Trust expenditure requirements
52ZZZWEA Trust expenditure requirements
Limit on expenditure for purposes other than primary purpose
If:
a determination has been made under subsection (3); and
the trust has one or more purposes, other than its primary purpose described in subsection 52ZZZWB(1), that are primarily for the benefit of the principal beneficiary;
the total value of the income and assets of the trust applied for those other purposes in a tax year must not exceed the value specified in the determination for that year.
For tax year see subsection 5Q(1).
Instruments fixing limits and purposes to be taken into account
If guidelines are made under paragraph 52ZZZWB(4)(b), the question whether a purpose for which income and assets of a trust have been applied is one of the other purposes described in subsection (1) must be decided in accordance with the guidelines.
Paragraph 52ZZZWB(4)(b) provides for guidelines for deciding what are, and what are not, trusts’ purposes, other than the primary purpose described in subsection 52ZZZWB(1), that are primarily for the benefit of beneficiaries of the trusts.
The Commission may, by legislative instrument, determine the total value of income and assets of a special disability trust that may be applied in a specified tax year for purposes, other than the primary purpose described in subsection 52ZZZWB(1), that are primarily for the benefit of the principal beneficiary of the trust.
This Act’s bill:Second reading speech
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