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Family trusts can benefit from tax concessions that come with making a Family Trust Election (FTE) but risk Family Trust Distribution Tax (FTDT) if not managed well.

The Australian Tax Office (‘ATO’) on 11 June 2025 updated its Practical Compliance Guide PCG 2018/9 on corporate tax residence to reflect key changes including aligning tax compliance residence disclosures to the Consolidated Entity Disclosure Statement (‘CEDS’) for financial reporting purposes.

Section 99B of Australia’s tax law can trigger unexpected tax liabilities for residents receiving foreign trust distributions, including gifts, loans, and use of trust property. With increased ATO scrutiny and recent guidance, it’s vital to assess residency status, maintain clear documentation, and understand the tax implications before receiving overseas transfers.

Receiving money from overseas can trigger unexpected Australian tax consequences, especially when foreign trusts are involved. With the ATO increasing scrutiny on international transfers, including gifts, inheritances, and loans, it’s vital for Australian residents to understand their tax obligations. Section 99B of the Income Tax Assessment Act 1936 and recent ATO guidance highlight the risks of poor documentation and lack of planning. This article explores common scenarios, the importance of maintaining records, and how proactive tax planning can help avoid significant liabilities for both recipients and their overseas families.

The ATO has confirmed a stricter application of section 99B - taxation of foreign trust distributions, meaning more distributions or benefits from foreign trusts to Australian residents may now be taxable.

The ATO’s draft guideline PCG 2025/D2 outlines how taxpayers must determine an arm’s length debt amount for related-party loans under transfer pricing rules. It challenges the use of guarantees to inflate borrowing capacity and introduces a risk assessment framework to classify arrangements by compliance risk. Robust documentation is essential to support deductions.

This report explores the key tax considerations that arise throughout the lifecycle of a typical M&A transaction, from initial planning through to final stages of execution.

The Australian tax landscape for multinationals has significantly shifted with the implementation of the Debt Deduction Creation Rules (DDCR) (in Subdivision 820-EAA of the ITAA 1997).

On Thursday 5 June South Australian Treasurer Stephen Mullighan delivered the state budget, focusing on housing, crime and cost of living. This budget forecasted a surplus of $18m for 2024-25, with the government estimating surpluses for the next four years. The net operating surplus is estimated to be $315m by 2028-29.

Tasmanian Treasurer Guy Barnett delivered his first state budget on Thursday 29 May alongside Premier Jeremy Rockliff.

On Tuesday 20 May 2025 Victoria’s first female Treasurer, Jaclyn Symes, delivered her inaugural budget alongside Premier Jacinta Allan. For the first time in five years, the state reported an operating surplus at $600m, with projected surpluses of $1.9b in 2026–27, $2.4b in 2027–28, and $1.5b in 2028–29. Net debt is $167.6b, with it forecasted to increase to $194b by 2028-29.

Alongside Chief Minister Lia Finocchiaro, Treasurer Bill Yan focused on reducing crime and increasing public service employee costs in supporting hospital and correction services.