TaxBanter August 2026 Special Topic: FTEs - The practical essentials

At least once a year advisers have to turn their minds to whether their clients’ trusts should have made a family trust election (FTE) and other entities an interposed entity election (IEE)

Even after 27 years in the 1936 Tax Act, the Trust loss rules in Schedule 2F can seem impenetrable. The judicial consideration of the rules has been limited, e.g.; 

• Colonial First State [2011] FCA 16 – what is a fixed entitlement /fixed trust 
• Eldersmede Pty Ltd [2004] AATA 710 – the income injection test 
• Advanced Holdings Pty Limited ATF The Demian Trust [2020] FCA 1479 – the control test and circularity of distributions 

At least once a year advisers have to turn their minds to whether their clients’ trusts should have made a family trust election (FTE) and other entities an interposed entity election (IEE) in order to: 

• Recoup prior year losses against income received from another family entity or facilitate a loss company in which the trust has a majority interest to satisfy the continuity of ownership test 
• Satisfy the 45-day holding period rule in relation to franked dividend received by the trust so that beneficiaries can benefit from the franking credits 
• Escape the trustee beneficiary reporting rules 
• Satisfy ultimate ownership conditions for the purposes of the small business roll-over in Subdiv 328-G of the ITAA 1997.  

If an FTE or IEE has been made, consideration may have to be given to whether a revocation is desirable or even possible. 

Investment

Individual - $195 ex GST incl
Team - $585 ex GST (up to 6 team members)

If you do not already have an account, please create one here to:

• Register a team
• Access the 25% discount for the full year series!
   

Date & Details

Wednesday, 5 August 2026

11:00am - 12:30pm AEST (NSW, QLD, VIC, TAS, ACT)
10:30am SA, NT
9:00am WA

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