• Type of trust

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    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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    Print in the first box at this item the code from table 1 that best describes the type of trust for which the trust tax return is being lodged. Descriptions of the types of trust are at table 2.

    Table 1: Trust codes

    Code

    Type

    C

    Special disability trust

    D

    Deceased estate

    F

    Fixed trust, other than a fixed unit trust or public unit trust described in U, P or Q

    H

    Hybrid trust

    S

    Discretionary trust, where the main source of income of the trust is from service and/or management activities

    T

    Discretionary trust, where the main source of income of the trust is from trading activities

    I

    Discretionary trust, where the main source of income of the trust is from investment activities

    M

    Cash management unit trust

    U

    Fixed unit trust, other than a public unit trust described in P or Q

    P

    Public unit trust (listed) other than a cash management unit trust

    Q

    Public unit trust (unlisted) other than a cash management unit trust

    Charitable trust

    Print X in the second box at Type of trust if the trust is also an item 1.5 charitable trust in section 50-5External Link of the ITAA 1997.

    Description of trusts

    Table 2: Description of trusts

    Special disability trust

    A trust which has the meaning given by section 1209LExternal Link of the Social Security Act 1991

    Deceased estate

    See appendix 9

    Fixed trust

    A trust in which persons have fixed entitlements (as defined in section 272-5External Link of Schedule 2F to the ITAA 1936) to all income and capital of the trust at all times during the income year

    Hybrid trust

    A trust that is not a fixed trust but in which persons have fixed entitlements (as defined in section 272-5External Link of Schedule 2F to the ITAA 1936) to income or capital of the trust during the income year

    Discretionary trust

    A trust that is not a fixed trust within the meaning of section 272-5External Link of Schedule 2F to the ITAA 1936. See also section 102UC(4)External Link of the ITAA 1936

    Fixed unit trust

    A fixed trust in which interest in the income and capital of the trust are represented by units

    Public unit trust

    A fixed unit trust that is a widely held unit trust (as defined in section 272-105External Link of Schedule 2F to the ITAA 1936) at all times during the income year

    Public unit trust: listed

    A public unit trust in which any of its units were listed for quotation on the official list of a stock exchange in Australia or elsewhere during the income year

    Public unit trust: unlisted

    A public unit trust in which none of its units was listed for quotation on the official list of a stock exchange in Australia or elsewhere during the income year

    Managed investment trusts

    If the trust is a managed investment trust, has the trustee made an election into capital account treatment?

    With effect from the 2008–09 income year, trustees of eligible Australian managed investment trusts (MIT) can make an irrevocable election to apply the CGT provisions for the taxation of gains and losses on disposal of eligible assets.

    Meaning of 'eligible MIT'

    An eligible MIT is a managed fund that meets:

    • the definition of a 'managed investment trust' in Subdivision 12-HExternal Link in Schedule 1 to the TAA, or
    • one of the extended definitions that allow the trust to be treated in the same way as a MIT for the purposes of the capital treatment election.
    Who is eligible to make an election?

    The trustee of an eligible MIT may make an election. The election must be made in the approved form.

    How to make an election

    For MITs that came into existence during the income year, a valid election is made by answering 'Yes' to the question asked on page 2 of the trust tax return. The election must be made on or before the day the trust is required to lodged its tax return for income year, or if the Commissioner allows a later day, that later day.

    If you are the trustee of a MIT that came into existence in an earlier income year, you must still answer the question asked on page 2 of the trust tax return, regardless of whether you have previously made an election for capital treatment.

    When does the election take effect?

    For trusts that became a MIT prior to the 2009–10 income year, the election will have effect from the 2008–09 and later income years.

    For trusts that became a MIT in the 2009–10 income year or a later year of income, the election will have effect for the income year in which the trust became a MIT and later income years.

    Further information can be found in Managed investment trusts: election into capital treatment.

    Last modified: 13 Aug 2014QC 28037