Extra tax burden for family trusts

Family trusts have been the preferred way for most families to build businesses and hold investments for many years.  Legislative changes and the formal reversal of ATO views (held for 12 years!) on the taxation of trusts will lead to more tax being paid by most family businesses and more complicated compliance requirements for all family trusts.   

These recent changes have been overshadowed in the media by the resources super tax debate but there is no doubt that the impact of the changes to the taxation of trusts will be more significant for most Viewpoint readers than the resources super tax.  

Our June 2010 edition of Viewpoint provides a general overview of these changes to the taxation of trusts.  Your particular circumstances will determine what action is required. 

A reminder about intaxication.  As the financial year comes to an end, some taxpayers look forward with excitement to getting a tax refund.  This phenomenon is called intaxication. 

Intaxication is defined as follows:

1.  (n.) Euphoria at getting a refund from the ATO, which lasts until one realises it was one’s own money to start with.