A missing trust distribution resolution can cost you a lot of extra tax. All just because of a missing piece of paper.
Trust Distribution Resolution
A trust doesn’t pay tax. The beneficiaries do. And if there are no beneficiaries, then the trustee pays the tax.
The problem is that the trustee pays tax at the top marginal tax rates (45%). So never have the trustee pay the tax. But how?
You make sure that all trust income is distributed to beneficiaries on or before 30 June. And for that you need a trust distribution resolution before 30 June.
To help you with that, here is a sample text. Just copy and paste this trust distribution resolution – for a trust with a corporate trustee – and then adjust the details.
Quick disclaimer: We ain’t lawyers. So please just use this as food for thought and consult your lawyer.
Minutes of Trustee Resolution
The directors of
SAMPLE PTY LTD
ACN 123 456 789
Acting as trustee of the
SAMPLE FAMILY TRUST
Established by Deed dated 1 July 2017
Being John Sample (Chair) and Joanne Sample
Present at the location and as of the date noted below
Resolved in favour that the trust income for the current financial year, if any, as determined by the trustee in accordance with the deed, be distributed as follows:
1 – JOHN SAMPLE To receive 50% of ordinary trust income and any capital gains and proceeds from any sale of capital gassets.
2 – JOANNE SAMPLE To receive 50% of ordinary trust income and any capital gains and proceeds from any sale of capital gassets as well as 100% of any residual trust income (if any).
The Chair instructed the Secretary to do all things necessary to give effect to the resolutions passed at the meeting. There being no further business the Chair declared the meeting closed.
Signed as a true and correct record on 30 June 2025 at 10 Sample Road SAMPLETOWN NSW 1234.
And then you sign. That’s all. Do this on or before 30 June and it will save you a ton of tax each year.
Disclaimer: numba does not provide specific financial or tax advice in this article. All information on this website is of a general nature only. It might no longer be up to date or correct. You should contact us directly or seek other accredited tax advice when considering whether the information is suitable to your circumstances.
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