Bendel Case Explained: Division 7A UPEs and Trust DistributionsNanak Accountants & Associates explains what the High Court's Bendel decision means for Australian family trusts, bucket companies, UPEs, and Division 7A planning before 30 June.
By: Nanak Accountants and Associates The article explains that the High Court dismissed the ATO's appeal on 10 June 2026, confirming that a UPE owed by a trust to a corporate beneficiary is not automatically a Division 7A loan under section 109D(3). This decision provides important clarity for trustees, private business groups, and advisers who have historically managed UPEs through complying loan agreements, sub-trust arrangements, and repayment schedules. "Bendel is a major decision for family trusts and bucket companies, but it is not a free pass," said Puneet Singh, Principal Accountant at Nanak Accountants & Associates. "Division 7A, Subdivision EA, section 100A and Part IVA still need careful review, especially where trust funds are later used by shareholders, directors or associates." The guide outlines what changed after Bendel, what risks remain, and what trustees and accountants should review before 30 June, including trust resolutions, historic UPE treatment, beneficiary accounts, commercial documentation, and downstream use of funds. About Nanak Accountants & Associates Nanak Accountants & Associates is a Melbourne-based accounting firm specialising in tax planning, trust structures, business advisory, company compliance, bookkeeping, and tax health checks across Australia. Read the full guide at: https://nanakaccountants.com.au/ End
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