The family group paper

Published on 26 Jul 05 by NEW SOUTH WALES DIVISION, THE TAX INSTITUTE

When making a family trust election, determining who will be included in the family group is critical. This paper outlines who will be in the group, who will not be in the group, and when people and entities will shift from being in the group to being outside of it. As the impact of not properly identifying the group can be that the trustees of the trust, or the directors of the corporate trustee, can be personally liable for 48.5% tax on distributions to entities outside the group, this issue has a significant impact on the administration of a trust that will be making, or has made, a family trust election. Matters covered include:

• what is the family group?
• why is it important?
• who is in?
• who is out?
• illustrations of both.

Author profile

Mariana von Lucken CTA

Mariana is a Tax Partner with HLB Mann Judd, and advises a wide range of clients that need assistance on a wide range of tax topics, including R&D, early-stage innovation companies, employee shares/options for start-ups and FBT. In her commitment to give back to the tax profession, Mariana is involved with The Tax Institute’s Professional Development and Women in Tax committees. - Current at 13 January 2023

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