Private ruling: Assessable Income
Date of advice: 7 April 2026
Published: 29 June 2026
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the payment you received in accordance with the Family Court order dated DDMMYYYY, that was recorded by the Trustee for Trust C as a distribution to you of a franked dividend of $XX,XXX.XX with franking credits of $X,XXX.XX, treated as assessable income? | A1: Yes

Relevant facts and circumstances: The following documents provided with respect to the application for private ruling, form part of, and are to be read with, the description of the facts and circumstances set out below: • The Minute of Final Orders made by Consent between you as Applicant X and your former spouse as Respondent Y dated DDMMYYYY (the Orders) • The Trustee Resolution by the Trustee for Trust C dated DDMMYYYY detailing distributions of income (the Distribution Resolution) • The Notice of Resignation of Appointer dated DDMMYYYY signed by you • The Notice Removing you as Trustee dated DDMMYYYY • The Trustee Resolution by the Trustee for Trust C dated DDMMYYYY removing you as a primary beneficiary of Trust C • The Change to Company Details for Business A (the Business) dated DDMMYYYY The Orders detail the property settlement between you and your former spouse on the dissolution of your marriage. The Distribution Resolution was signed by both you and your former spouse as trustees and states that the trustee resolved to distribute income as follows: Franked income as at DDMMYYYY Taxable income Franking Credits You $ XX,XXX.XX $ X,XXX.XX Company D $XXX,XXX.XX $XX,XXX.XX After the Distribution Resolution was made, you resigned as an appointor, and was removed as a trustee and primary beneficiary, of Trust C. Also, you resigned as a director of the Business and the title to the shares in the Business was transferred from the names of both you and your former spouse as trustees of Trust C to only their name as trustee of Trust C.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 207-35 | Income Tax Assessment Act 1997 section 207-37 | Income Tax Assessment Act 1997 Subdivision 207-B

Reasons for decision: Summary: As the payment to you was recorded by the Trustee of Trust C as a distribution to you of a franked dividend (that is, as a dividend streamed to you), it is included in your assessable income by Subdivision 207-B of the Income Tax Assessment Act 1997 (ITAA 1997), specifically sections 207-35 and 207-37 of the ITAA 1997. There are no tax provisions that exclude a streamed dividend from a recipient beneficiary's assessable income. The only tax provisions that deal with marriage breakdown are contained in Subdivision 126-A of the ITAA 1997 which may provide a Capital Gains Tax (CGT) roll-over where there is a capital gain on the transfer of a CGT asset due to a marriage breakdown. It does not apply to the receipt of a dividend or streamed dividend. Therefore, you must include the franked dividend streamed to you as assessable income. You are entitled to the benefit of the franking credits associated with the franked dividend.