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Yes, it changed about 2010 from memory.

Hi Nathan, but you would be talking capital here rather than income. There would be no tax payable on capital but tax on income and giving away capital won't reduce income either. Also under the Social Security Act there are complex rules regarding trusts. Even though a person may not ever...

Dan's right. Not automatic, but usually they are. It all depends on the wording.

Yes, if they are no beneficiaries then the trustee cannot distribute to them - if the trustee did then it would be a breach of trust and he/she/it would be personally liable to reimburse the trust. And good point Geoff about Centrelink;). It could affect them 3 ways: 1. Classed as income for...

There are no law preventing gifting so someone could be kind enough to gift you money (or loan you). Just consider the Bankruptcy act, if the become insolvent or do it to defeat creditors etc the could be clawed back.

If the trust distributes to someone then it is their money. If it stays in the trust then it would be a loan from that person - which still means the money belongs to them. It is best to physically distribute the money I think as this avoids problems later.

Watch out for anyone on centrelink benefits. They could lose the benefits over the trust. Kids can't get income over $416 without paying penalty tax rates (unless the trust is a testamentary trust).