This issue is an ATO issue affecting Individual returns. We are waiting for the fix from the ATO likely to be in 2026.
As a workaround, please use the following steps:
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: 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.