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Director of Trustee Company- Centrelink issues

Discussion in 'Accounting, Tax & Legal' started by newbie423, 21st Oct, 2011.

  1. newbie423

    newbie423 New Member

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    21st Oct, 2011
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    Location:
    sydney, nsw
    Hi, before I go too far down the track of setting up a trust, I have a question about Centrelink.

    If I am the sole Director and only shareholder of a corporate trustee company (that is non-trading and only operates ATF a trust) that has $50000 assets, as far as centrelink are concerned do they consider those assets to be mine since I own the shares of the trustee company?

    Does anyone know if this is the case? With my existing company, Centrelink considers the company equity to be my personal income for some reason. They may be doing this in error, I cant be sure how they work it out.
     
  2. Terryw

    Terryw Well-Known Member

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    If you have any role in the trust - appointor, trustee, beneficiary etc then they are likely to assess the trust assets as if they were your assets.
     
  3. Terryw

    Terryw Well-Known Member

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  4. mariandsm

    mariandsm New Member

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    24th Oct, 2011
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    Location:
    Canberra, ACT
    Hi Newbie, I'm Marian, I work at the Department of Human Services in a team that responds to Centrelink enquiries on social media sites like this one.

    In the circumstances you've outlined, Centrelink will attribute you as a controllor of the trustee company assets and the trust. They will also assess the net income of the trust and trustee company as your income.

    Check out this fact sheet on the Centrelink website for more info; http://www.centrelink.gov.au/internet/internet.nsf/filestores/fis022_0905/$file/fis022_0905en.pdf

    Centrelink provides a Financial Information Service (FIS) which helps people make informed decisions about investment and financial issues. You can phone 13 2300 and ask to speak to a FIS Officer. If possible, the FIS Officer will answer your questions over the phone, otherwise, they'll arrange an appointment for you.

    Hope that helps.
     
  5. Terryw

    Terryw Well-Known Member

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    Mariandsm

    Thanks for your reply.

    I know you have no control over it, but this doesn't seem fair. The trust could have a number of 'controllers' and all would be attributed with the income of the trust.