• A4 Amount on which family trust distribution tax has been paid 2016

    In 2015-16, did a trust, partnership or company distribute anything to you on which family trust distribution tax has been paid?

    Distributions on which family trust distribution tax is payable include:

    • income and property from a trust or partnership
    • dividends and property from a company
    • the use of property owned by the trust, partnership or company for which you have not paid full value, such as the free use of a holiday house.

    The trust, partnership or company should be able to tell you if family trust distribution tax has been paid on a distribution to you.

    No

    Go to question C1 Credit for interest on early payments 2016, or return to main menu Individual tax return instructions 2016.

    Yes

    Read on.

    You need to know

    Family trust distribution tax is payable on any distribution made to a person outside a ‘family group’ by:

    • a trust which has elected to be a family trust, or
    • a trust, partnership or company which has made an interposed entity election to be included in the 'family group' of a family trust.

    You do not include in your assessable income any part of a distribution to you on which family trust distribution tax has already been paid, and which would otherwise be assessable income.

    However, to determine your liability for the Medicare levy surcharge, we take into account any part of a distribution to you on which family trust distribution tax has already been paid (that would otherwise have been assessable income) reduced by any expenses that would have been deductible against it. This is the amount that you need to show at this item.

    Example

    During 2015-16 the Jones family trust distributed $1,000 to Anne-Marie. The 'family trust election' of the Jones family trust was in force when the distribution was made. Because Anne-Marie is not a member of the family group of the Jones family trust, family trust distribution tax is payable on the $1,000 distribution. This was paid in full by the trustee of the Jones family trust from other funds.

    As a result, Anne-Marie does not include the $1,000 distribution in her assessable income. Instead Anne-Marie shows at this item the $1,000 distribution from the Jones family trust less any expenses that would have been deductible against it.

    However, had family trust distribution tax not been paid, Anne-Marie would have had to include in her assessable income any part of the distribution that was assessable under the normal income tax rules.

    End of example

    Completing this item

    Step 1

    Add up the amounts or value of all distributions to you by a trust, partnership or company during 2015-16 which would have been assessable income if family trust distribution tax had not been paid.

    Step 2

    Add up any expenses which you would have been able to claim as a deduction if the distributions had been included in your assessable income.

    Step 3

    Take away your step 2 amount, if any, from your step 1 amount.

    Step 4

    Write the amount from step 3 at X item A4 on your tax return. Do not show cents.

    If the amount from step 3 is zero or less than zero, do not write anything.

    You have finished this question.

    Where to go next

      Last modified: 26 May 2016QC 48773