Document ID: chunk:federal_register_of_legislation:C2025C00014:section:102ag:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 102AG (pt 1/5)
Character Range: 804676–807242

102AG  Trust income to which Division applies
 (1) Where a beneficiary of a trust estate is a prescribed person in relation to a year of income, this Division applies to so much of the share of the beneficiary of the net income of the trust estate of the year of income as, in the opinion of the Commissioner, is attributable to assessable income of the trust estate that is not, in relation to that beneficiary, excepted trust income.
 (2) Subject to this section, an amount included in the assessable income of a trust estate is excepted trust income in relation to a beneficiary of the trust estate to the extent to which the amount:
 (a) is assessable income, of a kind covered by subsection (2AA), of a trust estate that resulted from:
 (i) a will, codicil or an order of a court that varied or modified the provisions of a will or codicil; or
 (ii) an intestacy or an order of a court that varied or modified the application, in relation to the estate of a deceased person, of the provisions of the law relating to the distribution of the estates of persons who die intestate;
 (b) is employment income;
 (c) is derived by the trustee of the trust estate from the investment of any property transferred to the trustee for the benefit of the beneficiary:
 (i) by way of, or in satisfaction of a claim for, damages in respect of:
 (A) loss by the beneficiary of parental support; or
 (B) personal injury to the beneficiary, any disease suffered by the beneficiary or any impairment of the beneficiary's physical or mental condition;
 (ii) pursuant to any law relating to worker's compensation;
 (iii) pursuant to any law relating to the payment of compensation in respect of criminal injuries;
 (iv) directly as the result of the death of a person and under the terms of a policy of life insurance;
 (v) directly as the result of the death of a person and out of a provident, benefit, superannuation or retirement fund;
 (vi) directly as the result of the death of a person by an employer of the deceased person;
 (vii) out of a public fund established and maintained exclusively for the relief of persons in necessitous circumstances; or
 (viii) as the result of a family breakdown (see section 102AGA);
 (d) is derived by the trustee of the trust estate from the investment of any property:
 (i) that devolved for the benefit of the beneficiary from the estate of a deceased person;
 (ii) that was transferred to the trustee for the benefit of the beneficiary by another person out of property that devolved upon that other person from the estate of a deceased