Annual Distribution

Subject to the performance of investment markets and their being sufficient taxable income (after allowing for administration expenses), it is the trustee’s policy to make a distribution to eligible members based on a member’s share of that taxable income.

The amount of the distribution is dependent on a member’s average balance in the period from 1 July to 30 June. Members are only eligible for a distribution if their share of the taxable income is above a minimum amount determined by the trustee.

Traditionally, the distribution has been paid in June of July each year, but from 2016, it is the intention of the trustee to pay the distribution in December.

The distribution is expected to be fully taxable in the hands of members in the financial year it is paid to members, allowing for any tax free component and any other adjustments, such as credits for dividend imputation. For example, a distribution paid in December 2016 with be assessable in the hands of the member for the financial year ended 30 June 2017.

No tax is deducted from the distribution of eligible members where the trust has been provided with a Tax File Number. If the trust does not have your Tax file Number, the trust is required to deduct tax at the highest marginal rate, as well as deducting any special levies.

Distributions are paid by cheque. We will send the cheque to the current valid address we have on file.