Are Family Trusts still a useful vehicle if Ralph goes ahead?
Ralph, as mooted, has Family Trusts taxed at the same rate as companies – 30%. This applies to income whether distributed or accumulated. You distribute if you pay out income to the beneficiary. You accumulate if the Family Trust just keeps the money and pays the taxman 30% on the profits. Beneficiaries are entitled to the 30% franking credit for tax paid by the Family Trust in the year they get the income.
