for beneficiaries of non-resident trust estates