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Section 100A review checklist

Section 100A review checklist for Australian tax practitioners

Section 100A is an area where the facts on the file matter more than any single figure. A review needs to establish what actually happened with a trust distribution, whether the beneficiary received the benefit, and whether there is a reimbursement arrangement to consider. This checklist sets out a documentation methodology an Australian tax practitioner can follow.

It is a methodology and documentation checklist. Section 100A is a legal question. This page helps identify and record the relevant matters; the legal and tax conclusion is reached by the registered tax practitioner.

Published 11 August 2026. Last reviewed 11 August 2026. Technically reviewed by the Taxpartna tax team.

Section 100A concerns reimbursement arrangements involving trust distributions, where a beneficiary is made presently entitled to income but the economic benefit is enjoyed by someone else, and the arrangement is not ordinary family or commercial dealing. Because it turns on the facts, the review is about establishing and documenting what actually happened, not about applying a formula.

This checklist provides a methodology for that documentation. It should be read alongside current ATO guidance and, where appropriate, specific advice. It is general information, not legal advice.

Section 100A review methodology

Work through the following to identify and document the relevant matters.

Establishing the distribution and present entitlement

  • The beneficiaries made presently entitled for the year have been identified from the resolution.
  • The amount of each entitlement is recorded and agrees to the accounts. See our trust distribution review checklist.
  • The relationships between the beneficiaries and the controllers of the trust are documented.

What happened to the entitlement

  • Records show whether the entitlement was actually paid to the beneficiary.
  • Where the entitlement was not paid, how it was dealt with is documented, including any loan or unpaid present entitlement.
  • Any application of the funds for the benefit of another party has been identified.

Identifying a possible reimbursement arrangement

  • Whether another party benefits from the entitlement has been considered and documented.
  • Any agreement, understanding or arrangement connected to the distribution has been identified.
  • The timing of the arrangement relative to the entitlement has been recorded.

Ordinary family or commercial dealing

  • The commercial or family context of the arrangement is documented.
  • The facts relevant to whether the dealing is ordinary have been gathered for the practitioner's assessment.
  • Any features that may take the arrangement outside ordinary dealing are noted.

ATO guidance, assessment and conclusion

  • The review has regard to relevant ATO guidance on Section 100A.
  • Matters requiring professional assessment are clearly marked for the practitioner.
  • The practitioner's final conclusion, and the reasons for it, are documented on the file.

Read the primary sources

Where Taxpartna fits into the Section 100A review

Section 100A is a legal question, and Taxpartna does not answer it. Where Taxpartna helps is earlier in the process: locating the distribution documents, records of how entitlements were dealt with, and related loan or unpaid present entitlement information, then surfacing the matters that a practitioner should look at.

Taxpartna may assist with surfacing information and identifying matters for review. The practitioner must reach the legal and tax conclusion. It combines AI-assisted document analysis, AI tax software for Australian accounting firms expertise and deterministic computer logic, while leaving every judgement to the registered tax practitioner.

Related tax review resources

Frequently asked questions

It is a structured methodology for identifying and documenting the matters relevant to Section 100A in a trust file, such as who was made presently entitled, whether that beneficiary received the benefit, and whether there is any arrangement for the benefit to be enjoyed by another party. It supports the practitioner's assessment; it does not decide the legal question.

No. Section 100A involves a legal and factual assessment that must be made by the registered tax practitioner. Taxpartna may assist with surfacing information and identifying matters for review, but the practitioner reaches the legal and tax conclusion.

Relevant material can include the trust distribution resolutions, records of how entitlements were actually paid or applied, loan and unpaid present entitlement records, family group information, and any documentation of the commercial reasons for the arrangements. The relevant documents depend on the facts of the particular trust.

Whether an arrangement is within ordinary family or commercial dealing is central to Section 100A and is a matter of judgement on the facts. The review methodology helps ensure the relevant facts are identified and documented so the practitioner can form and record that judgement. It does not form the judgement for them.

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This page provides general information about a documentation methodology for Section 100A and about the Taxpartna platform. It does not constitute tax, legal or professional advice, and Section 100A involves legal questions that require professional assessment. Taxpartna is a quality assurance assistance tool designed for use by registered tax practitioners. Taxpartna does not provide tax advice, tax agent services or BAS agent services, and does not determine whether Section 100A applies. All professional judgements and sign-off decisions remain the responsibility of the registered tax practitioner.