Taxation Ruling TR 2018/6

The ATO has set out in TR 2018/6 the Commissioner’s views on the immediate income tax consequences of a trust vesting.

Ruling on Trust Vesting Finalised

Broadly speaking, while the trust deed may or may not specify how the trust is to be administered post-vesting, when a trust vests, all of the interests in the trust as to income and capital become vested in interest and possession. The income tax consequences that arise on, and after, the vesting of a trust depend on the terms of the deed. Vesting of itself may, but need not, cause a CGT event to happen.

Source:  CCH ATW Issue 33