2023 Saw Major Changes to Trust Distributions
Two new changes were introduced to the Australian legal landscape in January 2023, sending a ripple effect through the accounting community. These changes sit on top of the requirement to have trustee resolutions signed by 30 June.
Section 100A
Section 100A is an anti-avoidance provision seeking to prevent a tax benefit arising under a pre-existing agreement between two or more people.
The new Practical Compliance Guideline relies on a traffic light risk assessment system with three zones: Red (higher risk), Green (low risk), and White (no ATO action for matters before 2014).
What Accountants need to do
Accountants need to ensure their clients are educated on these changes, and what it means for them and their tax position.
Accountants will also need to present recommendations based on the traffic light system so your clients can make fully informed decisions about the level of risk they are comfortable taking.
Owies Case
‘Owies Case’ highlights the emerging pattern of scrutiny by the Australian Courts and how trustees need to act carefully and responsibly when exercising discretions provided by the trust deed.
Failing to follow the terms of the trust deed or any breach of the trustee’s duties could result in the reversal of decisions dating back several years, as well as the potential removal of the trustee and the potential appointment of an independent trustee.
What Accountants need to do
Accountants may need to review existing trust deeds and ensure that the trustees enquire and consider the beneficiaries' needs.
Trust Distribution work has changed dramatically over the last few years. The interpretation by the ATO and the court of trust law has seen many changes that need to be considered, like Section 100A and Owies Case, to get the best outcome for your clients.
* Is the work you’re doing for Trust Distribution compliant with these changes?
* Do your clients’ Trust Deeds need to be updated?
Join ChangeGPS Founder Timothy Munro and GM David Boyar FCA for this webinar to learn the systems you can use to save time and de-risk your firm.
Trust Distribution Explored
- GUIDE: 4 Steps to Implement the Section 100A Ruling Changes in Your Firm
- PRODUCT SHOWCASE WEBINAR: Tools for Trust Distribution
Stay Ahead of Complex Trust Distribution Changes
with ChangeGPS
Trust Distribution tools in Core allow you to
De-risk your practice
with a client rejection email, specifically designed for Trust Distributions.Easily educate your clients
on the risks and benefits of your Trust Distribution advice using our templated VPP (Value, Plan, Price) email.Manage key tasks efficiently
and increase service delivery with a simple data entry process that results in elegant reports to share with your clients.
Flexibility to Accurately Distribute
The Trust Distribution application allows you to enter distribution amounts as either dollars, percentages, or as text, giving you the flexibility needed.
Quick & Easy Reports
Get started from scratch with the wizard, or update a previous report for quick and professional-looking reports.
Keep On-Brand
The letterhead and report are white labelled for your firm, meaning your clients are seeing you and keeping your advice on-brand.
We’ve developed the tools you need to help you navigate these changes with ease.
- Explain to clients that the preparation of a Trust Distribution Resolution is an additional and essential service
- Reprice Trust Distribution Resolution services and clearly explain why the pricing needs to change
- De-risk yourself and your client in line with “Owies case”.
- Help Client Success Coordinators manage the signing process before 30 June 2023
- Plan your Trust Distribution process to accommodate Section 100A changes