Trust Income Distributions
30 June 2023 is approaching fast! If you conduct your business or investments through a discretionary trust, you must make sure that you have a signed income distribution resolution for your trust prior to the stroke of midnight on 30 June.
If you don’t, the resolution is ineffective for tax purposes with the likely result that all of the taxable income of the trust will be assessed to the trustee of the trust at the highest marginal rate. This could mean thousands of extra dollars of tax to pay.
Generally, your accountant will send a trustee distribution for you to review & sign.
Most trust income distribution minutes are signed during the month of June each year. If you are a trustee, or control a trustee of a trust, make sure that you are available to sign minutes before the stroke of midnight on 30 June.
If you are considering on making a contribution into your Super fund to utilize a deduction – it would be wise to do this NOW as this contribution needs to show in your super account balance prior to 30 June for you to receive the deduction.
Most super funds have a cut off date, as they won’t guarantee to have it processed by 30th June.
Don’t forget to organise your notice of intent to claim – you maybe able to do this online or otherwise complete the below and forward it your super fund.
Click here to access a “Notice of Intent to claim a deduction for personal super” form
Reminder for employers:
The minimum superannuation guarantee (SG) rate is increasing from 10.5 per cent (for the financial year ending 30 June 2023) to 11 per cent from 1 July 2023 – hopefully your accounting software will process this automatically.
If you have any questions or concerns, please contact our office to chat to one of our accountants.
The team at Knox Taxation