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In the wake of this week’s Federal Budget, the Government has announced that it will remove the low income tax offset for minors on their unearned income; this will include income such as dividends, interest, rent and trust distributions from 1 July 2011.
This Government measure is to discourage income splitting, which has increased over the past few years with income being allocated to children especially from discretionary trusts. Trusts have previously been able to distribute up to $3,333 per child tax free.
Minor’s income earned from working will still be eligible for the low income tax offset as will unearned income of minors who are orphans or disabled.
The material and contents provided in this notification are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained by calling Collins Hume on 02 6686 3000.
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 Collins Hume is a CPA business |
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97 Tamar Street Ballina | 6 Lawson Street Byron Bay | Tel: 02 6686 3000 |
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