Document ID: chunk:federal_register_of_legislation:C2025C00014:schedule:2f:p62
Version: federal_register_of_legislation:C2025C00014
Segment Type: schedule
Provision Reference: sch 2F (pt 62/79)
Character Range: 2356812–2359508

it is clear that the money or property concerned was capital, or that the debt or liability was attributable to capital, of the entity.

272‑63  Distribute indirectly
  A trust distributes income or capital indirectly to an individual if it distributes the income or capital to a company, partnership or trust (the first interposed entity) interposed between the trust and the individual and:
 (a) the first interposed entity distributes to the individual an amount or property attributable to the income or capital; or
 (b) another company, partnership or trust (the final interposed entity) distributes to the individual an amount or property that is attributable to the income or capital as a result of:
 (i) the distribution of an amount or property attributable to the income or capital to the final interposed entity by the first interposed entity; or
 (ii) successive distributions of amounts or property attributable to the income or capital to and by any companies, partnerships or trusts interposed between the first interposed entity and the final interposed entity.

Subdivision 272‑C—Fixed trusts and non‑fixed trusts

272‑65  Fixed trust
  A trust is a fixed trust if persons have fixed entitlements to all of the income and capital of the trust.

272‑70  Non‑fixed trust
  A trust is a non‑fixed trust if it is not a fixed trust.

Subdivision 272‑D—Family trust etc.

272‑75  Family trust
  A trust is a family trust at any time when a family trust election (see subsection 272‑80(1)) in respect of the trust is in force.

272‑80  Family trust election

Nature of election
 (1) Subject to this section, the trustee of the trust may make an election (the family trust election) in accordance with this section that the trust is a family trust for the purposes of this Schedule at all times after the beginning of a specified income year.

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

Election to specify individual and certain information
 (3) The election must also specify an individual as the individual whose family group is to be taken into account in relation to the election, and must contain such other information as the Commissioner requires.

Trust must pass family control test
 (4) If the trust does not pass the family control test (see section 272‑87) at the end of the specified income year, the trustee must not make the election.

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,