Summary table of assessable income for pensions
The following table summarises the assessment of income from discretionary and non-discretionary trusts. Assessable income from only one or the other kind of trust is covered elsewhere in this section.
|
Assessable Income |
Description |
|
Trust profit |
The trust's profit is not assessed. Only income paid to the person and deeming are assessed. |
|
Distributions |
The distributions are maintained as income for 12 months from the date of resolution to distribute. Distributions are shown in the:
Imputation credits paid with distributions are income for the purposes of the pension income test. |
|
Unpaid distributions (Distributions not received by the beneficiary but held in the trust.) |
Not a financial investment, and therefore, not subject to deeming. |
|
Wages or salary |
The trust may pay wages or salary to the person. As with any wages or salary, the amount assessed as income is the current rate of earnings converted to an annual figure. |
|
Loan to trust |
The balance is added to the person's other financial assets and is subject to deeming. |
|
Assets gifted to the trust |
Deeming provisions apply and deprived assets are maintained in the assessment. |
|
Managed investments and shares sold/transferred to the trust |
Deemed income is assessed in respect of any deprivation, if the person has not received adequate financial consideration. |
|
Consultant's fees |
Are assessed as the:
|
|
Fees paid for the use of plant or equipment owned by a person |
Are assessed as income. |
|
Rent paid to a person |
Is assessed as rental income. Allowable deductions reduce the assessable amount. |
|
Trustee's remuneration |
Is assessed as the amount stated on the most recent:
|