If a trust distributes income to a company, is that co. a base rate entity ?

 Author: YellowPotato(Taxicorn)Taxicorn

23 Oct 2025

It would depend on what income is distributed.

"Base rate entity passive income is:

• corporate distributions and franking credits on these distributions
• royalties and rent
• interest income (some exceptions apply)
• gains on qualifying securities
• a net capital gain
• an amount included in the assessable income of a partner in a partnership or a beneficiary of a trust, to the extent it is traceable (either directly or indirectly) to an amount that is otherwise base rate entity passive income."

https://www.ato.gov.au/tax-rates-and-codes/company-tax-rate-changes#ato-Baserateentitycompanytaxrate

Reply0 likes

• Report as inappropriate