Thank you for coming today.
My questions have to do with what you describe in the presentation booklet as “the top marginal tax rate”. I want to go to the bullet point that says, “amend the recovery tax rule for qualified disability trusts to refer to the new 33-per-cent top rate”.
Now, my understanding is that the new tax rate applies to personal income over $200,000. You get hit with additional taxation.
However, I wonder if you could help me understand this in the context of a real-life example. Suppose a trust is set up for a disabled child within a family. Then, as the disabled person becomes independent and perhaps the parents pass away, the trust money flows out to sustain the disabled person in whatever environment the money was set up to do so. Is this now topped up in terms of having to pay more tax at the 33% rate?