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Section D: Income

Last updated 12 February 2019

This section allows you to insert income, expenses and net income of the trust.

Do not include an unrealised gain or an unrealised loss at item 11 Income or item 12 Expenses. These would be reflected in the estimated market value of the fund‘s assets.

11 Income

Include all the types of income derived by the trust.

Do not include donations at item 11 Income. Include these amounts at item 10 Donations received.

A Gross interest

Insert the total of gross income derived from money held in financial institutions.

B Franked dividends

Insert the total of all franked dividends received from either public or private entities.

C Unfranked dividends

Insert the total of all unfranked dividends received from either public or private entities.

D Dividend franking credits

Insert the total of any amounts received from us as a result of the fund applying for a refund of franking credits attached to dividends received either:

  • directly or indirectly as a shareholder
  • indirectly as a beneficiary of a trust.

E Gross rent and other leasing and hiring income

Insert the total of amounts received from the renting, leasing or hiring out of land, buildings or other property.

F Gross distribution from a trust

Insert the total of all distributions from a trust.

G Other gross income

Insert other gross income.

H Sub total (total of labels A to G)

Insert the sub total – that is, the total of labels A to G.

I Net capital gain

Insert the amount of net capital gain.

This was previously called 'realised capital gain' in the information returns of former prescribed private funds.

You make a capital gain or loss when a capital gains tax (CGT) event takes place.

You make a capital gain if the proceeds exceed the cost base. You make a capital loss if the reduced cost base exceeds the capital proceeds.

Total capital gains and losses for the financial year are respectively added up and subtracted, and then any net capital losses from earlier years are also offset – this gives the net capital gain or loss for the income year. If the trust has a capital loss this is quarantined and then offset against capital gains in future years. A capital loss cannot be deducted against any form of income other than capital gain. There is no capital gain or loss unless they have been ‘realised’.

Before 1 October 2009, private AFs were required to distribute realised capital gains if they had reached their approved capital amount. The private AF guidelines allow a private AF to distribute under the transitional distribution rules – for example, where distribution is based on income, if it has not met its target capital amount. Consequently, we accept that a private AF that is distributing on an income basis has not met its target capital amount. Net capital gain does not have to be distributed by such private AFs.

For more information about capital gains tax, refer to the Guide to capital gains tax (NAT 4151).

J Total income (total of labels H to I)

Insert the total income – that is, the total of labels H to I.

12 Expenses

Include all expenses for operating the fund.

Do not include distributions at item 12 Expenses. Include these amounts at item 15 Distributions made.


Do not include a capital loss as an expense. It can only be offset against a capital gain. See the explanation under I Net capital gain item 11.

Trust law and the deeds that establish the majority of ancillary funds allow the trustee to pay the expenses of the fund. The guidelines allow the trustee to be reimbursed, on behalf of the fund, for reasonable expenses and be paid reasonable remuneration for services.

For more information, refer to private AF guidelines 42 and 43 and public AF guidelines 42 and 43.

K Salary

Insert the total paid to employees of the fund including amounts paid as trustee remuneration. Do not include reimbursement of expenses of the trustees – this goes in M Management and administration.

L Rent

Insert the total of rent paid.

M Management and administration

Insert the total paid for management and administration – for example, government charges, insurance, bank, accounting, investment advisor and legal fees, and reimbursement of expenses of the trustees.

N Valuation fees

Insert the total of valuation fees paid for estimates of market value.

O Audit fees

Insert the total of audit fees paid.

P Other expenses

Insert the total of other expenses.

Q Total expenses (total of labels K to P)

Insert the total expenses – that is, the total of labels K to P.

13 Net income

R Net income (label J less label Q)

Insert net income – that is, label J less label Q.