Both the question and the Payment Code are mandatory ATO fields and must be answered.
The next three fields are MYOB fields required for the preparation of the F4 estimate when the trustee is liable to pay tax on income to which no beneficiary is presently entitled or to beneficiaries under a legal disability.
If the trustee is liable to pay tax, or has made payments in advance:
Select Yes at Is any tax payable by the trustee?
Payment Code: Select from the drop down list, the options are Nil, Tax payable, Refund due.
Are Income Tax estimates required? If Yes, Select applicable the tax table. This is the section of the Law under which the trustee is assessed.
- If you select tax table 5 6 7 or 8, the Is the trust entitled to a full refund of franking credits? field is open to edit.
Select Yes or No as applicable Is the trust entitled to a full refund of franking credits?
Where there is one or more beneficiary under a legal disability entitled to a share of the income of the trust. The estimate will be incorrect and as it does not cater for more than one estimate to be produced for the Trustee. You can use the What-if Calculator for preparing individual estimates for the beneficiaries.
See Calculations Index in the F1 Calculator Help.
That part of the net income of the trust that has not been assessed to either a presently entitled beneficiary or the trustee on behalf of a presently entitled beneficiary; see Is a beneficiary presently entitled to a share of the income of the trust estate?
shares of the net income of a trust on behalf of individual or company beneficiaries not in their capacity as trustee of a trust estate who are presently entitled to a share of the income of the trust estate but are non-resident at the end of the income year; refer to Item 29 - Overseas transactions (Trust Returns) for additional information
shares of the net income of a trust on behalf of beneficiaries who are presently entitled to a share of the income of the trust estate but are under a legal disability
If the trust is a Special Disability trust and the 'principal beneficiary' is an Australian resident at the end of the income year, the 'principal beneficiary 'is treated as being under a legal disability
The rate of tax payable by the trustee will depend on the type of trust and the beneficiary's individual circumstances.
If the beneficiary is presently entitled to a share of the income of the trust estate, not under a legal disability, and is a resident at the end of the income year, then the beneficiary, not the trustee, is taxed on that same percentage share of the net income of the trust.
If the trustee is liable to pay any tax, print X in the Yes box at this item even if payments have been made in advance. Otherwise print X in the No box. The beneficiary or trustee pays tax on the net income of the trust. Net income means the total assessable income calculated as if the trustee was a resident taxpayer, less all allowable deductions, except deductions for net farm management deposits. In the case of any beneficiary with no beneficial interest in the trust corpus, past losses are required to be met out of corpus.
If the trust does not expect to lodge further tax returns, select Yes for FINAL in the box at this item.
Attach a statement to the trust tax return showing:
the reason why further tax returns will not be lodged, and
the manner of disposal of any assets of the trust if not disclosed elsewhere on the tax return.
Note for Subsidiary member of a Consolidated Group:
If the Trust is a subsidiary member of a consolidated group, you don't answer Yes at FINAL if membership of the consolidated group is the only basis on which the Trust will not be required to lodge future returns.
Request for non-taxable advice
If the trustee is not assessed on income and a non-taxable advice is required, complete an Other Attachments schedule to be lodged electronically with the return. Head it 'Request for a non-taxable advice'. The Name of the Trust and the TFN are automatically output for lodgment so there is no need to repeat them.
6-190 Period of administration of deceased estate
6-210 Minor beneficiaries, etc
6-220 Beneficiary non-resident at end of income year
6-230 No beneficiary presently entitled
6-250 Rates of tax payable by trustees