Where specifying 2023–24
To make an interposed entity election specifying a day in 2023–24, the trust (including fund), company or partnership 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 272-85(4) of Schedule 2F to the ITAA 1936. However, the interposed entity election will only be in force from the election commencement time. That is the later of the specified day and the earliest time in 2023–24 from which the trust (including fund), company or partnership passes the family control test continuously until the end of that year. For more information, see subsection 272-85(6B) of Schedule 2F to the ITAA 1936.
The trustees, company or partners can make an interposed entity election in accordance with section 272-85 of Schedule 2F to the ITAA 1936 that the trust (including fund), company or partnership be included in the family group of the individual specified in a family trust election in respect of more than one trust, provided the individual specified in each family trust election is the same. See subsection 272-85(7) of Schedule 2F to the ITAA 1936. They must complete a separate Interposed entity election or revocation 2024 for each interposed entity election specifying a day in 2023–24.
Where specifying 2004–05 or later years
For 2004–05 and later years, the trustees, a company or partners can make interposed entity 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 company, partnership or trust (including fund) passes the family control test in section 272-87 of Schedule 2F to the ITAA 1936, and
- 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 family trust election by reference to which the interposed entity election is made or members of that individual’s family group; see subsection 272-85(4A) of Schedule 2F to the ITAA 1936.
As subsection 272-85(4A) of Schedule 2F to the ITAA 1936 applies to elections specifying a year before the year in which the election is made, trustees, companies and partners using the Interposed entity election or revocation 2024 to make an interposed entity election can specify 2004–05 or later, provided the above conditions are met.
Continue to: Conditions for revoking an interposed entity election
Continue to: Instructions to complete the interposed entity election or revocation