Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p66
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 66/79)
Character Range: 2366237–2368883

allows.

When election is in force
 (9) The election is in force:
 (a) if it is not revoked—at all times after the election commencement time (see subsection (10)); or
 (b) if it is revoked under subsection (6)—at all times from the election commencement time until the later time specified in the revocation; or
 (c) if it is revoked under subsection (6A)—at all times from the election commencement time until the end of the income year immediately prior to the income year from which the revocation is to be effective (see subsection (8)).

Election commencement time
 (10) The election commencement time is:
 (a) if the trust does not pass the family control test (see section 272‑87) at all times in the income year specified—the earliest time from which the trust does pass the family control test for the remainder of that income year; or
 (b) in any other case—the beginning of the income year specified.

Only one election
 (11) The trustee must not make more than one election under this section in relation to the trust.

272‑85  Interposed entity election

Nature of election
 (1) Subject to this section, if the trustee makes a family trust election, a company, the partners in any partnership or the trustee of any other trust may make an election (an interposed entity election) in accordance with this section that the company, partnership or trust is to be included, at all times after a specified day in a specified income year, in the family group of the individual specified in the family trust election.

How election made
 (2) The election must be in writing and in the approved form.

Election to contain information
 (3) The election must contain such information as the Commissioner requires.

Family control test must be passed
 (4) The company, partnership or trust must pass the family control test (see section 272‑87) at the end of the income year.

Earlier year may be the specified year
 (4A) The specified income year may be a year before the one in which the election is made if:
 (a) at all times in the period from the beginning of the specified income year until 30 June in the income year before the one during which the election is made, the company, partnership or trust passes the family control test (see section 272‑87); and
 (b) either:
 (i) any conferrals of present entitlement to income or capital of the trust made by the trustee during that period have been made on; or
 (ii) any distributions of income or capital of the trust made by the trustee during that period have been made to;
  the individual specified in the family trust election or members of that individual's family group.

Election