{"id":"C2004A05324","name":"Family Trust Distribution Tax (Secondary Liability) Act 1998","slug":"family-trust-distribution-tax-secondary-liability-act-1998","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"11 of 1998","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":7810,"registerId":"commonwealth-C2004A05324-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Family Trust Distribution Tax (Secondary Liability) Act 1998","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![](image.001.png)\n\nFamily Trust Distribution Tax (Secondary Liability) Act 1998\n\nAct No. 11 of 1998 as amended\n\nThis compilation was prepared on 4 July 2011  taking into account amendments up to Act No. 41 of 2011\n\nThe text of any of those amendments not in force  on that date is appended in the Notes section\n\nThe operation of amendments that have been incorporated may be   affected by application provisions that are set out in the Notes section\n\nPrepared by the Office of Legislative Drafting and Publishing,  Attorney‑General’s Department, Canberra\n\n \n\n \n\n \n\nContents\n\n1 Short title [see Note 1]\n\n2 Commencement [see Note 1]\n\n3 Imposition of tax\n\n4 Amount of tax\n\nNotes\n\n \n\nAn Act to impose a tax in respect of certain unpaid family trust distribution tax\n\n1  Short title [see Note 1]\n\n  This Act may be cited as the Family Trust Distribution Tax (Secondary Liability) Act 1998.\n\n2  Commencement [see Note 1]\n\n  This Act commences on the day on which it receives the Royal Assent.\n\n3  Imposition of tax\n\n  Tax payable under section 271‑60 or 271‑65 in Schedule 2F to the Income Tax Assessment Act 1936 on an unpaid amount is imposed.\n\n4  Amount of tax\n\n  The amount of the tax imposed by this Act is equal to the unpaid amount.\n\nNotes to the Family Trust Distribution Tax (Secondary Liability) Act 1998\n\nNote 1\n\nThe Family Trust Distribution Tax (Secondary Liability) Act 1998 as shown in this compilation comprises Act No. 11, 1998 amended as indicated in the Tables below.\n\nTable of Acts\n\n| Act | Number   and year | Date   of Assent | Date of commencement | Application, saving or transitional provisions |\n| --- | --- | --- | --- | --- |\n| Family Trust Distribution Tax (Secondary Liability) Act 1998 | 11, 1998 | 6 Apr 1998 | 6 Apr 1998 |  |\n| Tax Laws Amendment (2011 Measures No. 2) Act 2011 | 41, 2011 | 27 June 2011 | Schedule 5 (item 374): Royal Assent | — |\n\nTable of Amendments\n\n- ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted\n- Provision affected How affected\n- S. 3.................... am. No. 41, 2011\n\n \n","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":true,"description":"Section 3 was amended by the Tax Laws Amendment (2011 Measures No. 2) Act 2011 (see Notes, Table of Amendments). The compilation includes that amendment, but the compilation does not show the original pre‑2011 text, so this document alone does not reveal how the amendment altered the Act’s substantive scope or application."},"complexity_factors":["Very short instrument (2 operative sections) with straightforward effect: imposes tax equal to unpaid amount (s4).","Relies on cross‑references to external provisions in Schedule 2F of the Income Tax Assessment Act 1936 (ss 271‑60 and 271‑65) for who/when amounts are unpaid.","Uses the concept of secondary liability implicitly by title and by reference, so substantive scope depends on definitions and rules located in the ITAA rather than in this Act.","Amendment history shows section 3 was amended in 2011, so historical application may differ from the current text (Notes, Table of Amendments).","No procedural, enforcement or exemption details in this Act—those mechanics are handled elsewhere, increasing reliance on other laws for practical effect."],"plain_english_summary":"This Act makes unpaid family trust distribution tax amounts referred to in Schedule 2F (sections 271‑60 and 271‑65) of the Income Tax Assessment Act 1936 into an imposed tax, and sets the amount of that tax equal to the unpaid amount (ss 3–4). It therefore affects people who owe family trust distribution tax or who are secondarily liable under those ITAA provisions, because unpaid sums are converted into a formal tax liability that can be collected and enforced (s3)."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose: imposing secondary liability for unpaid family trust distribution tax. The 2011 amendment was technical in nature (updating the cross-reference to reflect renumbering in the principal Act) and did not expand the scope beyond the original intent of creating a collection mechanism for unpaid taxes."},"complexity_factors":["Extremely short: only 4 operative sections spanning 2 pages","No defined terms in the Act itself — all substantive definitions reside in the Income Tax Assessment Act 1936","Minimal conditional logic: the tax applies straightforwardly to 'unpaid amounts' referenced in external provisions","Single cross-reference to external legislation (sections 271-60 and 271-65 of Schedule 2F to ITAA 1936)","No exceptions, exemptions, or nested provisions within this Act","Amendment history shows minimal change: only one amendment in 13 years affecting section 3"],"plain_english_summary":"This Act creates a secondary “family trust distribution tax” that the ATO can impose on others when the original family trust distribution tax goes unpaid. It affects primary taxpayers who failed to pay and related parties (typically beneficiaries) who received trust distributions. The measure is a debt-recovery backstop—it doesn’t change who triggers the tax, only enables collection from alternate parties when the primary debt remains unpaid."}},"importantCases":[],"_links":{"self":"/api/acts/family-trust-distribution-tax-secondary-liability-act-1998","history":"/api/acts/family-trust-distribution-tax-secondary-liability-act-1998/history","analysis":"/api/acts/family-trust-distribution-tax-secondary-liability-act-1998/analysis","conflicts":"/api/acts/family-trust-distribution-tax-secondary-liability-act-1998/conflicts","importantCases":"/api/acts/family-trust-distribution-tax-secondary-liability-act-1998/important-cases","documents":"/api/acts/family-trust-distribution-tax-secondary-liability-act-1998/documents"}}