When you must complete item 4
This item must be completed if any of the following apply:
- The company is making one or more interposed entity elections specifying a day in the 2004–05 or later income years in accordance with section 272-85 of the ITAA 1936.
- The company has previously made one or more interposed entity elections specifying a day in the income years from 1994–95 to 2024–25 in accordance with
- section 272-85 of the ITAA 1936, and
- if applicable, item 23 or 23A of Schedule 1 to the Taxation Laws Amendment (Trust Loss and Other Deductions) Act 1998, and
- at least one interposed entity election hasn't been revoked in an income year before 2025–26 in accordance with subsections 272-85(5A) to 272-85(8), of the ITAA 1936.
- The company is revoking, from a time in 2025–26, one or more previously made interposed entity elections in accordance with section 272-85 of the ITAA 1936.
Don't attach election forms for an interposed entity election made specifying an income year before 2004–05 to the Company tax return 2026. Under section 272-85 of the ITAA 1936, a company can't make an interposed entity election specifying a year earlier than 2004–05 in the Company tax return 2026.
For a copy of the form and instructions, see Interposed entity election or revocation and instructions 2026.
If you're not using the practitioner lodgment service (PLS), and an Interposed entity election or revocation 2026 is being lodged with your Company tax return 2026, send your tax return and the Interposed entity election or revocation 2026 to:
AUSTRALIAN TAXATION OFFICE
GPO BOX 9845
IN YOUR CAPITAL CITY
Making an interposed entity election
If the company hasn't previously made, or isn't currently making, any interposed entity elections, don't complete this item.
If the company is making one or more interposed entity elections specifying a day in 2004–05 or later income year, write the earliest income year specified in the box at label L. Complete an Interposed entity election or revocation 2026 for each election specifying a day in 2004–05 or later income year.
If the company has previously made one or more elections specifying a day in an income year before 2025–26, write the earliest income year specified in the box at label L unless the company is making one or more elections specifying a day in the 2004–05 or later income year.
If the company has previously made one or more elections specifying a day in an income year before 2004–05 and took advantage of the one-off opportunity in Practice Statement Law Administration (General Administration) PS LA 2004/1 (GA) (Withdrawn) Lodgment opportunity for family trust and interposed entity elections to specify an earlier year, write the earliest income year specified in the box at label L unless the company is making one or more elections specifying a day in 2004–05 or later income year.
Special rules apply to companies making an interposed entity election. For more information see Making an interposed entity election.
Example 1: new election, specifying the current year
The company hasn't previously made an interposed entity election. The company wants to make an interposed entity election specifying a day in 2025–26.
Print 2026 in the box at label L.
Complete an Interposed entity election or revocation 2026, specifying a day in 2025–26, to provide details of the interposed entity election the company is making.
The completed form can be attached to the company’s tax return 2026.
End of example
Example 2: new election, specifying an earlier year
The company hasn't previously made an interposed entity election. The company wants to make an interposed entity election specifying a day in 2004–05.
Print 2005 in the box at label L.
Complete an Interposed entity election or revocation 2026, specifying a day in 2004–05, to provide details of the interposed entity election the company is making.
The completed form can be attached to the company’s tax return 2026.
End of example
Example 3: one existing election
The company has previously made an interposed entity election specifying a day in 1994–95 and isn't making another interposed entity election.
Print 1995 in the box at label L.
The company doesn't need to complete an Interposed entity election or revocation 2026.
End of example
Example 4: multiple existing elections
The company has previously made interposed entity elections specifying a day in 1997–98 and 2005–06 respectively. It isn't making another interposed entity election.
Print 1998 in the box at label L.
The company doesn't need to complete an Interposed entity election or revocation 2026.
End of example
Example 5: additional election, specifying a current year
The company has previously made an interposed entity election specifying a day in 1996–97 and is making another interposed entity election specifying a day in 2025–26.
Print 2026 in the box at label L.
An Interposed entity election or revocation 2026 form must be completed, specifying a day in 2025–26, to provide details of the interposed entity election the company is making.
The completed form can be attached to the company’s 2026 tax return.
End of exampleRevocation
An interposed entity election can only be revoked by a company that satisfies all the relevant conditions in section 272–85 of the ITAA 1936. A revocation must be made with your tax return for the income year the revocation is to be effective.
Print code R in the box at this item if the interposed entity election made by the company is being revoked from a time in 2025–26. An Interposed entity election or revocation 2026 must be completed and lodged with the Company tax return 2026.
Example 6: revoking an election
The company has previously made an interposed entity election specifying a day in 2021–22 and is revoking the election from a day in 2025–26.
Print 2022 in the box at label L.
Print code R in the box at this item.
Complete an Interposed entity election or revocation 2026, specifying the day in 2025–26.
The form must be lodged with the company’s tax return 2026.
An interposed entity election is taken to be revoked if the family trust election to which it relates is revoked.
End of exampleFamily trust distribution tax
A company may make an interposed entity election under section 272-85 of the ITAA 1936 to be included in the family group of an individual specified in a family trust election made by a trust under section 272-80 of the ITAA 1936.
A company that is wholly owned, directly or indirectly, by the relevant family won't need to make an interposed entity election to be included in the family group of the specified individual, see subsection 272-90(5) of the ITAA 1936.
A consequence of a company making an interposed entity election is that under section 271-30 of the ITAA 1936 the company pays a special tax, called family trust distribution tax (FTDT), at 47% on any conferral of present entitlement to, or distribution of, the company’s income or capital to persons who aren't members of the family group of the specified individual within the meaning of section 272-90 of the ITAA 1936. For this purpose, a company’s distribution of income or capital has the meaning given in sections 272-50 and 272-60 of the ITAA 1936.
If the company has made a distribution that attracts FTDT, pay the FTDT as soon as possible to prevent the General Interest Charge from accruing. Accompany each payment of FTDT with the Family trust distribution tax payment advice.
Don't attach your payment to your company tax return, see How to pay your company's tax debt.
For more information about Family Trust Distribution Tax, see Family trust distribution tax.
Continue to: 5 Country-by-country reporting entities – GPFS obligation
Return to: Instructions to complete the Company tax return 2026