Trust Distribution of Discount Capital Gain

James Murphy Tax

Could you advise on the information to be provided in the Trust tax return for a non-resident individual who will receive a discount capital gain from property sold in Australia by a resident Trust?

And what forms, if any,  are required to pay any Australian tax liability, how the tax calculation is determined and who is required to prepare, pay, and lodge to the ATO?


ATO view is that a capital gain of a discretionary trust to which a non-resident is specifically or presently entitled, whether from TAP or non-TAP, is subject to tax in Australia.

The acronym TAP stands for  Taxable Australian Property.  

Note that non-residents do not get the 50% discount on assets bought after 8.5.2012, and where a CGT event happens after 8.5.2012, the discount is apportioned.

Income retains its character as it flows through a trust.

Generally, it is the Trustee who is responsible for the payment of tax.

Refer to page 7 of our annual publication for tax scales.