Note: The following transitional items 22 and 23 apply only to FTEs and IEEs made for the purposes of the trust loss measures and are not printed in current versions of the income tax legislation. These items continue to have the effect that they would have had if the amendments (made by Sch 11 of No 58 of 2000) had not been made.
The transitional provisions (as amended by Sch 11 of No 58 of 2000) for FTEs and IEEs made for the purposes of the company loss tracing measures or the franking credit trading measures can be found in current publications of the Income Tax Assessment Act 1936.
History
Transitional and application provisions
Act No 17 of 1998, effective 16 April 1998, contained the following provisions:
22(1) Subject to this item, a family trust election that is proposed to be made cannot specify a year of income under subsection 272-80(1) of the trust loss etc. Schedule that is before the 1997-98 year of income.
22(2) If:
a) a family trust election can, in accordance with subitem (1), be made specifying the 1997-98 year of income; and
b) the trust concerned passes the family control test (see section 272-87) at all times from the beginning of an earlier year of income until the end of the 1997-98 year of income;
the election can instead specify the earlier year of income.
If it does so, the trust concerned will, under subsection 272-80(5) of the trust loss etc. Schedule, be a family trust at all times after the beginning of the earlier year of income.
22(3) If a family trust election can, in accordance with this item, specify the 1997-98 year of income or an earlier year of income:
a) subsection 272-80(2) of the trust loss etc. Schedule does not apply to the making of the election; and
b) the election must be in writing in a form approved by the Commissioner; and
c) the election must be made:
i. if the trustee is required to furnish a return for the 1997-98 year of income - by the time when the trustee furnishes the return; or
ii. if the trustee is not required to furnish a return for that year of income - before the end of two months after the end of that year of income or before the end of such later day as the Commissioner allows.
22(4) If a family trust election is made in accordance with subitem (3) specifying the 1997-98 year of income or an earlier year of income:
a) if the trustee is required to furnish a return for the 1998-99 year of income - such information about the election as is required by the return must be included in the return, and
b) if the trustee is not required to furnish a return for that year of income - the trustee must, before the end of two months after the end of the 1998-99 year of income or before the end of such later day as the Commissioner allows, give the Commissioner such information about the election as the Commissioner, by notice in the Gazette, requires.
22(5) If the family trust election does specify an earlier year of income in accordance with subitem (2), no liability to pay family trust distribution tax arises under Division 271 of the trust loss etc. Schedule in respect of a conferral of a present entitlement to, or a distribution of, income or capital that took place:
a) in any case - before 1995 Budget time, or
b) if, in the earlier year of income or any later year of income that occurs before the 1997-1998 year of income, the trust is not prevented by the trust loss etc. Schedule from deducting a tax loss, or an amount in respect of a debt, and is not required to work out its net income and tax loss under Division 268 of that schedule - during the earlier or later year of income.
22(6) If the revocation of a family trust election is proposed to specify a time under subsection 272-80(8) that is before the beginning of the 1998-99 year of income, then:
a) subsection 272-80(7) of the trust loss etc. Schedule does not apply to the revocation; and
b) if the trustee is required to furnish a return for the 1998-99 year of income - the revocation must be made in the trust's return of income for that year of income; and
c) if the trustee is not required to furnish a return for that year of income - the revocation must:
i. be in writing in a form approved by the Commissioner; and
ii. be given to the Commissioner by the end of two months after the end of that year of income or before the end of such later day as the Commissioner allows.
23(1) Subject to this item, an interposed entity election cannot specify a year of income under subsection 272-85(1) of the trust loss etc. Schedule that is before the 1997-98 year of income.
23(2) If:
a) an interposed entity election can, in accordance with subitem (1), be made specifying a day in the 1997-98 year of income; and
b) the company, partnership or trust concerned passes the family control test (see section 272-87) at all times from a day in an earlier year of income until the end of the 1997-98 year of income;
the election can instead specify the day, or a later day, in the earlier year of income, or a day in a year of income between the earlier year of income and the 1997-98 year of income, provided the day is:
c) after 1995 Budget time; and
d) not before the day on which the family trust election mentioned in subsection 272-85(1) of the trust loss etc. Schedule came into force (including as a result of any application of item 22 of this Schedule).
23(3) If an interposed entity election can, in accordance with this item, specify a day in the 1997-98 year of income or a day in an earlier year of income:
a) subsection 272-85(2) of the trust loss etc. Schedule does not apply to the making of the election; and
b) the election must be in writing in a form approved by the Commissioner; and
c) the election must be made:
i. if the company, the partners or the trustee is required to furnish a return for the 1997-98 year of income - by the time when the company, partners or trustee furnishes the return; or
ii. if not - before the end of two months after the end of the 1997-98 year of income or before the end of such later day as the Commissioner allows.
23(4) If an interposed entity election is made in accordance with subitem (3) specifying a day in the 1997-98 year of income or a day in an earlier year of income:
a) if the company, the partners or the trustee is required to furnish a return for the 1998-99 year of income - such information about the election as is required by the return must be included in the return; and
b) if the company, the partners or the trustee is not required to furnish a return for that year of income - the company, the partners or the trustee must, before the end of two months after the end of the 1998-99 year of income or before the end of such later day as the Commissioner allows, give the Commissioner such information about the election as the Commissioner, by notice in the Gazette, requires.
Last Modified: Tuesday, 27 January 2004