Special tax topic 2020: Tax issues in recessionary times: Trusts, Integrated

For at least the last 10 years the Australian economy has allowed SMEs and SBEs to trade profitably. However, because of recent drought, bushfires and, now, the COVID-19 pandemic it is likely that the Australian economy will fall into recession despite the massive fiscal stimulus response from Federal, State and Territory Governments.

This session, our second in a series of Tax issues in recessionary times, looks at issues relating to trusts that practitioners will likely encounter in the short and medium term.

This session expores the issues related to trusts, in particular with respect to the treatment of the cash flow boost and trust distributions in recessionary times.


Learning Outcomes

On successful completion of this topic, participants should be able to:


  • State the rules as to how cash-flow boost amounts (received in 2020 and 2021) are distributed through discretionary trusts
  • State the rules as to how cash-flow boost amounts are distributed through unit trusts including the potential application of CGT E4
  • Apply knowledge regarding cashflow boost distributions through a chain of trusts to a realistic business scenario
  • Demonstrate knowledge of ATO target areas in regard to trust distributions and the application of that knowledge to a realistic business scenario



This session will help you to navigate through the uncertainties and changes arising as a consequence of the COVID-19 pandemic.

This session forms part of the 11-part Special Tax Topics Series

James McPhedran

James has 18 years’ experience in the industry, including roles at the Big Four accounting firms and advisory roles at mid-tier firms. He has been an educator with Chartered Accountants ANZ for 9 years. His advanced knowledge of taxation and superannuation has allowed him to focus on small to medium enterprises and high net worth individuals. James holds a bachelor’s degree in law and economics from the University of Queensland and a Masters of Taxation from the University of Sydney

Peter McGinty

Peter has degrees in commerce and law from the University of Melbourne. He has more than 30 years’ experience in a chartered practice that focused on tax issues affecting family businesses, small and medium enterprises and high net worth individuals. Peter is an experienced tax trainer and is well regarded for his practical approach to staff training.


Topic: Financial Advisory and Superannuation, Tax

Sub-Topic: Business Tax, Employment Taxes - PAYE, PAYG & FBT, GST, Income Tax, Income Tax (inc CGT), Self-Managed Superannuation Funds, State/Territory Taxes, Tax Administration

Format: Recorded Webinar

Proficiency Level: Foundation, Intermediate, Advanced

CPD: Upto 1.5 hours