New law to clarify uncertainty on streaming of capital gains and franked distributions -Tax Laws Amendment (2011 Measures No.5) Bill 2011

A new bill dealing with discretionary trusts in response to Bamford's case now has Royal Assent and will apply from the 2010-11 income year:

• seeks to provide certainty in relation to streaming of capital gains and franked distributions (including any attached franking credits); and
  
• introduces an anti-avoidance measure for distributions to exempt entities. 

Our discretionary trust deed has the necessary powers to allow trustees to stream capital gains, or franked distributions, to particular beneficiaries in the way clarified in the new law.  Ask us to help you establish or review your discretionary trust deed.