Investment bodies can include:
- approved deposit taking institutions
- financial institutions, including:
- banks
- credit unions, and
- building societies
- public companies
- solicitors
- government bodies
- bodies corporate
- trustee companies
- betting investment bodies
- unit trusts, including:
- cash management trusts
- pooled superannuation trusts
- mortgage trusts
- property trusts
- share trusts
- equity trusts
- growth trusts
- imputation trusts
- balanced trusts
- money market trusts
- equities trusts
- managed investment schemes
- managed funds
- bond funds
- growth funds
- income funds
- share funds.
- testamentary trusts
- discretionary trusts
- service trusts
- family trusts.
Investments reported in the Annual investment income report (AIIR) can include:
- interest bearing deposits and accounts with financial institutions
- a loan of money to a body corporate or government body
- a deposit of money with a solicitor for the purpose of being invested by the solicitor or lent under an agreement to be arranged by or on behalf of the solicitor
- units in a unit trust
- shares in a public company
- an investment related to betting or chance.
Investment income derived from the types of investments above can include income from:
- savings accounts
- interest bearing cheque accounts
- term deposits or fixed deposits
- dividends derived via means which may include:
- interim dividends
- final dividends
- off market share buy-backs
- capital restructures and de-mergers
- bonds
- debentures
- deferred interest securities
- units in a unit trust
- capital gains on a unit trust distribution
- stapled securities.
If there are other investment products you offer which are not listed above, and you need information about reporting income from these investments in the AIIR, contact the Tax Office for assistance.
Do not report interest related to consumer finance. An example of this would be interest paid by a company to a bank on a business loan from the bank.
Q. Does a cooperative company need to report AIIR?
A. Yes. A cooperative company is a public company and, therefore, the same rules as any other type of public company apply.
Q. In the case of a stapled security (which is comprised of both a share from company and a unit from trust), how should income payments be reported?
A. Report the income by including one investor account record for the trust distribution and another one for the directly paid company dividend. Each must be accompanied by an investor record.
Q. What date of payment should be recorded when reporting reinvested dividends?
A. Where a dividend is reinvested, the income is taken to have been paid at the time of reinvestment.
Q. Do I report dividends based on their ex date or their payment date? For instance if a security goes ex in June 2005 and payment occurs in July 2005, would the dividend be included in the 2004-05 or 2005-06 financial year.
A. The date of payment is the date that the income was derived by the client. In the example above the dividend would be included in the 2005-06 financial year.
Q. How is investment income which is treated as dividends for income tax purposes reported in the AIIR?
A. Corporate unit trusts and public trading trusts whose distributions to unit holders are treated as dividends for income tax purposes should report the payments in the DIV field rather than in the UTD field.
Q. Which item number in the 'Type of investment' field do I use for a private company?
A. A private company should report item 3 as the 'Type of investment'. A loan of money to a body corporate is an investment covered by the TFN rules. This kind of investment is covered by Item 3 in the table at subsection 202D(1) of the Income Tax Assessment Act 1936.
The most usual way for an entity to be incorporated is by registering as a company with the Australian Securities and Investments Commission (ASIC) under the Corporations Act 2001. Registration of the company with ASIC can be as a:
- proprietary company (also commonly called a 'private company'), or
- a public company, which may or may not be listed on the Australian Stock Exchange (it is an 'unlisted company' if not listed).
It is often the case that small private companies have a relatively small number of investors. Loans made to these companies (other than those related to consumer finance) are still an investment covered by the tax file number (TFN) rules. Note. If there were less than ten investments in the company during the year, and no withholding from any investments, the company does not need to lodge an AIIR, but may need to lodge a Dividend and interest schedule (NAT 8030) that forms part of the company tax return.
Q. When does a credit for foreign resident withholding apply?
A. Credit for amounts withheld from UTD under foreign resident withholding relates to the amount of tax withheld and paid to the Tax Office from trust income because of the operation of foreign resident withholding for particular types of activities which are listed in regulations to the Taxation Administration Act 1953. These activities are:
- for promoting or organising casino gaming junket arrangements
- for entertainment and sports activities
- under contracts for the construction, installation and upgrading of buildings, plant and fixtures and for associated activities.
For further information about foreign resident withholding refer to Foreign Resident Withholding (FRW) - who it affects.
Q. Where do I put the Foreign Tax Credits which are associated with an assessable foreign source income reported as FSI?
A. The foreign tax credits attached to 'foreign source interest or dividend income that is not part of a UTD' is to be reported in the field called Foreign tax credits on UTD. The processing system has been set up to accept records where Type of Payment = FSI and there is an amount in the Assessable foreign source income (UTD component or other payment) field and in the Foreign tax credits on UTD field. Future updates to this specification will reflect FSI as a payment type.
- Find out about distribution statements
- Phone us on 1800 072 681, or send an email enquiry to the Tax Office, if you would like to:
- receive further information about the annual investment income report
- update contact details for an existing investment body
- register the details of a new investment body
- ask a question.
Last Modified: Tuesday, 1 April 2008