INCOME TAX ASSESSMENT ACT 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 272 - Interpretation  

Subdivision 272-D - Family trust etc.  

SECTION 272-90   FAMILY GROUP  

272-90(1)  
This section states whether a person is a member of the family group of the individual (the primary individual ) specified in the family trust election in relation to a conferral of a present entitlement to, or a distribution of, income or capital of a company, partnership or trust, upon or to the person. Family member

272-90(2)  
A member of the primary individual's family (see section 272-95) is a member of the primary individual's family group in relation to the conferral or distribution. Certain former family members

272-90(2A)  


The following persons are members of the primary individual's family group in relation to the conferral or distribution:


(a) a person who was a spouse of either the primary individual or of a member of the primary individual's family before a breakdown in the marriage or relationship; and


(b) a person:


(i) who was the spouse of either the primary individual or of a member of the primary individual's family immediately before the death of the primary individual or member of the primary individual's family; and

(ii) who is now the spouse of a person who is not a member of the primary individual's family; and


(c) a person who was a child of the spouse of either the primary individual or of a member of the primary individual's family before a breakdown in the marriage or relationship of the primary individual or the member of the primary individual's family.

Trust covered by family trust election

272-90(3)  
The trust in respect of which the family trust election was made is a member of the primary individual's family group in relation to the conferral or distribution. Trust with same primary individual

272-90(3A)  


A trust with the same primary individual specified in its family trust election is a member of the primary individual's family group in relation to the conferral or distribution. Entity covered by interposed entity election

272-90(4)  
A company, partnership or trust is a member of the primary individual's family group in relation to the conferral or distribution if:


(a) the company, partners or trustee has made an interposed entity election to that effect; and


(b) the election is in force when the conferral takes place or the distribution is made. Entity owned by family

272-90(5)  
A company, partnership or trust is a member of the primary individual's family group in relation to the conferral or distribution if, when the conferral takes place or the distribution is made:


(a) the primary individual; or


(b) one or more members of the primary individual's family; or


(c) the trustees of one or more family trusts, provided the primary individual is specified in the family trust election of each of those family trusts;

or any combination of the above, have fixed entitlements directly or indirectly, and for their own benefit, to all of the income and capital of the company, partnership or trust.

Funds

272-90(6)  


A fund, authority or institution in Australia that is mentioned in item 1 or 2 of the table in section 30-15 of the Income Tax Assessment Act 1997 is a member of the primary individual's family group in relation to the conferral or distribution if, assuming that a deduction were allowable under Division 30 of that Act in respect of the conferral or distribution, section 78A of this Act would not prevent any of the deduction being allowable. Certain tax exempt bodies

272-90(7)  


An institution, hospital, trustee, society, association, club, or fund, all of whose income is exempt under:


(a) section 50-5 or 50-10 of the Income Tax Assessment Act 1997; or


(b) item 6.1 or 6.2 of the table in section 50-30, or item 9.1 or 9.2 of the table in section 50-45, of the Income Tax Assessment Act 1997;

is a member of the primary individual's family group in relation to the conferral or distribution if, assuming that a deduction were allowable under Division 30 of that Act in respect of the conferral or distribution, section 78A would not prevent any of the deduction being allowable.

Institutions etc. where no living beneficiaries

272-90(8)  
Either:


(a) an institution all of whose income is exempt under item 1.1, 1.3 or 1.4 of the table in section 50-5 of the Income Tax Assessment Act 1997; or


(b) a fund, authority or institution in Australia that is mentioned in item 1 or 2 of the table in section 30-15 of the Income Tax Assessment Act 1997;

is a member of the primary individual's family group in relation to the conferral or distribution if, when the conferral takes place or the distribution is made, all of the beneficiaries of the trust, in respect of which the family trust election was made, who were individuals have died.

Estate of deceased family

272-90(9)  
If the primary individual and all of the members of his or her family are dead when the conferral takes place or the distribution is made, the estates of the individual and of the members are members of the primary individual's family group in relation to the conferral or distribution. Interests in SMEs

272-90(10)  
A person is a member of the primary individual's family group in relation to the conferral or distribution if:


(a) a company that is an SME (within the meaning of section 128TK) confers the entitlement or makes the distribution; and


(b) the SME had made an interposed entity election to be included in the family group of the primary individual and the election is in force when the conferral takes place or the distribution is made; and


(c) the person:


(i) had acquired a threshold interest (within the meaning of section 128TJ) in the SME on or after 1 July 1996; and

(ii) is an Australian financial institution (within the meaning of section 317) or a subsidiary (within the meaning of section 128TL) of another company that is an Australian financial institution; and

(iii) is not an associate of the SME; and


(d) the distribution to which the conferral of the entitlement relates or that is made consists of a dividend paid, or a return of the paid-up share capital of the SME, on ordinary shares in the SME that were issued:


(i) on or after 1 July 1996; and

(ii) before or as part of the threshold share issue mentioned in paragraph 128TJ(c).

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