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Edited version of private advice
Authorisation Number: 1052363526725
Date of advice: 20 February 2025
Ruling
Subject: Section 100A - reimbursement agreements
Question
Will section 100A of the Income Tax Assessment Act 1936 (ITAA 1936) apply to the beneficiary's, present entitlement to trust income under the terms of the Trust Deed?
Answer
No.
The beneficiary of the Fist Family Trust Deed does not meet the pre-requisite requirements for section 100A to apply due to them being a minor, who is under legal disability. The beneficiary is excluded from the application of section 100A in accordance with paragraph 100A(1)(a) of the ITAA 1936.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
On XX XX 20XX, you completed a Deed to establish a Trust (the Trust).
A beneficiary of the Trust is your child (Person A).
Person A is XX years old and has received a formal diagnosis of a disability.
A company (the Company) is the trustee of the Trust.
Person B is the Director of the Company.
The Trust distributes funds to a bank account for Person A, to pay for items directly attributable to Person A alone.
Any remaining amounts will be reinvested under Person A's name.
Relevant legislative provisions
Income Tax Assessment Act 1936 section 100A