Working out your proportion
There is a formula for working out your proportion of the trust's instalment income.
You need to know the amounts for A, B and C of the formula below to work out what proportion of the trust's instalment income to include in our own instalment income for the current period.
You can use the trust's most recent tax return to find the information you need.
These amounts need to be updated when a future trust tax return is lodged, usually once a year, or when the most recent trust tax return is amended.
A is your assessable income from the trust for the last income year.
This amount is shown on the trust's tax return at item 54.
B is the trust's instalment income for the last income year.
This is generally the trust's gross ordinary income. It is the total of the amounts shown on the trust's tax return at the following items:
- 5: Total business income
- 8: Distribution from partnerships (items A and B only), and Distribution from trusts (items Z and R only)
- 9: Gross rent (item F only)
- 10: Forestry managed investment scheme (item Q only)
- 11: Gross interest (item J only)
- 12: Dividends received (items K and L only)
- 14: Other Australian income
- 23: Other assessable foreign source income (item B only)
- 31: Taxation of financial arrangements (TOFA) made up of total TOFA gains (label M) less TOFA losses (label N). Only include if this is a positive amount.
C is the trust's instalment income for the current period. You can obtain this amount from the trustee or the trust's records for each instalment period as it may change from one period to the next.
There may be times when the result is zero (for example, because the trust incurred a loss in an earlier year). In these cases, you need to estimate a fair and reasonable amount of current instalment income from the trust.
You can use the trust's most recent tax return to find the information you need to calculate with the formula. You will only need to update these amounts when a future trust tax return is lodged (usually once a year), or when the most recent trust tax return is amended.
There is a worksheet at the end of these instructions you can use to help work out your proportion of your trust's instalment income. If you are a beneficiary of more than one trust, you must include an amount for each trust.