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  • I Gross distribution from partnerships



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

    End of attention

    Did the SMSF receive any gross distributions from partnerships?


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


    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: 25 Mar 2021QC 51269