Trust resettlements and CGT
The ATO has effectively confirmed that a trust deed can be varied without the trust being 'resettled' and causing CGT problems.
More specifically, they state that there should be no CGT consequences if the trustee validly exercises a power contained within the trust deed to change the terms of the trust (or the deed is varied with the approval of a relevant court), unless:
q the change causes the existing trust to terminate and a new trust to arise for trust law purposes; or
q the effect of the change leads to a particular trust asset being subject to separate rights and obligations, giving rise to the conclusion that the relevant asset has been settled on terms of a different trust.