The 30 June trustee resolution remains one of the more error-prone moments of the Australian tax year for discretionary trusts. The ATO’s continued focus on Section 100A and the broader reimbursement agreement rules means the documentation has to be right. The post-2022 cases have shifted the practical bar.

What the resolution actually needs to do

The trustee must, in writing, before 30 June, identify the beneficiaries who will be presently entitled to trust income for the year. The resolution should be in the form contemplated by the trust deed, signed by the trustee or trustees as the deed requires, and dated before 30 June.

The “before 30 June” part is the bit that catches people. A resolution dated 1 July, 5 July, or 30 June at 11pm without a clear evidentiary trail of when it was actually executed is exposed to ATO challenge.

Section 100A considerations

The post-2022 ATO guidance and the Owies, BBlood, and Guardian cases have changed the landscape for distributions to adult children, distributions to corporate beneficiaries, and circular reimbursement arrangements.

In 2026, the trustees we work with are doing more documentation than they did five years ago. The “ordinary family dealing” exception still exists, but the documentation needs to establish what the dealing was, why it was ordinary, and how the funds were used. A resolution that distributes income to an adult child who never sees a dollar of it, while the parent retains the actual benefit, is a Section 100A risk regardless of how clean the resolution document is.

The 2026 wrinkle

The ATO’s compliance focus through 2025 and into 2026 has explicitly included unpaid present entitlements between trusts and corporate beneficiaries. PCG 2025 guidance materials have firmed up the position on UPEs and the Division 7A consequences. Trustees with old UPEs sitting on the balance sheet should be reviewing them with their accountant well before 30 June.

The practical checklist

The practical 30 June checklist for an Australian discretionary trust in 2026 looks like this. Confirm the trust deed governs how the resolution must be made. Identify the income of the trust for the year, applying the deed’s definition (which may differ from net income for tax purposes). Identify the beneficiaries who will receive a percentage or a specific dollar amount. Consider Section 100A exposure for any non-arms-length distribution patterns. Document the resolution in writing, signed by the trustee. Date it before 30 June. Keep the supporting evidence — the calculation worksheets, the diary notes, the accountant’s correspondence.

The trap that catches people

The trap that catches the most trustees is the assumption that the resolution can be retrofitted in August when the accounts are finalised. The ATO position is clear that the resolution must be made before 30 June. The income amounts can be expressed as percentages or formulas rather than exact dollars, but the resolution itself must exist by year-end.

When to get advice

For trusts that have material distributions to adult children, corporate beneficiaries, related trusts, or unusual beneficiary patterns, the value of a professional review well before 30 June is high. The cost of getting it wrong is real — both in tax and in the risk of an ATO review.

This is general information. Trustees and accountants making distribution decisions should obtain specific advice on their situation.