Family trust elections (FTEs) and Interposed entity elections (IEEs) - Questions and answers

Summary of tests that apply for the purposes of the trust loss measures

The following table summarises the tests that apply to each type of trust.

Type of trust	50% stake test	Same business test	Pattern of distributions test	Control test	Income injection test
Fixed trust other than a widely held unit trust	(1)
Unlisted widely held trust
Listed widely held trust		(2)
Unlisted very widely held trust
Wholesale widely held trust
Non-fixed trust			(3)
Family trust					(4)
Excepted trust (other than a family trust)

Notes to the summary table
(1)   An alternate test is also available in certain cases where non-fixed trusts hold fixed entitlements in the fixed trust.
(2)   This test can be applied if the 50% stake test is failed by a listed widely held trust.
(3)   This test does not apply for current year loss purposes.
(4)   The income injection test does not apply where entities and individuals within a family group inject income into a family trust with losses.

'Family' of test individual (section 272-95)

The diagram below shows the 'family' that applies up until 1 July 2007.

The diagram below shows the 'family' that applies from 1 July 2007.