Use the Distributions from partnerships worksheet (dip) and/or the Distributions received from trusts worksheet (dit) to enter all details for the share of income, credits and deductions distributed from another Partnership or another Trust.
The Distribution from trusts worksheet also provides for the entry of the share of Capital Gains and the share of Foreign income and foreign tax paid on distributions received from a Managed Investment Trust.
These worksheets roll over the details of the partnerships and/or trusts from which distributions were received in a previous year.
If you do not use the Tax worksheets, then values may be keyed directly at the labels in the return. If a distributing Partnership or Trust is contained in your ledger the receiving partnership or Trust worksheets will be automatically created when you click the [F8] distribution function.
If the partnership statement of distribution or advice includes any of the following Do NOT include them at this item. Include them as indicated below:
- dividends or franking credits indirectly received that were attributable to distributions from a New Zealand franking company at this label. Show these amounts at item 23 Other assessable foreign source income
- payments and loans received from trustees or amounts that are debts forgiven by trustees that are treated as dividends under division 7A of the ITA 1936. Show these amounts at label K Unfranked amounts at item 12
- foreign income or a foreign capital gain. Show these types of income at:
- Attributed foreign income at item 22
- Other assessable foreign source income at item 23
- Net capital gains (including foreign capital gains) at item 21. (Dividends received from listed investment companies are not distributions of net capital gains). Refer to the Capital gains tax home page on the ATO website.
A Quick access link to the Foreign income worksheet is provided where the Partnership distribution statement includes an amount of Foreign income and/or foreign tax paid.
Non-primary production income
This amount is this trust's share of the total non-primary production income/loss distributed from other partnerships.
Distributions of foreign income must be included at Attributed Foreign income item 22 or Other assessable foreign source income item 23.
Label B - Distribution from partnerships, less foreign income
This amount is the trust's total share of non-primary production income/loss (excluding any amount of foreign income) distributed from other partnerships. Include any share of credit for tax withheld from foreign resident withholding (excluding capital gains) that is attached to the distribution. Also include the share of credit at label U Share of credit from foreign resident withholding (excluding capital gains), item 8.
Do not include income subject to foreign resident withholding (excluding capital gains) in income distributions from partnerships and trusts at item 8. Show income subject to foreign resident withholding (excluding capital gains) at label B item 5.
Show at B the amount of non-primary production income or loss distribution from other partnerships. If this amount is a loss, key a negative before the amount.
If the distribution includes franked dividends from an Australian franking company, check the advice detailing the distribution to ensure that the amounts to be included at this label represent both the trust's share of the franked dividend and its share of the franking credit attached to the franked dividend. The franking credit is also included at label D Share of franking credit from franked dividends item 8. Franked distributions received from a partnership are shown at B and not at F item 8. MYOB Tax will automatically calculate Label B.
Do not show any dividends or franking credits indirectly received that were attributable to distributions from a New Zealand franking company at this label. If the trust received dividends or franking credits indirectly from a New Zealand franking company, refer to the instructions at item 23 Other assessable foreign source income.
If the trust received a distribution from a partnership and that partnership advised that it claimed a deduction in respect of a listed investment company (LIC) capital gain amount, the trust is required to include its share of the deduction allowed to the partnership at item 14 Other Australian income.
Label R - Share of net income from trusts, less capital gains, foreign income and franked distributions
Show at R the trust's share of the non-primary production income which was included in the net income (for tax purposes) of other trusts. The statement of distribution or advice from the other trusts should separately show this amount. Include any share of credit for tax withheld in Australia due to foreign resident withholding (excluding capital gains), that is attached to the distribution. You should also include the share of credit for tax withheld from foreign resident withholding (excluding capital gains) at label U item 8.
The trust's franked distributions from trusts and its share of the franking credits referable to those franked distributions (the franking credit 'gross-up') are no longer included at the amount shown at label R. These amounts are now included at Label F. See, Franked distributions from trusts, for further instructions on this amount. However, these amounts are still relevant to working out whether the overall share of net income (for tax purposes) from non-primary production activities is a positive amount. Unfranked distributions are still shown at label R.
In working out the trust's share of non-primary production income included in the net income (for tax purposes) of other trusts, amounts to which the trust became presently entitled in the income year but has not yet received should also be taken into account.
Although for tax purposes a trust cannot distribute a loss, in certain circumstances a trust may have made a loss in relation to its non-primary production activities and yet still have a positive amount of net income because it's share of primary production income included in the net income for tax purposes is positive. In these circumstances, for the purposes of certain provisions relating to primary producers, it may be necessary to identify where the trusts share of net income from another trust related to non-primary production activities is a loss and record this at label R.
