The Australian Taxation Office has launched a partial amnesty for family groups to avoid interest charges on tax bills related to the incorrect distribution of money from family trusts.

The ATO warned family groups that the “clock is ticking” and they have until the end of 2026 to self-report and pay historic family trust distribution tax (FTDT) liabilities in order to avoid up to 80 per cent of the general interest charge (GIC) that is typically applied to historic tax debts.