This is an important issue as resettlement of a trust may have significant ramifications including: Capital Gains Tax; Stamp Duty and Income Tax.  The Australian Taxation Office (ATO) has stated that given the absence of clear judicial guidance on this, and provided that the following conditions are satisfied, a mere extension of the term of the trust will not result in a resettlement:

1. The Trust Deed confers an express power to alter the termination date;

2. The Trust Deed and surrounding circumstances do not indicate that a particular trust period was a fundamental feature of the particular trust relationship; and

3. Other accompanying circumstances do not indicate a fundamental change to the trust.