The trustees of a trust may revoke a family trust election where either:
- the family trust is a fixed trust at the beginning of the specified year and the trust satisfies all the other conditions set out in subsections 272-80(6) and (7) of Schedule 2F to the ITAA 1936
- under legislative changes that took effect on 1 July 2007
- at any time while the election was in force, the trust, or another entity, has not recouped a tax loss or claimed a deduction for bad debts, or a beneficiary of the trust has not received a franked distribution indirectly through the trust in relation to which the beneficiary was entitled to franking credits, only as a result of the election being in force, and
- the trust must also satisfy the related conditions in subsections 272-80(6A), (6B) and (8) of Schedule 2F to the ITAA 1936 which includes specific time periods during which a family trust election can be revoked in this situation.
Continue to: Instructions – family trust election revocation or variation 2024