Tax Laws Amendment (2007 Measures No. 4) Act 2007 (143 of 2007)

Schedule 8   Family trusts

Income Tax Assessment Act 1936

4   Subsections 272-80(7), (8) and (9) in Schedule 2F

Repeal the subsections, substitute:

How to vary or revoke the election

(7) To revoke an election under subsection (6), the revocation must be made in the trust's return of income for the income year in which the later time occurs. If the trustee is not required to give a return for the income year, the revocation must:

(a) be in writing and in the approved form; and

(b) specify the later time; and

(c) be given to the Commissioner before the end of:

(i) 2 months after the end of the income year in which the later time occurs; or

(ii) such later day as the Commissioner allows.

(8) To vary or revoke an election under subsection (5A), (5C) or (6A), the variation or revocation must be made in the trust's return of income for the income year from which the variation or revocation is to be effective. If the trustee is not required to give a return for the income year, the variation or revocation must:

(a) be in writing and in the approved form; and

(b) specify the income year from which the variation or revocation is to be effective; and

(c) be given to the Commissioner on or before:

(i) 2 months after the end of that income year; or

(ii) such later day as the Commissioner allows.

When election is in force

(9) The election is in force:

(a) if it is not revoked - at all times after the election commencement time (see subsection (10)); or

(b) if it is revoked under subsection (6) - at all times from the election commencement time until the later time specified in the revocation; or

(c) if it is revoked under subsection (6A) - at all times from the election commencement time until the end of the income year immediately prior to the income year from which the revocation is to be effective (see subsection (8)).