Which tests to apply

In using a tax loss or claiming a debt deduction, a trust needs to consider all the tests that apply to that type of trust, as shown in the following table:

Type of trust

50% stake test

Same business test

Pattern of distributions test

Control test

Income injection test

Non-fixed trust




Fixed trusts






Listed widely held trust




Unlisted widely held trust




Unlisted very widely held trust




Wholesale widely held trust




Fixed trust other than a widely held unit trust





Excepted trusts






Family trust






Excepted trust (other than a family trust) (6)






(1) The 50% stake test only applies to a non-fixed trust where, at any time in the test period, individuals have more than a 50% stake in the income or capital (or both) of the trust.

(2) An alternative version is also available in certain cases where non-fixed trusts hold fixed entitlements in the fixed trust (section 266-45 of Schedule 2F).

(3) This test can be applied if the 50% stake test is failed by a listed widely held trust.

(4) This test does not apply for current-year loss purposes.

(5) The income injection test does not apply where entities and individuals within a family group inject income into a family trust with tax losses or other deductions.

(6) Excepted trusts other than family trusts include:

  • complying superannuation funds
  • deceased estates within a five year administration period
  • unit trusts that are a fixed trust where all the unit holders are exempt from income tax.
    Last modified: 22 Apr 2016QC 18663