Section J: Other information

Has the SMSF made or is it making:

• a family trust election (FTE) or
• an interposed entity election (IEE)?

Family trust election (FTE) status

A Year of family trust election

Have the trustees of the SMSF made, or are they making, an FTE?

Complete A if the trustees of the SMSF:

• are making an FTE specifying the 2004–05 or later income year (see section 272-80 of Schedule 2F to the ITAA 1936), or
• have previously made an FTE specifying an income year from 1994–95 to 2018–19 and that election has not been revoked in an income year before 2020–21 (see section 272-80 of Schedule 2F to the ITAA 1936 and, if applicable, item 22 or 22A of Schedule 1 to the Taxation Laws Amendment (Trust Loss and Other Deductions) Act 1998).

If the trustees of the SMSF have made, or are making, an FTE, write at A the income year from which that election takes effect. For example, if making an FTE to apply to and from 2020–21, write ‘2021’.

Provided certain conditions are met, a trustee can make an FTE to take effect from 2020–21 or to take effect from a prior income year, although that prior income year cannot be earlier than 2004–05. Trustees may, however, have previously made an FTE that took effect prior to 2004–05.

If the trustees are making an FTE, complete a Family trust election, revocation or variation 2021 form. Attach the completed form to the annual return.

B Revoking or varying an FTE

Are the trustees of the SMSF revoking or varying an FTE?

Complete B if the trustees of the SMSF:

• are revoking in 2020–21 a previously made FTE (see subsections 272-80(6) to (8) of Schedule 2F to the ITAA 1936), or
• are varying the specified individual of a previously made FTE (see subsections 272-80 (5A) to (5D) and (6B) to (8) of Schedule 2F to the ITAA 1936).

Print at B the appropriate letter from table 13.

In certain limited circumstances an SMSF may revoke the FTE, or vary the FTE, so that a different individual is specified as the individual whose family group is taken into account for the election.

A trustee cannot vary the specified individual or revoke an FTE unless the variation or revocation is in respect of an income year that occurs during the period:

• starting at the beginning of the income year specified in the election and finishing at the end of the fourth income year after the income year specified in the election, or
• starting on 1 July 2007 and finishing on 30 June 2009.

The trustee may only vary the specified individual of an FTE once, except where doing so under subsection 272-80(5C) of Schedule 2F to the ITAA 1936 for a relevant family law order, agreement or award.

The trustee must make the variation or revocation of an election with the annual return for the income year from which the variation or revocation is to take effect.

Accordingly when revoking an FTE or varying the specified individual of an FTE in 2020–21, you must attach a Family trust election, revocation or variation 2021 to the SMSF’s annual return.

If you do not lodge the annual return electronically using PLS, and you are lodging a Family trust election, revocation or variation 2021 with the annual return, send the annual return and the attachments to:

Australian Taxation Office
GPO Box 9845
IN YOUR CAPITAL CITY

Interposed entity election status

C Year of interposed entity election (IEE)

Have the trustees of the SMSF made, or are they making, an IEE?

Complete C if the trustees of the SMSF:

• are making one or more interposed entity elections (IEEs) specifying a day in the 2004–05 or a later income year (see section 272-85 of Schedule 2F to the ITAA 1936), or
• have previously made one or more IEEs specifying a day in any income year from 1994–95 to 2019-2020 and at least one election has not been revoked in an income year before 2020–21 (see section 272-85 of Schedule 2F to the ITAA 1936 and, if applicable, item 23 or 23A of Schedule 1 to the Taxation Laws Amendment (Trust Loss and Other Deductions) Act 1998).

If the trustees are making one or more IEEs specifying a day in the 2004–05 or later income year:

• write at C the earliest income year specified, and
• complete an Interposed entity election or revocation 2021 for each IEE. Attach the completed forms to the annual return.

If the trustees are not making an IEE but have previously made one or more IEEs specifying a day in an income year before 2020–21, write the earliest income year specified at C.

Provided certain conditions are met, a trustee can make an IEE:

• to take effect after a specified day in 2020–21, or
• to take effect after a specified day in a prior income year not earlier than 2004–05.

Do not attach an election form to the annual return specifying an income year before 2004–05. However, trustees may have previously made one or more IEEs that took effect after a specified day in an income year prior to 2004–05.

D Revoking an IEE

Are the trustees of the SMSF revoking an IEE?

Print R at D if the trustees of the SMSF are revoking, from 2020–21, one or more previously made IEEs.

An IEE can be revoked in certain limited circumstances (see subsections 272-85(5A) to (6) of Schedule 2F to the ITAA 1936).

A trustee cannot revoke an IEE unless the revocation is in respect of an income year that occurs during the period:

• beginning on 1 July 2007 and finishing on 30 June 2009

or

• beginning at the later of      
  • the start of the income year specified in the election, and
  • the start of the income year in which the entity became a member of the family group, and
• finishing at the end of the fourth income year after the income year referred to in the above two points.

You must make the revocation with the annual return for the income year from which the revocation is to take effect. Accordingly, you must attach an Interposed entity election or revocation 2021 to the SMSF’s annual return.

If you are not lodging the annual return electronically using PLS and you are lodging an Interposed entity election or revocation 2021 form with the annual return, send the annual return and the attachments to:

Australian Taxation Office
GPO Box 9845
IN YOUR CAPITAL CITY

Continue to: Section K: Declarations