If the trusts share of non-primary production income which was included in the net income (for tax purposes) of another trust is a loss, print L in the box at the right of the amount. Show a loss at label R only if the amount is a component of an overall distribution of net income from the same trust. The loss at label R should be adjusted for any amounts shown at F and G relating to franked distributions from trusts.
Trust income action code: If the trust distribution amount is NOT a loss, select the type of trust from the list available. For a description of the codes refer to Types of trusts.
Label T - Deductions relating to amounts at B and R
Show at T the trust's deductions for its own expenses relating to non-primary production distributions from other partnerships or trusts, except those deductions that are directly related to the earning of franked distributions from trusts shown at label G. Also show at T the trusts own expenses incurred in deriving its share of non-primary production income which has been included in the net income (for tax purposes) of other trusts. Note that expenses incurred on behalf of those other trusts are not able to be deducted by the trust.
If any expenses have been prepaid, the amount that can be claimed at label T may be affected by the prepayment provisions. Refer to the publication Deductions for prepaid expenses on the ATO website.
Expenses listed here and, where relevant, at label G relating to franked distributions from trusts, that are costs associated with borrowing and servicing debt may not be allowable deductions under the thin capitalisation rules. Refer to Appendix 3 in the ATO Trust return instructions. The disallowed amount reduces the amount that would otherwise go at label T or, where relevant, label G.
If FTDT has been paid on income or capital of another trust or partnership that the trust is entitled or which has been distributed to the trust, an amount is excluded from the trust's assessable income under section 271-105 of Schedule 2F of the ITAA 1936. Do not show this at labels A, Z, B, R or F. You cannot claim a deduction for any losses or outgoings incurred in deriving an amount which is excluded from assessable income at labels S, T or G. For more information about the circumstances in which FTDT is payable, refer to Family trust distribution tax on the ATO website.
If trustee beneficiary non-disclosure tax (TBNT) has been paid in respect of an amount that would otherwise be assessable to the trust, that amount is excluded from the assessable income of the trust. Do not show that income at labels A, Z, B, R or F. You cannot claim a deduction for any losses or outgoings incurred in deriving an amount which is excluded from assessable income at labels S, T or G.
Label F - Franked distributions from trusts
A franked distribution is a distribution that has a franking credit attached to it and includes both fully and partially franked distributions. If the trust's share of the non-primary production income included in the net income of other trusts includes an amount described as franked dividends, franked distributions or attributable franked distributions, check the statement of distribution or advice detailing the distribution to ensure that the amounts to be included at this entry represent both the trust's share of the franked distribution and its share of the franking credit attached to the franked distribution (the franking credit 'gross-up').
Show at label F the trust's share of the franked distribution (described as franked dividends, franked distributions or attributable franked distributions) plus its share of the franking credit attached to the franked distribution. The franking credit is also included at label D item 8. Unfranked distributions are shown at label R item 8.
Do not show any share of another trust's non-primary production income included in the net income of that other trust that includes any dividends or franking credits indirectly received which were attributable to distributions from a New Zealand franking company at this entry, instead refer to Item 23-Other assessable foreign source income.
If the trust received or was entitled to receive, income from another trust and that income included a franked distribution (dividend) paid by a Listed Investment Company (LIC) the total franked distribution should be shown at label F.
If the trust received or was entitled to receive, income from another trust and that trust advised that it claimed a deduction in respect of a listed investment company (LIC) capital gain amount, the trust is required to include an amount equal to its share of the deduction allowed to the trust at item 14 Other Australian income.
Label G - Deductions relating to franked distributions from trusts
Show at G the trust's deductions for its own expenses incurred in deriving its share of the franked distributions from trusts at label F. The amount of deductions which can be claimed at label G may be also be limited in circumstances such as those described above (for example by the prepayment and thin capitalisation rules, or because an amount shown at label F was excluded from the trust's assessable income).
Net non-primary production amount
This amount is automatically calculated by Tax.
CCH References
5-000 A partnership for income tax purposes
5-130 Income and deductions of partner
6-100 Meaning of presently entitled
6-105 Discretionary trusts
6-110 Beneficiary presently entitled and NOT under legal disability
6-120 Beneficiary present entitled but under legal disability
6-130 Distributions of trust income
6-170 Rates of tax payable by beneficiaries
10-460 Distributions to unit trust holders
