16.2The Second Issues Paper discussed a range of legislative responses to the use of trusts, which allow trust assets to continue to be treated as the settlor’s assets or to continue to be subject to the claims of third parties. It considered the adequacy of current legislative provisions and noted that each of the statutory regimes takes a different approach to how trust property and income is treated. The paper outlined several options to address the inconsistency in approaches to trusts across the different legislative provisions.
16.3This chapter discusses submitters’ views on whether the current legislative provisions are adequate, and if they are considered inadequate, whether the solution is to strengthen the current provisions or whether a stronger, more uniform solution is called for. We conclude that it is more appropriate that the approach to trusts is addressed separately in the individual regimes rather than as a part of these reforms.