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  • Deductions

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Remember, you cannot claim a deduction for amounts already claimed by the trust, or for expenses incurred in deriving exempt income or non-assessable non-exempt income (for example, expenses incurred in deriving distributions on which family trust distribution tax or trustee beneficiary non-disclosure tax has been paid).

    If you are the beneficiary of a discretionary trust you would not normally be able to claim a deduction for expenses you incurred in relation to your share of any net income of the trust under the general deduction provisions. This is because at the time you incurred the expense, you would not have been entitled to any income of the trust.

    If you made a prepayment of $1,000 or more for something to be done (in whole or in part) in a future income year, the amount you can deduct may be affected by the rules relating to prepayments. For more information on prepayments, see Deductions for prepaid expenses.

    If you have incurred debt deductions, such as interest and borrowing costs, in deriving assessable income from a trust, of more than $2,000,000 (alone or combined with those of your associate entities) for 2017–18, the amount that you can deduct may be affected by the thin capitalisation rules. For more information, see Thin capitalisation.

    Primary production deductions

    If a trustee incurred eligible expenditure on landcare operations, water facilities, fencing assets or fodder storage assets, only the trustee, not a beneficiary of the trust, can claim deductions for that expenditure.

    Enter the total of any other deductions you can claim in relation to your share of primary production income of a trust.

    For more information on deductions for expenditure on landcare operations, water facilities, fencing assets and fodder storage assets, see the Guide to depreciating assets.

    Non-primary production deductions

    If a trustee incurred eligible expenditure on landcare operations, only the trustee, not a beneficiary of the trust, can claim deductions for that expenditure.

    Enter the total of other deductions you can claim in relation to your share of non-primary production income of a trust, including any deductions relating to franked distributions from trusts.

    For more information on deductions for expenditure on landcare operations, see the Guide to depreciating assets.

      Last modified: 28 Jun 2018QC 55618