In this episode of Generations, Peter Leggett speaks with tax specialist and Principal at Scheiber Partners, Robert Scheiber, about the ATO’s increasing focus on Family Trusts, particularly Section 100A, and what it means for families managing intergenerational wealth. The big shift is that trust distributions can’t just be “paper” outcomes for tax purposes: if income is distributed to a beneficiary, that beneficiary must genuinely receive the benefit.

Robert also highlights that common structures (like distributing to a corporate beneficiary, often casually called a “bucket company”) can attract extra scrutiny and introduce additional rules and risks. The message is to be proactive: review trust deeds and distribution practices well before 30 June, confirm who really controls the trust (appointor/trustee), and make sure estate planning documents, especially powers of attorney, are current.

Key takeaways from the conversation:

Section 100A is in the spotlight: distributions must be real, not just documented.
Match paperwork to reality: resolutions, records, and payments need to align.
Understand your Trust Deed: ensure the trust is still fit for purpose.
Check control roles: appointor and trustee arrangements matter.
Be careful with corporate beneficiaries: added complexity (including Division 7A considerations).
Start early: review from March/April, not at tax time.
Keep estate docs updated: especially Powers of Attorney and Wills.

If your family or business uses trust structures, this episode is a timely prompt to ask better questions, tighten documentation, and get ahead of compliance risk, so your strategy supports both today’s tax obligations and tomorrow’s succession goals.

General Advice Warning:
Any general advice on this page does not take account of your personal objectives, financial situation and needs, and because of that, you should, before acting on the advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. Information contained on this page was correct at the time of posting.