Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-15 - NON-ASSESSABLE INCOME  

Division 54 - Exemption for certain payments made under structured settlements and structured orders  

Subdivision 54-D - Miscellaneous  

Operative provisions

SECTION 54-70   Special provisions about trusts  

54-70(1)    
A payment of a *personal injury annuity or a *personal injury lump sum to the trustee of a trust is exempt from income tax for the trustee if:

(a) the beneficiary of the trust is the *injured person; and

(b) because of Subdivision 54-B or 54-C , the payment would have been exempt from income tax if it had been made directly to the beneficiary.

54-70(2)    
A payment made in accordance with paragraph 54-35(3)(b) to the trustee of a trust is exempt from income tax for the trustee if:

(a) the beneficiary of the trust is the reversionary beneficiary; and

(b) because of section 54-65 , the payment would have been exempt from income tax if it had been made directly to the beneficiary.

54-70(3)    
A payment of a lump sum in accordance with subsection 54-35(4) to the trustee of a trust is exempt from income tax for the trustee.

54-70(4)    
If a payment is exempt from income tax for a trustee because of this section, the payment is also exempt from income tax for a beneficiary, or the beneficiary, of the trust, even if the trustee:

(a) pays all or part of the payment to the beneficiary; or

(b) applies all or part of the payment for the benefit of the beneficiary.