Federal Treasury has ramped up scrutiny of family trusts , revealing that about 1.7 million people received income of almost $60 billion from the tax-friendly trust vehicles. Trusts are often used by families, professionals, private businesses and farmers to protect assets and split investment income between beneficiaries, to take advantage of lower marginal tax rates .
About 11 per cent of taxpayers lodging a tax return reported trust income in 2020-21, Treasury said in its annual review of tax concessions released on Wednesday. The number of beneficiaries grew by 200,000 from a year earlier when Treasury first called out the growing use of trusts in itsmade the use of trusts for tax planning more attractive, due to the reinstatement of the 37 per cent rate for incomes above $135,000 and the top 45 per cent rate kicking in at $190,000 instead of $200,000. “The changes notably boost the incentive for higher income taxpayers to incorporate and/or adopt trust structures,” Mr Richardson sai
Source: Car News Wire (carnewswire.net)
Federal Treasury Family Trusts Income Tax-Friendly Beneficiaries Tax Planning Tax Rates
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