Where specifying the 2023–24 year
To make a family trust election for 2023–24, the trust must pass the family control test in section 272-87 of Schedule 2F to the ITAA 1936, at the end of that year; see subsection 272-80(4) of Schedule 2F to the ITAA 1936. However, the election will only be in force from the earliest time (the election commencement time) in 2023–24 from which the trust passes the family control test, continuously until the end of that year; see subsection 272-80(10) of Schedule 2F to the ITAA 1936.
A trust can only have one family trust election in force; see subsection 272-80(11) of Schedule 2F to the ITAA 1936. However, trustees can make a family trust election and one or more interposed entity elections in accordance with section 272-85 of Schedule 2F to the ITAA 1936.
Where specifying 2004–05 or later year
For 2004–05 and later years, trustees can make family trust elections specifying an earlier year provided certain conditions are met. Generally, these conditions require that from the beginning of the specified year until 30 June of the year immediately preceding the one in which the election is made:
- the trust passes the family control test in section 272-87 of Schedule 2F to the ITAA 1936
- any conferrals of present entitlement to, or any actual distributions of, income or capital of the trust during that period have been made on or to the individual specified in the election or members of that individual’s family group; see subsection 272-80(4A) of Schedule 2F to the ITAA 1936.
As subsection 272-80(4A) of Schedule 2F to the ITAA 1936 applies to elections specifying a year before the year in which the election is made, trustees using the Family trust election, revocation or variation 2024 to make a family trust election can specify the 2004–05 or later year provided the above conditions are met.
Continue to: Conditions for varying a family trust election