With the modernization of trust administration systems (MTAS) effective as of July 1, 2024, the Australian Taxation Office (ATO) released a guide on changes to income tax reporting for trustees and trust beneficiaries.
- For trustees, the ATO amended the trust tax return statement of distribution that will provide beneficiaries with the information they need to complete their trust income reporting obligations.
- For trust beneficiaries, the ATO advises that the trust income schedule needs to be filed with their tax return. Trust beneficiaries also need to include the information from their trust’s completed statement of distribution in their trust income schedule.
- For trust beneficiaries that received a distribution of trust income from a managed fund, the trust income schedule instructions will explain how the information on the tax statement provided by the managed fund needs to be reported on the trust income schedule.