Private ruling: Income - interest
Date of advice: 29 June 2018
Published: September 2018
Ruling period: Year ended 30 June 20xx | Year ended 30 June 20xx | Year ended 30 June 20xx | Year ending 30 June 20xx | Year ending 30 June 20xx | Year ending 30 June 20xx | Year ending 30 June 20xx
Date scheme commenced: 1 July 20xx

Ruling: Q1: Are you assessable on the interest income received from a number of bank accounts that are held on trust by you for a family member? | A1: No .

Relevant facts and circumstances: A family member receives a disability pension. The family member has shown they are unable to manage their own finances. You have enduring power of attorney and guardianship over your family member. A government agency has appointed you as a nominee for the family member. The government agency has agreed to transfer your family member’s disability pension into an account held in your name. This account is used by you to pay the family member’s bill. You transfer an amount from this account to the family member’s bank account so the family member can purchase food and to live on. Your family member also has other funds held in a number of accounts in your name. These funds were inherited by your family member from a deceased estate. Your family member has requested that you continue to manage their finances to avoid stress, confusion and health problems the family member has experienced in the past from attempting to manage their own finances. You were previously issued with two private ruling (the Rulings). The Rulings confirmed the following: ● You hold the funds that were inherited from the deceased estate and your family member’s disability pension in trust for the family member. ● Your family member has a vested, indefeasible and absolute interest in these funds. ● You have no beneficial entitlement to the interest income derived from the funds invested from the estate of the decease and the disability pension.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 106-50.

Reasons for decision: Summary: Are you assessable on the interest income received from a number of bank accounts that are held on trust by you for a family member? No, as you have no beneficial entitlement to the interest income derived from the funds invested in these accounts t hat are held on trust by you for your family member.