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  • C Gross interest



    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 earn interest income from an Australian source?


    Leave C blank. Go to X.


    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: 25 Mar 2021QC 51269