Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_6:p29
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 29/63)
Character Range: 411311–413943

of a payment (the actual payment) made by the trustee of a trust in relation to an income year is a fund payment in relation to that year:

      Method statement
           Step 1. Reduce the actual payment by so much of it that is attributable to excluded amounts, and increase it by any amounts to which subsection (2A) or (2B) applies for the income year (except to the extent that capital gains against which those amounts are applied are included in the actual payment made in relation to the income year).
           Step 2. Work out what it is reasonable to expect will be the *net income of the trust for the income year:

                (aa) increasing the net income by any amounts to which subsection (2A) or (2B) applies for the income year; and
                (a) disregarding (except to the extent that they are amounts to which subsection (2A) or (2B) applies for the income year) excluded amounts, expected excluded amounts and deductions relating to those amounts; and
                (b) on the basis that a *capital gain from *taxable Australian property of the trust that was or would be reduced under step 3 of the method statement in subsection 102‑5(1) of the Income Tax Assessment Act 1997 were double the amount it actually is.

           Step 3. The fund payment is so much of the step 2 amount as is reasonable having regard to:

                (a) the object of this section; and
                (b) the step 1 amount; and
                (c) the amounts of any earlier fund payments made by the trustee in relation to the income year; and
                (d) the expected amounts of any later fund payments the trustee expects to make in relation to the income year.
 (2A) If:
 (a) during an income year, a *capital loss from a *CGT event happens in relation to a *CGT asset that is not *taxable Australian property; and
 (b) in relation to that income year, some or all of the capital loss is applied against a *capital gain from a CGT event that happens in relation to a CGT asset that is taxable Australian property;
this subsection applies, for that income year, to the amount that is so applied.
 (2B) If:
 (a) the trust has a *net capital loss for an income year; and
 (b) one or more of the *capital losses the trust made during that income year were from *CGT events that happened in relation to *CGT assets that were not *taxable Australian property; and
 (c) in relation to a later income year, some or all of the net capital loss is applied against a *capital gain from a CGT event that happens in relation to a CGT asset that is taxable Australian property;
this subsection applies,