Private ruling: Trust resettlement
Date of advice: 31 August 2020
Published: October 2020
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the proposed amendments to the trust deed cause CGT event E1 or E2 to happen? | A1: No. The proposed amendments to the trust deed will not cause the trust to terminate or give rise to a particular asset of the trust being settled on terms of a different trust. The proposed amendments are considered within the powers of the trustee to amend as contained in the Trust Deed and therefore, will not cause CGT event E1 or E2 in section 104-55 or section 104-60 of the Income Tax Assessment Act 1997 to happen.

Relevant facts and circumstances: The Trust is a discretionary trust established by the Trust Deed. The Trust Deed contains a wide power of amendment. As part of property settlement proceedings, the trustee intends to: a) replace certain beneficiaries, and b) bring forward the vesting date of the Trust.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 104-55 | Income Tax Assessment Act 1997 Section 104-60