A discretionary trust is the most flexible structure in Australian tax and the most frequently mishandled. Distributions made the same way every June. A family trust election made years ago and never revisited. Cash from the children’s distributions flowing back to the parents, year after year, without anyone asking whether section 100A applies. A corporate beneficiary with an unpaid present entitlement growing quietly on the balance sheet.
The ATO’s position on section 100A, and the High Court’s June 2026 decision in Bendel on how unpaid present entitlements sit with Division 7A, have changed what a careful trustee has to do each year. The resolution on the desk at 30 June now has to say the right things, be made in time, and be matched by what the cash actually does afterwards. Where a family trust election or a loan arrangement is relevant, we explain why, and which parts are law and which are our way of managing the risk.
We run the trust’s accounts and tax, prepare the resolutions properly and in time, and review the trust itself: the deed, the election, the appointor succession and the vesting date, before a buyer, an audit or a family change forces the question.
What’s included
The trust, the deed and the distributions, each read properly.
The annual cycle done well, and the structural review most trusts never get.
Trust accounts and tax return
Financial statements and the trust tax return, with distributions, franking credits and capital gains streamed correctly where the deed allows it.
Trustee resolutions before 30 June
Distribution modelling in May, resolutions drafted to say what the law and the deed require, signed before year end, with what happens to the cash agreed and recorded.
Section 100A review
The trust's distribution pattern read against the ATO's ruling and the risk zones in its compliance guideline, with an honest view of where the historic position sits and what to change.
Family trust election and family group
Whether an election is in place, whether one is needed at all, and if it is, the test individual checked and every intended beneficiary confirmed inside the family group before a distribution is made.
Unpaid present entitlements and Division 7A
Corporate beneficiary entitlements documented and managed properly: Bendel means a mere unpaid entitlement is not a Division 7A loan, but Subdivision EA and section 100A still apply. We agree and document what happens to the entitlement.
Deed, appointor and vesting review
Whether the deed permits streaming and what the family now wants, who the appointor is and who follows them, and how close the vesting date really is.
Who it’s for
Families with a trust that has been running for a while.
Business families with a trading trust, a property trust or a bucket company above them. Second-generation groups where the parents are stepping back. Trusts set up by a previous accountant with a deed nobody has read since.
It is also for new trusts, set up properly from the first distribution, so none of the above becomes a problem later.
How we approach it
Read the deed. Model May. Resolve June. Review.
- 01
Read the deed first
Streaming powers, appointor provisions, the family group and the vesting date, before any resolution is drafted.
- 02
Model and resolve
Distributions modelled across the beneficiaries' positions in May, resolutions drafted and signed before 30 June, cash moved to match.
- 03
Review the structure
A family group memorandum covering the election, section 100A, unpaid entitlements, succession and vesting, updated as the family changes.
FAQ
Common questions.
If yours isn’t here, ask it on the first call. Thirty minutes, no fee.
When does the trustee resolution have to be made?
Before the end of the income year, 30 June for most trusts, unless the deed requires earlier. A resolution made in July does not work. We model in May and sign in June.
Is distributing to our adult children a problem?
Not in itself. It becomes a section 100A question when the child is presently entitled on paper but the economic benefit goes to someone else. The facts of the cash flow matter more than the resolution.
Our trust distributes to a company. Is the unpaid amount a Division 7A loan?
The High Court decided in Commissioner of Taxation v Bendel on 10 June 2026 that it is not: a trustee that simply has not paid a corporate beneficiary's entitlement has not made a loan. That removes the Division 7A deemed-dividend risk on the entitlement itself, but Subdivision EA and section 100A are unaffected and the ATO's response is still unfolding. We document the entitlement properly and keep the cash flows clean either way.
Can we change the deed?
Usually, within the deed's own amendment power, and sometimes it is essential. An amendment that goes too far can resettle the trust, so it is done with a lawyer and with the tax consequences checked first.
How do you charge?
A fixed annual fee for the trust's accounts, return and resolutions, and a fixed fee for the family group review when it is needed.
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