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  • C Gross interest

    Did the SMSF earn interest income from an Australian source?

    No

    Leave C blank. Go to X.

    Yes

    Read on.

    Write at C the total interest income that the SMSF earned in 2016–17. The amount at C should not be reduced by any loss or outgoing related to the income.

    Include at C:

    • interest earned on money (for example):  
      • in a bank (or similar institution) account
      • that the SMSF has lent to another person or organisation
       
    • interest that is paid by us or credited against another SMSF liability because the SMSF paid a tax liability early (see H1 Credit for interest on early payments – amount of interest in Section D).

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

    Do not include interest income that is:

    • derived from foreign sources (write it at D1 Gross foreign income)
    • part of a distribution from a partnership (write it at I Gross distribution from partnerships)
    • non-share dividends received from holding a non-share equity interest (write it at J Unfranked dividend amount, K Franked dividend amount and L Dividend franking credit as applicable; for more information, see Guide to the debt and equity tests)
    • included in a share of net income from a trust (write it at M Gross trust distributions)
    • non-arm's-length income of a complying SMSF (write it at U3 Net other non-arm's-length income).

    Example: Interest income

    In 2016–17, SMSF C had $50,000 in a bank term deposit. The bank paid $4,000 interest to SMSF C.

    SMSF C reports $4,000 at C Gross interest.

    End of example
    Last modified: 19 Feb 2018QC 51269