For more information, please refer to the instructions below:
The Trust Distribution minutes are ‘minutes’ made by the Trustee(s) in accordance with the Trust Deed so as to determine the allocation of the trust’s net income to its beneficiaries for the relevant financial year.
These distribution minutes are required by the ATO to be completed & signed by June 30 of that financial year (or earlier if required by the trust deed).
To start this process, you will need to click on the ‘Trust Distribution Minutes’ button under the 'Distributions' heading.
You will then be redirected to the relevant webform, to which the form will be pre-filled with the relevant data that has currently been added or imported into the trust profile of the trust. You will need to complete any data that has not been pre-filled. These data fields will be highlighted in pink. You cannot submit the webform until all relevant data fields have been completed.
Tip: To find the relevant clauses in relation the ‘Determination of income’ and/or the ‘Power to distribute income and classes of income, you will need to refer to the most current Trust Deed of the Trust.
If these clauses are not disclosed, the Trust Distribution minutes will insert the default wording. In relation to the ‘Determination of income under the Trust Deed’ the default wording is ‘in accordance with the Trust Deed’. The default wording is ‘Pursuant to the powers under the trust deed’ in relation to ‘Power to distribute income and classes of income’.
Distribution of income:
There are seven distribution types available to be selected:
§ Distribution of Franked Dividends
§ Distribution of Capital Gains
§ Distribution of Discounted Capital Gains
§ Under 18 (No Disability/No Testamentary or Will) Distribution
§ Under 18 (Disability/Testamentary or Will) Distribution
§ Balance of Trust Income – this option is automatically added when one of the above mentioned options are chosen and can be removed if required.
§ Custom Distribution – gives you the option to enter free text
After submitting the details, the relevant documentation will appear on the ‘collaboration page’ i.e.:
- Trustee Distribution minutes.
- Legal review certificate.
Tip: A ‘Burnings’ tab will appear on top of the ‘Trusts’ page during the period of 1 June to 1 July in the relevant financial year. This will highlight the trusts who still has outstanding ‘Trust Distribution Minutes’. Once this document has been signed for the trust, the trust will disappear from the ‘Burnings’ tab.