From cartlandlaw.com: Certain sub-trust arrangements over income, as referenced by the Federal Commissioner in PCG 2017/13, do not have legal validity due to fundamental failures in trust law.

The inability to create a sub-trust over income stems from the lack of identifiable trust property, making such arrangements fundamentally flawed.

Recent cases highlight that entitlements to income represent obligations of the trustee rather than property, further invalidating the establishment of sub-trusts over income.