Australian resident beneficiaries of a non-resident trust estate under a legal disability

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

End of attention

Before the FIF measures began, the assessable income of a trustee included the share of the net income of a trust estate which related to a period when:

• a beneficiary under a legal disability was a resident of Australia, or
• a beneficiary who is deemed to be presently entitled to a share of the net income of the trust estate (because they had a vested and indefeasible interest in the income of the trust estate) was a resident of Australia. [subsections 95A(2), 98(1) and (2)]

Since the FIF measures began, a trustee is not assessed on behalf of a beneficiary of a non-resident trust estate where the beneficiary is under a legal disability because the beneficiary is deemed not to be under a legal disability.

However, the beneficiary is assessed under section 97 of the ITAA 1936 - the general assessing provision for trusts. The beneficiary's own share of the net income of the non-resident trust estate is now worked out under the provisions of section 96C of the ITAA 1936 - see Attribution of non-resident trust income where the FIF measures do not apply above on section 96C and the FIF measures. [subsections 96B(2), 98(1) and (2)]