Trusts and companies - concessions and exceptions 043-04110000

Income and assets held by private companies and private trusts are generally treated as belonging to the customer who controls the trust or company. Concessions available include:

• primary production concessions
• savings provisions for some trusts
• life interest concessions
• concessions for genuine investors
• pensions loan scheme
• assets hardship provisions

Only the Complex Assessment Officer (CAO) has the delegation for making the attribution decision and all cases must be referred to the CAO.

Different rules apply to an approved Special Disability Trust (SDT). A SDT's income is exempt from the income test. The SDT's assets are exempt from the assets test as long as the assets are not over the concessional asset limit. Gifts to a SDT may be exempt from the deprivation provisions if the contributor is an immediate family member, of Age Pension age and the SDT concessional gifting cap is not exhausted.

There are different assessment rules depending on whether or not:

• the trust is a fixed (non-discretionary) trust set up before 7:30 pm Australian Eastern Standard Time (AEST) 9 May 2000
• a controller could not access trust capital/income as at 7:30 pm AEST on 9 May 2000
• the trust is a testamentary Trust
• the trust is a discretionary trust set up before 7:30 pm AEST on 9 May 2000 for individuals unable to handle their own financial affairs
• the trust is a fixed (non-discretionary) trust set up before 7:30 pm AEST on 9 May 2000 for individuals unable to handle their own financial affairs
• the trust is a trust set up after 7:30 pm AEST on 9 May 2000 for individuals unable to handle their own financial affairs
• the trust has limited appointorship concession for primary producers (limitations and exceptions apply)