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Warning: This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
Fund income tax return instructions 2011
Fund income tax return instructions 2011
Fund income tax instructions 2011 will help you complete the Fund income tax return 2011 (NAT 71287). The instructions also cover:
- the schedules you must complete and attach to the tax return
- record-keeping requirements.
When we refer to 'you' in these instructions, we are referring to you either as the trustee of the fund or as the tax agent or trustee responsible for completing the tax return. This publication is not a guide to income tax or superannuation law. Seek help from us or a registered tax adviser if this publication does not fully cover the fund's circumstances.
These instructions cover only Australian Prudential Regulation Authority (APRA) regulated and non-regulated superannuation funds that use the Fund income tax return 2011 to meet their tax obligations. Where required, a separate Super member contributions statement (NAT 71334) must be lodged with us.
Self-managed superannuation funds need to meet their tax and regulatory obligations by lodging the Self-managed superannuation fund annual return 2011 (NAT 71226).
Publications and services
To find out how to get a publication referred to in these instructions and for information about our other services, see Publications, Tax Determinations and Rulings.
Record keeping
Funds must keep records, in English, in writing or electronically. The records must be in a form that we can access and understand. Generally, funds must keep all relevant records for at least five years, but this period may be longer in certain circumstances.
See Record-keeping requirements for further details and references.
What's new?
Repeal of foreign investment fund and deemed present entitlement rules
The Tax Laws Amendment (Foreign Source Income Deferral) Act (No. 1) 2010 repealed section 96A, Part XI (the FIF rules) and sections 96B and 96C (the deemed present entitlement rules) of the Income Tax Assessment Act 1936 (ITAA 1936). The repeal applies to 2010-11 and later income years. In the absence of the FIF and deemed present entitlement rules, resident beneficiaries holding interests in foreign trusts will need to turn to the ordinary trust rules contained in Division 6 and the transferor trust provisions in Division 6AAA of the ITAA 1936 in order to determine their tax obligations. The ordinary trust rules will also continue to apply in precedence to the transferor trust rules.
TFN withholding for closely held trusts
TFN withholding arrangements have been extended to most closely-held trusts, including family trusts, to ensure that beneficiaries of these trusts include their share of the net income of the trust in their tax returns.
From the first income year starting on or after 1 July 2010, beneficiaries may provide their TFN to the trustee of the trust prior to receiving a distribution or becoming presently entitled to income of the trust. Where a beneficiary has provided their TFN, the trustee is required to report the TFN and other details to the ATO.
Where a beneficiary does not provide their TFN, the trustee is required to withhold an amount from the distribution (at the top marginal rate plus Medicare levy). This amount will then be remitted to the ATO. The trustee is required to provide beneficiaries with a payment summary where withholding has occurred. When the beneficiary lodges their annual tax return they will be able to claim a credit for the amount withheld.
Legislation to bring this measure into effect was contained in Act No. 75 - Tax Laws Amendment (2010 Measure No 2) Act 2010 which received Royal Assent on 28 June 2010.
See TFN withholding for closely held trusts for more information
Taxation of financial arrangements (TOFA)
The key provisions of the TOFA rules are found in Division 230 of the ITAA 1997, which generally provides for:
- methods of taking into account gains and losses from financial arrangements, being accruals and realisation, fair value, foreign exchange retranslation, hedging and reliance on financial reports and balancing adjustment
- the time when the gains and losses from financial arrangements will be brought to account.
Which funds are affected?
The TOFA rules will apply to a fund where the value of the fund's assets is $100 million or more. For the purposes of this test, the value of the fund's assets is worked out at the end of the 2009-10 income year or, where the fund came into existence during the 2010-11 income year, at the end of the 2010-11 income year.
A fund that does not meet these requirements can elect to have the TOFA rules apply to it.
Regardless of whether the TOFA rules would otherwise apply, they apply to all qualifying securities acquired by a fund during an income year beginning on or after 1 July 2010 (or 1 July 2009 if the early start election was made) and that have a remaining life of more than 12 months after the fund starts to have them.
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The aggregated turnover tests may mean that the TOFA rules will apply to funds that do not meet the turnover thresholds in their own right. Aggregated turnover includes the annual turnover of any entity a fund is connected with, or any affiliate of the fund (including overseas entities).
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When will the TOFA rules affect a fund's tax return?
The TOFA rules will apply to all financial arrangements that an affected fund starts to have during its first income year commencing on or after 1 July 2010 (unless it elected for the rules to apply a year earlier).
Transitional election for existing financial arrangements
Although the TOFA rules generally apply only to new financial arrangements, an affected fund can make a further election to have the TOFA rules apply to its existing financial arrangements. Where this election is made, the rules will also apply to financial arrangements that were entered into before the time that the TOFA rules first apply to the fund if those financial arrangements are held at that time.
A fund must provide a transitional election for existing financial arrangements to the Commissioner by the following dates:
Income year that the TOFA rules first apply to the fund's financial arrangements
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Date transitional election must be made by:
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2010-11
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The due date for lodgment of the fund's 2010 income tax return
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2011-12*
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The due date for lodgment of the fund's 2011 income tax return
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* This may apply to funds with a substituted accounting period that have an early balance date.
TOFA rules and capital gains tax (CGT)
Capital gains tax (CGT) will remain the primary code for calculating a fund's gains and losses from financial arrangements that are presently taxed under the CGT regime. Where a CGT event happens to those types of financial arrangements, the relevant capital gain or loss will continue to be brought to account under the CGT provisions only, and the TOFA rules will not apply.
Transitional relief for superannuation funds: deductibility of premiums for total and permanent disability insurance cover
Amendments to the tax law have been enacted to provide transitional relief to complying superannuation funds for income tax deductibility of total and permanent disability (TPD) insurance premiums. These amendments ensure that complying superannuation funds can deduct in full the insurance premiums commonly regarded as TPD policy premiums for the income years from 2004-05 to 2010-11. The transitional relief is intended to minimise the disruption to the superannuation industry by providing superannuation funds with time to make any necessary changes to their insurance policies in order to qualify for a deduction for disability superannuation benefits under the Income Tax Assessment Act 1997(ITAA 1997).
For more information, see New legislation
Deductibility to funds of cost of providing terminal medical condition benefits
In the 2010-11 Budget the Government announced the intention to extend the range of benefits that are deductible by complying superannuation funds and retirement savings account providers to include terminal medical condition (TMC) benefits. The measure will have effect from 16 February 2008, the date the TMC condition of release was introduced into the superannuation legislation.
At the time of publishing these instructions the changes had not become law.
For more information see New legislation
Deduction notices for successor fund transfers
For 2010-11 and future years an individual is allowed to give a notice of intent to deduct a contribution (made to an original fund) to a successor superannuation fund. Successor fund transfers commonly occur where funds are merged, for example, following a corporate restructure.
Deductibility of employer contributions for former employee
Employers can claim a deduction for superannuation contributions made in respect of a former employee within four months of the employee ceasing employment and at any time after the employee ceases employment for defined benefit interests. Currently employers are restricted to a two month time limit.
Capital gains tax - limiting the trading stock exception for superannuation funds
In the 2011-12 Budget the Government announced the intention to remove the trading stock exception to the 'capital gains tax (CGT) primary code rule' for complying superannuation entities for specified assets, with effect from 7.30 pm (AEST) 10 May 2011.
This measure will ensure gains or losses on specified assets (primarily shares, units in a trust and land) are subject to CGT, consistent with CGT being the primary code for taxing gains and losses of complying superannuation entities. Complying superannuation entities will not be able to treat shares as trading stock, so as to deduct losses on their shares against income other than capital gains.
The intention is that there will be provision for transitional rules to ensure that assets held or accounted for as trading stock before 7.30 pm (AEST) 10 May 2011 are unaffected.
At the time of publishing these instructions the changes had not become law.
For more information see New legislation.
Capital gains tax - amendments to the scrip for scrip roll-over
In the 2011-12 Budget the Government announced the intention to ensure that the scrip for scrip roll-over integrity provisions that apply to individuals and companies also apply appropriately to trusts, superannuation funds and life insurance companies.
This measure is intended to apply for CGT events happening after 7.30pm (AEST) on 10 May 2011.
At the time of publishing these instructions the changes had not become law.
For more information see New legislation.
You must answer all questions that apply to you and all questions that require a yes or no answer.
Where a question does not apply to you, leave the answer box blank.
Where a question requires a yes or no answer, print X in the relevant box.
Print neatly in BLOCK LETTERS, using a black pen.
Print one character per box and do not write outside the boxes provided.
Do not use correction fluid or tape. If you make an error on the tax return you will need to get a new tax return and start again.
You may photocopy the tax return for the fund's records, but you must send us the original.
Superannuation funds that are regulated by APRA as at 30 June 2011 must use the Fund income tax return 2011 to lodge their tax return.
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Table 1 lists the types of funds regulated by APRA.
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Superannuation funds that are self-managed superannuation funds (SMSFs) under the Superannuation Industry (Supervision) Act 1993 (SISA) at 30 June 2011 must use the Self-managed superannuation fund 2011 annual return to lodge information relating to income tax, regulatory and member contribution details.
Generally a superannuation fund with more than one member is an SMSF if:
- it has four or fewer members
- no member of the fund is an employee of another member of the fund unless they are related
- each member of the fund is a trustee and each trustee is a member of the fund, and
- no trustee of the fund receives any remuneration for their services as a trustee.
Alternatively, an SMSF with more than one member can have a company as a trustee (known as a corporate trustee) if:
- the fund has four or fewer members
- each member of the fund is a director of the company and each director of the company is a member of the fund
- no member of the fund is an employee of another member of the fund unless they are related
- the company does not receive any remuneration for its services as a trustee, and
- no director of the company receives any remuneration for their services as a director in relation to the fund.
A superannuation fund with only one member is an SMSF if:
- the member of the fund is a trustee and there is second trustee who is either a relative of the member or is not the member's employer, or
- a company is the trustee of the fund and the member is the sole director of the company or there is a second director of the company and that other director is a relative of the member or is not the member's employer, and
- no remuneration is received by a trustee or director for services in relation to the fund.
The only postal address for lodgment of this tax return is:
The address must appear as shown above.
The following are the only schedules that are to be sent with the tax return:
If you do not lodge the schedule with the income tax return, you are required to sign and date the schedule.
You may have to complete other schedules or documents which are to be kept with your records and should not be sent with the tax return. These are described further at Record-keeping requirements. Keep these with the fund's tax records.
The requirement to lodge a tax return together with the due date and acceptable method for lodging returns, statements and schedules are set out in the 'legislative instrument' which is registered on the Federal Register of Legislative Instruments.
For funds with an income year ending on 30 June 2011, the due date for lodgment is 31 October 2011. However, most funds will have a different due date if the return is lodged by a tax agent as part of their tax agent lodgment program or as otherwise advised by us.
If you do not lodge the fund's tax return by the due date, it may be subject to a failure to lodge on time penalty. A general interest charge (GIC) will begin to accrue from the due date for payment until the amount is paid in full; see Penalties and interest charges.
If we receive tax returns without all the required information and schedules attached, we may not consider them to have been lodged in the approved form. Unless all information and schedules are lodged by the due date, we may apply a penalty for failure to lodge on time.
Keep records so the information reported on the tax return can be verified at a later date; see Record-keeping requirements.
Do not attach a payment to the tax return; see Payment.
Penalties and interest charges
The law imposes penalties on trustees of funds for:
- failing to lodge the tax return on time and in the approved form
- having a tax shortfall or over-claiming a credit that is caused by taking a position that is not reasonably arguable
- making a false or misleading statement in the approved form
- refusing to provide a tax return from which the Commissioner of Taxation can determine a liability
- failing to keep and produce proper records
- preventing access to premises and documents
- failing to retain or produce declarations.
The trustee of a fund is liable for the GIC where:
- tax remains unpaid after the due date for payment, or
- a variation of a pay as you go (PAYG) instalment rate or amount is less than 85% of the amount or rate that would have covered the fund's actual liability for the year.
The trustee of a fund is liable for the shortfall interest charge (SIC) where the fund's income tax assessment is amended to increase their liability. Generally, the SIC accrues on the shortfall amount from the due date of the original assessment until the day before the assessment is amended.
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Knowingly answering a question incorrectly will be treated as a more serious offence than voluntarily disclosing a breach of the legislation.
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This section deals with general superannuation entity identification issues and the current status of the fund.
Write the TFN of the fund in the boxes provided on page 1 of the tax return, and in the boxes at the top of page 3.
Print the name of the fund exactly as it appears on the fund's trust deed or other constituent document.
For subsequent tax returns, the fund name should be consistent from year to year unless the name changes.
If the name of the fund is legally changed, you must advise us of the change by either updating the details online at www.abr.gov.au or completing the Change of details for superannuation entities (NAT 3036) at the time the change is made.
Write the ABN of the fund in the boxes provided, if applicable. If the fund does not have an ABN, leave this blank.
We strongly encourage funds without ABNs to apply for one either online at www.abr.gov.au or by lodging an Application for ABN registration for superannuation entities (NAT 2944) with us.
The ABN is a single, unique business identifier that will ultimately be used for all dealings with the Australian Government. It is also available to state, territory and local government regulatory bodies. Identification for tax law purposes is only one of the objects of the ABN.
We are authorised by the A New Tax System (Australian Business Number) Act 1999 to collect certain information relating to your fund. We may use business details supplied on your tax return to update your trading name, industry classification, status of business, wind up date, public officer, email address and main business address on the ABR. We may also use postal address details from your tax return if we cannot contact you through your ABR postal address.
Where authorised by law, selected information on the ABR may be made publicly available and some may be passed to a wide range of government agencies, including Australian Government, state and local government agencies.
You can find details of agencies that regularly receive information from the ABR at www.abr.gov.au You can also phone us on 13 28 66 between 8.00am and 6.00pm Monday to Friday and ask for a list of the agencies to be sent to you.
These agencies may use ABR information for purposes authorised by their legislation or for carrying out other functions of their agency. Examples of possible uses include registration, reporting, compliance, validation and updating databases.
In addition to the publicly available information, these agencies can also access the:
- name of the fund's associates, such as directors of the trustee company, trustee or public officer
- fund's address for service of notices
- fund's principal place of business
- fund's email address
- Australian and New Zealand Standard Industrial Classification (ANZSIC) code for the business conducted by the fund.
We will use this address to send you correspondence. Abbreviate 'care of' to 'C/-' only.
Print X in the appropriate box.
We will use this information when updating our records. We will contact you if you answer 'yes' and we do not have an original tax return for the 2009-10 income year.
If applicable, print the name and ABN of the corporate trustee, referred to here as non-individual trustee.
Direct Refund
It's faster and simpler to have your refund paid directly to your financial institution account. Complete your account details, even if you have provided them previously. If you have changed your tax agent or have a new account check that you completed the item with the new details. If you do not complete the question, your refund cheque will be mailed to you.
Complete the following:
- Print the bank state branch (BSB) number. This six-digit number identifies the financial institution. Do not include spaces, dashes or hyphens in the number.
- Print the account number. You cannot use an account number with more than nine characters. Do not include spaces in the account number.
- Print the account name, as shown on the account records. Do not print the account type, for example, cheque. Include spaces between each word and between initials in the account name. The account name must not exceed 32 characters.
Type of fund or trust
Print X in the box that best describes the type of fund or trust at balance date. Mark only one box. The table below may help you determine the type of fund or trust at balance date.
Table 1: Fund or trust type
Label
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Categories of funds or trusts
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A
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Small APRA fund - a regulated fund administered by APRA that has fewer than five members. This category includes those employer-sponsored or corporate funds that have four or fewer members.
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B
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Retail fund - a regulated fund consisting of pooled superannuation sold commercially through intermediaries such as life companies, bank subsidiaries or financial planners. This category includes master trusts, personal superannuation products and public offer funds.
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C
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Industry fund - a regulated fund maintained to accept superannuation contributions from unrelated employers in a particular industry.
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D
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Corporate fund - a regulated fund sponsored by a single non-government employer or a group of related employers, excluding industry funds.
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E
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Eligible rollover fund - a regulated fund or approved deposit fund that is required to treat all members as protected members and every member's benefits as minimum benefits.
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F
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Approved deposit fund (ADF) - a regulated fund that can receive, hold and invest certain types of rollovers on certain conditions.
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G
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Pooled superannuation trust (PST) - a unit trust in which only the assets of superannuation funds, ADFs and other PSTs can be invested.
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H
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Public sector fund - a regulated fund established by or under a law of the Commonwealth, a state or territory, a municipal corporation or another local governing body or public authority constituted by or under a law of the Commonwealth or a state or territory.
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I
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Non-regulated fund - a fund that does not satisfy the provisions of section 19 of the SISA.
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J Australian superannuation fund
For the fund to be a complying superannuation fund it must be an 'Australian superannuation fund'.
A fund is an Australian superannuation fund if it satisfies all three of the following tests:
- the fund was established in Australia, or at least one of the fund's assets is located in Australia, and
- the central management and control of the fund is ordinarily in Australia, and
- either
- the fund has no active members, or
- it has active members who are Australian residents and who hold at least 50% of
- the total market value of the fund's assets attributable to super interests held by active members, or
- the sum of the amounts that would be payable to or in respect of active members if they voluntarily ceased to be members.
Provided the fund satisfies these tests at the same time at any point in the income year then, for income tax purposes, it is an Australian superannuation fund for the entire income year. However, in order to be a 'complying superannuation fund' in an income year, these three tests must be met throughout the income year.
A member is considered to be an active member of a fund if:
- they are a contributor to the fund, or
- contributions were made to the fund on their behalf.
However, a member on whose behalf contributions were made to the fund is not an active member if:
- they are not a resident of Australia and
- they have ceased to be a contributor and
- the only contributions that were made on their behalf after they ceased to be an Australian resident were made in relation to the time they were an Australian resident.
The central management and control of a fund is ordinarily in Australia if the fund's strategic and high level decisions are regularly made in Australia. These decisions are generally made by the trustees of the fund.
The fund will continue to meet the central management and control requirement in cases where the fund's central management and control is temporarily outside Australia. However, if the central management and control of the fund is permanently outside Australia, it will not meet this requirement.
In general, provided all other aspects of the definition are satisfied, the fund continues to be an Australian superannuation fund where its central management and control is temporarily outside Australia for up to two years.
Print X in the No box at A if the fund does not meet the above definition of Australian superannuation fund at any time during the income year. If the fund does not meet the above definition of Australian superannuation fund throughout the income year, the fund will lose its complying superannuation fund status, and a tax rate of 45% will apply to the fund's taxable income for the income year (including the market value of all fund assets at the start of that income year).
For more information on the definition of an 'Australian superannuation fund', see Taxation Ruling TR 2008/9 - Income tax: meaning of 'Australian superannuation fund' in subsection 295-95(2) of the Income Tax Assessment Act 1997.
K Fund benefit structure
Print at K the appropriate code from table 2 below that best describes the benefit structure of the fund.
Table 2: Fund benefit structure
Code
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Definition of fund benefit structure
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A
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Your fund is an accumulation fund if your fund provides its members with a benefit that is the total of:
- specifically defined contributions to the fund plus
- earnings on those contributions minus
- any costs borne by the member.
This fund is considered an accumulation fund even if the fund or any of its accounts is paying a superannuation income stream benefit.
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D
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Your fund is a defined benefit fund if your fund provides its members with a benefit that is calculated from a formula based on a combination of factors, including the years of membership in the fund and the average salary level over a specific time.
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U
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Unfunded defined benefit - similar to defined benefit, but the superannuation members' benefits are unfunded. Only governments are allowed to run unfunded defined benefit funds.
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If a fund's benefit structure is a mixture of accumulation and defined benefit (that is, it is a hybrid fund), select D defined benefit fund.
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L Number of members
Write at L the total number of members or depositors (for ADFs) at the balance date. Members for this item are persons:
- who are making contributions
- on whose behalf contributions are being made
- who are receiving pension entitlements
- who hold any deferred beneficiary accounts.
M Date of establishment
Write the date on which the fund was established (use the day/month/year format).
Print X in the appropriate box.
Date on which the fund was wound up
If you answered yes, write the date the fund ceased operations.
Every fund is required to lodge a tax return for each income year of its operations, up to the date it is wound up.
This section deals with all income the fund received, or was entitled to receive, during the 2010-11 income year. Do not show cents for any amount you write at this section on your tax return.
Is the fund a complying or non-complying fund?
The compliance status of the fund affects how you report income and the tax rates that apply. A fund is a complying superannuation fund unless APRA issues the fund with a Notice of non-compliance. If the fund is a regulated superannuation fund and you have not received a notice of non-compliance, then the fund is a complying fund.
How GST affects the tax return
If the fund is registered or required to be registered for GST purposes, do not include GST amounts in the assessable income you show on the tax return. The deductions should not include any amounts that relate to input tax credit entitlements.
If the fund is not registered and not required to be registered for GST purposes, or if it is not entitled to an input tax credit, the deductions should be the GST-inclusive amounts that the fund incurred. Special rules apply to GST adjustments. To register for GST apply online at www.abr.gov.au
The taxable income of complying superannuation funds is split into a non-arm's length component and a low tax component.
The non-arm's length component (previously referred to as 'special income') is the fund's non-arm's length income less any deductions that are attributable to that income.
The low tax component (previously referred to as 'standard component') is any remaining part of the fund's taxable income.
Ensure that you show the correct income components against the corresponding income labels, as different rates of tax apply to different income components.
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A concessional rate applies to the low tax component, while the non-arm's length component is taxed at the highest marginal tax rate. The rates are set out in Appendix 3: Rates of tax.
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Print X in the appropriate box.
A fund makes a capital gain or capital loss if certain events or transactions happen. These are called CGT events. CGT events usually happen to a fund's CGT assets, such as the disposal of an asset. However, some CGT events relate directly to capital receipts.
If the fund ceases to hold or to use a depreciating asset that was used for both taxable and non-taxable purposes, a CGT event may happen in respect of the asset. A capital gain or capital loss may arise to the extent that the asset was used for a non-taxable purpose. For more information, see the Guide to depreciating assets 2011 (NAT 1996).
The capital gain or capital loss can be disregarded for some CGT events. For example, a capital gain or capital loss in relation to segregated current pension assets of a complying superannuation entity is disregarded.
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For more information about CGT events see:
- Guide to capital gains tax 2011. This publication includes
- a capital gain or capital loss worksheet for calculating a capital gain or capital loss for each CGT event
- a CGT summary worksheet for calculating the fund's net capital gain or capital loss, and
- a Capital gains tax (CGT) schedule 2011 (NAT 3423).
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The Guide to capital gains tax 2011 also explains special CGT rules that apply to foreign residents and trustees of foreign trusts.
The worksheets will help you calculate the net capital gain or capital loss for the income year and complete the CGT questions on the fund tax return. You do not have to complete the worksheets; but if you do, do not attach them to the fund tax return; keep them with the fund's tax records.
If the fund had a CGT event happen during the 2010-11 income year or the fund received a distribution of a capital gain from a trust, print X in the Yes box at G. Otherwise, print X in the No box. If you select Yes, you must complete the Capital gains tax (CGT) schedule 2011 (CGT schedule) and attach it to the fund tax return if:
- total current year capital gains are greater than $10,000, or
- total current year capital losses are greater than $10,000.
Harvests and sales are CGT events because these events result in the fund no longer holding some or all of its forestry interest.
The fund is an initial participant in an FMIS if:
- the fund obtained its forestry interest in the FMIS from the forestry manager of the scheme, and
- the fund's payment to obtain the forestry interest in the FMIS results in the establishment of trees.
The fund is a subsequent participant if it obtains an interest in a forestry managed investment scheme through secondary market trading. This means it acquired its interest other than as an initial participant, usually by purchasing that interest from an initial participant in the scheme.
The forestry manager of an FMIS is the entity that manages, arranges or promotes the FMIS.
A forestry interest in an FMIS is a right to the benefits produced by the FMIS (whether the right is actual, prospective or contingent, and whether it is enforceable or not).
Print X in the appropriate box.
If you selected Yes, you must complete a Capital gains tax (CGT) schedule 2011 and attach it to the fund's tax return. In addition to calculating your capital gain or loss, you may also need to include income at X Forestry managed investment scheme income.
The fund's net capital gain is the total current year capital gains less the current year capital losses, prior year net capital losses and any other relevant concession.
Show at A the amount of net capital gain calculated or transferred from:
- G at part H of the CGT summary worksheet, or
- G at part H of the CGT schedule, if one is required.
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For more information on how to calculate the fund's net capital gain or for special CGT rules that apply to foreign residents or trustees of foreign trusts, see the Guide to capital gains tax 2011.
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The fund may need to complete a Losses schedule 2011. For more information, see Schedules, and the Losses schedule instructions 2011 (NAT 4088).
Show at B all the rental income from land and buildings and all income from leasing and hiring. This item cannot be a loss.
Do not include any rental, leasing or hiring income derived from foreign sources. Show them at D Net foreign income and D1 Gross foreign income.
Do not include any rental income distributed from a trust. This should be included at Q Trust distributions other amounts.
Show at C all the fund's interest income. This amount cannot be a loss.
Even if the TOFA rules apply to the fund, show at C all interest paid or credited to it from any source in Australia. This includes interest from financial arrangements subject to the TOFA rules.
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If what you show at C includes an amount brought to account under the TOFA rules, also print X in the Yes box at G Taxation of financial arrangements (TOFA) item 16.
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For more information, see Guide to the taxation of financial arrangements (TOFA) rules.
Do not include any interest income derived from foreign sources. Show it at D Net foreign income and D1 Gross foreign income.
Do not include non-share dividends received from holding a non-share equity interest. If the fund holds such an interest, the issuer is obliged to forward a dividend statement with details of the dividends, which should be written at J, K and L item 10 as applicable.
Do not include any interest distributed from a trust. Show it at Q Trust distributions other amounts.
Record keeping
Keep a record of the following:
- the name and address of borrower
- the amount received or credited.
Show at X the total income from all the following activities in the forestry interests that the fund holds in its FMISs. The amount you show at X will depend on the points below. For further information, see Forestry managed investment schemes.
Harvests and sales are CGT events because these events result in the fund no longer holding some or all of its forestry interest.
Definitions
The fund is an initial participant in an FMIS if:
- the fund obtained its forestry interest in the FMIS from the forestry manager of the scheme, and
- the fund's payment to obtain the forestry interest in the FMIS results in the establishment of trees.
The fund is a subsequent participant if it acquired its interest other than as an initial participant.
The forestry manager of an FMIS is the entity that manages, arranges or promotes the FMIS.
A forestry interest in an FMIS is a right to the benefits produced by the FMIS (whether the right is actual, prospective or contingent and whether it is enforceable or not).
The amount of the fund's total forestry scheme deductions is the total of all the amounts that it can deduct or has deducted for each income year that it held its forestry interest. See U Forestry managed investment scheme deduction item 11 for more information on amounts that you can deduct.
The amount of the fund's incidental forestry scheme receipts is the total of all the amounts that it received from the FMIS in each income year that it held its forestry interest, other than amounts received because of a CGT event, that is, a sale or a harvest.
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For an initial participant in an FMIS
Thinning receipts
If the fund received thinning proceeds from its forestry interest, include at X the actual amount received.
Sale and harvest receipts: forestry interest no longer held
If the fund ceased holding its forestry interest as a result of a CGT event (because it sold its interest or it received harvest proceeds), and the fund had claimed a deduction for the amounts invested under the FMIS, include at X the market value of the forestry interest at the time of the CGT event
Sale and harvest receipts: forestry interest still held
If a CGT event happened and the fund still held its forestry interest (because it sold part of its interest or there was a partial harvest), and the fund had claimed a deduction for the amounts invested under the FMIS, include at X the amount by which the market value of the forestry interest was reduced as a result of the CGT event.
For a subsequent participant in an FMIS
Thinning receipts
If the fund received thinning proceeds from its forestry interest, include at X the actual amount received.
Sale and harvest receipts: forestry interest no longer held
If the fund ceased holding its forestry interest as a result of a CGT event (because it sold its interest or it received harvest proceeds), and the fund has deducted or could have deducted an amount in relation to the forestry interest, include at X the lesser of the following two amounts:
- the market value of the forestry interest at the time of the CGT event, or
- the amount (if any) by which the total forestry scheme deductions exceeded the incidental forestry scheme receipts ('net deductions').
Sale and harvest receipts: forestry interest still held
If a CGT event happened and the fund still held its forestry interest (because it sold part of its interest or there was a partial harvest), and the fund has deducted or could have deducted an amount in relation to the forestry interest, work out the following two amounts:
- the market value of the forestry interest at the time of the CGT event, and
- the amount (if any) by which the total forestry scheme deductions exceeded the incidental forestry scheme receipts ('net deductions').
Use the lesser of the two amounts above in the following formula:
amount worked out above
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×
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the decrease (if any) in the market value of the forestry interest (as a result of the CGT event)
the market value of the forestry interest just before the CGT event
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Use this formula to calculate the amount which is included in assessable income to the extent that the sale or harvest payment matches 'net deductions'. Example 2 shows how to calculate the amount to include at X where there is a harvest payment made and the fund still holds the forestry interest.
Include at X the amount calculated using the formula.
To complete this item
Add up all the amounts you worked out for the fund's FMIS income and write the total at X.
See examples 1 and 2 for how to calculate the amount you show at X.
For more information on the CGT treatment of the fund's forestry interest acquired as a subsequent participant, see Guide to capital gains tax 2011.
Example 1: Sale receipts: forestry interest no longer held
Cedar Superannuation Fund is a subsequent participant in an FMIS. It sold its forestry interest at the market value of $20,000. The sale of the forestry interest is a CGT event. The original cost base was $14,000.
In the time that the fund held the forestry interest, it claimed $4,000 in deductions (its total forestry scheme deductions) for lease fees, annual management fees and the cost of felling that it paid to the forestry manager.
During the same period, it received $1,500 from thinning proceeds (its incidental forestry scheme receipts).
Cedar Superannuation Fund will need to include $2,500 (that is, $4,000 minus $1,500) at X, because this amount is less than the market value of its forestry interest at the time of the CGT event.
The fund will take the amount that it included at X into account when working out the amount to include at A net capital gain. See Guide to capital gains tax 2011.
Example 2: Harvest receipts: forestry interest still held
Oakey Superannuation Fund is a subsequent participant in an FMIS. It received harvest proceeds payment of $5,000 in the 2010-11 income year. Oakey Superannuation Fund's interest has been reduced by 25%.
The market value of its forestry interest was $20,000 just before it received its payment for the harvest (which is a CGT event). After it received this harvest payment, the market value of its forestry interest was reduced to $15,000. Its original cost base was $14,000.
During the period 1 July 2007 to 30 June 2010, Oakey Superannuation Fund claimed $4,000 in deductions (its total forestry scheme deductions) for lease fees, annual management fees and the cost of felling that it paid to the forestry manager. In an earlier period, it received $1,500 from thinning proceeds (its incidental forestry scheme receipts).
Step 1
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The market value of the forestry interest (at the time of the CGT event) was $20,000.
The amount by which the total forestry scheme deductions exceeded the incidental forestry scheme receipts was $2,500 (that is, $4,000 minus $1,500 for the net deductions).
The amount used in step 2 is $2,500.
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Step 2
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Using the formula above:
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$2,500
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x
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$5,000
$20,000
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=
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$625
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Step 3
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As the amount calculated at step 2 is less than the amount calculated at step 1, the Oakey Superannuation Fund will need to include $625 at X on its 2011 tax return.
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Step 4
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As a result of receiving the harvest receipt payment, Oakey Superannuation Fund has disposed of 25% of its forestry interest. It also calculates the amount it must include at A Net capital gain. That amount will be included in the capital gains tax (CGT) schedule 2011 which the Oakey Superannuation Fund is required to complete.
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For more information on the CGT treatment of your forestry interest, see the Guide to capital gains tax 2011.
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Show at D assessable income which the fund derived from foreign sources, including New Zealand dividends and supplementary dividends and:
- add the foreign tax paid on that assessable income to give the 'gross' or pre-tax value, and
- subtract foreign source losses incurred in the current year (not CGT losses), and
- subtract expenses to the extent to which they relate to foreign income.
Do not subtract debt deductions in calculating net foreign income at D, except where they are attributable to an overseas permanent establishment of the fund. Show the debt deductions, which are not attributable to an overseas permanent establishment of the fund, at item 11, as relevant, at:
- A Interest expenses within Australia
- B Interest expenses overseas
- I Investment expenses
- J Management and administration expenses
- L Other deductions.
Show foreign exchange gains and losses (from both foreign and domestic sources) at S Other income or L Other deductions as appropriate.
Net foreign income should not be reduced by exempt current pension income.
Show exempt current pension income at K Exempt current pension income.
Do not show net foreign source capital gains here; show them at A Net capital gain.
If the total amount at D is a negative value, print L in the Loss box.
If the fund received franked distributions directly or indirectly from a New Zealand franking company, see Trans-Tasman imputation.
Do not take the foreign loss component of a tax loss into account at D. These losses are taken into account at M item 11 Deductions, in accordance with the instructions for that label.
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For more information see the Foreign income return form guide (NAT 1840).
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Complete and attach a Losses schedule 2011 if the fund has:
- total tax losses and net capital losses carried forward to the 2011-12 income year greater than $100,000
- a foreign loss component of tax losses deducted in the 2010-11 income year or carried forward to later income years
- an interest in a controlled foreign company (CFC) that has 2011-12 CFC losses greater that $100,000.
- an interest in a CFC that has deducted or carried forward a loss to later income years greater than $100,000.
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Even if the TOFA rules apply to the fund, show at D all net foreign income received by it.
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If what you show at D includes an amount brought to account under the TOFA rules, also complete item 16: Taxation of financial arrangements (TOFA).
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For more information, see Guide to the taxation of financial arrangements (TOFA) rules.
D1 Gross foreign income
Show at D1 the gross assessable income derived by the fund from foreign sources, including New Zealand dividends and supplementary dividends. Add the foreign tax paid on that assessable income to give the 'gross' or pre-tax value. Do not include any Australian franking credits attached to New Zealand dividends. Show these at E Australian franking credits from a New Zealand company.
Show foreign exchange gains and losses (from both foreign and domestic sources) at S Other income or L Other deductions as appropriate.
Gross foreign income should not be reduced by exempt current pension income. Show exempt current pension income at K Exempt current pension income.
Do not show foreign source capital gains and losses here; show them at A Net capital gain.
If the fund received a distribution of foreign source income from a partnership or trust, include the foreign source income at D1. Do not include this amount at:
- I Gross distribution from partnerships, nor
- Q Trust distributions other amounts.
- Any foreign source trust distribution that the fund is unable to report on a gross basis can be included at D1 on a net basis.
- Even if the TOFA rules apply to the fund, show at D1 all gross foreign income received by it. If what you show at D1 includes an amount brought to account under the TOFA rules, also complete item 16 Taxation of financial arrangements (TOFA). For more information see Guide to the taxation of financial arrangements (TOFA) rules.
An Australian superannuation fund makes a capital gain if a CGT event happens to any of its worldwide CGT assets.
A fund that is not an 'Australian superannuation fund' makes a capital gain, generally speaking, if the CGT asset is taxable Australian property just before the CGT event happens. Do not show at D1 any capital gains made from these assets. Show the capital gains at A Net capital gain.
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For more information, see:
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E Australian franking credits from a New Zealand company
In 2003, rules were enacted to allow New Zealand companies to join the Australian imputation system. From 1 October 2003, dividends paid by New Zealand resident companies that have chosen to join the Australian imputation system may also carry franking credits.
Did the fund receive assessable franked distributions from a New Zealand franking company directly, or indirectly through a partnership or trust?
No
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Go to F Transfers from foreign funds.
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Yes
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Show at E the amount of Australian franking credits attached to the distributions that are included in assessable income adjusted as follows.
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To work out whether the distribution is assessable, see the Foreign income return form guide.
You must reduce the Australian franking credits that the fund received directly or indirectly from a New Zealand company by:
- the amount of a supplementary dividend, or
- the fund's share of a supplementary dividend
if:
- the supplementary dividend is paid in connection with the franked dividend, and
- the fund is entitled to a foreign income tax offset because the franked dividend is included in the fund's assessable income.
Show the amount of Australian franking credits included in assessable income at
- C2 Credit: rebates and tax offsets item 12, if the fund is a non-complying superannuation fund, or
- F4 Credit: refundable franking credits item 12, if the fund is a complying superannuation fund or PST.
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A dividend from a New Zealand franking company may also carry New Zealand imputation credits. An Australian resident cannot claim New Zealand imputation credits.
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Show at F all assessable amounts transferred to an Australian superannuation fund from a foreign superannuation fund that were in excess of what was vested in the member at the time of the transfer (section 295-200 of the ITAA 1997).
Include at F so much of amounts transferred to an Australian superannuation fund from a foreign fund as is specified in written choices made by members (former members of the foreign fund) under section 305-80 of ITAA 1997.
Print in the Number box the number of transfers received from foreign funds for the current income year.
Show at H the gross value of all payments made to the fund that had amounts withheld because an ABN was not quoted. Gross payments include both the amounts paid to the fund and the amounts withheld from these payments.
Record keeping
Keep a record of the:
- full name of the payer
- TFN of the payer if known
- amount of income.
Show at I the gross distribution from all partnerships. If the distribution includes an amount of foreign income, including New Zealand franking company dividends and supplementary dividends, include that portion of the distribution at D1 Gross foreign income and take it into account in calculating D Net foreign income.
If the amount calculated is a loss, print L in the Loss box at the right of the amount.
Include any amounts subject to foreign resident withholding that were distributed to the fund from a partnership. Also include the fund's share of credit from foreign resident withholding. A credit can be claimed for the fund's share of credit from foreign resident withholding in the calculation statement at F2 Credit: foreign resident withholding item 12.
If a distribution includes franked dividends (including franked non-share dividends), determine the fund's entitlement to a franking tax offset.
The fund is not entitled to a franking tax offset if:
- the relevant interest is not held at risk as required under the holding period and related payment rules, or
- there is some other manipulation of the imputation system, or
- the gross distribution from the partnership is exempt income or non-assessable non-exempt income (other than because of certain provisions mentioned in section 207-110 of the ITAA 1997).
- If the fund is entitled to a franking tax offset, 'gross up' the distribution to include any attached franking credit. If your fund is a complying superannuation fund, complying ADF or PST, show the amount of franking credit attached to such dividends at F4 Credit: refundable franking credits item 12. If your fund is a non-complying superannuation fund or non-complying ADF, include the amount of franking credits attached to such dividends at C2 Credit: rebates and offsets item 12.
If the fund is not entitled to a franking tax offset, simply record the amount of the franked dividend at I and do not record the franking credit attached to the dividend anywhere in the fund tax return.
To the extent that family trust distribution tax (FTDT) has been paid on income received by the fund from partnerships, exclude that amount from the assessable income of the fund (section 271-105 of Schedule 2F to the Income Tax Assessment Act 1936 (ITAA 1936)).
If the fund's share of partnership income includes an amount received indirectly from a closely held trust on which trustee beneficiary non-disclosure tax (TBNT) has been paid, do not include the amount in the fund's assessable income.
Any losses or outgoings incurred in deriving an amount which is excluded from assessable income because FTDT or TBNT has been paid are not deductible. A tax offset cannot be claimed by the fund for any franking credits attributable to the whole or a part of a dividend that is excluded from assessable income under these provisions.
Even if the TOFA rules apply to the fund, show at I all gross distributions from partnerships. This includes amounts from financial arrangements subject to the TOFA rules.
If what you show at I includes an amount brought to account under the TOFA rules, also complete item 16 Taxation of financial arrangements (TOFA).
For more information, see Guide to the taxation of financial arrangements (TOFA) rules.
Record keeping
Keep a record of the:
- full name of the partnership
- TFN of the partnership if known
- amount of income.
Notes for completing J Unfranked dividend amount, K Franked dividend amount, L Dividend franking credit.
Dividends or non-share dividends that the fund receives from Australian payers may carry franking credits. Such dividends are called franked dividends, and the franking credits they carry reflect the amount of tax paid by the payer.
Dividends and non-share dividends where no tax has been paid are called unfranked dividends.
Add all the franked and unfranked dividend amounts received and all the franking credits to determine the fund's assessable income from these dividends.
Non-share dividends are treated in the same way as dividends. Show the amount of the non-share dividends, whether franked or unfranked, and any amount of franking credit attached to those dividends, at the appropriate place on the tax return as if they were for shares.
Non-share dividends are returns paid on non-share equity interests. These interests are not shares in legal form but are treated in the same way as shares under the debt and equity rules.
To the extent that family trust distribution tax has been paid on a dividend (including a non-share dividend) paid or credited to the fund by a company that has made an interposed entity election, do not include that amount in the assessable income of the fund (section 271-105 of Schedule 2F to the ITAA 1936).
- Any losses or outgoings that the fund incurred in deriving an amount that is excluded from assessable income under section 271-105 of Schedule 2F are not deductible.
- The fund cannot claim a credit (nor a tax offset) for any franking credit attributable to the whole or a portion of the dividend that is excluded from assessable income under section 271-105 of Schedule 2F.
If the fund received a dividend from a private company, you must establish whether the dividend is classified as non-arm's length income.
If such a dividend is considered non-arm's length income, show the amount at U Net non-arm's length income.
J, K and L refer to dividends derived from investments in resident entities (including listed investment companies). Dividends that form part of a trust distribution must be written at N or O and P.
Show at J the total amount of unfranked dividends and unfranked non-share dividends that the fund received. Do not include here:
- unfranked distributions from a New Zealand franking company; include them at D1 Gross foreign income and D Net foreign income
- the unfranked part of a distribution from a pooled development fund (PDF). The unfranked part of the distribution is exempt from income tax and is not included in the fund's assessable income. However, this amount of exempt income must be taken into account when working out the amount of your tax loss at M Tax losses deducted item 11.
Even if the TOFA rules apply to the fund, show at J all unfranked dividends that were paid or credited to it by Australian companies. This includes unfranked dividends in respect of financial arrangements subject to the TOFA rules.
If what you show at J includes an amount brought to account under the TOFA rules, also complete item 16 Taxation of financial arrangements (TOFA).
For more information, see Guide to the taxation of financial arrangements (TOFA) rules.
Show at K the total amount of franked dividends and franked non-share dividends that the fund received, but do not include here franked amounts that the fund received from a New Zealand franking company (include them at D1 Gross foreign income and D Net foreign income).
The franked part of a distribution from a PDF is exempt from income tax, unless you elect to include the amount in the fund's assessable income. In that case, the franked part of the distribution and the franking credit on the distribution worked out in accordance with Subdivisions 207-B and 207-D of the ITAA 1997, are included in the fund's assessable income.
If the fund qualifies for a venture capital franking tax offset, so much of the franked part of the distribution that is franked with a venture capital credit is exempt from income tax. You cannot elect to include this amount in the fund's assessable income. However, you may claim a tax offset in relation to a distribution franked with a venture capital credit even though the distribution is exempt from income tax. The tax offset is included at C2 Credit: rebates and offsets item 12. This amount of exempt income must also be taken into account when working out the amount of your tax loss at M Tax losses deducted item 11.
Show at L the amount of the franking credits attached to dividends and non-share dividends that the fund received.
Do not show the franking credits if the fund did not satisfy the holding period rule and the related payments rule in relation to the dividend.
Franking credits reduce the amount of tax that the fund owes. Franking credits in excess of the tax payable will be refunded if the fund is a complying superannuation fund, complying ADF or PST. Show the amount of franking credits attached to dividends and non-share dividends that the fund received at F4 Credit: refundable franking credits item 12.
If the fund is a non-complying superannuation fund or a non-complying ADF, show the amount of franking credits attached to dividends and non-share dividends that the fund received at C2 Credit: rebates and offsets item 12.
If the franking credit is attached to a dividend considered as non-arm's length income, include this at U Net non-arm's length income.
Do not include at L any franking credits attached to assessable dividends received directly or indirectly from a New Zealand franking company. Show these at E Australian franking credits from a New Zealand company.
If you elect to include the franked part of a distribution from a PDF in your assessable income, you must also include the franking credit on the distribution (worked out in accordance with Subdivisions 207-B and 207-D of the ITAA 1997) in your assessable income. Otherwise, a franking credit on a distribution from a PDF is not included in your assessable income.
If you qualify for a venture capital franking tax offset, a venture capital credit on a distribution from a PDF is not included in the assessable income of the fund.
Gross distributions from trusts may include unfranked dividends, franked dividends, franking credits (where entitled) attached to these dividends, and other assessable distributions. Show the different components of distributions from trusts at N to Q.
If the distribution includes an amount of foreign income, including New Zealand franking company dividends and supplementary dividends, show that portion of the distribution at D1 Gross foreign income and take it into account in calculating D Net foreign income.
Show any amounts subject to foreign resident withholding that were distributed to the fund from a trust. Show also the fund's share of credit from foreign resident withholding. You can claim a credit for the fund's share of credit from foreign resident withholding in the calculation statement at F2 Credit: foreign resident withholding item 12.
Include at N to Q payments received from a closely held trust (except if it relates to a net capital gain or foreign income). If amounts have been withheld from these payments because a TFN was not provided, then the credits for the withheld amounts should be claimed at F8 Credit: share of credit for TFN amounts withheld from payments from closely held trusts item 12.
Show all income received from stapled securities as trust distributions at N to Q, including the different components at the appropriate labels (see below).
Any amount you show at N to Q cannot be a loss.
Consider whether any distributions received from a trust are either from a trust in which the fund does not have a fixed entitlement to income or are part of a non-arm's length arrangement and whether the distribution received is greater than what might otherwise have been expected had the parties been dealing with each other at arm's length. See Taxation Ruling TR 2006/7 for further information. If the distributions received are either from a trust in which the fund does not have a fixed entitlement to income or are not at arm's length, do not show these distributions at N to Q. Show these distributions at U Net non-arm's length income.
Do not show capital gains received from a trust at Q Trust distributions other amounts. Show them at A Net capital gain. For information on how to show a capital gain received from a trust at A, for example, how to gross up a capital gain for a trust distribution, see Guide to capital gains tax 2011.
Do not show distributions from PSTs at N to Q.
To the extent that FTDT has been paid on income or capital of a trust to which the fund is presently entitled or which has been distributed to the fund, exclude that income or capital from the assessable income of the fund (section 271-105 of Schedule 2F to the ITAA 1936).
If the fund's share of trust income includes an amount received indirectly from a closely held trust on which TBNT has been paid, do not include the amount in the fund's assessable income.
Any losses or outgoings incurred in deriving an amount which is excluded from assessable income because FTDT or TBNT has been paid are not deductible. A tax offset cannot be claimed by the fund for any franking credits attributable to the whole or a part of a dividend that is excluded from assessable income under these provisions.
Even if the TOFA rules apply to the fund, show at N or Q all relevant distributions from trusts. This includes amounts in respect of financial arrangements subject to the TOFA rules.
If what you show a N or Q includes an amount brought to account under the TOFA rules, also complete item 16 Taxation of financial arrangements (TOFA).
Show at N the total amount of unfranked dividends and unfranked non-share dividends included in trust distributions.
Show at O the total amount of franked dividends and franked non-share dividends included in trust distributions before grossing up the distributions to include any attached franking credits.
Where the fund is entitled to a franking tax offset, show at P the total amount of franking credits attached to dividends and non-share dividends included in trust distributions.
The fund is not entitled to a franking tax offset if:
- the relevant interest is not held at risk as required under the holding period and related payments rules, or
- there is some other manipulation of the imputation system or
- the gross distribution from the trust is exempt income or non-assessable non-exempt income (other than because of certain provisions mentioned in section 207-110 of the ITAA 1997).
- If the fund is entitled to a franking tax offset and is a complying superannuation fund, complying ADF or PST, include the amount of franking credits attached to such dividends at F4 Credit: refundable franking credits item 12.
- If the fund is entitled to a franking tax offset and is a non-complying superannuation fund or non-complying ADF, include the amount of franking credit attached to such dividends at C2 Credit: rebates and tax offsets item 12.
If the fund is not entitled to a franking tax offset, do not record the franking credit attached to the dividend.
Show at Q the total amount of gross distributions received from trusts that do not fall into any of the categories from N to P, for example, amounts that are not dividends that were distributed to the fund from a trust.
Show at Q any amounts of interest income and rental income that were distributed to the fund from a trust.
Record keeping
Keep a record of the:
- full name of the trust
- TFN of the trust
- amount of income.
R Assessable contributions
Calculate the amount at R by adding:
- R1 Assessable employer contributions
- R2 Assessable personal contributions, and
- R3 No-TFN quoted contributions.
Then deduct:
- R4 Contributions excluded by trustee
- R5 Pre 1 July 1988 funding credits, and
- R6 Transfer of liability to life insurance company or PST.
Do not include at R the following contributions (because they do not form part of the fund's assessable income):
- super co-contributions made under the Superannuation (Government Co-contribution for Low Income Earners) Act 2003
- contributions for a person under 18 that are not made by, or on behalf of, the person's employer
- in relation to splitting a superannuation interest due to marriage or relationship breakdown, payments by a member to a regulated superannuation fund to be held for the benefit of their former spouse (sometimes referred to as 'member spouse contributions')
- eligible spouse contributions for which the contributor cannot claim a deduction
- a payment made directly from a First Home Saver Account (FHSA) where the holder of the FHSA is the member of the fund for whom the contribution was made, or a Government FHSA contribution
- a contribution made by an entity that was a trustee of a complying superannuation fund, a complying ADF or a PST, or the trustee of an exempt life assurance fund, when the contribution was made.
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A spouse of a member includes another person (whether of the same sex or opposite sex) who:
- the member was in a relationship with that was registered under a prescribed state or territory law,
although not legally married to the member, lived with the member on a genuine domestic basis in a relationship as a couple.
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Generally, the liability for tax on contributions lies with the trustee of a fund receiving the contributions. Australian superannuation funds are entitled to deduct the costs of collecting all contributions. The deductions for expenditure incurred by an Australian superannuation fund are not reduced because it received non-taxable contributions, for example, non-deductible employee contributions. However, foreign superannuation funds are only entitled to a deduction for the cost of collecting assessable contributions.
Show the deductions allowable against assessable contributions at the appropriate labels in Section C: Deductions.
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Super co-contributions are not treated as assessable income of the fund. Therefore, they are not shown anywhere on the tax return.
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Show at R1 the amount of total assessable income comprising contributions and payments received by a superannuation entity in the income year. Include here:
- all contributions or payments to provide superannuation benefits for a member paid by an employer (including amounts contributed under effective salary sacrifice arrangements) to a complying superannuation fund, or to a non-complying superannuation fund where that fund is an Australian superannuation fund
- all contributions to provide superannuation benefits for a member paid by an employer (including amounts contributed under effective salary sacrifice arrangements) to a non-complying superannuation fund that is not an Australian superannuation fund that relate to a period when the member was an Australian resident, or was a foreign resident deriving salary and wage income assessable in Australia
- shortfall amounts paid to a complying superannuation fund or a complying ADF under the provisions of the Superannuation Guarantee (Administration) Act 1992
- amounts transferred from the Superannuation Holding Accounts Special Account to a complying superannuation fund under the provisions of the Small Superannuation Accounts Act 1995, other than amounts that represent super co-contributions.
If you are a non-complying foreign superannuation fund do not include at R1 contributions made for an employee who is a temporary resident at the end of the income year to which the contribution relates.
Do not include at R1 contributions received for a member who has not quoted their TFN. Show these contributions at R3 No-TFN quoted contributions.
R1 is used to determine R Assessable contributions.
Show at R2 the total assessable amount of personal contributions.
The trustee of a fund is to treat personal contributions as assessable contributions only if the contributor has provided a valid notice stating their intent to claim a deduction for their contributions.
Self-employed and other eligible individuals can claim a full deduction for superannuation contributions provided the following conditions are met.
- The contribution is made to a complying superannuation fund
- Less than 10% of the sum of the person's assessable income, reportable employer superannuation contributions and reportable fringe benefits are attributable to employment as an employee. The test is no longer determined by the level of employer superannuation support a person receives or was entitled to have received.)
- If the person has turned 75, the contributions were made on a day that was on or before 28 days after the end of the month in which they turned 75.
- If the person was under the age of 18 years at the end of the income year in which the contribution was made, the person must have derived income in the income year from carrying on a business or from employment as an employee.
- The person has given a valid notice to the trustee of a fund of their intention to claim a deduction before lodging their tax return for the income year in which the contribution was made or the end of the income year following the year in which the contribution was made.
- The person has received an acknowledgment from the trustee of receipt of the notice.
The self-employed person can claim a deduction only in the income year in which the contribution is made.
Other personal contributions that are included in the fund's assessable income include:
- the untaxed element of a rollover superannuation benefit that a member is taken to receive under section 307-15 of the ITAA 1997, to the extent that it is not an excess untaxed rollover amount (an amount will be an excess untaxed rollover amount if it exceeds $1.155 million)
- the untaxed element of rollover superannuation benefits of a complying superannuation fund that arose as a result of the complying superannuation fund ceasing to be a constitutionally protected fund during the income year or at the end of the previous income year
- the taxable component of a directed termination payment within the meaning of section 82-10F of the Income Tax (Transitional Provisions) Act 1997.
R2 is used to determine R Assessable contributions.
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Contributions caps
Caps apply to contributions made to a member's superannuation account. Amounts written at R1 and R2 are taken into account in calculating whether the relevant caps have been exceeded. Contributions that exceed the cap amounts are subject to extra tax. The member will receive an 'excess contributions tax assessment' which will detail how much extra tax the member must pay.
The amount of the cap, and how much extra tax the member must pay on the amount in excess of the cap, depends on the age of the member (such that certain transitional arrangements can apply) and whether the contributions are concessional or non-concessional contributions.
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Show at R3 all employer contributions received that were for a member who has not quoted a TFN.
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The fund will be liable for an additional tax at a rate of 31.5% on these contributions for complying superannuation funds and 1.5% for non-complying superannuation funds. The effect of the additional tax is that the no-TFN quoted contribution is subject to an overall tax rate of 46.5%.This additional tax must be paid regardless of any tax offsets and amounts the fund may have transferred under R6.
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See Example 5 for an illustration of how this additional tax must be applied.
R3 is used to determine R Assessable contributions.
Show additional tax payable as a result of a member not providing a TFN at J No-TFN quoted contributions tax item 12 and at include it in B Gross tax item 12.
If a member subsequently quotes their TFN, a tax offset can be claimed at F5 Credit: no-TFN tax offset, but only in respect of the additional tax paid on no-TFN quoted contributions (31.5% for complying superannuation funds and 1.5% for non-complying superannuation funds) in one of the most recent three income years. See instructions at F5 for details.
Show at R4 the contributions the trustee of a public sector superannuation scheme, with the contributor's consent, chooses not to include in its assessable income (under section 295-180 of the ITAA 1997). The amount of contributions that the choice can cover is limited to the sum of amounts covered by notices given by the trustee under section 307-285 for superannuation benefits paid in the income year. The choice cannot be revoked or withdrawn.
A choice cannot be made in relation to a public sector superannuation scheme that comes into operation after 5 September 2006.
R4 is used to determine R Assessable contributions.
Show at R5 the amount that a complying superannuation fund chooses to reduce contributions that would otherwise be included in its assessable income, by applying that amount of available pre-1 July 1988 funding credits under section 295-265 of the ITAA 1997. Subsection 295-265(2) sets out the methodology to determine whether funding credits are available and subsections 295-265(5) and (6) limit the amount of funding credits that may be used.
R5 is used to determine R Assessable contributions.
Show at R6 the amount of income otherwise assessable for the income year, under Subdivision 295-C of the ITAA 1997, that the trustee of a complying superannuation fund or a complying approved deposit fund (the 'transferor') has agreed to transfer to a life insurance company or PST (the 'transferee') in which the fund holds investments. The amount of the transfer will be included in the transferee entity's assessable income instead. The transferor fund must hold sufficient investments in the transferee entity to cover the tax payable by the transferee as a result of the transfer. The total amount transferred cannot exceed the amount that would otherwise have been included in the assessable income of the transferor under Subdivision 295-C of the ITAA 1997.
The agreement to transfer must be in writing, signed by both parties, must be made before the lodgment of this tax return, and cannot be revoked. The trustee can only make one agreement for an income year with a particular transferee.
R6 is used to determine R Assessable contributions.
Record keeping
Keep all relevant documents as evidence of the transferee's consent to accept the transfer of assessable contributions and the associated tax liability.
Example 3 should assist you in dealing with member contributions where the fund has transferred its tax liability to a life insurance company or PST. The 31.5% additional tax in respect of the no-TFN quoted contributions must be paid by the fund, and the liability cannot be transferred to the life insurance company or PST.
Example 3: Superannuation fund transferring its liability
Example 3a: Complying superannuation fund where all members have quoted their TFNs
A complying superannuation fund can transfer its tax liability on assessable contributions to a life insurance company or PST in which it holds investments, provided the requirements of section 295-260 of the ITAA 1997 are satisfied. The effect of the agreement is that the transferee investment vehicle pays the tax on the fund's behalf.
The Natalie Superannuation Fund is a complying fund that is transferring its tax liability to a life insurance company (shown at R6 Transfer of liability to life insurance company or PST). The fund has sufficient investments in the transferee life insurance company to cover the tax payable by the transferee as a result of the transfer (calculated under section 295-260(6) of the ITAA 1997). The fund has $10,000 of assessable contributions (R Assessable contributions).
The taxable income of the fund is calculated as follows:
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Amount
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Rate
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Tax
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|
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Income
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|
|
|
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Total
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Employer contributions
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10,000
$10,000
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15%
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$1,500
$1,500
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|
|
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less
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|
|
|
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Contributions excluded
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|
|
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Total
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Transfer to life company
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10,000
$10,000
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15%
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$1,500
$1,500
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Taxable income and gross tax
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NIL
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NIL
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Example 3b: Complying superannuation fund with no-TFN quoted contributions
Superannuation funds cannot transfer the additional tax liability caused by no-TFN quoted contributions to a life insurance company or a PST.
The James Superannuation Fund is a complying fund. However, it has income which is taxed at different rates.
The fund has $10,000 of assessable contributions (shown at R Assessable contributions). Of the total employer contributions, $2,000 was for members who had not quoted their TFN (shown at R3 No-TFN quoted contributions) while the remaining $8,000 of contribution was for members who quoted their TFNs (shown at R1 Assessable employer contributions).
The fund has transferred all of its assessable contributions to a life company (shown at R6 Transfer of liability to life insurance company or PST). However, it must still pay the additional tax on the no-TFN quoted contributions income as the following table shows. The total rate of tax that applies to the no-TFN- quoted contributions income is 46.5% (which is made up of 15% paid by the life insurance company or PST and an additional 31.5% paid by the fund). Even though the fund has transferred 100% of the contributions received and has a nil taxable income, it is still liable for $630 tax for the no-TFN quoted contributions. The tax amount of $630 is 31.5% of the $2,000 no-TFN quoted contribution and is shown at J No-TFN quoted contributions tax and included at B Gross tax item 12.
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Amount
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Rate
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Tax
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Income
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|
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TFN quoted contributions
plus
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$8,000
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15%
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$1,200
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Total
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No-TFN quoted contributions
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$2,000
$10,000
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46.5%
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$930
$2,130
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Less
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|
|
|
|
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Contributions excluded
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|
|
|
|
|
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Transfer to life company
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$10,000
$10,000
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15%
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$1,500
$1,500
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Total reduction of assessable income
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|
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Taxable income and gross tax
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NIL
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$630
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The gross tax of $630 (plus any other amounts payable) is payable even though the fund has transferred 100% of the contributions it received and has a nil taxable income.
Show at S the assessable amount of any income received that does not fall into any of the other categories shown at A to U at this item. Other income may include, but is not limited to, the following categories.
Foreign exchange (forex) gain
Include at S any assessable forex gains that have not been shown at any other category of income.
TOFA amounts from financial arrangements
If the TOFA rules apply, to calculate an assessable gain or deductible loss on the fund's financial arrangements include at S any assessable TOFA gains and any assessable TOFA transitional balancing adjustment amount relating to financial arrangements which were in existence at the time the TOFA provisions commenced to apply.
TOFA amounts that have been included elsewhere should not be included here. For example, amounts that have already been included at:
- C Gross interest
- D1 Gross foreign income
- J Unfranked dividend amount
- N Trust distributions unfranked amount
- Q Trust distributions other amounts.
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If what you show at S includes an amount brought to account under the TOFA rules, also complete item 16 Taxation of financial arrangements (TOFA).
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For more information, see Guide to the taxation of financial arrangements (TOFA) rules.
Listed investment company (LIC) capital gain amount
If a complying superannuation fund, ADF or PST received a distribution from a partnership or a trust, and that partnership or trust claimed a deduction for a LIC capital gain amount, then the superannuation fund, ADF or PST must add back as income one-third of their share of the deduction claimed by the partnership or trust and include the amount at S.
If a non-complying superannuation fund or ADF receives a distribution from a partnership or a trust, and that partnership or trust claimed a deduction in respect of a LIC capital gain amount, then the non-complying superannuation fund or ADF must add back as income its share of the deduction claimed by the partnership or trust and include the amount at S.
Assessable balancing adjustment amounts
If the superannuation entity ceases to hold or to use a depreciating asset, it will need to calculate a balancing adjustment amount to include at S as assessable income or to claim as a deduction at L Other deductions item 11. See Guide to depreciating assets 2011 for more information.
Rebate or refund of premium paid to provide death or disability benefits
Show at S assessable rebates and refunds of premiums that a complying superannuation fund received and that are attributable to insurance policy premiums paid by the superannuation fund to provide:
- superannuation death benefits,
- disability superannuation benefits
- benefits payable because of a person's temporary inability to engage in gainful employment.
These premium rebates and refunds are assessable income of the superannuation fund where the premium payment was either allowed or is allowable, in whole or in part, as a deduction.
Gross payments subject to foreign resident withholding
Show at S gross payments made to the fund that were regulated foreign resident income. Gross payments include amounts of tax withheld. Do not include at S gross distributions of regulated foreign resident income from partnerships and trusts. Instead, include distributions from partnerships at I Gross distribution from partnerships and include distributions from trusts at Q Trust distributions other amounts.
You complete this entry only if the fund is a non-resident.
Regulated foreign resident income refers to payments which are prescribed in the Taxation Administration Regulations 1976 as being subject to the foreign resident withholding measure.
Do not include payments where the amount was varied to nil under the foreign resident withholding measure because the income was not taxable under a double-tax agreement.
Complete and attach a Non-individual PAYG payment summary schedule 2011 For instructions on completing this schedule, see Schedules.
If you show a credit at F2 Credit: foreign resident withholding item 12 for tax withheld, you must include the corresponding gross payment at S Other (except where the credit is from partnership or trust distributions).
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Show gross payment even if the credit is nil.
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Gross distributions of foreign resident regulated income from a partnership or trust does not have an associated payment summary.
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Print in the Code box the code from table 5 that best describes the greatest amount included at S Other income.
Table 5: Other income codes
Code
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Type
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F
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Forex gains
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T
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Assessable TOFA gains or assessable TOFA transitional balancing adjustment
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C
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LIC capital gain amount
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B
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Assessable balancing adjustment amount
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R
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Rebate or refund of premium paid to provide death or disability benefits
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W
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Gross payments subject to foreign resident withholding
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O
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Other income received not listed above
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Show at T the amount that is to be included in the fund's assessable income as a result of a change in tax status of the fund.
A fund that changes from complying to non-complying, or a fund that was not an Australian superannuation fund but becomes an Australian superannuation fund, must calculate the amount of ordinary income and statutory income from previous years and include these amounts in the assessable income of the fund in the year the status of the fund changed.
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A change in compliance or residency status for a fund may result in changes in tax rates which apply to the taxable income of the fund.
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The fund became a non-complying fund during the year
If during the income year the fund changed from being a complying superannuation fund to a non-complying superannuation fund, the fund's assessable income this year includes its ordinary income and its statutory income from previous years, as calculated using formula A below.
In effect, the fund loses the benefit of tax concessions that it obtained as a complying superannuation fund.
Formula A
Asset value - non-concessional contributions = assessable amount
where:
- asset value is the sum of the market values of the fund's assets immediately before the start of the current income year, and
- non-concessional contributions (formerly referred to as 'undeducted contributions') are the total of
- the part of the crystallised undeducted contributions that relate to the period after 30 June 1983, and
- the contributions segment for current members that have not been, and cannot be, deducted.
Include at T the amount you calculated using formula A. in the fund's assessable income for the year in which the fund became a non-complying fund. That amount is taxed at the rate of 45%.
The fund was, but no longer is, a foreign fund
If the fund was a foreign superannuation fund which became an Australian superannuation fund during the income year, its assessable income this year includes the amount calculated using formula B below:
Formula B
Asset value - member contributions = assessable amount
where:
- asset value is the sum of the market values of the fund's assets immediately before the start of the current income year, and
- member contributions is the total amount of current member contributions in the fund at the time.
Include at T the amount you calculated using formula B.
When a fund changes status from foreign superannuation fund to:
- complying Australian superannuation fund, the amount is taxed at the rate of 15%
- non-complying Australian superannuation fund, the amount is taxed at the rate of 45%.
The fund is not entitled to a tax offset for the foreign income tax that was paid in the previous year where:
- a previously complying fund or a previously foreign fund includes an amount in assessable income under either formula A or formula B above, and
- the trustee of the fund paid foreign income tax in respect of that amount before the start of the income year.
U Net non-arm's length income
Show at U the net amount of income that a superannuation fund, ADF or PST has received from a transaction or series of transactions between parties that is non-arm's length income.
This includes income such as:
- private company dividends (including non-share dividends)
- certain distributions from trusts, and
- other excessive non-arm's length income that is greater than might have been expected had it been derived from an arm's length dealing.
Income is non-arm's length income if the parties to a transaction or a series of transactions are not dealing at arm's length and the income derived from the transaction is greater than might have been expected had the parties been dealing at arm's length in relation to the transaction. The transactions covered may include interest on loans, rent from property, profit on sale of assets and capital gains, and franking credits on dividends.
The test for such income is a question of fact, and all of the circumstances of the relationship are relevant in determining whether the amount of income derived from a non-arm's length dealing is greater than might have been expected had the parties been dealing at arm's length, including the commercial risks undertaken by the fund.
Each component of non-arm's length income is reduced by any deductions attributable to that income and is then taxed at the highest marginal tax rate (currently 45%). Allowable deductions against that income are those that relate exclusively to the non-arm's length component of income, and as much of other allowable deductions that appropriately relates to that income.
If this amount is a loss, quarantine the loss for a future offset against income of the same class. Do not show a loss at U, but keep a record of the quarantined loss amount with the fund's tax records.
Non-arm's length trust distributions
Trust distributions are non-arm's length income of a complying superannuation fund, complying ADF or PST if they are:
- distributions where the fund does not have a fixed entitlement to income from the trust (generally discretionary trusts), or
- distributions where
- the fund has a fixed entitlement to income from the trust and
- the fund acquired the entitlement to the distribution under an arrangement where the parties were not dealing at arms length and
- the amount of income is more than the amount that would have been provided had the parties been dealing at arm's length.
If a fund receives a distribution from a trust, examine the circumstances of the distribution to determine if the income is 'non-arm's length income', as defined in sections 295-550 of the ITAA 1997. If the amount is determined to be 'non-arm's length income', include it at U.
If a distribution included franked dividends (including franked non-share dividends), gross up the distribution to include any attached franking credit. Include the grossed up amount in the amount you show at U.
If the fund is a complying superannuation fund, complying ADF or PST, include the amount of franking credit attached to such dividends at F4 Credit: Refundable franking credits item 12. If the fund is a non-complying superannuation fund or a non-complying ADF, include the amount of franking credit attached to such dividends at C2 Credit: Rebates and tax offsets item 12.
Non-arm's length private company dividends
An amount of ordinary income or statutory income is non-arm's length income if it is a dividend paid by a private company, or is reasonably attributable to such a dividend, unless the amount is consistent with an arm's length dealing.
In deciding whether the amount is consistent with an arm's length dealing consideration must be given to any connection between the private company and the fund, as well as any other relevant circumstance. Other relevant circumstances include:
- the value of the shares held by the fund in the company
- the cost to the fund of the shares on which the dividends were paid
- the dividend rate on those shares
- whether dividends have been paid on other shares in the company, and the dividend rate, and
- whether the company has issued shares in lieu of dividends to the fund, and the circumstances of the issue.
Gross up the amount of private company dividends (including non-share dividends) to include any attached franking credit and reduce this amount by any related deductions and show the result at U.
If the fund is a complying superannuation fund, complying ADF or PST, include the amount of franking credits attached to such dividends at F4 Credit: Refundable franking credits item 12. If the fund is a non-complying superannuation fund or a non-complying ADF, include the amount of franking credits attached to such dividends at C2 Credit: Rebates and tax offsets item 12.
Do not show at U any dividends received directly or indirectly from a New Zealand company.
Where private company dividends (including non-share dividends) are consistent with an arm's length dealing, such that the amount should not be treated as non-arm's length income, the dividends received are taxed at 15%. Show these dividends at either J Unfranked dividend amount, or K Franked dividend amount and L Dividend franking credit.
All income shown at U is taxed at 45%.
Write at V the total income from A to U.
Do not include any amount from the following because they would have already been included in the respective totals at D and R:
- D1 Gross foreign income
- R1 Assessable employer contributions
- R2 Assessable personal contributions
- R3 No-TFN quoted contributions
- R4 Contributions excluded by trustee
- R5 Pre-1 July 1988 funding credits, and
- R6 Transfer of liability to life insurance company or PST.
Where there is no income, print 0 at V. If the amount shown is a loss, print L in the Loss box at the right of the amount.
This section deals with all deductions relating to the 2010-11 income year. Do not show cents for any amount you write at this section on the fund tax return.
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Do not show anywhere on the tax return any expenses that the fund incurred in deriving exempt current pension income. This means that those expenses cannot be included as part of any other deductions claimed at A to L.
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The gross income of a complying superannuation fund or PST derived from assets held to provide for current 'pension liabilities' is exempt from income tax. You would have shown this gross income amount as part of the total shown in the relevant labels at item 10. To ensure that that income derived from assets held for current pension liabilities is not taxed, it is necessary to deduct an identical amount at K.
Do not reduce the exempt income shown at K by the amount of expenses incurred in deriving that income. Doing so will understate the deductible amount of exempt current pension and will result in some of that income being subject to tax.
Expenses incurred in gaining or producing exempt income are not deductible; those expenses should not be shown anywhere at item 11.
For treatment of expenses incurred wholly or partly in producing assessable income, see deductions:
- D Capital works deductions
- E Deduction for decline in value of depreciating assets
- I Investment expenses
- J Management and administration expenses, and
- L Other deductions.
Pension liabilities are the fund's liabilities to pay superannuation income stream benefits. The exemption on current pension income applies to all funds currently paying pensions. It does not provide an automatic exemption of the fund's total income as certain conditions must be met to obtain an exemption. There are two methods by which the trustee of a fund can determine the exempt income shown at K. Either one method or both methods may be used depending on the circumstances. Different conditions for claiming the exemption apply, depending on the method used.
A fund is entitled to franking credits on franked dividends received, even when the dividends relate to current pension liabilities.
First method: Income from segregated assets used to meet current pension liabilities
If a complying fund segregates its assets so that the income can be identified as derived from the segregated assets held to provide for current pension liabilities, that income is the exempt income (section 295-385 of the ITAA 1997). For the purpose of calculating exempt income under section 295-385 of the ITAA 1997, non-arm's length income and assessable contributions are excluded from the fund's income.
The trustee must obtain an actuarial certificate before the date for lodgment of the fund's tax return for segregated current pension assets.
An actuarial certificate is not required if assets are segregated at all times during the income year and the only superannuation income stream benefits being paid from the segregated assets are a type prescribed by Income Tax Assessment Regulations 1997. Superannuation income streams prescribed for this purpose by Income Tax Assessment Regulation 295-385.01 include allocated pensions, market-linked pensions and account-based pension types.
If the fund also pays any other type of superannuation income stream, an actuarial certificate will be required for all superannuation income streams (subsection 295-385(5) of the ITAA 1997).
Assets of a complying superannuation fund that are supporting a superannuation income stream benefit prescribed by the regulations (for the purposes outlined above), are not segregated current pension assets to the extent that the market value of those assets exceeds the account balance of the benefit (subsection 295-385(6) of the ITAA 1997).
Second method: Income from unsegregated assets used to meet current pension liabilities
If a complying fund's income is derived from assets that are not segregated between current pension liabilities and other liabilities under subsection 295-390(3) of the ITAA 1997, the income that is exempt from tax is the portion calculated by dividing:
- the fund's average value of current pension liabilities (excluding liabilities for which segregated current pension assets are held)
by
- the fund's average value of superannuation liabilities (excluding liabilities for which segregated current pension assets or segregated non-current assets are held).
For the purposes of calculating exempt income under this method, non-arm's length income, assessable contributions, income derived from segregated non-current assets and income exempted under section 295-385 of the ITAA 1997 are excluded from fund income (subsection 295-390(2) of the ITAA 1997).
An actuarial certificate is required under section 295-390 of the ITAA 1997.
An actuarial certificate is also required if the fund has segregated non-current assets (section 295-395 of the ITAA 1997).
Pooled superannuation trusts
Pooled superannuation trusts (PSTs) are entitled to an exemption for that portion of the income that is attributable to the current pension liabilities of unit holders that are complying funds and that could otherwise be claimed as exempt income by the complying fund if the income was derived directly by the complying fund. Non-arm's length income, and income where the unit holder has transferred a tax liability under section 295-260 of the ITAA 1997, must be excluded.
Subsection 295-400(1) of the ITAA 1997 sets out a formula for calculating this portion of income where the unit holder segregates current pension assets. Alternatively, the trustee of a PST can choose a different amount as exempt income of the PST by applying subsection 295-400(3) of the ITAA 1997.
Example 4a
The ABC Super Fund earned $100,000 in interest and paid $1,000 in bank fees. 100% of the fund's assets were held to provide for current pension liabilities.
The fund shows:
- the $100,000 interest as income at C Gross interest item 10
- a deduction of $100,000 for exempt current pension income at K Exempt current pension income.
The fund cannot claim the $1,000 in bank fees as a deduction because they were incurred in earning the exempt current pension income.
Example 4b
The DEF Super Fund earned $60,000 in interest and paid $500 in bank fees. Applying the second method for calculating exempt current pension income, the fund determines that 80% of its income was exempt current pension income.
The fund shows:
- $60,000 in interest as income at C Gross interest item 10
- a deduction of $48,000 (that is, 80% of $60,000) for exempt current pension income at K Exempt current pension income
- a deduction of $100 (that is, 20% of $500) for bank fees at A Interest expenses within Australia.
The fund cannot claim the remaining bank fees of $400 (that is, 80% of $500) as a deduction because they were incurred in earning the exempt current pension income.
Example 4c
The GHY Super Fund earned $30,000 in interest and paid $200 in bank fees. Applying the second method for calculating exempt current pension income, the fund determines that 30% of its income was exempt current pension income. It has $10,000 in tax losses carried forward from the previous year.
The fund shows:
- the $30,000 interest as income at C Gross interest item 10
- a deduction for $9,000 (that is, 30% of $30,000) of exempt current pension income at K Exempt current pension income
- a deduction for bank fees of $140 (that is, 70% of $200) at A Interest expenses within Australia.
The fund cannot claim the remaining bank fees of $60 (that is, 30% of $200) as a deduction because they were incurred in earning the exempt current pension income.
The $10,000 in tax losses carried forward must be reduced by net exempt income of $8,940 (that is, $9,000 of exempt income less bank fees of $60 incurred in earning exempt income). The remaining amount of $1,060 tax losses will be applied against the other income of the fund.
The fund shows:
- a deduction for tax losses of $1,060 (that is, $10,000 less $8,940) at M Tax losses deducted
- tax losses carried forward to later years at U Tax losses carried forward to later income years item 13 as zero.
The losses used in this example refer to tax losses rather than capital losses. For further information, see Section E: Losses.
Show at A the deductible interest incurred on money borrowed from Australian sources to:
- acquire income-producing assets
- finance operations, or
- meet current expenses.
Even if the TOFA rules apply to the fund, show at A all interest incurred on money borrowed from Australian sources. This includes interest from financial arrangements subject to the TOFA rules.
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If what you show at A includes an amount brought to account under the TOFA rules, also complete item 16 Taxation of financial arrangements (TOFA).
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For more information, see Guide to the taxation of financial arrangements (TOFA) rules.
Show at B the deductible interest incurred on money borrowed from overseas sources to:
- acquire income-producing assets
- finance operations, or
- meet current expenses.
Even if the TOFA rules apply to the fund, show at B all interest incurred on money borrowed from overseas sources. This includes interest from financial arrangements subject to the TOFA rules.
The fund should generally withhold an amount of tax (withholding tax) from interest paid or payable to non-residents, and from interest paid to a resident which was derived by the resident through an overseas branch. The fund must remit these amounts to us.
Record keeping
If the fund paid interest to non-residents, keep a record of the:
- name and address of recipients
- amount of interest paid or credited, and
- amount of withholding tax withheld, and the date it was remitted to us.
If the fund has withheld amounts from payments to non-residents the fund may need to lodge a PAYG withholding from interest, dividend and royalty payments paid to non-residents - annual report by 31 October 2011. For more information, phone 13 28 66.
Show at C the total salary, wage and other labour costs incurred in respect of employees employed by the trustee of the fund.
These expenses include any salary and wages, superannuation contributions, allowances, bonuses, payments for casual labour, retainers and commissions paid to people who receive a retainer, and workers compensation paid through the payroll, where any of these payments are applicable to the fund.
Also included are direct and indirect labour, holiday pay, long service leave, lump sum payments, other employee benefits, overtime, payments under an incentive or profit sharing scheme, retiring allowances and sick pay, where any of these payments are applicable to the fund. Include any salary and wages paid to an associated person of the fund.
However, these expenses exclude pension payments, agency fees, contract payments, sub-contract payments, service fees, superannuation benefits, reimbursements or allowances for travel, wages or salaries reimbursed under a government program, management fees and consultant fees.
Show at D the deduction claimed for capital expenditure on special buildings, which includes eligible capital expenditure on extensions, alterations or improvements. Exclude capital expenditure for mining infrastructure buildings and timber milling buildings.
E Deduction for decline in value of depreciating assets
Show at E the deduction for decline in value of depreciating assets for tax purposes.
Complete and attach a Capital allowances schedule 2011 if the amount you show at E is more than $100,000.
The decline in value of a depreciating asset is generally worked out using either the prime cost or diminishing value method. Both methods are based on the effective life of an asset. For most depreciating assets, the fund can choose whether to self-assess the effective life or to adopt the Commissioner's determination which can be found in Taxation Ruling TR 2010/2 Income tax: effective life of depreciating assets (applicable from 1 July 2010).
The fund can deduct an amount equal to the decline in value for an income year of a depreciating asset that it held for any time during that year. However, the deduction is reduced to the extent that the fund uses it or has it installed ready for use for other than a taxable purpose.
The decline in value of a depreciating asset costing $300 or less is its cost (but only to the extent the asset is used for a taxable purpose) if the asset satisfies all of the following requirements:
- it is used predominantly for the purpose of producing assessable income that is not income from carrying on a business
- it is not part of a set of assets acquired in the same income year that costs more than $300, and
- it is not one of any number of substantially identical items acquired in the same income year that together cost more than $300.
The decline in value of certain assets with a cost or opening adjustable value of less than $1,000 can be calculated through a low-value pool. Assets eligible for the immediate deduction cannot be allocated to a low-value pool.
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For an explanation of the concepts and terms mentioned above, and for more information on deductions for decline in value, see the Guide to depreciating assets 2011.
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Show at P the deduction claimed for the small business and general business tax break.
Note: It is considered that in most situations superannuation funds will not be eligible to claim the deduction. To qualify for the deduction the relevant asset must be used principally in Australia for the principal purpose of carrying on a business. Superannuation funds generally do not carry on a business, however, they will often be associated with a business which may be eligible. For more information, go to our website.
The small business and general business tax break, in the form of an investment allowance, is available for expenditure on eligible new tangible depreciating assets. The tax break provides the following deductions for:
- small business entities (turnover of less than $2 million a year)
- an additional tax deduction of 50% of the cost of eligible new tangible depreciating assets is available where the business
- committed to investing in the asset between 13 December 2008 and 31 December 2009 inclusive, and
- first used the asset, or installed it ready for use, or (in the case of new investment in an existing asset) brought the asset to its modified or improved state, on or before 31 December 2010.
- other business entities (turnover of $2 million or more a year)
- an additional tax deduction of 30% of the cost of eligible new tangible depreciating assets is available where the business
- committed to investing in the asset between 13 December 2008 and 30 June 2009 inclusive, and
- first used the asset, or installed it ready for use, or (in the case of new investment in an existing asset) brought the asset to its modified or improved state, on or before 30 June 2010
- an additional tax deduction of 10% of the cost of eligible new tangible depreciating assets is available where the business:
- committed to investing in the asset between 13 December 2008 and 30 June 2009 inclusive, and
- first used the asset, or installed it ready for use, or (in the case of new investment in an existing asset) brought the asset to its modified or improved state, between 1 July 2010 and 31 December 2010 inclusive
- an additional tax deduction of 10% of the cost of eligible new tangible depreciating assets is available where the business
- committed to investing in the asset between 1 July 2009 and 31 December 2009 inclusive, and
- first used the asset, or installed it ready for use, or (in the case of new investment in an existing asset) brought the asset to its modified or improved state, on or before 31 December 2010.
Generally, a business 'commits' to investing when:
- it enters into a contract under which the asset is held
- it starts to construct the asset, or
- it starts to hold the asset in some other way.
The tax break applies to new tangible depreciating assets for which a deduction is available under Subdivision 40-B of the ITAA 1997 and certain new investment in existing assets.
Cars will not be disqualified from the tax break merely because you use the 12% method.
Land and trading stock are excluded from the definition of depreciating assets, and will not qualify for the deduction.
It must be reasonable to conclude that the assets will be used principally in Australia for the principal purpose of carrying on a business.
The cost of an eligible new tangible asset includes amounts included in the first element of cost (worked out under Subdivision 40-C of the ITAA 1997), and amounts included in the second element of cost under paragraph 40-190(2)(a) of the ITAA 1997. New expenditure on existing assets may also qualify.
Small businesses can claim the deduction for eligible assets costing $1,000 or more. Small businesses must have a turnover of less than $2 million a year to qualify. For other businesses, a minimum expenditure threshold of $10,000 applies.
In order to meet the relevant threshold, a taxpayer can aggregate their investment in a set of assets, or in a group of assets where the assets in the group are identical or substantially identical.
Where assets are held jointly, a taxpayer can take into account the other business interests in the asset when determining whether the investment threshold test is satisfied. However, the taxpayer will only be able to claim the tax break on their interest in the asset.
Where a taxpayer has met the investment threshold for an asset, they can claim the additional investment in the asset as part of the tax break.
The tax break is on top of the usual capital allowance deduction able to be claimed for the asset.
Provided all of the eligibility criteria are satisfied, the deduction is claimable in the income year in which the asset is first used, or installed ready for use.
Show at F the deduction for insurance premiums paid by a complying superannuation fund to provide superannuation benefits upon the death or temporary or permanent disability of the member.
Note: Amendments to the tax law have been enacted to provide transitional relief to complying superannuation funds for income tax deductibility of total and permanent disability (TPD) insurance premiums. See what's new to determine whether these amendments apply to you.
A fund may use a variety of life insurance policies to provide these benefits. The fund can deduct the following:
- 30% of the premium for a whole-of-life policy if all the individuals whose lives are insured are members of the fund
- 10% of the premium for an endowment policy if all the individuals whose lives are insured are members of the fund
- for a policy that is not a whole-of-life or endowment policy
- 30% of the part of a premium that is specified in the insurance policy as being for a distinct part of the policy that would have been a whole-of-life policy if it had been a separate policy
- 10% of the part of a premium that is specified in the insurance policy as being for a distinct part of the policy that would have been an endowment policy if it had been a separate policy
- the part of a premium that is specified in an insurance policy as being wholly for the liability to provide certain death or disability benefits, as described in section 295-460 of the ITAA 1997, for fund members.
An actuarial certificate is not required in the above circumstances.
For more information on what a 'whole-of-life policy' is for these purposes see ATOID 2009/100 - Complying superannuation fund: deductibility of premiums on 'whole-of-life policy' - subsection 295-465(1) of the ITAA 1997.
For all other insurance policies, a complying fund can deduct the premium (or part thereof) that is attributable to the liability to provide death or disability superannuation benefits, as described in section 295-460 of the ITAA 1997, for fund members. An actuarial certificate is required in order to obtain this deduction.
A complying fund may also deduct premiums on insurance policies to replace income during periods of temporary disability.
In the case of funds that self-insure, the deduction is equal to a reasonable arm's length premium, rather than the lowest arm's length premium, for the cost of death and disability cover provided. An actuarial certificate is also required.
Rather than claiming a deduction for insurance premiums paid, a complying fund may choose to deduct (under section 295-470 of the ITAA 1997) an amount for its future liability to pay death or disability superannuation benefits. Deductions for this amount should be included at F.
Show at G the increased amount of superannuation lump sum death benefits.
This deduction is available to a fund that has been complying since 1 July 1988 or, if established at a later date, since that date. The fund can deduct an amount where it increases (or does not reduce) a superannuation lump sum death benefit so that the death benefit amount is not reduced because of the tax on contributions (the 'tax saving amount'). The lump sum payment must be made to the trustee of the deceased's estate or to the deceased's dependant (an individual who was a spouse, former spouse or child of the deceased) at the time of death or payment, in order to claim the deduction.
The deduction is only available to the extent that the spouse, former spouse or child of the deceased can reasonably be expected to benefit from the estate.
The following definitions of 'spouse' and 'child' apply only for the purpose of determining the deduction for the increased amount of superannuation lump sum death benefits.
Spouse of the deceased is a person (whether of the same sex or opposite sex) who:
- the deceased was in a relationship with that was registered under a prescribed state or territory law,
- although not legally married to the deceased, lived with the deceased on a genuine domestic basis in a relationship as a couple.
Child of the deceased includes:
- an adopted child, a stepchild or an ex-nuptial child of the deceased
- a child of the deceased's spouse
- someone who is a child of the deceased within the meaning of the Family Law Act 1975 (for example, a child who is considered to be a child of the person under a state or territory court order giving effect to a surrogacy arrangement).
The deduction is available under section 295-485 of the ITAA 1997. The amount of the deduction is calculated by dividing the tax saving amount by the low tax component rate (which is generally 15%).
The fund can deduct the amount in the income year in which the lump sum is paid.
Show at I the amount of expenses of a revenue nature incurred in deriving investment income, unless allowed by other specific income tax provisions and more appropriately shown at another label. Do not include any amount that you show at J Management and administration expenses.
Complying funds and complying ADFs may claim deductions for expenses incurred in relation to acquiring, holding or disposing of:
- units in a PST
- life insurance policies issued by life insurance companies, or
- interests in trusts whose assets consist wholly of such life insurance policies.
You can claim the deduction if the expenditure would qualify for deduction under the deduction provisions of the ITAA 1936 or the ITAA 1997 if any profits, gains or bonuses received from the investments listed above that are not assessable income were instead included in your assessable income.
Our view on the application of the relevant provision (section 295-100 of the ITAA 1997) is set out in Taxation Determination TD 1999/6 Income tax: what is the purpose of sections 279E and 289A of the Income Tax Assessment Act 1936?
Investment charges that are deducted by the PST or life insurance company from gross contributions transferred from the fund, result in a reduced amount of contributions for investment by the PST or the life insurance company. In this case, the charges are of a capital nature as they reduce the amount of the investment, and are therefore not deductible.
The fund cannot deduct amounts of expenses for fees or charges incurred for 'complying superannuation/FHSA life insurance policies', exempt life insurance policies, or units in a PST that are segregated current pension assets of the fund, other than amounts claimed at F Death or disability premiums.
Show at J the amount of expenses of a revenue nature incurred in the management and administration of superannuation entities, unless the expense is more appropriately included at another label.
The fund may be able to claim a deduction at U for payments made to an FMIS, including payments made to acquire its interest in the FMIS, if:
- the fund currently holds a forestry interest in an FMIS, or held a forestry interest in an FMIS during the 2010-11, and
- the fund paid an amount to a forestry manager of an FMIS under a formal agreement.
The fund can claim a deduction at U only if the forestry manager has advised the fund that the FMIS satisfies the 70% direct forestry expenditure rule in Division 394 of the ITAA 1997.
The fund cannot claim a deduction if it disposed of the forestry interest in an FMIS within four years after the end of the income year in which a payment was first made unless the disposal occurred because of circumstances outside of the fund's control, provided the fund could not have reasonably foreseen the disposal happening when it acquired the interest. Disposals that would generally be outside the fund's control include:
- compulsory acquisition
- insolvency of the fund or the scheme manager
- cancellation of the interest in the FMIS because of trees being destroyed by fire, flood or drought.
If the fund is an initial participant it can claim at this item initial and ongoing payments made as an initial participant of the FMIS.
If the fund is a subsequent participant, it cannot claim a deduction for the amount paid for acquiring the interest. The fund can only claim a deduction for ongoing payments.
The fund is an initial participant in an FMIS if:
- the fund obtained its forestry interest in the FMIS from the forestry manager of the scheme, and
- the fund's payment to obtain the forestry interest in the FMIS results in the establishment of trees.
The fund is a subsequent participant if it obtains an interest in a forestry managed investment scheme through secondary market trading. This means it acquired its interest other than as an initial participant, usually by purchasing that interest from an initial participant in the scheme.
A forestry manager of an FMIS is the entity that manages, arranges or promotes the FMIS.
A forestry interest in an FMIS is a right to the benefits produced by the scheme (whether the right is actual, prospective or contingent, and whether it is enforceable or not).
Excluded payments
The fund cannot claim a deduction at U for any of the following payments:
- payments for borrowing money
- interest and payments in the nature of interest (such as a premium on repayment or redemption of a security, or a discount of a bill or bond)
- payments of stamp duty
- payments of GST
- payments that relate to the transportation and handling of felled trees after the earliest of the following
- sale of the trees
- arrival of the trees at the mill door
- arrival of the trees at the port, or
- arrival of the trees at the place of processing (other than where processing happens in-field)
- payments that relate to processing, and
- payments that relate to stockpiling (other than in-field stockpiling).
Show at U the total amount of deductible payments made to an FMIS.
Show at L the total amount of all other deductions that do not fall into any of the other categories shown in section C Deductions.
Deductions that are specifically allowable for your superannuation activities include amounts in the following 10 categories.
Exclusion of personal contributions
A complying fund can deduct an amount of personal contributions, to the extent the contributor's deduction for personal contributions has been reduced by a notice under section 290-180 of the ITAA 1997.
Generally, the deduction is allowed in the year in which the notice is received. However, if the notice is received after the fund has lodged its tax return and the fund is unable to utilise the deduction fully in the year in which the notice is received (for example, if that year's taxable income is exceeded by the deduction, or the fund would lose the benefit of franking credits), the fund can amend the assessment of the earlier year in which the contribution was made (subsection 295-195(3) of the ITAA 1997).
Forex losses
Show at L any deductible foreign exchange losses made by the fund that have not been included at any other category. See Foreign exchange (Forex) gains and losses.
TOFA amounts from financial arrangements
If the TOFA rules apply to calculate an assessable gain or deductible loss on the fund's financial arrangements include at L any deductible losses and any deductible TOFA transitional balancing adjustment relating to existing financial arrangements.
TOFA amounts that have been included elsewhere should not be included here. For example, amounts that have already been included at:
- Section C: Deductions - A Interest expenses within Australia
- Section C: Deductions - B Interest expenses overseas, or
- Section B: Income - D Net foreign income.
|
If what you show at L includes an amount brought to account under the TOFA rules, also complete item 16 Taxation of financial arrangements (TOFA).
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For more information, see Guide to the taxation of financial arrangements (TOFA) rules.
Contribution that is a fringe benefit
A superannuation entity can claim a deduction for an amount included in its assessable income that is a fringe benefit because it will be taxed as a fringe benefit in the hands of the contributor. The amount can be deducted in the income year in which the contribution is included in assessable income.
|
A contribution made for an employee to a complying superannuation fund is not a fringe benefit.
|
Return of contributions by non-complying funds
A superannuation fund that has been non-complying since 1 July 1988, or since it was established if later, can deduct an amount which it returns to the entity which had paid the amount to it, provided the contributing entity includes the amount in its assessable income under section 290-100 of the ITAA 1997. The amount can be deducted in the income year in which it is included in the entity's assessable income.
Deductible balancing adjustment amounts
If the fund ceases to hold or to use a depreciating asset, it will need to calculate a balancing adjustment amount to include in its assessable income or to claim as a deduction.
|
For more information, see Guide to depreciating assets 2011.
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Environmental protection activities (EPA) expenditure
A deduction is allowed (under section 40-755 of the ITAA 1997) for certain capital expenditure incurred for the sole or dominant purpose of:
- preventing, fighting or remedying pollution of the environment, or
- treating, cleaning up, removing or storing waste.
Expenditure that forms part of the cost of a depreciating asset is not deductible as expenditure on EPA if a deduction is available for the decline in value of the asset.
|
For more information, see Guide to depreciating assets 2011.
|
Listed investment company (LIC) capital gain amount
A LIC can pay a dividend which includes a LIC capital gain amount to a complying superannuation entity. The complying superannuation entity can claim a deduction of 33 1/3 % of that LIC capital gain amount. The LIC's dividend statement shows the LIC capital gain amount.
An Australian resident non-complying superannuation fund that is a trust can claim a deduction of 50% of that LIC capital gain amount. The LIC's dividend statement shows the LIC capital gain amount.
Deduction relating to foreign non-assessable non-exempt income
Certain expenses relating to foreign non-assessable non-exempt income are allowable deductions against the fund's assessable income if the expenses incurred are a cost in relation to certain debt interests (see section 25-90 of the ITAA 1997, or subsection 230-15(3) of the ITAA 1997 for a debt interest that is a financial arrangement covered by the TOFA rules). For superannuation funds, the relevant non-assessable, non-exempt income is foreign source income exempt from income tax under sections 23AI and 23AK of the ITAA 1936.
These deductions should not be applied against D1 Gross foreign income at item 10 for the purpose of calculating D Net foreign income or a foreign loss.
Superannuation (Financial assistance funding) Levy Act 1993
Levies imposed by regulations under section 6 of the Superannuation (Financial Assistance Funding) Levy Act 1993 can be deducted by regulated superannuation funds and ADFs in the year in which the levy is incurred.
Print in the Code box the code from table 6 that best describes the greatest amount written at L Other deductions.
|
You cannot claim a deduction against the assessable income of the fund for benefits paid.
There is no provision for funds to transfer or pass on deductions to other entities (for example, life insurance companies or PSTs).
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Table 6: Other deduction codes
Code
|
Other deductions in respect of:
|
C
|
Exclusion of personal contributions
|
F
|
Forex losses
|
T
|
Deductible TOFA losses or deductible TOFA balancing adjustment
|
B
|
Contribution that is a fringe benefit
|
R
|
Return of contributions by non-complying funds
|
A
|
Deductible balancing adjustment
|
E
|
Environmental protection activities (EPA) expenditure
|
I
|
LIC capital gain amount
|
N
|
Deduction relating to foreign non-assessable non-exempt income
|
S
|
Superannuation (Financial Assistance Funding) Levy Act 1993
|
O
|
Other deductions not listed above
|
Show at M the tax losses that the fund is claiming. The fund can claim tax losses only to the extent that its total assessable income exceeds total deductions (other than tax losses).
The amount of the fund's tax losses brought forward must first be deducted from the amount of the fund's net exempt income (section 36-15 of the ITAA 1997). The fund's net exempt income is the fund's gross exempt income less the expenses incurred in deriving that income. Example 4c illustrates the effect of exempt current pension income on tax losses.
In calculating the tax losses, take into account the foreign loss component of a tax loss only to the extent that it is deductible in the 20010-11 income year. Transitional rules limit the amount of the foreign loss component of any tax loss that can be deducted in the 2010-11 income year.
For more information about the treatment of foreign losses carried forward from earlier years, see Changes to foreign loss quarantining and foreign tax credit calculation rules - Overview.
Tax losses are not the same as 'capital losses' which may result from a capital gains tax event. Do not show net capital losses at M. See V Net capital losses carried forward to later income years at item 13.
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The trust loss legislation in Schedule 2F to the ITAA 1936 affects the deductibility of prior year losses by all trusts which are not excepted trusts (as defined in section 272-100 of Schedule 2F to the ITAA 1936), such as non-complying superannuation funds.
The fund may need to complete and attach a Losses schedule 2011 to its tax return; see Schedules and the Losses schedule instructions 2011.
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Show at N the total of all allowable deductions from K to M. This amount takes into account concessions and adjustments allowable for income tax purposes.
Show at O the taxable income or loss by subtracting N Total deductions from V Total assessable income item 10. If the amount calculated is an overall loss for the year, print L in the Loss box at the right of the amount.
This statement works out the tax liability where there is taxable income.
We use the information which you provide in this section to calculate the 2010-11 Commissioner's instalment rate under the PAYG income instalment system. You must complete all applicable items as accurately as possible to ensure that the rate calculated results in a reliable estimate of tax payable for the 2010-11 income year.
Show at A the amount of taxable income of $1 or more.
This amount is the amount shown at O Taxable income or loss item 11 when the Loss code box is blank. Write 0 (zero) if the fund has no taxable income or has a tax loss.
Show at J No-TFN quoted contributions tax the amount of additional tax payable on no-TFN quoted contributions shown at R3 No-TFN quoted contributions (31.5% for complying superannuation funds and 1.5% for non-complying superannuation funds). If the amount shown at R3 is zero, then the amount shown at J will be zero.
See example 5 below in B Gross tax for illustrations on how to calculate no-TFN quoted contributions tax.
Note that the additional tax shown at J No-TFN quoted contributions tax must be included at B Gross tax as explained and illustrated below in example 5 on how to calculate no-TFN quoted contributions tax.
Show at B the amount of tax payable before the allowance of any rebates, tax offsets and credits.
The compliance status of the fund affects the tax rates that apply. If the fund is a regulated superannuation fund, ADF or PST and you have not received a Notice of non-compliance from APRA, then the fund is a complying fund and the standard tax rate is 15%. If the fund is a non-complying fund the standard tax rate is 45%.
However, different tax rates apply to the following types of income and you must ensure that you apply the correct rate of tax amounts shown at:
- R3 No-TFN quoted contributions item 10
- U Net non-arm's length income item 10
- T Assessable income due to changed tax status of fund item 10.
See Appendix 3 for more information on the applicable tax rate.
The examples below should help you to determine the gross tax calculation. There are special provisions for no-TFN quoted contributions. See R Assessable contributions in these instructions for examples.
If you show no income at R3, U and T item 10, then the amount you show at B is the amount at A multiplied by the applicable tax rate. Otherwise use examples 5 and 6 to help you calculate the gross tax amount.
Example 5: Income tax calculation: Superannuation fund showing income at R3 No-TFN quoted contributions item 10
Example 5a: Complying superannuation fund
The Natalie Superannuation Fund is a complying fund. However, it has income that must be taxed at more than 15%.
The fund received $10,000 in assessable contributions (shown at R item 10), all of which are employer contributions. Of that amount, $8,000 is shown at R1 item 10 for members who quoted their TFN, but $2,000 is shown at R3 item 10 for members who have not quoted their TFN and whose account was opened either:
- on or after 1 July 2007, or
- prior to 1 July 2007 but the assessable contributions made for the member in the year exceeded $1,000.
The fund has also incurred $1,000 in administration expenses (J item 11). The superannuation fund's taxable income is $9,000.
For the purposes of calculating the amount to be shown at J No-TFN quoted contributions tax and B Gross tax, work out the amount of tax as follows:
|
|
Amount
|
Rate
|
Tax
|
|
|
No-TFN quoted contributions
(amount from R3 item 10, tax from J item 12)
|
$2,000
|
31.5%
|
$630
|
|
|
|
$10,000
|
|
|
|
|
Total assessable income
(from V item 10)
|
$10,000
|
|
|
|
|
less
|
|
|
|
|
|
Deductions
|
|
|
|
|
|
|
$1,000
|
|
|
|
|
Taxable income
(from A item 12)
|
$9,000
|
15%
|
$1,350
|
|
|
Gross tax
(from B item 12)
|
|
|
$1,980#
|
# The amount of gross tax is the sum of the no-TFN quoted contributions tax shown at J item 12 and the tax worked out on the taxable income shown at A item 12.
See Appendix 3 for more information on the applicable tax rates.
Example 5b: Non-complying superannuation fund
Most of the income of non-complying funds is taxed at 45%, but a tax rate of 46.5% applies to no-TFN quoted contributions.
If the Natalie Superannuation Fund was a non-complying fund, you would calculate its gross tax as follows:
|
|
|
Amount
|
Rate
|
Tax
|
|
|
No-TFN quoted contributions
(amount from R3 item 10, tax from J item 12)
|
$2,000
|
1.5%
|
$30
|
|
|
Assessable income
|
|
|
|
|
|
|
$10,000
|
|
|
|
|
Total assessable income
(from V item 10)
|
$10,000
|
|
|
|
|
less
|
|
|
|
|
|
Deductions
|
|
|
|
|
|
|
$1,000
|
|
|
|
|
Taxable income
(from A item 12)
|
$9,000
|
45%
|
$4,050
|
|
|
Gross tax
(from B item 12)
|
|
|
$4,080#
|
# The amount of gross tax is the sum of the no-TFN quoted contributions tax shown at J item 12 and the tax worked out on the taxable income shown at A item 12.
See appendix 3 for more information on the applicable tax rates.
Example 5c: Nil taxable income or loss
The Natalie Superannuation Fund is a complying fund. However, it has income which must be taxed at more than 15%.
The fund received $2,000 in assessable contributions, all of which are employer contributions for members who have not quoted their TFN and whose account was opened either:
- on or after 1 July 2007, or
- before 1 July 2007 but the assessable contributions made for the member in the year exceeded $1000.
Show the $2,000 at R3 item 10 and also at R item 10.
The fund has also incurred $3,000 in administration expenses (shown at J item 11). The fund's taxable income is $1,000 loss.
|
|
|
Amount
|
Rate
|
Tax
|
|
|
No-TFN quoted contributions
(amount from R3 item 10, tax from J item 12)
|
$2,000
|
31.5%
|
$630
|
|
|
Assessable income
|
|
|
|
|
|
|
$2,000
|
|
|
|
|
Total assessable income
(from V item 10)
|
$2,000
|
|
|
|
|
less
|
|
|
|
|
|
Deductions
|
|
|
|
|
|
|
$3,000
|
|
|
|
|
Taxable income or loss
(from A item 12)
|
$1,000 (L)
|
15%
|
$0
|
|
|
Gross tax
(from B item 12)
|
|
|
$630
|
The gross tax of $630 (plus any other amounts payable) is payable even though the fund made a loss for the income year.
See appendix 3 for more information on the applicable tax rates.
Example 6: Superannuation fund showing income at U Net non-arm's length income item 10
Example 6a: Complying superannuation fund
The Elizabeth Superannuation Fund is a complying fund. However, it has income that must be taxed at more than 15%.
The fund received $10,000 of assessable contributions (shown at R item 10), and $4,000 of private company dividends. All private company dividends are generally treated as non-arm's length income unless that income is consistent with an arm's length dealing. See U Net non-arm's length income for a definition of 'arm's length dealing'. Of the $4,000 private company dividends, $2,000 is treated as non-arm's length income. The net non-arm's length income is taxed at 45%.
Non-arm's length income expenses are $100. These expenses can be deducted only from the non-arm's length income. All non-arm's length income is shown on the tax return as a net amount of income.
The amount of taxable income remaining after taking into account the non-arm's length income is referred to as the low tax component.
The fund has also incurred $2,500 in administration expenses (shown at J item 11) that are not considered to be attributable to the earning of the non-arm's length income.
The superannuation fund's taxable income is $11,400.
|
|
|
Amount
|
Rate
|
Tax
|
|
|
Assessable income
|
|
|
|
|
|
|
Assessable contributions
plus
|
$10,000
|
|
|
|
|
|
Net private company dividends (arm's length dealing)
plus
|
$2,000
|
|
|
|
|
|
Net private company dividends (non-arm's length dealing)
|
$1,900
|
|
|
|
|
Total assessable income
less
|
$13,900
|
|
|
|
|
Deductions
|
|
|
|
|
|
|
Administration expenses
|
$2,500
|
|
|
|
|
Taxable income
|
$11,400
|
|
|
|
|
Components of taxable income
|
|
|
|
|
|
|
Non-arm's length component
|
$1,900
|
45%
|
$855
|
|
|
|
Low tax component (that is other taxable income)
|
$9,500
|
15%
|
$1,425
|
|
|
Gross tax
|
|
|
$2,280
|
Example 6b: Non-complying superannuation fund
The income of non-complying superannuation funds is taxed at the rate of 45% (except for a tax rate of 46.5% which applies to no-TFN quoted contributions).
If the Elizabeth Superannuation Fund was a non-complying fund, all of its income would be taxed at the same rate because it does not have no-TFN quoted contributions. You would calculate its gross tax as follows:
|
|
|
Amount
|
Rate
|
Tax
|
|
|
Assessable income
|
|
|
|
|
|
|
Assessable contributions
plus
|
$10,000
|
|
|
|
|
|
Net private company dividends (including those treated as non-arm's length income)
|
$3,900
|
|
|
|
|
Total assessable income
less
|
$13,900
|
|
|
|
|
Deductions
|
|
|
|
|
|
|
Administration expenses
|
$2,500
|
|
|
|
|
Taxable income
|
$11,400
|
45%
|
$5,130
|
|
|
Gross tax
|
|
|
$5,130
|
Add the amounts at C1 and C2 and write the total at C. See Examples 9a and 9b.
Show at C1 the self-determined amount that is the fund's foreign income tax offset. The fund may be able to claim a foreign income tax offset where it has paid foreign income tax on an amount included in its assessable income. The fund's foreign income tax offset cannot exceed the lesser of:
- the foreign income tax paid (or taken to have been paid), and
- its foreign income tax offset limit (the greater of $1,000 and the amount calculated under paragraph 770-75(2)(b) of the ITAA 1997).
For the purpose of calculating your foreign income tax offset, transitional rules determine the amount of pre-commencement excess foreign income tax that can be used. Pre-commencement excess foreign income tax consists of certain excess foreign tax credits from the five years prior to commencement of the new rules.
To calculate the foreign income tax offset, see Guide to foreign income tax offset rules (NAT 72923).
If the fund received franked distributions directly or indirectly from a New Zealand franking company, see Trans-Tasman imputation.
Show at C2 the total of rebates and tax offsets available. Do not include the amounts giving rise to the rebate and tax offset. If your fund is a complying superannuation fund, complying ADF or PST, do not include franking credits that relate to dividends (including non-share dividends) received and assessable dividends from a New Zealand franking company. Include these at F4 Credit: refundable franking credits.
If the fund is claiming a no-TFN tax offset in respect of tax paid on no-TFN quoted contributions in any of the most recent three income years, do not claim the tax offset here. Claim the tax offset at F5 Credit: no-TFN tax offset.
Subtract the amount at C from the amount at B. If the result is greater than zero, show the result at D. If the result is less than or equal to zero, show zero at D. See Examples 9a and 9b.
The amount at D cannot be less than zero, that is, it cannot be a negative amount. This is because foreign income tax offsets and rebates and tax offsets shown at C cannot exceed the gross tax amount shown at B.
Any unused rebates and tax offsets shown at C will not be recorded by us to be applied in future years. Where it is possible to carry forward a credit, the fund is required to keep its own records if it is carrying the credits forward to a later date.
Show at E the amount of interest calculated under section 102AAM of the ITAA 1936 in respect of a distribution received from a non-resident trust. Section 102AAM of the ITAA 1936 imposes an interest charge on certain distributions from non-resident trusts.
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For more information, see Foreign income return form guide.
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Write at F the total of the amounts at:
- F1 Credit: interest on early payments
- F2 Credit: foreign resident withholding
- F3 Credit: ABN/TFN not quoted (non-individual)
- F4 Credit: refundable franking credits
- F5 Credit: no-TFN tax offset
- F6 Credit: interest on no-TFN tax offset
- F7 Credit: refundable National rental affordability scheme tax offset
- F8 Credit: TFN amounts withheld from payments from closely held trusts.
Show at F1 only, the calculated interest amount of 50 cents or more for early payments. Do not show payment amounts.
Interest may be payable where an actual payment is made on account of certain amounts more than 14 days before the due date of payment. Amounts that may attract early payment interest include payments of:
- income tax
- shortfall interest charge, and
- interest payable under section 102AAM of the ITAA 1936.
Amounts that you do not pay directly to us, but which are reduced by the crediting or applying of an amount do not attract early payment interest. These amounts include:
- credit for instalments payable under the PAYG instalment regime
- credit for amounts withheld from withholding payments under the PAYG withholding regime
- an overpayment of other income tax liabilities
- a running balance account (RBA) surplus, and
- any other credit entitlement arising under a tax law.
Early payment interest is also not payable on:
- any component of the payment that exceeds the amount due, and
- an amount for any period during which that amount also attracts interest on overpayment.
Early payment interest is calculated from the date the early payment is made to the date the amount becomes due and payable. However, where you pay an amount early on account of a tax liability, and we refund it before the due date of the liability, interest will not accrue for the period after the date on which we refund the amount.
Date of payment is either:
- the date shown on the receipt
- the date payment is mailed to us, plus three working days, or
- the date shown on the taxpayer's bank statement where payment is made through direct debit, that is, electronic funds transfer (EFT).
Table 7: Interest on early payments
The rates of interest on early payments for the 2010-11 income year are:
Quarter
|
Interest rate (pa)
|
Jul - Sep 2010
|
4.80%
|
Oct - Dec 2010
|
4.74%
|
Jan - Mar 2011
|
5.02%
|
Apr - Jun 2011
|
4.92%
|
If the early payment extends over two or more quarters, calculate the interest for the number of days in each quarter.
For 2010-11, interest is calculated as follows:
Interest
|
=
|
number of days
365
|
x
|
amount of payment
|
x
|
interest rate for that quarter
|
Keep a record of the amount of early payment interest claimed. This interest is assessable income in the income year in which it is paid to the fund or credited against another fund liability.
Show at F2 the total amount of tax withheld from payments subject to foreign resident withholding. This includes any distributed share of foreign resident withholding credits distributed to the fund from a partnership or trust.
You complete F2 only if the amount was withheld in Australia and remitted to the ATO.
Where a credit is claimed at F2 for tax withheld under foreign resident withholding, the corresponding gross payment must be included at item 10, I Gross distribution from partnerships, Q Trust distributions other amounts, or S Other income (gross payments subject to foreign resident withholding).
Show at F3:
- the total tax withheld from payments subject to withholding where the fund's ABN or TFN was not quoted. (This amount equals the sum for the amounts shown in the tax withheld boxes on the Non-individual PAYG payment summary schedule 2011, see Schedules), and
- any amounts withheld from investments where the fund's TFN has not been quoted to the financial institution.
If a credit is reported at F3 for tax withheld where an ABN or TFN was not quoted, the corresponding gross payment must be declared at H Gross payments where ABN not quoted item 10.
Do not include at F3 any contributions that have been received by the fund where no TFN has been quoted; these are reported at R3 No-TFN quoted contributions item 10.
Subject to satisfying the holding period rule and related payment rule, complying superannuation funds, complying ADFs and PSTs are entitled to claim a refund of excess franking credits in respect of dividends received (including non-share dividends and assessable dividends from a New Zealand franking company).
If you are one of these superannuation entities, show at F4 the amount of franking credits that relate to dividends received including non-share dividends and assessable dividends from a New Zealand franking company. Make sure you have included the amount of franking credits in the assessable income shown at:
- I Gross distributions from partnerships item 10
- L Dividend franking credit item 10
- P Trust distributions franking credit item 10, or
- E Australian franking credits from a New Zealand company item 10.
If the fund is a non-complying superannuation fund or a non-complying ADF, the fund is entitled to a tax offset of franking credits that relates to dividends received (including non-share dividends and assessable dividends from a New Zealand franking company) against the income tax liability of the fund. Show the amount of franking credits at C2 Credit: rebates and tax offsets. Make sure you have included the amount of franking credits in the assessable income shown at L Dividend franking credit, P Trust distributions franking credit and E Australian franking credits from a New Zealand company.
Do not show at F4 credits that you have included at C1 Credit: foreign income tax offset or payments for the fund's 2010-11 tax liability. Show any amounts already paid for the fund's 2010-11 tax liability at G PAYG instalments raised.
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A dividend from a New Zealand franking company may also carry New Zealand imputation credits. An Australian resident cannot claim New Zealand imputation credits.
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Show at F5 the no-TFN tax offset claimed.
A fund is entitled to a refundable no-TFN tax offset for the current income year if:
- tax was payable by the fund on an amount of no-TFN quoted contributions in one of the most recent three income years ending before the current year, and
- the no-TFN quoted contributions were made to the fund to provide superannuation benefits for an individual who provided their TFN to the fund for the first time in 2010-11.
The no-TFN tax offset is the total of the additional tax paid or payable on amounts of no-TFN quoted contributions where the above conditions have been met.
Example 7: Superannuation fund showing a credit at F5 Credit: no-TFN tax offset
The Margarita Superannuation Fund is a complying fund. The fund reported $10,000 no-TFN quoted contributions in its 2009-10 tax return and paid additional tax of $3,150 on those no-TFN quoted contributions.
The no-TFN quoted contribution income included $2,000 of assessable contributions made by Julie, as she had not provided her TFN to the fund by 30 June 2010. For the no-TFN quoted contributions attributed to Julie, the fund paid $630 tax. Julie provided her TFN to the fund on 30 September 2010.
In its 2010-11 tax return, the fund is entitled to claim a no-TFN tax offset for the $630 tax paid on the $2,000 no-TFN quoted contributions reported in the fund's 2009-10 tax return. The $630 is included at F5 item 12.
Show at F6 the total calculated interest amount of 50 cents or more that is attributable to the no-TFN tax offset claimed at F5.
Interest on the no-TFN tax offset is only payable if all the following conditions are met:
- a member of the fund provided their TFN to their employer before the end of an income year (the past year)
- the employer was required by section 299C of the SISA to inform the fund of the individual's TFN by the end of the past year, but did not provide the TFN to the fund
- as a result, the contributions made in respect of that member were no-TFN quoted contributions in that past year
- an amount of additional tax (which is the interest-bearing tax) that was payable in respect of the no-TFN quoted contributions counts towards the no-TFN tax offset under Subdivision 295-J of the ITAA 1997 for an income year (the current year) for the fund
- the no-TFN tax offset under that subdivision is applied when assessing the fund for the current year.
The interest is payable on each amount of interest-bearing tax.
Interest on tax that counts towards the no-TFN tax offset is calculated for the period between the later of:
- the day on which the amount of interest-bearing tax was paid, or
- the day by which the amount of interest-bearing tax was required to be paid
and
- the date on which the fund lodges its tax return for the current year (which is deemed to be the date on which the current year assessment is made).
The date of payment of the interest-bearing tax is either:
- the date shown on the receipt, or
- the date payment is mailed to us plus three business days.
If the relevant interest period extends over two or more quarters, calculate the interest for the number of days in each quarter. Example 8 provides further information on how to calculate the amount of interest in such circumstances.
The rate of interest payable on the interest-bearing tax is the base interest rate determined under section 8AAD of the TAA 1953. Table 7 at F1 Credit: interest on early payments provides the applicable interest rates up to 30 June 2011.
For information on interest rates after that date and on calculating the interest to be applied on tax that counts towards the no-TFN tax offset, and for a calculator to help you work out the amount of interest, see Superannuation.
Keep a record of the amount of interest claimed on tax that counts towards the no-TFN tax offset. This interest is assessable income of the fund in the income year in which it is claimed and should be shown at C Gross interest.
Example 8: Superannuation fund showing a credit at F6 Credit: interest on no-TFN tax offset
The Caron Superannuation Fund is a complying fund and included $10,000 no-TFN quoted contributions in its 2010 tax return. An additional 31.5% tax amounting to $3,150 was paid on these contributions. The fund's due date for lodgment of its 2010 tax return and payment of tax was 31 March 2011. The fund was slightly overdue lodging its return and in paying its tax. It paid the full amount of tax owing including the $3,150 tax on the no-TFN quoted contributions on 7 April 2011.
During 2009-10, Ian, a member of the fund, provided his TFN to the fund after he noticed that his account had been debited with $1,000 which was the amount of tax paid on his no-TFN quoted contributions. Ian made a statement to the fund saying he gave his TFN to his employer Adrian Pty Ltd when he completed a TFN declaration on 10 September 2009.
Caron Superannuation Fund prepares its 2011 tax return in March 2012 and anticipates that the return will be lodged on 31 March 2012.
At F5 on the fund's 2011 tax return, Caron Superannuation Fund claims as a no-TFN tax offset the $1,000 tax that was attributable to Ian's no-TFN quoted contributions. (Ian's no-TFN quoted contributions formed part of the $10,000 reported in the fund's 2010 tax return and on which the Fund paid $3,150 tax.)
Interest on the $1,000 is calculated for the period from 7 April 2011 (the day on which the fund paid the tax) until 31 March 2012 (the day on which the fund lodges its 2011 tax return and the day on which the assessment is deemed to be made).
Quarter
|
Number of days and interest rate calculation
|
Total^
|
Apr-Jun 2011
|
|
$11.457
|
Jul-Sep 2011
|
|
$12.401
|
Oct-Dec 2011
|
|
$12.401
|
Jan-Mar 2012
|
|
$12.131
|
Total interest - rounded to the nearest cent
|
$11.457+$12.401+$12.401+$12.131 = $48.39
|
$48.39
|
^ The total for each quarter is rounded to three decimal places.
*The base interest rate applied for each of the quarters above was not available when going to print. Consequently, the rate for the period Apr-Jun 2011, 4.920%, is used for the purpose of this example.
The fund is entitled to claim $48.39 interest at F6.
Show at F7 the amount of national rental affordability scheme tax offset entitlement.
The national rental affordability scheme (NRAS) is designed to encourage large-scale investment in affordable housing. The NRAS offers incentives to providers of new dwellings on the condition that they are rented to low and moderate income households at 20% below market rates.
The refundable tax offset is only available where the Housing Secretary from the Department of Families, Housing Community Services and Indigenous Affairs has issued a certificate under the NRAS. In order to claim the offset in the 2010-11 income year, the NRAS certificate must relate to the NRAS year comprising the period 1 May 2010 to 30 April 2011.
For more information, see National rental affordability scheme - refundable tax offset and other taxation issues.
Show at F8 the total amounts withheld from payments where you have not provided your TFN to the trustee of a closely held trust.
Where amounts have been withheld the trustee of a closely held trust is required to provide a beneficiary with a payment summary in the approved format. The credit amount claimed at F8 appears on your payment summary.
Do not include at F8 amounts from any other withholding rules.
Unless the fund is an exempt beneficiary, the trustee of a closely held trust, which is subject to the TFN withholding rules, is required to withhold amounts from payments if the fund did not provide a TFN. The rate of withholding is 46.5% (top rate plus Medicare levy) of the payments made.
For more information about the TFN withholding rules for closely held trusts see TFN withholding for closely held trusts.
Show at G the total of the fund's PAYG instalments for 2010-11, whether or not the instalments have actually been paid.
Include the following amounts in the total instalment amount:
- If the fund used the instalment amounts worked out by us which the fund did not vary, show the amounts pre-printed at T7 on the fund's quarterly activity statements or at T5 on the annual instalment activity statement.
- If the fund did not use the instalment amounts worked out by us, include the amounts which the fund reported at 5A on the fund's activity statements, reduced by any credits the fund claimed at 5B.
To ensure the fund receives the correct amount of credit for its PAYG instalments, make sure all of its activity statements are finalised before lodging the tax return. If the fund is required to lodge its activity statements, it should do so even if it can't pay on time, or had nothing to pay.
The fund is entitled to a credit for its PAYG instalments, even if it has not actually paid a particular instalment. However, the fund will be liable for the general interest charge on any outstanding instalment for the period from the due date for the instalment until the date it is fully paid.
Show at I the balance of tax payable or refundable as indicated on the tax return.
The amount at I does not take into account any interim or voluntary payments that the fund has made against its income tax liability for the 2010-11 income year. If the fund has made such payments, take these into account in calculating the final payment, but do not show the interim or voluntary payment amounts on this tax return.
We do not require a payment when the tax return is lodged. However, if you prefer to make payment at this time, see Payment.
Record keeping
The fund must keep all documentation issued by financial institutions detailing payments of income and any TFN amounts deducted from those payments.
The fund must also maintain details of any TFN amounts deducted from an income payment made to the fund and subsequently refunded by their financial institution. The fund must keep a record of the following details for the refund:
- amount of refund received
- date of refund, and
- investment reference number, for example, the bank account number of the investment relating to the refund.
Example 9: Completing income tax calculations
Example 9a: Refund position: non-complying superannuation fund
The example below, illustrates a straight forward calculation for a non-complying superannuation fund.
Example 9b: Payable position: complying superannuation fund
Rebates and offsets cannot be offset against the gross tax amount in so far that it will result in a negative amount at D. In the example below, the 'rebate and, offsets' amount (C) exceeds the 'gross tax payable' amount (B) by $400. The amount of $400 cannot be used to offset the final liability of $61 (I).
This section deals with all losses claimed for the 2010-11 income year. Do not show cents for any amount you write at this section on the fund tax return.
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Complete a Losses schedule 2011 and attach it to the tax return if the fund has:
- total tax losses and net capital losses carried forward to the 2011-12 income year greater than $100,000
- foreign loss component of tax losses deducted in the 2010-11 income year or carried forward to later income years
- an interest in a controlled foreign company (CFC) that has 2010-11 CFC losses greater than $100,000.
- an interest in a CFC that has deducted or carried forward a loss to later income years greater than $100,000.
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Show at U the total tax losses incurred by the fund that are to be carried forward to the 2011-12 income year, under section 36-15 of the ITAA 1997. The amount at U is the sum of:
- the fund's tax loss for 2010-11 (this must take into account any net exempt income), and
- the fund's prior year tax losses (including the foreign loss component of those tax losses).
Include prior year tax losses only to the extent that they have not previously been deducted or reduced by net exempt income in the 20010-11 income year.
Use the fund's 20010-11 net exempt income, if any, to reduce the amount of any 2010-11 tax loss first and then any prior year tax losses. If the fund's 2010-11 net exempt income is greater than its 2010-11 losses, you will reduce prior year losses, and the fund's 2010-11 year losses will be nil.
Do not include any net capital losses to be carried forward to later income years at U; show these at V Net capital losses carried forward to later income years and in the CGT schedule, if a schedule is required.
If the fund in required to complete a Losses schedule 2011, the amount shown at U Tax losses carried forward to later income years item 1 in part A of that schedule must be the same as the amount shown at U on the tax return.
Do not include an amount of quarantined losses in respect of non-arm's length income at U. You should keep a record of the quarantined loss amount with the fund's tax record.
Show at V the total of any unapplied net capital losses from collectables and unapplied net capital losses from all other CGT assets and events. If this item applies to the fund, you must refer to the Guide to capital gains tax 2011 to complete this item. It also explains the special CGT rules that apply to foreign residents and trustees of foreign trusts.
This information is calculated or transferred from:
- V in part I of the CGT summary worksheet, or
- H and I in part I of the CGT schedule, if one is required.
If the fund is required to complete a Losses schedule 2011 the amount shown at V Net capital losses carried forward to later income years item 2 in part A of that schedule must be the same as the amount written at V on the tax return.
This section deals with other financial information that the Commissioner has determined is necessary to assess the operation of the superannuation fund.
Show at A the amount of attributed foreign income from controlled foreign entities and transferor trusts in listed countries.
Attributed income is the income attributed to the taxpayer from controlled foreign entities, calculated in accordance with Division 7 of Part X of the ITAA 1936, and includes amounts grossed up under section 392 of the ITAA 1936, as appropriate, to the extent of any foreign taxes paid.
Listed countries are found in Part 1 of Schedule 10 to the Income Tax Regulations 1936 (ITR 1936). The definition of a listed country trust is in section 102AAE of the ITAA 1936.
Attributed income from transferor trusts is the total amount of income attributed to the taxpayer from a transferor trust that is a listed country trust, calculated in accordance with Subdivision D of Division 6AAA of Part III of the ITAA 1936, and grossed up under section 102AAU(1)(d) of the ITAA 1936, as appropriate, to the extent of any foreign taxes paid.
Show at B the amount of attributed income from controlled foreign entities in section 404 countries.
Section 404 countries are listed in Part 2 of Schedule 10 to the ITR 1936.
Show also at B the amount of income attributed from a transferor trust if the entire income and profits of the trust are subject to tax in a section 404 country.
Show at C the amount of attributed foreign income from controlled foreign entities in unlisted countries (excluding section 404 countries).
Unlisted countries are countries not listed in Part 1 of Schedule 10 to the ITR 1936.
Show also at C the amount of income attributed from a transferor trust if the amount has not been included at:
- A Listed country, or
- B Section 404 country.
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For more information on the exemptions and calculation of the amounts to be reported at:
- A, B, or C, see the Foreign income return form guide 2010-2011.
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Show at F the total value of net assets available to pay benefits, including items such as life policies, units held in PSTs and assets funding current pension liabilities at the balance date. If the value of life policies is not known, use the total of contributions to date.
Has the fund or trust, with consent of the transferee, transferred assessable contributions under section 295-260 to a life insurance company or pooled superannuation trust?
Total investments of a fund, ADF or PST may include items such as life insurance policies and units held in PSTs at the balance date.
Print X in the appropriate box at A.
If the answer at A is Yes, print:
- the name of the life insurance company or PST
- the ABN of the life insurance company or PST
- the amount of the contributions transferred to each transferee at B and D
- the market value of each transferor's investment in the transferee at C and E.
Investment in any other life insurance policies or pooled superannuation trusts
Show at F the total market value of investments in any other life insurance polices or PSTs that have not been already included above.
The term 'market value' is to be given its ordinary meaning in accordance with and subject to Subdivision 960-S of the ITAA 1997.
Print X in the appropriate box at G.
Print X in the Yes box only if the fund:
- made an assessable gain or deductible loss under the TOFA rules, or
- had an assessable or deductible amount from a transitional balancing adjustment, as a result of making the transitional election for existing financial arrangements.
Show at H the fund's total assessable TOFA gains from financial arrangements
Show at I the fund's total deductible TOFA losses from financial arrangements.
Show at J the fund's assessable or deductible amount from a transitional balancing adjustment for the income year, as a result of making the transitional election for existing financial arrangements.
If the transitional balancing adjustment is a deductible amount, print L in the Loss box.
Working out the fund's total assessable TOFA gains, deductible TOFA losses, and TOFA transitional balancing adjustment
Ensure you take into account at H, I and J any amount in relation to a TOFA financial arrangement that you have shown at:
- C Gross interest item 10
- D1 Gross foreign income item 10
- I Gross distributions from Partnerships item 10
- K Unfranked dividend amount item 10
- N Trust distributions unfranked amount item 10
- Q Trust distributions other amounts item 10
- S Other income item 10
- A Interest expenses within Australia item 11
- B Interest expenses overseas item 11
- L Other deductions item 11.
You should take into account only once an amount at one of H, I and J.
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You must answer this question (Overseas transaction or interest and foreign source income), even if you have no overseas transactions or interests.
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A Did the fund have any transactions or dealings with international related parties, irrespective of whether they were on revenue or capital account?
Print X in the appropriate box.
International related parties are persons, including permanent establishments, who are parties to international dealings that can be subject to:
- Division 13 of the ITAA 1936, or the business profits article, or
- associated enterprises article, of a relevant double tax agreement. International related parties include:
- any overseas entity or person who participates directly or indirectly in the fund's management, control or capital
- any overseas entity or person in respect of which the fund participates directly or indirectly in the management, control or capital
- any overseas entity or person in respect of which persons who participate directly or indirectly in its management, control or capital are the same persons who participate directly or indirectly in the fund's management, control or capital
- a permanent establishment and its head office
- two permanent establishments of the same person.
'Participates' includes a right of participation, the exercise of which is contingent on an agreed event occurring and 'person' has the same meaning as in subsection 6(1) of the ITAA 1936 and section 995-1 of the ITAA 1997.
The type of dealings or transactions that will require the fund to select Yes at this question are dealings by the entity with related parties as above, such as an overseas holding company, overseas subsidiary, overseas permanent establishment of the entity, or non-resident trust in which the entity has an interest.
These dealings or transactions may be the provision or receipt of services, or transactions in which money or property has been sent out of Australia, or received in Australia from an overseas source during the income year. The dealings may also include the transfer of tangible or intangible property, provision or receipt of services, or the provision or receipt of loans or financial services.
If money or property is not actually sent out of Australia or received in Australia, but accounting entries are made that have the effect of money or property being transferred, this is also to be taken as an international transaction.
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If the fund received dividends (including non-share dividends) from, a related overseas entity and those dividends were the only transactions with related overseas entities, select No at this label in respect of overseas transactions and do not complete section A of Schedule 25A 2011.
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B Was the aggregate amount of the transactions or dealings with international related parties (including the value of property transferred or the balance outstanding on any loans) greater than $1 million?
Print X in the appropriate box.
The aggregate amount of the dealings is the total amount of all dealings, whether on revenue or capital account, and includes the balance of any loans or borrowings outstanding with international related parties.
Transactions must not be netted off against each other. Hence, a $600,000 purchase from and a $700,000 sale to a related party should be treated as totalling $1,300,000 not $100,000.
If the answer at B is Yes, complete section A of Schedule 25A 2011 together with any other relevant part or schedule, and attach the completed Schedule 25A to the tax return.
C Did the fund have an overseas branch or a direct or indirect interest in a foreign trust, controlled foreign entity or transferor trust?
Print X in the appropriate box.
If the answer at C is Yes, complete section B, and any other relevant part, of Schedule 25A 2011. The schedule must be completed, attached to the tax return, and lodged as part of the tax return.
The interests that will require the fund to complete Schedule 25A are those where the fund has:
- an interest in a controlled foreign company or trust, or
- transferred property (at any time), including money or services, to a non-resident trust, or where the fund is able to influence the decisions relating to a non-resident trust.
An interest in a controlled foreign company or trust may be either direct or indirect, and is taken to have the same meaning as set out in Division 3 Part X of the ITAA 1936.
A fund has an interest in a transferor trust if it has ever made, or caused to be made, a transfer of property or services to a non-resident trust. 'Transfer', 'property' and 'services' are defined in section 102AAB of the ITAA 1936. Sections 102AAJ and 102AAK of the ITAA 1936 provide guidance in relation to whether there has been a transfer or deemed transfer of property or services to a non-resident trust.
D Was the amount of foreign income tax paid greater than $100,000 OR was the amount of assessable foreign income greater than $500,000?
Print X in the appropriate box.
Assessable foreign income is all income sourced from overseas, and includes interest, dividends, attributable income through the controlled foreign company (CFC) regime, and foreign-sourced capital gains.
For more information on foreign income tax, see Guide to foreign income tax offset rules.
For more information on foreign sourced capital gains, see the:
- Foreign income return form guide, and
- Guide to capital gains tax 2011.
E Transactions with specified countries
Print X in the appropriate box.
Did the fund directly or indirectly send to, or receive from, one of the countries listed in table 10, any funds or property? This includes sending or receiving the funds or property indirectly, for example, through another entity or country.
Or does the fund have the ability to control the disposition of any funds, property, investments or any other assets located in any of the countries listed in table 10?
This includes:
- funds or assets that may be located elsewhere but are controlled or managed from one of the countries listed in table 10 below, and
- where you have an expectation that you are able to control the disposition of the funds or assets or you can control the disposition indirectly, for example, through associates.
Table 10: Listed countries
Andorra
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Cook Islands
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Liechtenstein
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San Marino
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Anguilla
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Cyprus
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Marshall Islands
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Seychelles
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Antigua and Barbuda
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Dominica
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Mauritius
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St Kitts and Nevis
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Aruba
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Gibraltar
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Monaco
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St Lucia
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Bahamas
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Grenada
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Montserrat
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St Vincent and the Grenadines
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Bahrain
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Guernsey
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Nauru
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Turks and Caicos Islands
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Belize
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Isle of Man
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Netherlands Antilles
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US Virgin Islands
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Bermuda
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Jersey
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Niue
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Vanuatu
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British Virgin Islands
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Labuan in Malaysia
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Panama
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Cayman Islands
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Liberia
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Samoa
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You are not required to lodge a schedule if you have answered Yes to this question.
A Exempt current pension income
Print X in the appropriate box.
If the fund has claimed an amount of exempt current pension income in respect of any pensions other than those prescribed by the Income Tax Regulations where assets are fully segregated for all of the income year, has the trustee obtained the relevant actuary's certificate or certificates required by sections 295-385 or 295-390 of the ITAA 1997 before exemption can be claimed?
B Death or disability deduction
Is the fund or trust claiming a deduction for premiums for death or disability cover of a member under section 295-465 that requires an actuary's certificate to be obtained?
Print X in the appropriate box.
C If Yes, has the fund or trust obtained the relevant certificate?
Print X in the appropriate box.
D Payments to contributing employers and associates
Has the fund or trust made a payment or transferred a benefit that is included in the assessable income of the recipient under section 290-100?
Print X in the appropriate box.
Only complete this section if:
- the fund is eligible to claim a deduction at U Forestry managed investment scheme deduction item 11 for payments made to an FMIS during the income year, and
- the fund has been issued a product ruling or a private ruling in relation to its interest in an FMIS.
To complete this item, if the fund's interests in the FMIS are covered by a product ruling:
- print PR at G Code
- write the year of the product ruling at H Year, and
- write the product ruling number at I Number (do not include the year of the product ruling or the slash at I).
Alternatively, if the fund's interests in the FMIS are covered by a private ruling:
- print AN at G Code
- leave H blank Year, and
- write the authorisation number which was printed on the front page of your notice of private ruling, at I Number.
All funds must sign these declarations.
All trustees are equally responsible and accountable for managing the fund and making sure it complies with the law. The signing of this declaration confirms that all trustees and directors have authorised this tax return and that the information supplied is true and correct.
This tax return should be authorised by all trustees of the fund and documented as such in the fund's records. As well, all trustees should ensure that the audit undertaken on the fund has been reviewed by all trustees before this tax return has been authorised.
Penalties may be imposed for false or misleading information, in addition to penalties relating to any tax shortfall.
Preferred trustee, director or public officer's contact details
List the name and contact details of the individual (not the tax agent) that we can contact if required.
A contact phone number (including area code), or email address (or both) must be provided.
Time taken to prepare and complete this tax return
We are committed to reducing the costs involved in complying with the fund's tax and regulatory obligations. The trustee's response to this item is voluntary.
When completing this item, consider the time, rounded up to the nearest hour, which you spent:
- reading the tax return instructions
- collecting the necessary information to complete this tax return
- making any necessary calculations
- actually completing this tax return or putting the tax affairs of the fund in order so the information can be handed to the fund's tax agent.
Include the time both the trustee and tax agent spent in preparing and completing the tax return. This includes the time spent by any other person who helped in doing this.
If the tax agent is a partnership or a company, a person authorised by that partnership or company to sign on its behalf must sign this declaration. Print that person's name at this item.
Tax agent's contact details
List the name and contact details, including:
- title
- family name
- given names
- details of the tax agent's practice
- the tax agent's phone number (including the area code)
- the tax agent's reference number (meaning the number the tax agent has allocated to the fund)
- the tax agent number (issued to the agent by us).
Schedules
General information about completing schedules
- Complete only one copy of the appropriate schedule.
- Attach all completed schedules to the tax return unless specified otherwise.
- Tax returns lodged without all the required schedules may not be considered to have been lodged in the approved form. Unless all schedules are lodged by the due date, a failure to lodge on time penalty may be applied.
- If a schedule is not lodged with the tax return the trustee is required to sign and date that schedule, otherwise it is covered by the tax return's trustee declaration.
All funds that have one or more CGT events happen during the income year must complete a Capital gains tax (CGT) schedule 2011 and attach it to the tax return if:
- a CGT event happens in relation to an FMIS interest that is held other than as an initial participant
- the total current year capital gains are greater than $10,000, or
- the total current year capital losses are greater than $10,000.
The Guide to capital gains tax 2011 will help you meet the fund's CGT obligations by outlining the essential steps involved in calculating the fund's net capital gain for the income year. The guide also includes:
- aspects of CGT law that may apply to the fund, for example, record-keeping requirements
- a capital gain or capital loss worksheet for calculating a capital gain or capital loss for each CGT event
- a CGT summary worksheet for calculating the fund's net capital gain or net capital loss
- a Capital gains tax (CGT) schedule 2011.
All funds that claim a deduction for the decline in value of depreciating assets of more than $100,000 must complete a Capital allowances schedule 2011 and attach it to the fund tax return. The Capital allowances schedule instructions 2011 (NAT 4089) will help you to complete the Capital allowances schedule 2011. The Guide to depreciating assets 2011 will assist you to claim a deduction for an asset's decline in value. Use this guide if the fund incurred other capital expenditure and you want to know whether you can claim a deduction for the expenditure.
The Losses schedule 2011, and where relevant the CGT schedule, have replaced most of the labels relating to losses in previous tax returns. Transfer totals of the amounts at part A of the Losses schedule 2011 to U Tax losses carried forward to later income years item 13 and V Net capital losses carried forward to later income years item 13 of the tax return.
Complete and attach a Losses schedule 2011 if:
- the total of the fund's tax losses and net capital losses carried forward to the 2011-12 income year is greater than $100,000
- the fund has a foreign loss component of tax losses deducted in the 2010-11 income year or carried forward to later income years
- the fund has an interest in a CFC that has 2010-11 CFC losses greater than $100,000.
- the fund has an interest in a CFC that has deducted or carried forward a loss to later income years greater than $100,000.
If, under the above criteria, you need to complete a Losses schedule 2011, you may also need to complete a CGT schedule.
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For more information, see the
- Losses schedule instructions 2011
- Guide to capital gains tax 2011.
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PAYG withholding applies to several withholding events, including:
- if the payment is for a supply and the payee does not quote an ABN
- payments made under a PAYG voluntary agreement, and
- payments made under foreign resident withholding.
For example, if the payer withheld an amount from a payment because the fund did not quote its ABN, the payer should have given the fund (payee) a PAYG payment summary - withholding where ABN not quoted (NAT 3283).
A payer may issue a receipt, remittance advice or similar document in place of the payment summary, provided the document contains all the information required.
If an amount from a payment to the fund was withheld by the payer because of the operation of foreign resident withholding, the fund should have received a PAYG withholding from foreign residents - payment summary (free format) from the payer.
If the fund did not receive (or has lost) its copy of a payment summary, contact the payer responsible and request a signed photocopy of the payer's copy. Details from any PAYG payment summary - withholding where ABN not quoted must be included on a Non-individual PAYG payment summary schedule 2011.
Complete a Non-individual PAYG payment summary schedule 2011 when amounts are included at:
- H Gross payments where ABN not quoted item 10, or
- F3 Credit: No ABN/TFN quoted (non-individual) item 12.
Print neatly in BLOCK letters with a black pen only. Print the fund's TFN and name in the appropriate boxes at the top. Print N for this type of withholding. From each PAYG payment summary - withholding where ABN not quoted, record on the Non-individual PAYG payment summary schedule 2011:
- the payer's ABN (or withholding payer number)
- total tax withheld
- gross payment
- the payer's name.
When you have entered details of all these payment summaries on the schedule, attach the Non-individual PAYG payment summary schedule 2011 to the tax return.
Do not attach copies of any PAYG payment summary - withholding where ABN not quoted to the tax return; keep them with the fund's copy of the tax return. Also keep a copy of the Non-individual PAYG payment summary schedule 2011 with the fund's tax records.
Details from any PAYG withholding from foreign residents - payment summary must be included on a Non-individual PAYG payment summary schedule 2011.
Complete a Non-individual PAYG payment summary schedule 2011 where you show an amount at:
- F2 Credit: foreign resident withholding item 12 (except where the amount is from partnership or trust distributions).
Print neatly in block letters with a black pen only. Show the fund's TFN and name in the appropriate boxes at the top. Print F for this type of withholding. From each PAYG withholding from foreign residents - payment summary, record the following detail on the Non-individual PAYG payment summary schedule 2011:
- the payer's ABN (or withholding payer number)
- total tax withheld
- gross payment
- the payer's name.
When you have entered details of all these payment summaries on the schedule, attach the Non-individual PAYG payment summary schedule 2011 to the tax return.
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A Non-individual PAYG payment summary schedule 2011 is not required for income subject to foreign resident withholding received in a distribution from a partnership or trust because these distributions do not have an associated payment summary.
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Do not attach copies of any PAYG payment summary - payments to foreign residents to the tax return; keep them with the fund's copy of the tax return. Also keep a copy of the Non-individual PAYG payment summary schedule 2011 with the fund's tax records.
A trustee must elect to become 'regulated' under the SISA if the fund wishes to receive concessional tax treatment. The trustees of a new fund must, within 60 days after establishment of the fund, give us a notice of election to be a regulated superannuation fund.
The trustee completes an Application for ABN registration for superannuation entities. You can register online at www.abr.gov.au or you can phone 13 10 20 and ask for a paper copy of the application.
Once a trustee has elected for the fund to become regulated, they cannot reverse the decision; the fund would have to be wound up to cease to be regulated under the SISA and the Superannuation Industry (Supervision) Regulations 1994 (SISR).
Do not use either the Fund income tax return 2011 or the Self-managed superannuation fund annual return 2011 to report a switch of regulator or changes of trustees. If a non-regulated or Australian Prudential Regulation Authority (APRA) regulated superannuation fund attempts to lodge a Self-managed superannuation fund annual return 2011 it will be rejected. The same will occur if an SMSF attempts to lodge a Fund income tax return 2011.
All superannuation funds that switch regulators must inform us within 21 days by either updating their details online at www.abr.gov.au or by completing a Change of details for superannuation entities.
Record keeping requirements
Generally, a superannuation fund must keep all relevant records for five years after they were prepared or obtained, or five years after the completion of the transactions or acts to which they relate, whichever is the later. However, this period may be extended in certain circumstances.
Keep records in writing and in English. You can keep them electronically, as long as the records are in a form that we can access and understand to ascertain the fund's tax liability.
You are not expected to duplicate records. If the records that the superannuation fund normally keeps contain the information specified in the instructions, you do not need to prepare additional records.
For some items on the tax return, these instructions spell out specific record-keeping requirements. In general, these records cover instances where the necessary information may not be available in the normal fund accounts.
The record-keeping requirements within the instructions indicate the information that the superannuation fund uses to calculate the correct amounts to declare on its tax return. However, this information is not an exhaustive list of the records that a superannuation fund maintains.
Prepare and keep these documents:
- a statement of financial position
- a detailed operating statement
- a statement of cash flow (reporting entities only)
- notices and elections
- documents containing particulars of any estimate, determination or calculation made while preparing the tax return, together with details of the basis and method used in arriving at the amounts on the tax return
- a statement describing and listing the accounting systems and records, for example, a chart of accounts showing those that are kept manually and those that are kept electronically.
If we conduct an audit, we may ask for the following information, and we expect you to make the information readily available:
- a list and description of the main financial products (for example, bank overdrafts, bills, futures and swaps) that were used by the fund to finance or manage its activities during the income year
- for funds that have entered into transactions with associated entities overseas:
- an organisational chart of the group structure, and
- all documents, including worksheets, that explain the nature and terms of the transactions entered into.
The superannuation fund will be liable to pay penalties and interest, in addition to the shortfall amount if it does not state the correct amount of taxable income and tax payable on that income, or over claims a credit entitlement on its tax return. The law also imposes a penalty where a superannuation fund fails to keep records in the required manner or it fails to retain records for the appropriate period.
A superannuation fund must keep records of everything that affects its capital gains and capital losses for at least five years after the relevant CGT event.
If a superannuation fund carries forward a net capital loss, the fund should generally keep records of the CGT events that results in the loss for five years from the year in which the loss was made or four years from the date of assessment for the income year in which the capital loss is fully applied against capital gains, whichever is longer.
For more information on record keeping for capital gains tax, see the Guide to capital gains tax 2011 and Taxation Determination TD 2007/2 - Income Tax: should a taxpayer who has incurred a tax loss or made a net capital loss for an income year retain records relevant to the ascertainment of that loss for only the record retention period prescribed under the income tax law?
If a superannuation fund incurs tax losses, it may need to keep records longer than five years from the date when the losses were incurred.
Generally, tax losses incurred in an income year can be carried forward indefinitely until they are applied by recoupment. When applied, the loss amount is a figure that is included in the calculation of the superannuation fund's taxable income in that year.
It is in the superannuation fund's interest to keep records substantiating this year's losses until the amendment period for the assessment in which the losses are applied has lapsed (in most cases up to four years from the date of that assessment); see Taxation Determination TD 2007/2.
Keep records of any overseas transactions in which the superannuation fund is involved, or has an interest, during the income year.
The involvement can be direct or indirect, for example, through persons, trusts, companies or other entities. The interest can be vested or contingent, and includes a case where the fund has direct or indirect control of:
- any income from sources outside Australia, or
- any property (including money) situated outside Australia. If this is the case, keep a record of the following:
- the location and nature of the property
- the name and address of any partnership, trust, business, company or other entity in which the superannuation fund has an interest
- the nature of the interest.
If an overseas interest was created by exercising any power of appointment, or if the superannuation fund had an ability to control or achieve control of overseas income or property, keep a record of the following:
- the location and nature of the property or income
- the name and address of any partnership, trust, business, company, or other entity in which the fund has an interest.
Foreign exchange (forex) gains and losses
Under the forex provisions (Division 775 of the ITAA 1997), forex gains and losses are generally brought to account as assessable income or allowable deductions, when realised. This covers both foreign currency denominated arrangements and, broadly, arrangements to be cash-settled in Australian currency with reference to a currency exchange rate. Some forex gains and losses of a private or domestic nature, or in relation to exempt income or non-assessable non-exempt income, are not brought to account under the forex provisions.
If a forex gain or loss is brought to account under the forex provisions and under another provision of the tax law (apart from the TOFA rules), it is assessable or deductible only under the forex provisions.
Generally, where the TOFA rules apply to the foreign exchange gains and losses of a fund then those gains and losses will be brought to account under the TOFA rules instead of the forex provisions.
In general, forex gains and losses will not be assessable or deductible under these provisions if they arise from certain acquisitions or disposals of capital assets, or acquisitions of depreciating assets, and the time between the acquisition or disposal and payment is no more than 12 months. Instead, any forex gain or loss is usually matched with or integrated into the tax treatment of the underlying asset.
The general translation rule requires all tax relevant amounts to be expressed in Australian currency regardless of whether there is an actual conversion of that foreign currency into Australian dollars.
The tax consequences of gains or losses on existing foreign currency assets, rights and obligations that were acquired or assumed before the commencement date (1 July 2003 but this may be later) are generally to be determined under the law as it was before these provisions came into effect, unless:
- the fund has made a transitional election that brings these gains and losses within the forex provisions, or
- there is an extension of an existing loan (for example, an extension by new contract or a variation to an existing contract) that brings the arrangement within these provisions.
The general value shifting regime (GVSR) can apply to value shifts that happen from 1 July 2002.
Broadly, value shifting describes transactions and other arrangements that reduce the value of an asset and (usually) increase the value of another asset.
The GVSR consists of direct value shifting (DVS) and indirect value shifting (IVS) rules that primarily affect equity and loans interests in companies and trusts. There is also a DVS rule dealing with non-depreciating assets over which a right has been created. There are different consequences for particular interests according to whether the interest is held on capital account, as a revenue asset, or as trading stock.
Where the rules apply to a value shift, there may be a deemed gain (but not a loss) adjustment to adjustable values (such as cost bases) or adjustments to losses or gains on the realisation of assets.
There are 'de minimus' exceptions and exclusions which will minimise the cost of complying with the GVSR, particularly for small businesses. Entities dealing at arm's length or on market value terms are generally excluded from the GVSR.
The debt and equity rules (Division 974 of the ITAA 1997) broadly operate to characterise certain interests as either debt or equity. For some tax law purposes, equity interests are treated in the same way as shares, even though they are not shares in legal form. These interests are called 'non-share equity interests'. They include some income securities and some stapled securities.
For the purposes of the imputation system, generally non-share equity interests are treated in the same way as shares that are not debt interests. Non-share dividends on these types of interests may be franked or unfranked. Show any amount of non-share dividend, whether franked or unfranked, or any amount of franking credit attached to the non-share dividend at the appropriate place on the tax return as if it were for a share.
Trans-Tasman imputation
The Trans-Tasman imputation measure allows New Zealand resident companies to choose to enter the Australian imputation system. Doing so allows a company to maintain an Australian franking account and to attach Australian franking credits to dividends it pays one month after the company makes an election. Australian shareholders of these companies may benefit from the Australian franking credits attached to distributions the companies make (such a company is referred to as a 'New Zealand franking company').
If the fund is an Australian shareholder of a New Zealand franking company and received franked dividends with Australian franking credits attached directly or indirectly from a New Zealand franking company, see the following instructions for help in completing the tax return:
Subdivision 12-FB of Schedule 1 to the Taxation Administration Act 1953 (TAA 1953) inserted a withholding event for payments made to foreign residents. Only payments prescribed in the Taxation Administration Regulations 1976 are subject to this withholding measure.
Payers are required to withhold at the relevant rate prescribed in the appropriate regulation. We may grant a variation to the rate of withholding in special circumstances.
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- Foreign resident withholding does not affect other PAYG and non-resident withholding obligations on interest, dividend and royalty payments.
- This withholding is not a final tax. These withholding requirements will not affect existing income tax obligations for foreign residents deriving assessable income in Australia, such as the requirement to lodge a tax return. Any amounts withheld may be available as a credit against the income tax assessed.
- Gross regulated income subject to foreign resident withholding will not be taken into account in determining the fund's instalment income.
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If the fund has entered into transactions in foreign currency or derived income in a foreign currency, those amounts will need to be translated to Australian currency to calculate the amount assessable or deductible. The foreign currency translation rules are contained in Subdivision 960-C of the ITAA 1997 (and the functional currency rules are contained in Subdivision 960-D of the ITAA 1997).
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For more information about the foreign currency translation rules, see:
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If a superannuation fund has paid foreign tax and wants to claim an offset for the foreign tax paid, calculate the amount of any such offset allowed and show it at C1 in section D (item 12) on the tax return.
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For more information on the calculation of foreign income tax offset, see Guide to foreign income tax offset rules 2010-11 (NAT 72923).
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For help with the calculation, or advice about whether the offset is allowed, phone 13 28 61.
An assessment of a superannuation fund, ADF or PST is deemed to be made on the day on which the tax return is lodged.
If a trustee wants to object to the calculation of taxable income calculated according to an ATO ruling or policy that is unfavourable to the fund, they may dispute the application of a ruling or policy by lodging an objection to the self-assessment, generally within four years of the deemed assessment date. The objection must state the full particulars of the issue in dispute.
A private ruling is a written expression of opinion by the Commissioner about the way in which tax laws and other specified laws administered by the Commissioner would apply to, or be administered in relation to, an entity in relation to a specified scheme.
An application for a private ruling must be made in the approved form and in accordance with Division 357 and 359 of Schedule 1 of the TAA 1953.
The required information and documentation that accompany a private ruling request must be sufficient for the Commissioner to make the private ruling and include:
- the entity to whom the ruling is to apply
- the facts describing the relevant scheme or circumstance
- relevant supporting documents, such as transaction documents
- issues and questions raised that relate to the relevant provision to which the ruling relates
- your argument and references on these questions.
The Commissioner may request additional information to make a ruling. The Commissioner will then consider the request and either issue or, in certain limited circumstances, refuse to issue a private ruling.
The trustee may apply for a ruling affecting a member's income tax affairs with the written consent of the member.
To further improve the administration of the private rulings system, we now publish all notices of private rulings for public record. These publications are on this website. Private rulings are published in an edited form to safeguard taxpayer privacy.
Private ruling applicants are invited to provide a statement detailing any information they believe should be removed from the published version of their private ruling.
If the information the applicant wants removed is more than simply names and addresses, reasons why publication of this information will breach the applicant's privacy should be provided.
Before publication, applicants can comment on the edited version of their private ruling.
Trustees can object to adverse private rulings, or a failure to make a private ruling in much the same way as they can object to assessments. They also can seek a review of adverse objection decisions on a private ruling by the Administrative Appeals Tribunal (AAT) or a court. An explanation of review rights and how to exercise them is issued with the private ruling. An objection to a ruling can be lodged within the later of:
- 60 days after the ruling was made,, or
- four years from the last day allowed for lodging a fund tax return for the income year covered by the ruling.
A trustee cannot object to a private ruling if an assessment has occurred covering the same facts and issues; however they can object to the assessment.
If a trustee has objected to a private ruling, they cannot object on the same grounds against a later assessment, unless the facts have changed.
Private rulings dealing with the ITAA 1936 continue to apply to the ITAA 1997, to the extent that the old law to which the ruling applies expresses the same ideas as the new law in the ITAA 1997.
A private ruling is binding on the Commissioner where it applies to an entity and the entity has relied on the ruling by acting (or omitting to act) in accordance with the private ruling. An entity can stop relying on a private ruling at any time by acting (or omitting to act) in a way that is not in accordance with the private ruling; and can subsequently resume relying on the private ruling by acting accordingly. This is unless the entity is prevented in either case from doing so by a time limit imposed by a tax law.
The Commissioner cannot withdraw a private ruling. However, the Commissioner can make a revised private ruling if the scheme to which the earlier private ruling relates has not begun to be carried out and, if the earlier private ruling relates to an income year or other accounting period, that year or period has not begun.
Paying your tax debt
Income tax debts must be paid by the due date. See Payment.
General interest charge (GIC) is a uniform interest charge imposed where there is a late payment of a tax debt. The GIC rate is the 90-day bank accepted bill rate plus 7% and is updated on a quarterly basis. Amounts payable under the original assessment are due on the statutory due date for payment, which is the first day of the sixth month of the following income year or by such later date as the Commissioner allows. For example, for large and medium funds with a balancing date of 30 June 2011, the statutory due date for payment is the following 1 December 2011. Each year, funds are sent a reminder letter notifying them of their actual lodgment and payment due dates. GIC will begin to accrue from the due date for payment until the amount is paid in full.
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For more information on the GIC, phone 13 28 66.
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What if the fund cannot pay the tax debt by the due date?
If the fund cannot pay the debt on time, phone 13 11 42.
A fund is expected to organise its affairs to ensure that it pays the debt on time. However, depending on the circumstances, the fund may be able to enter into an arrangement to pay by instalments. The fund may need to provide details of the fund's financial position, including a statement of its assets and liabilities and details of the funds income and expenditure. We will also want to know what steps the fund has taken to obtain funds to pay the tax debt and the steps being taken to meet future payments of tax debts on time. GIC will continue to accrue on the outstanding balance from the original due date.
Appendix 1: Capital works deductions
Division 43 of the ITAA 1997 provides for a system of deducting capital expenditure incurred in the construction of capital works used to produce assessable income.
Capital works
You can deduct construction costs in respect of the following capital works:
- buildings or extensions, alterations or improvements to a building
- structural improvements or extensions, alterations or improvements to structural improvements
- environmental protection earthworks.
Deductions for construction costs must be based on actual costs incurred. If it is not possible to genuinely determine the actual costs, provide an estimate by a quantity surveyor or other independent qualified person. The costs incurred by the fund for providing this estimate are deductible as a tax-related expense, not as an expense in gaining or producing assessable income.
The fund can claim a deduction under Division 43 for an income year only if it:
- owns, leases or holds part of a construction expenditure area of capital works
- incurred the expense, and
- uses the building to produce assessable income.
The area the fund owns, leases or holds is called 'your area'.
In calculating the fund's deduction, you must identify your area for each construction expenditure area of the capital works. Your area may comprise the whole of the construction area or part of it.
A lessee can claim a deduction in respect of an area leased or held under a quasi-ownership right.
To claim a deduction, the lessee must have:
- incurred the construction expenditure or been an assignee of the lessee who incurred the expenditure
- continuously leased or held the building itself, or the building must have been held in that way by previous lessees, holders or assignees since completion of construction, and
- used the building to produce assessable income.
If there is a lapse in the lease the entitlement to the deduction reverts to the building owner.
A fund can deduct an amount for capital works in an income year if:
- the capital works have a 'construction expenditure area' and
- there is a 'pool of construction expenditure' for that area, and
- the fund uses the area in the income year to produce assessable income.
A fund cannot claim a deduction for any period before the construction of the capital works is complete even though it used them, or part of them, before completion. Additionally, the deduction cannot exceed the undeducted construction expenditure for your area.
Capital works are taken to have started when the first step in the construction phase starts, for example, the pouring of foundations or sinking of pylons for a building.
You can deduct expenditure for the construction of capital works if there is a construction expenditure area for the capital works.
Whether there is such an area and how it is identified depends on:
- the type of expenditure incurred
- the time the capital works started
- the area of the capital works to be owned, leased or held by the entity that incurred the expenditure
- for capital works begun before 1 July 1997, the area of the capital works that was to be used in a particular manner, see section 43-90 of the ITAA 1997.
Construction expenditure includes:
- preliminary expenses such as architect's fees, engineering fees, foundation excavation expenses and costs of building permits
- costs of structural features that are an integral part of the income-producing building or income-producing structural improvements, for example, lift wells and atriums
- some portion of indirect costs.
For an owner-builder entitled to a deduction under Division 43 of the ITAA 1997, the value of their contributions to the works (that is, labour or expertise and any notional profit element) do not form part of construction expenditure. See Taxation Ruling TR 97/25 - Property development: deduction for capital expenditure on construction of income producing capital works, including buildings and structural improvements and its addendum TR 97/25A.
Construction expenditure does not include expenditure on:
- acquiring land
- demolishing existing structures
- clearing, levelling, filling, draining or otherwise preparing the construction site before carrying out excavation work
- landscaping
- plant
- property for which a deduction is allowable or would be allowable if the property were to be used for the purpose of producing assessable income under another specified provision of the ITAA 1936 or the ITAA 1997.
The construction of the capital works must be complete before the construction expenditure area is determined. A separate construction expenditure area is created each time an entity undertakes the construction of capital works.
For construction area expenditure before 1 July 1997, the capital works must have been constructed for a specified use at the time of completion, depending on the time when the capital works started. The first specified use construction time was 22 August 1979; see table 43-90 and subsection 43-75(2) of the ITAA 1997.
The pool of construction expenditure is the portion of the construction expenditure incurred by a fund on capital works that is attributable to the construction expenditure area.
A fund can only claim a deduction under Division 43 if it uses the area in a way described in table 43-140 or 43-145 of Subdivision 43-D of the ITAA 1997.
Your area is taken to be used for a particular purpose or in a particular manner if:
- it is maintained ready for that use, is not used for another purpose and its use had not been abandoned, or
- its use has temporarily ceased because of, for example, construction or repairs or seasonal or climatic conditions.
Your area is taken not to be used to produce assessable income if:
- it is used, or for use, wholly or mainly, for exhibition or display in connection with the sale of all or part of any building (and it is not a hotel or apartment building) and construction began after 17 July 1985 but before 1 July 1997. If construction started after 30 June 1997, buildings that are used for display are eligible;
- construction began after 19 July 1982 and before 18 July 1985, it is used of for use:
- wholly or mainly for, or in association with, residential accommodation, and is not a hotel or apartment building, or
- wholly or mainly for exhibition or display in connection with the sale of all or part of any building, or the lease of all or part of any building for use wholly or mainly for, or in association with, residential accommodation, and it is not a hotel or apartment building or an extension, alteration, or improvement to such a building
- the fund or an associate uses it mainly for, or in association with, residential accommodation, and it is not a hotel or apartment building. See subsection 43-170(2) of the ITAA 1997 for exceptions to this rule.
Your area, other than a hotel or apartment building is taken to be used, or for use wholly or mainly for, or in association with, residential accommodation if it is:
- part of an individual's home other than a hotel or apartment building, or
- used or for use, wholly or mainly for the purpose of operating a hotel, motel or guest house and construction began after 19 July 1982 and before 18 July 1985.
Special rules for hotel and apartment buildings are contained in section 43-180 of the ITAA 1997.
A fund's entitlement to a deduction begins on the date the building is first used to produce assessable income. The first and last years of use may be apportioned. The entitlement to a deduction runs for either 25 or 40 years (the limitation period) depending on the rate of deduction applicable.
The legislation contains two calculation provisions:
- section 43-215 of the ITAA 1997, deduction for capital works which began before 27 February 1992
- section 43-210 of the ITAA 1997, deduction for capital works which began after 26 February 1992.
Calculate the deduction separately for each part that meets the description of your area.
Multiply the construction expenditure by the applicable rate (either 4% if the capital works began after 21 August 1984 and before 16 September 1987 or 2.5% in any other case) and by the number of days in the income year in which you owned, leased or held your area and used it in a relevant way. Divide that amount by the number of days in the income year.
Apportion the amount if your area is used only partly to produce assessable income.
The amount the fund claims cannot exceed the undeducted construction expenditure.
Calculate the deduction separately for each part of capital works that meets the description of your area.
There is a basic entitlement to a rate of 2.5% for parts used as described in table 43-140 Current year use. The rate increases to 4% for parts used as described in table 43-145 Use in the 4% manner.
The undeducted construction expenditure for your area is the part of the construction expenditure that remains to write off. It is used to work out:
- the number of years in which the fund can deduct amounts for construction expenditure, and
- the amount that the fund can deduct under section 43-40 of the ITAA 1997 if your area or a part of it is destroyed.
If a building is destroyed during an income year, you can claim a deduction for the remaining amount of undeducted construction expenditure that has not yet been deducted, less any compensation received. This applies even if the destruction or demolition is voluntary.
You can claim the deduction in the income year in which the destruction occurs.
The deduction is reduced if the capital works are used in an income year only partly for the purpose of producing assessable income.
For guidelines on these measures, see Taxation Ruling 97/25 and addendum.
The following summary represents only a small number of the special responsibilities trustees have in the preparation of the Fund income tax return 2011.
- The fund must have a governing trust deed or a constituent document.
- The fund must ensure that all assets are in the name of the trustee of the fund.
- The superannuation fund must elect to become a regulated fund under the SISA and be a complying fund in order to receive tax concessions. A notice of compliance is not required to be given to a fund each and every year of income. The trustee must retain a notice of compliance when issued for a previous income year. A notice of compliance given in relation to a year of income will be effective for that year and all subsequent years until such time, if any, as a notice of non-compliance is given to the fund.
- If the fund operates under a substituted accounting period (SAP), the fund must maintain records indicating that we have approved the SAP.
- If a CGT event has happened to a CGT asset that the fund acquired before 1 July 1988, the fund must keep records of the market value or the original cost used for the cost base at 30 June 1988.
- The fund must keep separate records of private company dividends, certain trust distributions or other excessive non-arm's length income.
- The fund must keep records of all foreign source income and calculation of the foreign income tax offset.
- In relation to contributions, the fund must keep records of:
- contributions received from employers and employees or depositors
- rollover notifications to verify untaxed elements where rollovers are received.
- The fund must keep records of how contributions excluded from income are determined. If pre 1 July 1988 funding credits are claimed, the fund must obtain a notice under section 342 of the SISA (or, as formerly known as an APRA section 15D notice) or keep evidence that the notice has been sought.
- The fund must keep records of notices received excluding member or depositor contributions. If the contributions tax liability is transferred, the fund must obtain evidence in writing of an agreement signed by the transferor and the transferee.
- In relation to deductions, the fund must keep records of expenditure and to what income it relates. If a potential detriment deduction is claimed, the fund must keep records of how the claim was calculated and obtain the relevant actuarial certificates. It must also keep evidence that the benefit of the deduction is passed on to the dependant.
- If premiums for death and disablement cover are claimed, where relevant, the fund must keep a copy of the policy or actuarial certificate.
- If a future service element deduction is claimed, the fund must keep evidence of the calculation and full details of the relevant superannuation lump sum benefit.
In addition to the above documentation used in the preparation of this tax return, trustees also have the responsibility under the SISA for maintaining documentation after lodging the tax return.
Trustees must keep the following records for a minimum of five years:
- accurate and accessible accounting records that explain the transactions and financial position of the fund
- an annual operating statement and an annual statement of the fund's financial position
- copies of all tax returns lodged.
Trustees must keep the following records for a minimum of 10 years:
- minutes of trustee meetings and decisions (where matters affecting the fund were discussed)
- records of all changes of trustees, including all changes of directors of any corporate trustee
- an individual's written consent to be appointed as a trustee of the fund, or as a director of the corporate trustee
- copies of all reports given to members.
Appendix 3: Rates of tax
The following rates of tax apply to superannuation funds, ADFs and PSTs for the current income year.
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Rate
%
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Superannuation funds certified by the ATO or APRA as complying with superannuation fund conditions
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Assessed on income, including realised capital gains and taxable contributions received
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15
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Assessed on private company dividends (including non-share dividends) unless the amount is consistent with an arms-length dealing; see U Net non-arm's length income
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45
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Funds that were a foreign superannuation fund in the prior year
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Assessed on income, including realised capital gains, taxable contributions and net previous income (assets less member contributions)
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15
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Superannuation funds not certified by the ATO or APRA as complying with superannuation fund conditions
|
Funds that were complying in the prior year
Assessed on income, including realised capital gains, taxable contributions received and any net previous income (assets less non-concessional contributions)
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45
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Funds that were not complying in the prior year
Assessed on income, including realised capital gains and taxable contributions received
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45
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Australian superannuation fund which was a foreign superannuation fund in the prior year
Assessed on income, including realised capital gains, taxable contributions and net previous income (assets less member contributions)
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45
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Superannuation funds that have not elected to be regulated under the Superannuation Industry (Supervision) Act 1993
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Assessed on income, including realised capital gains and taxable contributions received
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45
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ADFs certified by APRA as complying with ADF conditions
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Assessed on income, including realised capital gains and certain rollover deposits
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15
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Assessed on non-arm's length income, private company dividends (including non-share dividends) unless the amount is consistent with an arms-length dealing; see U Net non-arm's length income
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45
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ADFs not certified by APRA as complying with ADF conditions
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Assessed on income, including realised capital gains and certain rollover deposits
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45
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Unit trusts certified by APRA as complying with conditions for PSTs
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Assessed on income, including realised capital gains and any liability attached to tax deductible contributions transferred from investing funds
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15
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Assessed on non-arm's length income, private company dividends (including non-share dividends) unless the amount is consistent with an arms-length dealing; see U Net non-arm's length income
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45
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No TFN quoted contributions that are included in assessable contributions
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For superannuation funds certified by APRA or the ATO as complying with superannuation fund conditions, an additional tax rate of 31.5% applies to contributions received that were for a member who has not quoted a TFN
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31.5
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For superannuation funds not certified by APRA or the ATO as complying with superannuation fund conditions, an additional tax rate of 1.5% applies to contributions received that were for a member who has not quoted a TFN
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1.5
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AAT
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Administrative Appeals Tribunal
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ABN
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Australian business number
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ADF
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approved deposit fund
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APRA
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Australian Prudential Regulation Authority
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BSB
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bank sub-branch
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CFC
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controlled foreign company
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CGT
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capital gains tax
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Commissioner
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Commissioner of Taxation
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DVS
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direct value shifting
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EFT
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electronic funds transfer
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ELS
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electronic lodgment service
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FBT
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fringe benefits tax
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FHSA
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First home saver account
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FMIS
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forestry managed investment scheme
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FTDT
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family trust distribution tax
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fund
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superannuation fund, approved deposit fund or pooled superannuation trust
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GIC
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general interest charge
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GST
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goods and services tax
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GVSR
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general value shifting regime
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ITAA
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Income Tax Assessment Act
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IVS
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indirect value shifting
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LIC
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listed investment company
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MCS
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member contributions statements
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NRAS
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National rental affordability scheme
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PAYG
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pay as you go
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PDF
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pooled development fund
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PST
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pooled superannuation trust
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RBA
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running balance account
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SAP
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substituted accounting period
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SIC
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shortfall interest charge
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SIS
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Superannuation Industry (Supervision) Act 1993 and Superannuation Industry (Supervision) Regulations 1994
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SISA
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Superannuation Industry (Supervision) Act 1993
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SMSF
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self-managed superannuation fund
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TAA
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Taxation Administration Act 1953
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TBNT
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trustee beneficiary non-disclosure tax
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TFN
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tax file number
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TOFA
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Taxation of financial arrangements
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Trust Loss Act 1998
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Taxation Laws Amendment (Trust Loss and Other Deductions) Act 1998
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Publications, Tax Determinations and Rulings
Publications (available at www.ato.gov.au unless noted)
- Application for ABN registration for superannuation entities (NAT 2944)
- A New Tax System (Australian Business Number) Act 1999
- Change of details for superannuation entities (NAT 3036)
- Capital allowances schedule 2011 (NAT 3424)
- Capital allowances schedule instructions 2011 (NAT 4089)
- Capital gains tax (CGT) schedule 2011 (NAT 3423)
- Debt and equity tests: guide to the debt and equity tests
- Foreign exchange (forex) - general information on average rates (NAT 13434)
- Foreign exchange (forex) - the general translation rule (NAT 9339)
- Foreign income return form guide (NAT 1840)
- Fringe benefits tax: a guide for employers
- General value shifting regime: who it affects
- Guide to capital gains tax 2011 (NAT 4151)
- Guide to depreciating assets 2011 (NAT 1996)
- Guide to the general value shifting regime (NAT 8366)
- Guide to foreign income tax offset rules (NAT 72923)
- How to complete the Superannuation member contribution statement (MCS) (NAT 2603)
- Income Tax Assessment Act 1936
- Income Tax Assessment Act 1997
- Income Tax Regulations 1936
- Income Tax Assessment Regulations 1997
- Income tax (Transitional Provisions) Act 1997
- Law Administration Practice Statement PS LA 2004/1 (GA) Lodgment opportunity for family trust and interposed entity elections
- Legislative instrument registered on the Federal Register of Legislative Instruments (available at www.frli.gov.au)
- Losses schedule 2011 (NAT 3425)
- Losses schedule instructions 2011 (NAT 4088)
- National Rental Affordability Scheme (Consequential Amendments) Act 2008
- New International Tax Arrangements (Managed Funds and Other Measures) Act 2005
- New International Tax Arrangements (Foreign Owned Branches and Other Measures) Act 2005
- Non-individual PAYG payment summary schedule 2011 (NAT 3422)
- PAYG payment summary - withholding where ABN not quoted (NAT 3283)
- PAYG withholding from foreign residents - payment summary
- Schedule 25A 2011 (NAT 1125)
- Schedule 25A instructions 2011 (NAT 2639)
- Small Superannuation Accounts Act 1995
- Super member contributions statement (NAT 71334)
- Superannuation Industry (Supervision) Act 1993
- Superannuation Industry (Supervision) Regulations 1994
- Superannuation Legislation Amendment Act (No. 4)1999
- Taxation Administration Act 1953
- Taxation Administration Regulations 1976
- Tax Laws Amendment (Taxation of Financial Arrangements) Act 2009
- TFN Withholding for Closely Held Trusts (NAT 73561)
Tax determinations and tax rulings
- Taxation Ruling IT 2624 Income tax: company self-assessment; elections and other notifications; additional (penalty) tax; false or misleading statement
- Taxation Determination TD 1999/6 Income tax: what is the purpose of sections 279E and 289A of the Income Tax Assessment Act 1936 (ITAA 1936)?
- Taxation Determination TD 2007/2 Income tax: should a taxpayer who has incurred a loss or made a net capital loss for an income year retain records relevant to the ascertainment of that loss only for the record retention period prescribed under income tax law?
- Taxation Determination TD 2007/3 Income tax: is a deduction allowable to complying superannuation funds under section 279 of the Income Tax Assessment Act 1936, for insurance premiums attributable to the provision of benefits for members in the event of temporary disability longer than two years?
- Taxation Ruling TR 96/7 Income tax: record keeping - section 262A - general principles
- Taxation Ruling TR 97/25 Income tax: property development - deduction for capital expenditure on construction of income producing capital works, including buildings and structural improvements and its addendum TR 97/25A
- Taxation Ruling TR 2005/9 Income tax: record keeping - electronic records
- Taxation Ruling TR 2006/7 Income tax: special income derived by a complying superannuation fund, a complying approved deposit fund or a pooled superannuation trust in relation to the year of income
- Taxation Ruling TR 2008/4 Income tax: effective life of depreciating assets (applicable from 1 July 2008)
- Taxation Ruling TR 2008/9 Income tax: meaning of 'Australian superannuation fund' in subsection 295-95(2) of the Income Tax Assessment Act 1997
- Taxation Ruling TR 2010/1 - Income tax: superannuation contributions
- Taxation Ruling TR 2010/D9 - Income tax: deductibility under subsection 295-465(1) of the Income Tax Assessment Act 1997 of premiums paid by a complying superannuation fund for an insurance policy providing Total and Permanent Disability cover in respect of its members
The only postal address for lodgment of the Fund income tax return 2011 is:
The address must appear as shown above.
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Do not post payments to this address: for payment information see Payment.
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If you want to write to the ATO about superannuation, send your correspondence to:
Payment
How to pay
We offer you a range of convenient payment options, both in Australia and overseas.
Go to www.ato.gov.au/howtopay for more information.
Your payment needs to reach us on or before its due date. Check your financial institution's processing deadlines to avoid making a late payment.
To obtain an ATO publication:
- go to www.ato.gov.au/publications for publications, tax rulings, practice statements and forms, or
- phone 1300 720 092, or
- visit one of our shopfronts.
If you are a tax agent
If you wish to write to the ATO about superannuation, the address is:
Business
Information about business income tax, fringe benefits tax (FBT), fuel tax credits (FTC), goods and services tax (GST), pay as you go (PAYG) and activity statements, including lodgment and payment, accounts and business registration (including Australian business number and tax file number), and dividend and royalty withholding tax.
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13 28 66
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Tax agents
For enquiries from registered tax agents
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13 72 86
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Individual
For individual income tax and general personal tax enquiries
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13 28 61
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Superannuation
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13 10 20
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If you do not speak English well and need help from the ATO, phone the Translating and Interpreting Service on 13 14 50.
If you are deaf or have a hearing or speech impairment, phone the ATO through the National Relay Service (NRS) on the numbers listed below, and ask for the ATO number you need:
- TTY users, phone 13 36 77. For ATO 1800 free call numbers, phone 1800 555 677.
- Speak and Listen (speech-to-speech relay) users, phone 1300 555 727. For ATO 1800 free call numbers, phone 1800 555 727.
- Internet relay users, connect to the NRS at www.relayservice.com.au
Last Modified: Wednesday, 11 January 2012
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