The Government welcomes the release of the Board of Taxation’s report Review of the Tax Treatment of Bare Trusts and Similar Arrangements, which follows the completion of a self-initiated review.
The Board of Taxation has identified opportunities to simplify arrangements where the trustee has no or only minor powers of active management.
“This report is an important contribution to the Government’s broader regulation reform agenda and the Government thanks the Board for its report,” Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, said.
The Government will look to progress the recommendations to streamline arrangements for bare trusts as part of the regulatory reform program.
Treasury will undertake further consultation on the scope of potential changes, for example, in defining the core characteristics of a bare trust for taxation purposes.
The full report is available on the Board of Taxation’s website.