• Section D: Income of the trust



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    This section allows you to show income, expenses and net income of the trust.


    Do not include an unrealised gain or an unrealised loss under Income or Expenses. These should be reflected in the market value of the fund's assets.

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    11. Income

    Include all the types of income derived by the trust.

    You can provide more information (if necessary) about different types of income in the space provided.

    Gross interest

    Show the total of gross income derived from money held in financial institutions.

    Franked dividends

    Show the total of all franked dividends received from either public or private entities.

    Unfranked dividends

    Show the total of all unfranked dividends received from either public or private entities.

    Dividend franking credits

    Show the total of 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, or indirectly as a beneficiary of a trust.

    Gross rent and other leasing and hiring income

    Show the total of amounts received from the renting, leasing or hiring out of land, buildings or other property.

    Gross distribution from a trust

    Show the total of all distributions from a trust.

    Other gross income

    Show other gross income.

    12. Sub total (total of Income items)

    Show the sub total (the total of the amounts you have included as an Income item).

    13. Net capital gain

    Show the amount of net capital gain.

    This was previously called realised capital gain in the information returns of former PPFs. You make a capital gain or loss when a 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'.

    Before 1 October 2009 PAFs were required to distribute realised capital gain if they had reached their approved capital amount. The PAF guidelines allow a PAF to distribute under the transitional distribution rules, for example where distribution is based on income, if it has not met its target capital amount. Consequently, the ATO accepts that a PAF that is distributing on an income basis has not met its target capital amount. Net capital gain does not have to be distributed by such PAFs.

    Further Information

    For more information about Capital gains tax refer to the Guide to capital gains tax (NAT 4151).

    End of further information

    14. Total income

    Show the total income (the total of Items 12 to 13).

    15. Expenses

    Include all expenses of operating the fund.

    You can provide more information (if necessary) about different types of expenses in the space provided.

    Trust law and the deeds that establish the majority of the former PPFs allow the trustee to pay the expenses of the fund. The PAF guidelines allow the trustee to be reimbursed, on behalf of the fund, for reasonable expenses and be paid reasonable remuneration for its services.

    Attention icon

    Do not include a capital loss as an expense; it can only be used against a capital gain - see under Income, Net capital gain

    Do not include an amount that is included in Section H as a liability.

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    For more information refer to PAF guidelines 42 and 43.


    Show the total paid to employees of the fund including amounts paid as trustee remuneration.


    Show the total of rent paid.

    Management and administration

    Show the total paid for management and administration, for example: government charges, insurance, bank, accounting, investment advisor and legal fees, and reimbursement of expenses of the trustees.

    Valuation fees

    Show the total of valuation fees paid for estimates of market value.

    Audit fees

    Show the total of audit fees paid.

    Other expenses

    Show the total of other expenses.

    16. Total expenses

    Show the total expenses (the total of the amounts you have included as an Expense Item).

    17. Net income

    Show net income (Item 14 less Item 16).

    Last modified: 01 Nov 2010QC 23525