myTax 2021 Trusts

This section relates to your distributions from trusts. Complete this section if:

• you received, or were entitled to  
  • income from a trust
  • a credit for amounts of tax paid on, or amounts withheld from, trust income
  • a share of the 'national rental affordability scheme' tax offset, or
• you had an interest in a trust that made a loss from primary production.

If your trust income is from a managed fund, you should show this information at Managed funds.

On this page:

• Things to know
• Completing this section

Things to know

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

A trust is not a separate taxable entity, but the trustee must lodge a tax return for the trust.

Generally, the beneficiaries of the trust declare the amount of their entitlement to the trust's income in their own tax return. Then they pay tax on it, even if they didn’t actually receive the income.

An exception to this is, you don’t need to declare a trust distribution if family trust distribution tax has already been paid.

If you were entitled to an amount of trust income at 30 June 2021, you need to include your share of the net income of the trust in your 2020–21 tax return even if you did not receive an amount from the trust until after 30 June 2021.

The amount of your share of the trust's net income (for tax purposes) may be different from the actual distribution which you receive or are entitled to receive from the trust.

Your trustee should provide you with details about your share of the trust's net income or all of your trust entitlements.

If you are the principal beneficiary of a special disability trust you are considered to be entitled to all of the income of the trust.

See also:

• Deductions for prepaid expenses
• Withholding tax arrangements for managed investment trust fund payments – if you are a foreign resident

Do not show at this section

Don't show the following income or offsets at this section:

• Income from a public trading trust or a corporate unit trust, go to Dividends.
• A capital gain from a trust (unless instructed otherwise), go to Capital gains or losses.
  If the trust income you received, or are entitled to, includes an amount described as tax-free, tax deferred, tax exempted or as a capital gains tax (CGT) concession, you should read the information on non-assessable payments in Guide to capital gains tax.
  Such amounts may be relevant in determining the amount of a net capital gain you show at Capital gains or losses or may affect the cost base of your unit or trust interest.
• Any distribution in relation to a foreign resident capital gains withholding credit, go to Capital gains or losses.
• Attributed foreign income from a trust (unless instructed otherwise), go to Foreign entities.
• Any Australian franking credits from a New Zealand franking company, go to Other foreign income. Note you can't claim New Zealand imputation credits.
• Any other foreign source income from a trust (unless instructed otherwise), go to Other foreign income.
• Your entitlement to an early stage venture capital limited partnership (ESVCLP) tax offset as a beneficiary of a trust, go to Early stage venture capital limited partnership.
• Your entitlement to an early stage investor tax offset as a beneficiary of a trust, go to Early stage investor.
• Part of a distribution which relates to an amount of trust income on which family trust distribution tax has been paid, go to Amount on which family trust distribution tax has been paid.
• Share of credits for tax paid by the trustee if you are the principal beneficiary of a special disability trust, go to Other refundable tax offsets.

Completing this section

To complete this section you will need:

• a statement of distribution or advice from the trustee
• details of any expense and tax credit information.

To personalise your return to show trusts, at Personalise return select:

• You were a sole trader or had business income or losses, partnership or trust distributions (not from a managed fund)
• Trusts

To show your trust details, at Prepare return select 'Add/Edit' at the Business/sole trader, partnership and trust income (including loss details) banner.

At the Trusts banner:

1. Select Net trust income to expand the section.
2. Add up your share of trust income and deductions, and enter the total in the corresponding fields:
   • The Depreciation and capital allowances tool can help you to work out any decline in value. It can also work out any deductible balancing adjustment when you stop holding a depreciating asset. Access this tool in the Deductions section on the Prepare return screen.
     Fields from this tool can't be adjusted in myTax. To make any adjustments, or to add new assets to the tool, select the 'Use the depreciation and capital allowances tool' link.
   • Primary production
     • Net income from trusts
     • Other deductions
     • myTax will automatically calculate the Net primary production amount.
   • Non-primary production
     • Net income from trusts, less capital gains, foreign income and franked distributions
       To enable us to work out your Income tests amounts, enter the following fields:
       Managed investment scheme amount (this is includes all investment income related to trusts)
       Remaining non-primary production trust amount
     • Franked distributions from trusts
       To enable us to work out your Income tests amounts, enter the following fields:
       Franked distribution related to investments
       Remaining franked distribution amount
     • Other deductions – If you show an amount at Other deductions, you need to show amounts in the two fields displayed when you enter Other deductions.
       To enable us to work out your Income tests amounts, enter the following fields:
       Managed investment scheme deductions (this includes all investment deductions related to trusts)
       Remaining trust deductions
     • myTax will automatically calculate the Net non-primary production amount.
3. Add up your trust share of credits from income and tax offsets and enter the total in the corresponding fields:
   • Tax withheld where Australian business number not quoted
   • Franking credits from franked dividends – you can only claim a share of a franking credit which relates to the share of a franked dividend paid to a trust which is indirectly included in the amount of:  
     • trust income you show at Net income from trusts, less capital gains, foreign income and franked distributions
     • franked distribution you show at Franked distributions from trusts.
   • TFN amounts withheld from interest, dividends and unit trust distributions
   • TFN amounts withheld from payments from closely held trusts
   • Tax paid by trustee – If you show an amount at Tax paid by trustee, you will need to:    
     • select the Situation
     • enter the Share of income and Tax credits.
   • Credit for foreign resident withholding amounts (excluding capital gains) – include income you:  
     • received as an Australian resident where an amount of tax was withheld because of the imposition of non-resident withholding tax or managed investment trust withholding tax
     • derived as a foreign resident from which an amount of tax was withheld because of the operation of the foreign resident withholding rules.
   • National rental affordability scheme tax offset
4. Select Save.
5. Select Save and continue when you have completed the Business/sole trader, partnership and trust income (including loss details) section.

Notes

• If you received, or were entitled to trust income as a special professional you must also enter the amount of this taxable professional income in the Other income section. This includes income from activities as an author, an inventor, performing artist, production associate or active sportsperson.
• You may be entitled to the small business income tax offset if either of the following apply:  
  • your share of net income included a share of net small business income
  • you had a farm management repayment or other amount you received as a beneficiary in a small business entity.

See also:

• Records you need to keep