Income Tax Act 2007 section 481

Other amounts to be charged at special rates for trustees

Section 481 applies special trust tax rates to certain types of income received by trustees of a settlement that do not fall within the definition of accumulated or discretionary income.

• Certain trustee income listed in section 482 is charged at special trust rates instead of the normal income tax rates, provided the trust is not a unit trust scheme and the income does not arise under a charitable trust
• Income falling within Type 1 or Type 12 (as defined in section 482) is taxed at the dividend trust rate; all other qualifying income is taxed at the trust rate
• The special rates do not apply where the income is already accumulated or discretionary income within section 480, or would be but for certain exceptions in that section
• Income from property held for the purposes of an overseas superannuation fund covered by section 615(3) of ICTA is also excluded from the special trust rates