[Awan Hammad]

Hi Stephen

ATO case study QC 48668 gives guidance on this topic re the issue of if meet the definition of being gainfully employed.

It states:

“If Charlie’s work leads to increased turnover for the business, resulting in larger trust distributions or a disproportionate increase in dividends, the Commissioner could take a view that the arrangement under which Charlie was ‘gainfully employed’ has not ‘come to an end’ as he is still receiving ‘gain or reward’ from distributions from the Crackle Discretionary Trust.”

That is the above supports that a trust distribution could be held to be “gain or reward” where a person is in effect employed by the Trust.

If this does not answer your question please let me know.

Thanks

SMSF AAA