Private ruling: : CGT- trust resettlement
Date of advice: 11 November 2025
Published: 5 January 2026
Ruling period: Year ending 30 June 20YY
Date scheme commenced: DD June 202YY

Ruling: Q1: Will the execution of the Deed of Variation and the subsequent execution of the Deed of Appointment of Distributors cause to happen: 1) a CGT event E1 in section 104-55 of the Income Tax Assessment Act 1997 (ITAA 1997); and /or 2) a CGT event E2 in section 104-60 of the ITAA 1997? | A1: No. | Q2: Will the division of the Relevant Distributable Income and Relevant Distributable Capital into shares and the appointment of the Distributors to each share cause to happen: 1) a CGT event E1 in section 104-55 of the ITAA 1997; and /or 2) a CGT event E2 in section 104-60 of the ITAA 1997? | A2: No.

Relevant facts and circumstances: The scheme that is the subject of this Private Ruling is identified and described in the following: • The xx xx Family Trust Deed dated DD MM YYYY. • Deed of Variation for xx xx Family Trust dated DD MM YYYY. • Unexecuted Deed of Variation for xx xx Family Trust received DD MM YYYY. • Unexecuted Deed of Appointment of Distributors for xx xx Family Trust received DD MM YYYY. It is proposed that the Trust Deed will be amended to facilitate the division of the Relevant Distributable Income and the Relevant Distributable Capital into shares, and the appointment of Distributors in relation to those shares The Trustee remains responsible for the relevant Distributable Income and Relevant Distributable Capital even after it has been divided into shares. Assumptions • All variations to the Trust Deed involve a valid exercise by the Trustee of its powers. • All deeds executed, and to be executed, involve a valid exercise of powers under the xx xx Family Trust Deed.

Relevant legislative provisions: Income Tax Assessment Act 1997 Division 104 | Income Tax Assessment Act 1997 section 104-55 | Income Tax Assessment Act 1997 subsection 104-55(1) | Income Tax Assessment Act 1997 subsection 104-60 | Income Tax Assessment Act 1997 subsection 104-60(1)

Reasons for decision: Summary: The implementation of the proposed variations without any additional steps or transactions undertaken sometime in the future, will not result in a new trust being created. Neither CGT event E1 nor CGT event E2 will occur at this point. | Detailed Reasoning - Detailed reasoning: It is assumed the proposed Deed of Variation will be a valid exercise by the Trustee of its powers. It is also assumed the appointment of Distributors under the proposed Deed of Appointment of Distributors will be a valid exercise of power by the Appointors. The execution of those deeds will not cause the Trust to terminate or a new trust to be created because they will not cause any asset of the Trust to be subject to a separate charter of rights and obligations such as to give rise to a conclusion that trust assets have been settled on the terms of a different trust. Furthermore, the changes effected by those deeds will not cause any trust assets to be transferred to a separate, already existing, trust. Therefore, neither CGT event E1 in section 104-55 of the ITAA 1997, nor CGT event E2 in section 104-60 of the ITAA 1997, will happen as a result of the deeds being executed. The division of the Relevant Distributable Income and the Relevant Distributable Capital into shares, and the appointment of Distributors in relation to those shares, will not alter the fact that the Trustee continues to hold the trust assets and continues to have obligations and indemnity rights in relation to those assets. The Trust will continue as one trust for the benefit of the same beneficiaries and will not split. Furthermore, the division of the Relevant Distributable Income and Relevant Distributable Capital and appointment of the Distributors will not cause any trust assets to be transferred to a separate, already existing trust. Therefore, neither CGT event E1 in section 104-55 of the ITAA 1997, nor CGT event E2 in section 104-60 of the ITAA 1997, will happen as a result of the division of the Relevant Distributable Income and the Relevant Distributable Capital into shares, and the appointment of Distributors in relation to those shares. The implementation of the proposed variations, without any additional steps or transactions undertaken sometime in the future, will not result in a new trust being created. Neither CGT event E1 nor CGT event E2 will occur at this point.

Does IVA apply to this private ruling?: Part IVA of the Income Tax Assessment Act 1936 contains anti-avoidance rules that can apply in certain circumstances where you or another taxpayer obtains a tax benefit, imputation benefit or diverted profits tax benefit in connection with an arrangement. | If Part IVA applies, the tax benefit or imputation benefit can be cancelled (for example, by disallowing a deduction that was otherwise allowable) or you or another taxpayer could be liable to the diverted profits tax. | We have not fully considered the application of Part IVA to the arrangement you asked us to rule on, or to an associated or wider arrangement of which that arrangement is part. | If you want us to rule on whether Part IVA applies, we will need to obtain and consider all the facts about the arrangement which are relevant to determining whether Part IVA may apply. | For more information on Part IVA, go to our website ato.gov.au and enter 'part iva general' in the search box on the top right of the page, then select 'Part IVA: the general anti-avoidancerule for income tax'.