Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (49 of 2026)

Schedule 1   CGT adjustments

Part 1   Main amendments

Income Tax Assessment Act 1997

43   At the end of Subdivision 115-C

Add:

115-235 Giving information to beneficiaries

(1) If a trust is covered by a determination under subsection (4), the trustee must:

(a) prepare a statement for each beneficiary of the trust who, because of subsection 115-215(3), makes one or more *capital gains for an income year in relation to capital gains of the trust estate for the income year; and

(b) ensure the statement complies with subsection (2); and

(c) give the statement to the beneficiary within the period specified in, or worked out under, the determination.

Note: Section 286-75 in Schedule 1 to the Taxation Administration Act 1953 provides an administrative penalty for breach of this subsection.

(2) The statement complies with this subsection if it:

(a) is in the *approved form; and

(b) states the amount of each of those *capital gains that the beneficiary makes; and

(c) sets out which of those capital gains are *non-residential capital gains, *residential capital gains, *deferred non-residential capital gains or *deferred residential capital gains; and

(d) sets out the effect of subsections 115-215(4), and 115-225(5) if applicable, in relation to each of those capital gains.

Note: Subsection 115-215(4) deals with the status of capital gains as discount capital gains, and the effect of Subdivision 152-C having been applied to the trust gain. Subsection 115-225(5) makes adjustments to remove the effect of indexation on the cost bases of the relevant CGT assets.

(3) A trustee of a trust is not required to prepare and give a statement under subsection (1) for an income year if a report is given, or required to be given, under section 393-10 in Schedule 1 to the Taxation Administration Act 1953 in respect of the trust estate for the *financial year that corresponds to the income year.

(4) The Commissioner may, by legislative instrument, determine that trustees of all or specified kinds of trusts are required:

(a) to prepare and give statements under subsection (1) to beneficiaries of the trusts; and

(b) to do so before the end of:

(i) a specified period; or

(ii) a period worked out using a specified method.