Government Announcements
2009-10 Budget: fixed trust cloning
12.05.2009
The Assistant Treasurer announced that, in the context of the 2009-10 Budget, following consultation on the abolition of the trust cloning exception, the Government will provide a CGT roll-over for assets transferred between trusts with no material discretionary elements (sometimes referred to as fixed assets) and with the same beneficiaries.
This will defer the CGT concessions of an asset transfer for the trustees of relevant trusts.
The measure will be accompanied by appropriate integrity rules. For example, beneficiaries of the trusts will be required to adjust the CGT attributes of their interest(s) in the trusts to take account of the transfer.
The abolition of the trust cloning exception and the CGT roll-over for fixed trusts will be combined into one set of amendments. Consistent with the previous announcement, these amendments will apply to CGT events happening after 31 October 2008.
