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Resources on demand

Section 100A – when is a trust distribution a reimbursement agreement and when is it excluded as an ‘ordinary family or commercial dealing’?

[Running time: 1 hr 30 mins]



If the word on the street is correct, section 100A will soon become the ATO’s next major target for its audits on trust distributions. Broadly, section 100A can apply when one beneficiary is made presently entitled to trust income, but another beneficiary (or the trustee) gets the benefit of that trust income – and one of the purposes of the arrangement is to pay less tax. Expect arrangements involving UPEs, distributions to adult children and distributions to loss entities to fall under the ATO’s microscope. However, there is some respite: an ‘ordinary family or commercial dealing’ is excluded from section 100A.

In this webinar, our partner Fletch Heinemann will work through a series of case studies to discuss:

  • the ATO’s current position on when section 100A applies
  • what is covered by the exclusion for an ‘ordinary family or commercial dealing’
  • arrangements involving UPEs, including when they are ‘assigned’ or ‘gifted’ or set-off against other obligations
  • relevant guidance from the cases
  • managing the risks of section 100A – particularly in the context of the ATO having an unlimited period to review.

After this webinar, you should be able to identify section 100A issues and help clients prepare for any ATO audit activity.