KW Insights | Trustee Resolutions

Each year the Trustee of a Family Trust (also known as a Discretionary Trust) must make a resolution to distribute the income of the trust before 30 June.

If you are either a Director of a Trustee Company or are an Individual Trustee for a Family Trust (also known as a Discretionary Trust), you need to have prepared a Trustee Resolution and this is to be signed before the 30^th June each year.

If a Trustee fails to make a resolution to distribute the income of the Trust before the end of the financial year, the Trustee may be assessed by the Australian Taxation Office (ATO) on the Trust income at the highest marginal tax rate of 47%, rather than the intended beneficiary(s) being taxed at generally much lower rates.

To discuss all matters related to your Trust and the Trustees Resolution, please do not hesitate to contact your trusted advisor at King and Whittle.