Attribution for private trusts and private companies 043-04030000

Steps the CAO will follow to determine the income and asset attribution percentages are as follows.

Establish the type of business structure. See Business structures and assessment.

Note: 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. This procedure does not cover SDTs.

Note: if the trust or company is located on the Managed Investment (MIN) or Shares (SIN) system then the company is not a private trust or private company.

• Yes, go to Step 3
• No, refer back to Service Officer to record details of income and assets on the customer record. Procedure ends here

Is the business a designated private trust or a designated private company (see Designated private companies or Designated private trusts)?

• Yes, go to Step 5
• No, go to Step 4

If the private trust or private company is not a designated private trust or designated private company then the customer's involvement in the company is not assessed in accordance with Social Security Act 1991, Part 3.18 - Means Test treatment of private companies and private trusts. That is, attribution does not apply. The private trust and company will still need to be recorded in the trust and company system in Environment A for Centrelink purposes. See Indexing, recording and reviewing organisations. The assessment of non designated private trusts and companies is detailed in Income and expenses of a business or Assets and liabilities of a business.

Procedure ends here.

Is the designated private trust or designated private company a controlled private trust or a controlled private company in relation to the individual (see Controlled private companies or Controlled private trusts)?

• Yes, see Step 1 in the Determine stakeholder attribution table
• No, go to Step 6

If the entity is not a controlled private trust or a controlled private company, the assessment of the customer's interest in the private trust or private company will be in accordance with pre 1 January 2002 rules for trusts and companies. See Income and expenses of a business or Assets and liabilities of a business.

Procedure ends here.

See Attributable stakeholders for private trusts or Attributable stakeholders for private companies.

• Yes, go to Step 3
• No, go to Step 2

The customer is not attributed with the income or assets of the company.

Actual income received from the entity (for example distributions from trust or dividend from a company) is assessed as income.

Procedure ends here.

Determine the attribution percentages of income and assets for the attributable stakeholder. The CAO must take into account the factors outlined in the disallowable instrument 'Attributable Stakeholders and Attribution percentages'.

Ensure entity has been indexed and recorded on system in Environment A. If not, see Indexing, recording and reviewing organisations.

The TRA screen is used to record the details of the controllers or genuine investors to whom the income and assets of the trust or company are to be attributed.

Recording the TRA screen is done within the same activity as the assessment of income and assets from the trust or company.

For coding the TRA screen, see Coding the Trust/Company Attribution (TRA) screen.

There is now the option of viewing an attribution diagram which will display a graphical representation of the entity and stakeholder relationships.

On the entity record:

• code 'URL' in Nxt: press [Enter]
• code 'TACORG' in Enter Web Page and press [Enter]. This will then produce a link next to the Go to: field
• select the link next to the Go to: field, the system will then automatically navigate to the attribution diagram

The attribution diagram can be resized to fit the page via the 'adjustment buttons' at the top of the screen.

Lines between entities with % indicate control/attribution. Lines between entities with no % indicate non control relationships e.g. loan relationships, beneficiary only.