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  • 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:

    Types of trusts and tests to apply

    Type of trust

    50% stake test

    Business continuity test

    Pattern of distributions test

    Control test

    Income injection test

    Non-fixed trust




    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.

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      Last modified: 17 Jun 2019QC 18663