This section allows you to insert the distributions made by the fund.
An ancillary fund should only make distributions to a deductible gift recipient (DGR) that is covered by item 1 of the table section 30-15 of the ITAA 1997. Item 1 DGRs are DGRs that are not Ancillary Funds. The ABN Lookup – deductible gift recipientsExternal Link list on the Australian Business Register website shows whether an entity is an Item 1 DGR.
A distribution includes the provision of money, property or benefits. It is also sometimes referred to by funds as a grant.
11 Distributions made
Insert distributions that were made in the current financial year. Where distributions were made to the same recipient, add all distributions made to that recipient and enter the total.
If there is insufficient space, use an extra Section D page. Save a copy of extra pages for your own records.
List the names of the entities to which distributions were made, include their ABNs, and the breakdown of distributions into the amount of money or the value of property.
A – Name of recipient
Insert the full name of the recipient of the distribution. Check this by searching for the name or ABN of the entity on ABN Lookup – deductible gift recipientsExternal Link.
B – ABN of recipient
Insert the ABN of the recipient of the distribution. Check the ABN is correct by searching on ABN Lookup – deductible gift recipientsExternal Link.
C – Money distributed
Insert the amount of money distributed to the recipient. Add all distributions made to the same recipient and enter the total amount.
Do not include cents in the total.
Do not include expenses or fees incurred by your organisation.
D – Market value of property distributed
Insert the market value of property distributed to the recipient. Combine all distributions made to the same recipient and enter one amount. Do not include cents in the total.
E – Total value of distributions made (total of all C and D amounts)
Insert the total value of distributions made – that is, the total of all amounts in labels C and D.
What is the minimum distribution allowed?
Private ancillary funds
During each financial year, a private AF must distribute at least 5% of the market value of the fund's net assets as valued at the end of the previous financial year.
The exception is, if both:
- you've made an Application to reduce the minimum ancillary fund distribution rate to the Commissioner to reduce the minimum distribution for the year in question in accordance with the Private ancillary fund guidelinesExternal Link [subsection 15(7)]
- that request has been agreed to.
If the fund provides property or benefits, the market value of the property or benefit is to be used in determining whether the fund has complied with the requirement to distribute.
While net assets are used to determine the fund’s minimum distribution, the amount of the distribution itself is not net of any amount – for example, expenses of the fund.
The fund must distribute at least $11,000 – or the remainder of the fund if that is worth less than $11,000 – during that financial year if both:
- the 5% is less than $11,000
- any of the expenses of the fund for that financial year are paid directly or indirectly from the fund’s assets or income.
This means that if a fund’s expenses are met from outside the fund, its minimum annual distribution is 5% of the market value of the fund’s net assets. If a fund’s expenses are paid out of the fund’s assets or income, its minimum distribution is $11,000 or 5% (whichever is greater).
No distribution is required during the financial year in which the fund is established.
Public ancillary funds
During each financial year, a public AF must distribute at least 4% of the market value of the fund's net assets as valued at the end of the previous financial year.
The exception is, if both:
- you've made a request for the Commissioner to reduce the minimum distribution for the year in question in accordance with AF guidelines subsection 15(7)
- that request has been agreed to.
If the fund provides property or benefits, the market value of the property or benefit is to be used in determining whether the fund has complied with the requirement to distribute.
While net assets are used to determine the fund’s minimum distribution, the amount of the distribution itself is not net of any amount – for example, expenses of the fund.
The fund must distribute at least $8,800 or the remainder of the fund if that is worth less than $8,800, during that financial year if both:
- the 4% is less than $8,800
- any of the expenses of the fund for that financial year are paid directly or indirectly from the fund’s assets or income.
This means that if a fund’s expenses are met from outside the fund, its minimum annual distribution is 4% of the market value of the fund’s net assets. If a fund’s expenses are paid out of the fund’s assets or income, its minimum distribution is $8,800 or 4% (whichever is greater).
No distribution is required during the financial year in which the fund is established or during the next 4 financial years.
While the guidelines do not set a minimum annual distribution for the first 4 financial years, the trustee should consider making an appropriate distribution each year in accordance with the purpose of the fund.