ATO reminder about family trust elections
Liz Gibbs • December 11, 2024

ATO reminder about family trust elections

Taxpayers may be considering whether they should make a family trust election ('FTE') for a trust, or an interposed entity election ('IEE') for a trust or other entity. 


Making an FTE provides access to certain tax concessions (assuming the relevant tests and conditions are satisfied), although there are important things to consider.


In particular, once the election is in effect, family trust distribution tax ('FTDT') is imposed when distributions are made outside the family group of the 'specified individual'. FTDT is a 47% tax, payable by a trustee, director, or partner, as the case may be (depending on the entity).


Taxpayers should review FTEs and IEEs annually to ensure they remain appropriate. Taxpayers can only revoke or vary FTEs and IEEs in limited circumstances and subject to certain conditions.


Before making a distribution or annual trust resolutions, trustees should identify the members of the specified individual's family group. This will help avoid FTDT liabilities.


Please contact our office if you require any assistance in this regard.


Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.


Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.



Take Back Control of Your Diary with Timeboxing
By Liz Gibbs May 1, 2026
Do you ever feel like your calendar is running your life, rather than the other way around? If you’re constantly playing the “too busy” card or letting others fill up your diary with meetings, it might be time to try a new approach: timeboxing.
ANZAC Day
By Liz Gibbs April 24, 2026
ANZAC Day is Saturday, April 25th and a time to remember the sacrifices made for the freedom we enjoy.
Change is inevitable, but improvement is intentional.
By Liz Gibbs April 23, 2026
Change is inevitable, but improvement is intentional. As Winston Churchill wisely remarked, “To improve is to change; to be perfect is to change often.” This principle sits at the heart of the PDCA (Plan-Do-Check-Act) cycle—a tool that transforms not just profits but the very fabric of how we do business.
More Posts