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WFFTC changes from 1 April 2011

1)      Tax exempt salaries or wages – Exempt salaries/wages from specific international agreements are now part of family income

2)      Income from unlocked PIE’s – All PIE’s that are not superannuation schemes registered with the Government Actuary are to be included in family income

3)      Attributable Trustee income – All income that has not been distributed as beneficiary income, becomes attributable trustee income and will be treated as family income for settlors. This includes income from trust-owned companies.

                                              (Trustee + Company - Dividends) / Settlor number

4)      Attributable Fringe Benefits – Shareholder employees with 50% or more shares in a company will need to include significant fringe benefits that are easily substituted for cash as income

5)      Income Equalisation schemes – Any deposits to a main income equalisation scheme account, which is allowed as a deduction, lowers the taxable family income, and will thus be included as family income from 1 April 2011.


6)      Pensions and Annuities – 50% of non-taxable private pensions/annuities will be included as family income

7)      Passive income of dependants – Any passive income (interest, rent, beneficiary income, royalties etc.) over $500 per child, will be included as family income

8)      Income of non-resident spouse – Any income earned by a non-resident spouse or partner, who supports their family, will now be included as family income

9)      Other regular payments – Any payments made on behalf of the family by another person or entity that are used for day-to-day living expenses, where the total amount is more than $5,000 for the tax year, must be declared as family income.

Posted: Mon 19 Sep 2011