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hmirz
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Hi Elsee

Good situation to be in – well done!

There are a number of things you can do with the extra income in the trust and you potentially could devise an alternative strategy to distributing the trust’s income to the beneficiaries of your family trust, especially as it is likely to be a discretionary family trust. The strategies would save you paying an amount of income tax that you may otherwise have to pay if the trust distributed to you and your wife as beneficiaries in the manner described by you.

I wouldn’t rely on advice given on this forum unless you provide more information about your individual circumstances and the person providing you with advice has the benefit of sighting your family trust’s Trust Deed to see what is and what is not legally permissible in your case before you can contemplate saving tax.

Probably best to consult a tax lawyer who has mastery of trust law, trust deeds, superannuation and managed investments rather than an accountant in your scenario.

Good luck.

Cheers,
Hamid Mirza
Barrister-at-Law
http://www.panachelegal.com