Trust distribution checklist
Make valid trustee resolutions by 30 June (or the deed's earlier date), record franked distribution streaming by 30 June and capital gains streaming by 31 August, check each distribution against section 100A guidance, and report beneficiary TFNs. Without a valid resolution the trustee can be assessed at the top rate.
A checklist for trustees and their accountants working through distributions for the year ending 30 June. It follows the ATO's own guidance on resolutions, section 100A, beneficiary TFNs and family trust elections.
How to use it
Start in May or early June, with the trust deed open. Most of these steps fail if they happen after 30 June, and a late resolution cannot be fixed afterwards.
1. Read the deed
2. Work out income and beneficiaries
3. Resolutions by 30 June
To make a beneficiary presently entitled for the year, the resolution must be made by 30 June, or earlier if the deed says so. If no beneficiary is presently entitled at 30 June, the trustee is assessed, possibly at the top rate. A resolution made after 30 June does not change this. A dollar amount is not required; a clear method such as a percentage can be enough. (ATO trustee resolutions)
4. Section 100A review
Section 100A can apply where a beneficiary is made presently entitled but someone else gets the benefit under a reimbursement agreement. The ATO's view is in TR 2022/4 and its compliance approach in PCG 2022/2. PCG 2022/2 sets out white, green and red risk zones. The ATO notes the guideline is being reviewed following Commissioner of Taxation v Bendel [2026] HCA 18, so check its current status before relying on it. (PCG 2022/2)
5. TFNs and reporting
From 1 July 2026, trustees of closely held trusts report beneficiary TFNs in the statement of distribution in the trust tax return. The last quarterly TFN report covers April to June 2026 and was due 31 July 2026. Trustees must still withhold at the top rate if a beneficiary has not quoted a TFN. (ATO TFN reporting changes)
6. Family trust elections
Distributions outside the family group of a trust with a family trust election can trigger family trust distributions tax, which the ATO states as 47%, payable by the trustee. The ATO is offering to remit up to 80% of the general interest charge on family trust distributions tax for trustees who self-review, identify and pay the liability without ATO engagement, up to 31 December 2026 (ATO family trusts tips, updated 4 June 2026). (ATO trustee EOFY checklist)
Related: EOFY checklist for business clients and family group engagement letter template.
Questions
What happens if the trustee misses 30 June?
If no beneficiary is presently entitled at 30 June, the trustee is assessed on the trust's net income, possibly at the top rate. A later resolution does not change the result.
When must capital gains be streamed?
The specific entitlement must be made within 2 months after year end, which is 31 August. Franked distributions must be recorded by 30 June.
Do quarterly TFN reports still apply?
No. From 1 July 2026, closely held trusts report beneficiary TFNs in the trust return's statement of distribution. The last quarterly report covered April to June 2026.
Is PCG 2022/2 still current?
The ATO notes it is being reviewed following Commissioner of Taxation v Bendel [2026] HCA 18. Check its status on ato.gov.au before relying on it.
What rate is family trust distributions tax?
The ATO states it as 47%, payable by the trustee.
Sources
- ATO: Trustee resolutions
- ATO: Attention all trustees, top 5 EOFY checklist
- ATO: PCG 2022/2 Section 100A reimbursement agreements, ATO compliance approach
- ATO: Changes to beneficiary TFN reporting for closely held trusts
- ATO: Family trust election, revocation or variation 2026 instructions
- ATO, Bendel case decision impact statement
- ATO, Family trusts: tips for electing entities
Run this inside Nagaris
Proposals, AML checks, e-signing, client queries and jobs on one client file.
Schedule a demo