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.
Legislation Library - Commission Determinations
In summary, the delegate is required to consider:
- circumstances affecting the relationship with the company or trust,
- contribution to the company or trust,
- past benefit from distributions by the trust or company,
- future benefit from distributions by the company or trust,
- other benefit from the assets and income of the company or trust,
- any existing attribution for other companies or trusts.
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Legislation Library - Commission Determinations
Attribution of Assets – Principles 2001
Attributable Stakeholders and Attribution Percentages – Principles 05022001
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:
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If the individual(s) is/are.... |
then.... |
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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 |
attribute 100% of the assets AND income of the structure to the sole attributable stakeholder. |
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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). |
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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.