• Trust distribution resolutions should be put in place by June 30. If you are considering making a distribution to a new beneficiary in 2016 you will also need to report the tax file number to the ATO by 28 July. Also, if a distribution is to be made to a beneficiary who has turned 18 during the year, the tax file number of the beneficiary will need to be reported for the first time.
  • A trustee making a distribution to a charity needs to either pay or advise the recipient of the distribution amount to the charity during the financial year, or no later than two months after the end of the financial year. Failure to do so has significant adverse tax consequences.
  • If your entity structure is a trust, then it is crucial that your trustee resolution to appoint or distribute income to beneficiaries is effective as at 30 June 2016. This means that tax planning for trusts should be done as soon as possible to ensure the resolution can be made with tax effective considerations in mind and also finalised/documented prior to 30 June.

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