Today the Government has released a policy options paper that further progresses the Gillard Government's modernisation of the taxation of trust income.
"The release of this paper is a significant step towards creating a simpler and more streamlined system for the taxation of trusts", said Assistant Treasurer David Bradbury.
The Government received valuable feedback from stakeholders following the release of an initial consultation paper in November last year. The Government also released a discussion paper on options for a more workable approach for fixed trusts in July this year.
The policy options paper released today responds to community feedback and further develops the reform options to update and rewrite the trust income tax provisions.
Treasury will hold meetings with stakeholders before the close of written submissions. These meetings will provide a collaborative forum for stakeholders to work through the possible new models for taxing trust income and highlight any outstanding issues with their operation.
"I encourage all interested parties to participate in the consultation," said Mr Bradbury.
The policy options paper is available on the Treasury website. Submissions close on 5 December 2012