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Edited version of private advice
Authorisation Number: 1051752738285
Date of advice: 10 September 2020
Ruling
Subject: Trust resettlement
Question
Will the proposed amendments to the trust deed cause CGT event E1 or E2 to happen?
Answer
No.
The proposed amendments to the trust deed will not cause the trust to terminate or give rise to a particular asset of the trust being settled on terms of a different trust. The proposed amendments are considered within the powers of the trustee to amend as contained in the Trust Deed and therefore, will not cause CGT event E1 or E2 in section 104-55 or section 104-60 of the Income Tax Assessment Act 1997 to happen.
This ruling applies for the following period
Year ending 30 June 20XX
The scheme commences on
1 July 20XX
Relevant facts and circumstances
The Trust is a discretionary trust established by the Trust Deed.
The Trust Deed contains a wide power of amendment.
The Trustee proposes to exercise its powers under the power of amendment to amend the Trust Deed to add additional persons to the class of beneficiaries and change the vesting date of the Trust to reflect the abolition in South Australia of the rule against perpetuities.