Private ruling: Section 100A - reimbursement agreements
Date of advice: 20 February 2025
Published: 31 March 2025
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will section 100A of the Income Tax Assessment Act 1936 (ITAA 1936) apply to the beneficiary's, present entitlement to trust income under the terms of the Trust Deed? | A1: No. The beneficiary of the Fist Family Trust Deed does not meet the pre-requisite requirements for section 100A to apply due to them being a minor, who is under legal disability. The beneficiary is excluded from the application of section 100A in accordance with paragraph 100A(1)(a) of the ITAA 1936.

Relevant facts and circumstances: On XX XX 20XX, you completed a Deed to establish a Trust (the Trust). A beneficiary of the Trust is your child (Person A). Person A is XX years old and has received a formal diagnosis of a disability. A company (the Company) is the trustee of the Trust. Person B is the Director of the Company. The Trust distributes funds to a bank account for Person A, to pay for items directly attributable to Person A alone. Any remaining amounts will be reinvested under Person A's name.

Relevant legislative provisions: Income Tax Assessment Act 1936 section 100A