Strategies to manage family trust distributions tax
Published Date: 30 Jun 2026
Closely held private groups make family trust elections and interposed entity elections to more easily utilise tax losses and to access franking credits. However, families change, businesses change, tax agents change, circumstances change and the elections that once benefitted a family group, and that are not designed to be flexible, can cause a significant family trust distribution tax liability for the family. By working through several case studies, this article explores various options available to taxpayers to manage the family trust distributions tax liability. It also explores the dichotomy between the family trust rules and the various anti-avoidance provisions. The application of the “dob in” provisions are also considered. Ultimately, the article questions why taxpayers should go to such lengths, and whether it wouldn’t be better tax policy to update the family trust rules.
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- Published By: Tony Nunes CTA
- Published On:30 Jun 2026
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