Private ruling: CGT - trust deed amendment
Date of advice: 16 December 2025
Published: 9 February 2026
Ruling period: year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will capital gains tax (CGT) event E1, CGT event E2, or CGT event E8 in sections 104-55, 104-60 or 104-90 of the Income Tax Assessment Act 1997 (ITAA 1997) happen as a result of making the Proposed Amendments to the Trust Deeds for the Trusts? | A1: No

Relevant facts and circumstances: 1. The arrangement relates to the following entities (together, the Trustees and Trusts): • Trust A • Trust B • Trust C 2. The Trustees intend to exercise their powers under the deeds by which the Trusts were established (Trust Deeds) to amend their respective Trust Deeds in the manner set out below (Proposed Amendments). 3. The Proposed Amendments to the Trust Deeds of each of the Trusts is for: a) the replacement of AA with BB as one of the beneficiaries of each of the Trusts; and b) various additional amendments (Administrative Changes), including, but not limited to: amendments to redefine 'Divisions' in Trust A and the distribution of income c) record the decision of the trustee of Trust B to establish additional membership divisions (Divisions), each with their own Division sponsor, and to re-name other existing Divisions; and d) other amendments including minor changes to definitions and the correction of typographical errors. 4. Trust A has ceased taking contributions from contributors. 5. The Proposed Amendments will be carried out in accordance with the requirements of the Trust Deeds. Assumption 6. The Trust Deeds will be amended pursuant to a valid exercise of the variation powers contained within each Trust's constituent document

Relevant legislative provisions: Income Tax Assessment Act 1997 Division 104 of Part 3.1 | Income Tax Assessment Act 1997 section 108-5 | Income Tax Assessment Act 1997 subsection 104-10(2) | Income Tax Assessment Act 1997 section 104-55 | Income Tax Assessment Act 1997 subsection 104-55(1) | Income Tax Assessment Act 1997 section 104-60 | Income Tax Assessment Act 1997 Subsection 104-60(1) | Income Tax Assessment Act 1997 section 104-90

Reasons for decision: Summary: The Proposed Amendments to the Trust Deeds of each of the Trusts are being implemented to: • replace certain beneficiaries of each of the Trusts; • variously make administrative changes, including, but not limited to, amendments to record the decision of the trustee of Trust B to establish additional membership divisions, each with their own Division Sponsor, and to re-name other existing Divisions; and • make minor changes to definitions and the correction of typographical errors The Proposed Amendments to the Trust Deeds will not cause a termination of the Trusts (and the creation of a new trusts) nor are the Trusts' asset's being subject to a separate charter of rights and obligations. CGT events E1 and E2 will not happen with the amendment of the Trust Deeds. As the relevant beneficiary's interest in each of the Trusts did not constitute a vested and indefeasible interest in the trust capital, CGT event E8 does not apply to their removal as a beneficiary. | Detailed Reasoning - Detailed reasoning: CGT event E1 or E2 The application of CGT event E1 or E2 to the amendment of a trust deed will generally turn on questions of trust law, concerning the scope of the variation power in the trust instrument. Subsection 104-55(1) of the ITAA 1997 provides that CGT event E1 happens if a taxpayer creates a trust over a CGT asset by declaration or settlement. Subsection 104-60(1) of the ITAA 1997 provides that CGT event E2 happens when a taxpayer transfers a CGT asset to an existing trust. As detailed in the facts, although subject to conditions, the Trust Deeds provide the Trustees with broad powers to amend the provisions of the Trust Deeds at any time by deed. The Proposed Amendments to the Trust Deeds are also considered to fall within the scope of the Trustees' powers of amendment provided for in the Trust Deeds. In addition, the Proposed Amendments are not considered to fall within the specific restrictions on the powers of variation set out in the Trust Deeds. Accordingly, execution of the Proposed Amendments is considered a valid exercise of the Trustee's powers of amendment. Consequently, the Commissioner considers that, following the execution of the Proposed Amendments to amend the terms of the Trust Deeds, there will be the requisite continuity: • of the Trusts property; in the membership of the Trusts (apart from the exclusion of various potential beneficiaries under the Trust Deeds); and • in the operation of the Trusts. Therefore, executing the proposed deeds of variation to amend the Trust Deeds pursuant to a valid exercise of the amendment power in the Trust Deeds would not cause either CGT event E1 or CGT event E2 to happen in relation to those Trust Deed amendments. CGT event E8 Section 104-90 of the ITAA 1997 provides that CGT event E8 happens when 3 conditions are met: 1) you are the beneficiary under a trust (except a unit trust or a trust to which Division 128 applies) 2) you didn't give money or property to acquire (the CGT asset that's) your interest in the trust capital (and you didn't acquire it by assignment) 3) you dispose of the interest or part of it (but not to the trustee) No beneficiary has an interest in the Trusts that constitutes a vested and indefeasible interest in the trust capital. For reasons described above the Proposed Amendments do not result in the transfer of, or appointment of a new trustee over (by way of declaration or resettlement) any of the assets of the Trusts, and they do not result in the beneficiaries becoming entitled to a vested and indefeasible interest in any trust capital. Therefore, the making of the Proposed Amendments will not cause CGT event E8 to happen. Conclusion The Proposed Amendments to the Trust Deeds will not cause CGT events E1, E2 or E8 to happen.

Does Part 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/gaar .