This issue is an ATO issue affecting Individual returns. This issue has been fixed in 2026.3.0 released 6th August.
Follow the below workaround:
Go to Trust Distribution Received worksheet.
Go to each Beneficiary.
Click Australian Source Income.
Click Non-Primary Production.
Type 0 in the share of net income.
Click Franked Distributions received field.
Enter 0.
If the amount has been transferred from the trust return you will need to enter 0 in the trust return and distribute it to the individual. If this does not work, you can choose to not automatically distribute and enter the distribution manually.
Note: The workaround does not work in all cases.
This error will appear for any trust distribution worksheet where the NPP or PP or Franked Distribution is not entered and other information is provided.