Changes will be made allowing family trust elections to be revoked or varied in certain limited circumstances. The Treasurer said that as there is currently no provision for family trust elections to be revoked, this will increase flexibility. The definition of the family group will be broadened to include lineal descendants, and certain changes in family circumstances will be recognised for the purposes of exempting distributions from family trust distribution tax. This measure complements the changes made by the Government in the 2004-05 Budget which also increased the flexibility of family trust elections.
For a copy of the Treasurer's press release No 39, 9 May 2006, go here