Income earned by funds held in Court is taxable in the name of the Senior Master – as the trustee for the client – at the appropriate individual rate.

Funds in Court [FIC] lodges a “trust tax return” for each client every year. Each trust has its own Tax File Number.

However, if a client receives any other taxable income – and which results in a combined trust and personal income in excess of the tax-free threshold – then a personal tax return needs to be lodged. Personal income may include:

  • pay from a job
  • earnings on investments outside FIC
  • some Centrelink payments.

Taxation of separate account investments is complex and depends upon the circumstances of the individual client.

FIC does not lodge, nor provide advice on, personal tax returns. As both tax returns need to complement each other, FIC recommends that clients use a personal tax agent or accountant. Tax agents or accountants are welcome to contact the Accounting and Taxation area at FIC to discuss any tax-related matters.