Dated: 20 December 2010
The Tasmanian Farmers and Graziers Association today welcomed the Australian Government’s foreshadowed move to clarify the law applying to the tax on income from trusts, which has particular application for 23,000 Australian farmers, including many in Tasmania.
Adopting the Henry review recommendations, the Government says it will rewrite the rules on income streaming, capital gains and franked dividends distributed by trusts.
TFGA chief executive Jan Davis said the major problem had been that the trusts had been placed at a disadvantage to partnerships and sole traders, particularly in light of some serious implications from the Bamford case in the High Court in March. That case concerned the degree to which the income from trusts was assessable.
“The main point that has been clarified is that beneficiaries of trusts will be able to continue to use the primary production averaging and farm management deposits provisions in a loss year,” she said.
“Farmers welcome the move and also the announcement by Assistant Treasurer Bill Shorten that the Government will look to simplify the trust system, rewrite the rules and give more certainty to small businesses and farmers who use trusts.”
Jan Davis http://www.tfga.com.au/
