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Topic: Section 100A Issues For Accountants

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Section 100A Issues For Accountants
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What are the some of the issues for accountants with the ATO’s new guidelines on Section 100A?





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With the recent finalisation of ATO documents TR 2022/4 and PCG 2022/2 in relation to section 100A, accountants must now turn their minds to what this means for them in practice. It’s important that accountants become very familiar with these new ATO documents.

Gone are the days where accountants prepared poorly drafted income distribution minutes for their clients. Accountants now need to adopt the highest standard of trust documentation for their clients, including proper drafting of distribution minutes and communication in writing between trustees and beneficiaries. As well, there needs to be documentation to confirm that distributions to beneficiaries meet the requirements of the green zone as described in TR 2022/4 and PCG 2022/2 (refer paragraph 18 of the PCG).

The is no doubt that Section 100A and trust law is very complicated. This combined with the significant amounts of distributions made to beneficiaries each year can lead to potentially large negligence action and therefore place accountants in a very difficult position. Accordingly accountants must now more than ever consider obtaining legal advice from lawyers who understand trust law and the tax implications of trusts.



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