The Government has introduced the Tax Laws Amendment (2011 Measures No. 5) Bill 2011 into the House of Representatives.

Amongst other things it will to ensure that, where permitted by a trust, the capital gains and franked distributions (including any attached franking credits) of a trust can be effectively streamed for tax purposes to beneficiaries by making them ‘specifically entitled’ to those amounts.

The changes are in response to the 2010 High Court decision in Commissioner of Taxation v Bamford and advice from the Board of Taxation.