From pointonpartners.com.au: The ATO has increased scrutiny on family trust distributions, particularly regarding compliance with the 47% family trust distribution tax and the necessity of an interposed entity election.

It is crucial to determine whether distributions are within the family group to avoid the tax, as interposed entities can be included under certain conditions.

The IEE must be written and pass the family control test to ensure that the trust is recognized as part of the family group for tax purposes.