Private ruling: Trust resettlement
Date of advice: 24 September 2021
Published: December 2021
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 in section 104-55 or section 104-60 of the Income Tax Assessment Act 1997 to occur? | 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 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 was established by Deed on XXXX. The trustee proposes to make a deed of variation in accordance with a clause in the Trust Deed with provides broad powers for the Trustee to make changes to the Trust Deed. The proposed changes are a valid exercise of power by the Trustee. The prosed changes do not result in a CGT event happening.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-55 | Income Tax Assessment Act 1997 section 104-60 | Income Tax Assessment Act 1997 section 102-20


This ruling applies for the following period: