What's new?
From 1 July 2016 a new tax system applies for certain managed investment trusts (MITs). Trustees of eligible MITs who choose to apply the new attribution managed investment trust (AMIT) rules must give an AMIT member annual (AMMA) statement within three months of the end of the income year to each person who was a member of an AMIT during the income year. Trustees who have not chosen to apply the new AMIT regime may continue to use the standard distribution statement (SDS) for their investors.
This document provides guidance to prepare either an AMMA statement or an SDS. They both have revised parts A, B and C. Parts A and B are applicable to both statements however there are two part Cs to cater for the distinct requirements of an AMMA statement and SDS.
The new statements also include additional information for non-residents and there is new information in the guidance notes about other entities such as bare trusts or investor directed portfolio service (IDPS) like entities that report additional income that is not sourced from a trust.
Introduction
The 2017 AMMA statement and the SDS is the format recommended by:
- the Australian Taxation Office (ATO)
- the Financial Services Council (FSC)
- the Australian Custodial Services Association (ACSA)
for disclosure by trusts of tax information to resident and non-resident individuals for completion of the 2017 tax returns, relevant schedules and other requirements.
Both formats align with the Annual investment income report (AIIR). From 2016–17 all MITs are expected to lodge an AIIR.
The 2017 statements that appear below include example amounts that are referred to in the guidance notes that follow it.
Trustees of MITs and other trusts treated as MITs can choose to apply the 2011 trust streaming provisions up to 2016–17. This choice will not be available to MITs in future years. Trustees of AMITs do not need to apply these streaming rules, as they can attribute amounts to members under the AMIT regime.
Abbreviations and glossary
AIIR |
annual investment income report |
AMIT |
attribution managed investment trust |
AMMA statement |
attribution managed investment trust member annual statement |
CFC |
controlled foreign company |
CGT |
capital gains tax |
FITO |
foreign income tax offset |
IDPS |
investor directed portfolio services |
ITAA 1936 |
Income Tax Assessment Act 1936 |
ITAA 1997 |
Income Tax Assessment Act 1997 |
member component |
for an AMIT, the investor's member component of a particular character - that is, the amount of the AMIT's determined trust component of that character that is attributable to the member in accordance with section 276-210 of the ITAA 1997 |
MIT |
managed investment trust |
net income |
|
non-AMIT |
a trust other than an AMIT |
SDS |
standard distribution statement |
share |
This will depend on the context, however, generally a reference to an investor's share will be:
|
TAP |
taxable Australian property |
TFN |
tax file number |
Purpose
These notes are designed to help those preparing AMMA statements or SDS understand the basis for the format of the 2017 statement, and the rationale behind the various items disclosed on the statement.
The information contained in these notes and the sample AMMA statement or SDS is not an ATO interpretive advice or a statement of the ATO's interpretation of the taxation laws relevant to the items included in the statement and the notes, their character and calculation of their amounts. These notes do not set out a precedential ATO view.
For more information, see ATO advice and guidance.