A More Workable Approach For Fixed Trusts: Discussion Paper

We welcome the opportunity to make a submission to the Australian Treasury on the discussion paper titled "A more workable approach for fixed trusts" ("the Discussion Paper").

Moore Stephens commends the Federal Government on their initiative to resolve the uncertainty that currently exists around the tests that determine whether a trust is a 'fixed trust'. We believe that this initiative, along with the balance of announced reforms relating to the taxation of trusts are important elements for the Australian managed funds industry.

Introduction

Under section 272-65 of Schedule 2F to the Income Tax Assessment Act 1936 (ITAA 1936), a trust is a fixed trust if persons have fixed entitlements to all of the income and capital of the trust.