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Attribution Percentage

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Summary of attribution percentage

Attribution of the assets and income of controlled private trusts and controlled private companies should be determined with reference to the individual(s), or members of a couple who control the structure.    

When making a decision as to the percentage of a structure to attribute to a stakeholder, the delegate must refer to the relevant (attribution) decision-making principles.    

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Legislation Library - Commission Determinations

Attribution of Assets – Principles 2001

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In summary, the delegate is required to consider:

Attribution percentage – different categories of involvement

When determining the attribution percentage to an individual(s) of a controlled private trust or controlled private company the assessor should also have regard to the following:

If the individual(s) is/are....

then....

a sole attributable stakeholder of a controlled private company or controlled private trust (other than a concessional primary production trust)    

VEA ?

Direct control interest of a company

Section 52ZZF VEA

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attribute 100% of the assets AND income of the structure to the sole attributable stakeholder.

members of a couple who are the only attributable stakeholders of a controlled private company or a controlled private trust (other than a concessional primary production trust)    

attribute 100% of the assets AND income of the structure to the couple (in the percentage determined by the level of control exhibited by each member of the couple).

multiple stakeholders of a controlled private company or a controlled private trust (other than a concessional primary production trust)

attribute the assets AND income of the structure to the stakeholders in the percentage determined by the level of control they exhibit.

For example, 2 persons with control powers = 50% each or 3 persons with control powers = 33.33% each.

(Although unusual the percentage need not be an equal amount eg 60/40%).

Delegate discretion to determine lower attribution amount

The delegate, however, may determine that the attribution percentage of an individual may be reduced to any percentage lower than 100%, including 0%, for example, where the trust is a concessional primary production trust. Note that in some rare situations or situations involving primary production concessions, an attributable stakeholder's asset attribution percentage and income attribution percentage need not be the same percentage.


An asset means any property, including property outside Australia.

According to section 5H of the VEA income is:

  • an amount earned, derived or received by a person for the person's own use or benefit;
  • a periodical payment by way of gift or allowance; or
  • a periodical benefit by way of gift or allowance.

 

 

According to section 52ZZH of the VEA, a trust is a controlled private trust in relation to an individual if the company is a designated private trust and the individual passes either the:

 

 

According to section 52ZZC of the VEA, a company is a controlled private company in relation to an individual if the company is a designated private company  and the individual passes either the:

 

 

According to Section 5E(2) of the VEA a person is a member of a couple, if they are:

  • legally married to another person and is not living separately and apart from the other person on a permanent basis; or
  • living in a prescribed registered relationship with the other person (whether of the same sex or a different sex) and is not living separately and apart from that other person on a permanent basis; or
  • all of the following conditions are met:
  • living with another person, whether of the same sex or a different sex;
  • not legally married to that person;
  • in a de facto relationship with that person; and
  • not in a prohibited relationship

The term “partnered” is also commonly used.

Control includes control as a result of, or by means of, trusts, agreements, arrangements, understandings and practices, whether or not having legal or equitable force and whether or not based on legal or equitable rights.

Company has the same meaning as in the Income Tax Assessment Act 1997.

 

 

Control includes control as a result of, or by means of, trusts, agreements, arrangements, understandings and practices, whether or not having legal or equitable force and whether or not based on legal or equitable rights.

If the individual is an attributable stakeholder of the trust or company, the individual's asset attribution percentage in relation to the trust or company is:

  • 100%, or
  • a lower percentage if the Commission determines otherwise.

 

 

If the individual is an attributable stakeholder of the trust or company, the individual's income attribution percentage in relation to the trust or company is:

  • 100%, or
  • a lower percentage if the Commission determines otherwise.