Income tax: is a beneficiary under a legal disability (for example under 18 or mentally incapacitated) required to lodge a return where a distribution from one trust (other than a corporate or public trading trust) is the beneficiary's only source of income?
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FOI status:may be releasedFOI number: I 1213315
|This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953, is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, the Determination applies to transactions entered into both before and after its date of issue.|
1 No. Subsection 100(1) of the Income Tax Assessment Act 1936 only requires the inclusion of the trust income in the beneficiary's assessable income where the beneficiary also derives a distribution from another trust estate or derives income from another source.
Example: An under 18 beneficiary's only source of income is a single trust distribution of $10000. The beneficiary is not required to lodge a return.
Commissioner of Taxation