Trustee resolutions must be made no later than 30 June

As of the 2011 / 2012 income tax year, all trustees should make the beneficiaries of their trusts entitled to the trust income (taxable income) by the end of the income tax year - 30 June.

The previous administrative practice prescribed by the ATO, allowing certain trustees to make resolutions by 31 August has been withdrawn.

If a resolution entitling the beneficiaries to trust income is made after the 30 June, i.e., no beneficiary was entitled to trust income at 30 June, the trustee will be assessed on the trust's taxable income at the highest marginal tax rate -  46.5%.