Trustee Beneficiary Statement information

Amounts are entered in the worksheet xT for each beneficiary.

For each such trustee beneficiary answer 'yes' to indicate that you are making a TB statement for this trustee beneficiary.

Enter each trustee beneficiary's name and Tax File Number (TFN).

For non-resident beneficiaries show the name of the trustee beneficiary and their address.

Label P - Tax preferred amounts (TB Statement)

At label P show any tax-preferred amounts to which the trustee beneficiary is presently entitled. If there are no tax-preferred amounts, enter a zero at label P.

Label Q - Untaxed part of share of net income (TB Statement)

At label Q show any untaxed part of a share of net income to be included in the assessable income of the trustee beneficiary. If there is no untaxed part of a share of net income, enter a zero at label Q.

A Tax-preferred amount is income of the trust that is not included in its assessable income in working out its net income or capital of the trust.

Note that the reporting obligations under Division 6D apply to both Australian and foreign source income; however, Australian source income which is taxed under section 98(4) of the ITAA 1936 is not included as an untaxed part of a share of net income. If the share of the net income which is included in the assessable income of a non-resident trustee beneficiary included income from a foreign source, then that foreign source income, is an untaxed part of a share of net income and must be reported in a TB statement.

For further details of what amounts comprise an untaxed part of a share of net income or a tax-preferred amount refer to the fact sheet titled Trustee beneficiary rules which is available on the ATO website.

Trustee beneficiary Non-disclosure tax (TBNT)

TBNT is payable:

• Where the trustee of a closely held trust fails to lodge a correct TB statement within the specified period in respect of each trustee beneficiary's share of net income; or
• A share of the net income of a closely held trust is included in the assessable income of a trustee beneficiary under section 97 and the trustee of the closely held trust becomes presently entitled to an amount that is reasonably attributable to the whole or a part of the untaxed part of the share (referred to as a 'round robin' or 'circular distribution')

The specified period for lodgment of the TB statement is the period between the end of the relevant year of income and the due date of the trust's tax return, or such further period allowed by the Commissioner. Completion of the TB statement in the distribution statement in the trust's tax return will satisfy the lodgment requirement.

TBNT is imposed on the untaxed part of a share of the net income of the trustee beneficiary at the rate of 47% and is due and payable 21 days after the TB statement is due, or a later date allowed by the Commissioner.

TBNT payment advices can be obtained from the ATO website.

If the trustee fails to make a correct TB statement within the specified period in respect of a trustee beneficiary's share of tax-preferred amounts, the trustee may be guilty of an offence under TAA 1953.