Show download pdf controls
  • I Gross distribution from partnerships

    Did the SMSF receive any gross distributions from partnerships?

    No

    Leave I blank. Go to J, K, L Dividend amounts and franking credits.

    Yes

    Read on.

    Write at I the total of all gross distributions from partnerships received in 2016–17. If the total amount is a loss, print L in the box to the right of the amount.

    A distribution from a partnership can include different types of income. Include all types of income included in the distribution at I except:

    • capital gains (include these at A Net capital gain)
    • foreign income, including New Zealand franking company dividends and supplementary dividends (include it at D1 Gross foreign income)
    • part of a distribution on which family trust distribution tax or trustee beneficiary non-disclosure tax has been paid (do not include anywhere in Section B: Income)
    • franking credits, if the SMSF is not entitled to a corresponding tax offset (do not include these anywhere in the SMSF annual return)
    • the SMSF’s share of net income from pooled superannuation trusts (PSTs)
    • non-arm's-length income of a complying SMSF (include it at U3 Net other non-arm's-length income).

    For example, if a distribution from a partnership includes interest, include this interest income at I rather than at C Gross interest.

    If the partnership distributions included franking credits attached to dividends and the SMSF is entitled to a corresponding franking credits tax offset (see Entitlement to a franking credits tax offset), include the amount of the franking credit at I and also at either:

    • E1 Complying fund’s franking credits tax offset in Section D if the SMSF is a complying fund
    • C2 Rebates and tax offsets in Section D if the SMSF is a non-complying fund.

    If partnership distributions included amounts subject to foreign resident withholding in Australia, include the SMSF's share of credit for foreign resident withholding at I and also at H2 Credit for tax withheld – foreign resident withholding in Section D.

    If you include an amount at I that is exempt current pension income, include it also at Y Exempt current pension income.

    Keep a record of the following:

    • full name of the partnership
    • TFN of the partnership if known
    • amount of income.

    For more information, see Record keeping requirements.

    Example: Distributions from partnerships

    SMSF G had a 50% share in a partnership. In 2016–17, the partnership's income was:

    $6,000 bank interest
    $10,000 franked dividends, and
    $5,000 franking credits.

    The SMSF's share of this income was:

    $3,000 bank interest
    $5,000 franked dividends
    $2,500 franking credits

    The total of the SMSF's share of the partnership income was $10,500.

    Assuming SMSF G is complying and the income is at arm's length, SMSF G reports:

    I Gross distributions from partnerships $10,500

    E1 Complying fund’s franking credits tax offset in Section D $ 2,500

    End of example
    Last modified: 19 Feb 2018QC 51269