This section allows you to insert income, expenses and net income of the trust. Show whole dollars only, do not include cents.
Do not include an unrealised gain or an unrealised loss at item 8 – Income or item 9 – Expenses. These would be reflected in the estimated market value of the fund‘s assets.
8 Income
Include all the types of income derived by the trust.
Do not include donations at item 8. Donations should be reported at item 7 – Donations received.
A – Gross income
Insert the total of gross income derived by the fund, including:
- bank interest
- franked dividends received from either public or private entities
- unfranked dividends received from either public or private entities
- any amounts received from us as a result of the fund applying for a refund of franking credits attached to dividends received either
- directly or indirectly as a shareholder
- indirectly as a beneficiary of a trust
- total of amounts received from the renting, leasing or hiring out of land, buildings or other property
- total of all distributions from a trust
- other gross income.
B – Net capital gain
Insert the amount of net capital gain.
This was previously called 'realised capital gain' in the information returns of former prescribed private funds.
You make a capital gain or loss when a capital gains tax (CGT) event takes place.
You make a capital gain if the proceeds exceed the cost base. You make a capital loss if the reduced cost base exceeds the capital proceeds.
Total capital gains and losses for the financial year are respectively added up and subtracted, and then any net capital losses from earlier years are also offset – this gives the net capital gain or loss for the income year. If the trust has a capital loss this is quarantined and then offset against capital gains in future years. A capital loss cannot be deducted against any form of income other than capital gain. There is no capital gain or loss unless they have been ‘realised’.
See also:
C – Total income (total of labels A to B)
Insert the total income – that is, the total of labels A to B.
9. Expenses
Include all expenses for operating the fund.
Do not include distributions at item 9. Distributions should be reported at item 11 – Distributions made.
Do not include a capital loss as an expense. It can only be offset against a capital gain. See the explanation under B Net capital gain item 8.
Trust law and the model trust deeds that establish the majority of ancillary funds allow the trustee to pay the expenses of the fund. The guidelines allow the trustee to be reimbursed for reasonable expenses incurred on behalf of the fund, and to be paid reasonable remuneration for services in administering the fund.
See also:
- Private ancillary fund guidelinesExternal Link – guideline 43
- Public ancillary fund guidelinesExternal Link – guideline 43
D – Salary
Insert the total paid to employees of the fund including amounts paid as trustee remuneration. Do not include reimbursement of expenses of the trustees – this goes in E – Other expenses
E – Other expenses
Insert the total of all other expenses including:
- rent paid
- total paid for management and administration – for example, government charges, insurance, bank, accounting, investment advisor and legal fees, ASIC fees and reimbursement of expenses of the trustees
- total of valuation fees paid for estimates of market value
- the total of audit fees paid.
F – Total expenses (total of labels D and E)
Insert the total expenses – that is, the total of labels D and E.
10 Net income
G – Net income (label C less label F)
Insert net income – that is, label C less label F.
Section D: Distributions made
This section allows you to insert the distributions made by the fund.
An ancillary fund should only make distributions to DGRs that are covered by item 1 of the table section 30-15 of the ITAA 1997.Item 1 DGRs are DGRs that are not Ancillary Funds. The Australian Business RegisterExternal Link shows whether an entity is an Item 1 DGR.
A distribution includes the provision of money, property or benefits, and is sometimes referred to by funds as a grant.
11 Distributions made
Insert distributions that were made in the current financial year. Where distributions were made to the same recipient, add all distributions made to that recipient and enter the total.
If there is insufficient space, use an extra Section D page. Save a copy of extra pages for your own records.
List the names of the entities to which distributions were made, include their ABNs, and the breakdown of distributions into the amount of money or the value of property.
A – Name of recipient
Insert the full name of the recipient of the distribution. Check this by searching for the name or ABN of the entity on ABN LookupExternal Link.
B – ABN of recipient
Insert the ABN of the recipient of the distribution. . Check the ABN is correct by searching on ABN LookupExternal Link.
C – Money distributed
Insert the amount of money distributed to the recipient. Add all distributions made to the same recipient and enter the total amount. Do not include cents in the total. Do not include expenses or fees incurred by your organisation.
D – Market value of property distributed
Insert the market value of property distributed to the recipient. Combine all distributions made to the same recipient and enter one amount. Do not include cents in the total.
E – Total value of distributions made (total of all C and D amounts)
Insert the total value of distributions made – that is, the total of all amounts in labels C and D.