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ARTICLE · 31 MARCH 2022

It Depends – Is the ATO coming to help with section 100A?

Cooper Grace Ward
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The ATO guidance on s.100A reimbursement agreements and how it applies to distributions of income from family trusts.

AustraliaTax
Fletch Heinemann
Fletch Heinemann
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In this week's edition of 'It depends', partner Fletch Heinemann talks about the ATO's recent guidance in relation to section 100A reimbursement agreements and how it applies to distributions of income from family trusts.

Fletch will be presenting a webinar on this very topic on 28 March. Register now.

VIDEO TRANSCRIPT

Welcome to today's It depends. Today we're talking about the ATO's recent guidance in relation to section 100A reimbursement agreements and how it applies to distributions of income from family trusts.

What is Section 100A?

Section 100A is a specific anti-avoidance provision. So, it was introduced in the late 1970s to deal with a particular type of arrangement called trust stripping. But more recently the ATO has looked at applying section 100A to arrangements where there's distributions of trust income from a family trust to include where distributions are made to members in that family.

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