Hybrid Trusts - Where are we now? Where are we going now?

Hybrid Trusts - by Brett Davies at LawCentral.





Last year I discussed the advantages of negative gearing within a Hybrid Trust and the 'new' approach of the ATO when dealing with this.
Hybrid Trusts, as the name suggests, are a combination of a Discretionary Trust and a Unit Trust. Unit holders are entitled to fixed income and/ or capital. However there is still a lot of flexibility for the Trustee to deal with the income and capital of the Trust.