TITLE: ATO Extends GIC Remission Offer for Family Trust Distribution Tax Until 30 June 2027
ATO Extends GIC Remission Window for Family Trust Distribution Tax
The ATO has extended its offer to remit general interest charge (GIC) on family trust distribution tax (FTDT) liabilities until 30 June 2027. The six-month extension gives Australian trustees, electing entities and tax agents more time to check family trust elections, identify potential liabilities and make voluntary disclosures.
The ATO announced the extension on 19 October 2026. It follows feedback that reviewing elections and identifying FTDT liabilities can take considerable time. The original offer began in August 2025.
This is a limited-time opportunity to address existing family trust compliance issues. It is separate from the proposed federal trust tax reforms, which are still before Parliament.
Check whether your trust can seek GIC relief
Under the extended offer, the ATO may remit up to 80% of GIC where an electing entity takes steps to review its position before an ATO review begins. The ATO’s business bulletin on the FTDT GIC remission extension sets out the offer. Reg-Follower’s summary also reports the 19 October announcement.
In broad terms, the self-initiated process involves:
- Reviewing relevant family trust elections (FTEs) and interposed entity elections (IEEs).
- Notifying the ATO of any FTDT liability.
- Lodging the Family trust distribution tax payment advice form, NAT 6175.
- Paying the FTDT liability and making a request for GIC remission.
The remission is not automatic. The ATO considers each case, so meeting the process requirements does not guarantee a particular outcome. Where a voluntary disclosure is made during the early stages of an ATO review, partial remission may be available. Acting before a review starts gives you the clearest opportunity to use the self-review pathway.
Understand the FTDT exposure before changing an election
An FTE identifies a specified individual and the family group associated with that person. An electing family trust or interposed entity can face FTDT if it distributes income or capital outside that family group.
The FTDT rate is 47%. The tax is payable by the trustee, director or partner, as applicable. For that reason, review the family group and past distributions carefully before deciding whether an election can be varied or revoked.
An FTE can generally be varied only once. The new specified individual must usually belong to the original specified individual’s family group, and no present entitlements or distributions can have gone outside the new family group. Other conditions apply.
An FTE may be revoked if the trust is a fixed trust, or if the election was not needed to recoup tax losses, deduct bad debts or access franking credits, subject to the relevant conditions. These options have limits: variations and revocations can generally be made only up to the end of the fourth income year after the income year specified in the original election. They must be lodged with the tax return for the income year in which they take effect.
Do not treat the 30 June 2027 remission date as the deadline for every election change. The relief window and the statutory timeframe for varying or revoking an election are separate. Check the year specified in your original election and the applicable lodgment requirements.
Follow a practical trust records checklist
A structured review can help you spot gaps before they lead to incorrect reporting or an unexpected FTDT liability. Work through these steps:
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Locate the original election records. Find written copies of the FTE and any relevant IEEs, along with the trust’s tax returns and distribution records. These documents help establish what was elected and when.
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Confirm the family group. Check the specified individual and the individuals and entities included in the family group. Include corporate beneficiaries in your review; their role can affect whether a distribution is within the group.
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Reconcile distributions and present entitlements. Compare trust accounts, resolutions and beneficiary records against the family group for each relevant year. This can help identify distributions that may have fallen outside it.
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Check whether variation or revocation is available. Review the election’s specified income year and the conditions that apply. Do not assume you can change an election simply because the trust’s circumstances have changed.
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Lodge the election change with the correct return. If a variation or revocation is available, ensure it is included with the tax return for the income year in which it takes effect.
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Address any FTDT liability promptly. Where a liability is identified, follow the ATO’s payment and disclosure process, including lodging NAT 6175. Keep evidence of the disclosure, payment and remission request.
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Retain records for long enough. Keep relevant records for at least five years after your final lodgment obligations. While an election remains in force, include the specified income year on the trust’s tax return for each year.
This review can take time, particularly where a trust has multiple beneficiaries or several years of records to reconcile. Starting early gives trustees and tax agents more time to confirm the facts and prepare accurate filings.
Use the ATO elections report as a starting point
Tax agents can use the Online services for agents report called “Family trust and interposed entity elections report.” From 18 April 2026, it includes additional details, including the date each election was lodged.
Treat the report as a record-finding tool, not confirmation that an election is valid. The ATO displays elections as lodged and does not form an opinion on their validity. Compare the report with your original election documents, tax returns and distribution records.
Keep the relief separate from proposed trust reforms
The GIC relief extension arrives while federal trust tax reform bills remain before Parliament. The proposals include a 30% minimum tax on discretionary trusts. As at 20 October 2026, the bills have not become law. The Senate Economics Legislation Committee is due to report on 13 November 2026.
Trustees reviewing their position in response to the proposed reforms should also check existing FTE and IEE exposure. The proposed minimum tax and the current FTDT rules are different matters; a review of one does not resolve obligations under the other.
For related context on recent trust developments in Australia, read our update on Western Australia’s trust stamp duty relief and compliance costs.
Act before the extended window closes
The ATO’s extension gives trustees, electing entities and tax agents additional time, but it is not a reason to delay. Locate the records, check each relevant family group and reconcile distributions. If you identify a possible liability, consider the ATO’s disclosure and payment steps while the relief window remains open.
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