{"id":"C2007A00145","name":"Taxation (Trustee Beneficiary Non-disclosure Tax) Act (No. 2) 2007","slug":"taxation-trustee-beneficiary-non-disclosure-tax-act-no-2-2007","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"145 of 2007","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":40252,"registerId":"commonwealth-C2007A00145-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n This Act may be cited as the Taxation (Trustee Beneficiary Non‑disclosure Tax) Act (No. 2) 2007.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1. Sections 1 and 2 and anything in this Act not elsewhere covered by this table

The day on which this Act receives the Royal Assent.

24 September 2007

2. Sections 3 and 4

At the same time as Schedule 4 to the Tax Laws Amendment (2007 Measures No. 4) Act 2007 commences.

24 September 2007

\n```\n\n> Note: This table relates only to the provisions of this Act as originally passed by both Houses of the Parliament and assented to. It will not be expanded to deal with provisions inserted in this Act after assent.\n\n (2) Column 3 of the table contains additional information that is not part of this Act. Information in this column may be added to or edited in any published version of this Act.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Imposition of trustee beneficiary non‑disclosure tax","content":"#### 3 Imposition of trustee beneficiary non‑disclosure tax\n\n Tax payable under paragraph 102UM(2)(a) of the Income Tax Assessment Act 1936 is imposed on the amount mentioned in that paragraph.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Rate of trustee beneficiary non‑disclosure tax","content":"#### 4 Rate of trustee beneficiary non‑disclosure tax\n\n The rate of tax imposed by this Act on the amount is 47%.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Temporary budget repair levy","content":"#### 5 Temporary budget repair levy\n\n (1) This section applies to the temporary budget repair levy years.\n (2) Increase the rate of tax mentioned in section 4 by 2 percentage points.\n (3) In this section:\n\n> temporary budget repair levy year means a year of income corresponding to a temporary budget repair levy year (within the meaning of section 4‑11 of the Income Tax (Transitional Provisions) Act 1997).","sortOrder":4}],"analysis":{"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"The supplied text contains the original provisions as enacted: imposition of the tax (s3), the base rate (s4), and a temporary rate increase mechanism (s5), together with commencement details (s2). No amendments or expansions of scope are indicated in the provided material."},"complexity_factors":["Cross‑reference to paragraph 102UM(2)(a) of the Income Tax Assessment Act 1936 (s3) — the Act does not define the taxable amount itself, so determining liability requires consulting that external provision.","Fixed numeric rate set in this Act (s4) — straightforward arithmetic once the taxable amount is identified.","Temporary increase mechanism (s5) — rate rises by 2 percentage points in a 'temporary budget repair levy year', which is defined by a provision in the Income Tax (Transitional Provisions) Act 1997 (s5(3)), adding a temporal dependency on another Act.","Commencement details (s2 and the commencement table) — staggered commencement and historical commencement dates require attention when applying the law to past periods.","Minimal procedural content — the Act imposes the tax and sets rates but does not specify collection, assessment, exemptions or enforcement mechanisms, so implementation relies on provisions of the Income Tax Assessment Act and associated tax administration law."],"plain_english_summary":"This Act imposes the trustee‑beneficiary non‑disclosure tax referred to in paragraph 102UM(2)(a) of the Income Tax Assessment Act 1936 and sets the base rate at 47%. During a declared temporary budget repair levy year the rate is increased by 2 percentage points.\n\nIt applies to the taxable amount identified by the cross‑referenced provision and therefore affects trustees or beneficiaries who fall within paragraph 102UM(2)(a); it changes the tax payable and requires administrators to apply cross‑referenced provisions of other tax laws."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This Act remains tightly focused on its original purpose: imposing a specific penalty tax rate on undisclosed trust distributions. The addition of section 5 (temporary budget repair levy) in 2014 did not expand the scope beyond adjusting the tax rate for specific years — it remained a rate-setting mechanism for the same underlying liability."},"complexity_factors":["Only 5 sections total, with 2 being standard machinery provisions (short title and commencement)","No defined terms in the operative provisions (sections 3–4)","Single cross-reference to external legislation (Income Tax Assessment Act 1936, section 102UM)","Section 5 adds a simple conditional rate increase with one defined term that itself references another Act","No exceptions, exemptions, or nested conditions in the primary operative provisions"],"plain_english_summary":"This law creates a special penalty tax that hits people who use trusts to hide income from the Tax Office.\n\n**What it does:**\n- **Imposes a 47% tax** (roughly the top personal income tax rate) on certain trust distributions that aren't properly disclosed\n- **Adds an extra 2%** during 'temporary budget repair levy years' (a surcharge that applied from 2014–15 to 2016–17 to help reduce the budget deficit)\n\n**Who it affects:**\n- **Trustee beneficiaries** — people who receive income from a trust but haven't properly reported it\n- Specifically targets situations covered by **section 102UM of the Income Tax Assessment Act 1936**, which deals with untaxed trust distributions\n\n**Why it matters:**\nTrusts are a common way to split income among family members or hold assets. This law acts as a **penalty mechanism** — if you don't play by the disclosure rules, you get hit with the highest marginal tax rate instead of any lower rate you might otherwise qualify for. It's designed to stop people using trusts to avoid tax through non-disclosure.\n\n**Key point:** This is a short, technical 'imposition Act' — it doesn't create the rules about what must be disclosed (that's in the Income Tax Assessment Act). It simply sets the tax rate for when those rules are broken."},"summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The Act is narrow and purposive — it does exactly what its title says. It imposes and sets the rate for the trustee beneficiary non-disclosure tax. The temporary budget repair levy provision (section 5) is a minor, time-limited rate adjustment consistent with a broader government fiscal policy applied across multiple tax instruments at the same time, and does not represent a substantive change in scope from the original intent."},"complexity_factors":["Relies heavily on external legislation for its operative effect — the actual disclosure obligations are defined in section 102UM(2)(a) of the Income Tax Assessment Act 1936, which is not reproduced here","The concept of 'trustee beneficiary' involves understanding nested trust structures, which is non-intuitive for laypeople","The temporary rate increase references yet another piece of legislation (Income Tax (Transitional Provisions) Act 1997) for the definition of applicable years","Short and technically spare drafting style obscures real-world impact without context from related legislation"],"plain_english_summary":"This Act lets the ATO impose a steep penalty tax on trustees who fail to disclose trust distributions made to other trusts, targeting income hidden through chains of trustees. The tax is 47% of the undisclosed amount (49% during the temporary budget repair levy years), making non‑disclosure financially punitive."}},"importantCases":[],"_links":{"self":"/api/acts/taxation-trustee-beneficiary-non-disclosure-tax-act-no-2-2007","history":"/api/acts/taxation-trustee-beneficiary-non-disclosure-tax-act-no-2-2007/history","analysis":"/api/acts/taxation-trustee-beneficiary-non-disclosure-tax-act-no-2-2007/analysis","conflicts":"/api/acts/taxation-trustee-beneficiary-non-disclosure-tax-act-no-2-2007/conflicts","importantCases":"/api/acts/taxation-trustee-beneficiary-non-disclosure-tax-act-no-2-2007/important-cases","documents":"/api/acts/taxation-trustee-beneficiary-non-disclosure-tax-act-no-2-2007/documents"}}