What is Trust distributions?
Tax-specific. A plain-English definition for Australian business owners.
Trust distributions are the allocations of trust income to beneficiaries that determine the tax treatment of that income.
Distributions must be made by trust resolution before 30 June each year (in most cases) and properly documented. Recent ATO guidance has tightened the scrutiny on certain distribution patterns (notably section 100A reimbursement arrangements), creating more compliance risk for trust structures than was previously the case.
In a connected back office this sits with the Finance hub, where Valont runs bookkeeping, managed payroll and bas & tax compliance for Australian SMEs as one team. The full definition set is on the glossary.
Talk to an Advisor
General information, not advice. For how this applies to your business, talk it through with a Trusted Advisor or start with the Business Health Check.