About these instructions
The Attribution managed investment trust (AMIT) tax return instructions 2021 will help you complete the AMIT tax return for 2021. These instructions also cover how to complete schedules that trusts may need to attach to their tax return.
For instructions on how to lodge the AMIT tax return, see Lodgment.
These instructions will help you complete the Attribution managed investment trust (AMIT) tax return 2021. They are not a guide to income tax law.
When we say you or your business in these instructions, we mean either:
- you as the trustee of the AMIT, or
- you as the registered tax agent responsible for completing the tax return.
References to the AMIT, where applicable, are references to the trustee in their capacity of trustee of the AMIT.
These instructions contain abbreviations for names or technical terms. Each term is spelled out in full the first time it is used. You can also refer to the list of abbreviations.
Temporary full expensing of depreciating assets
In the 2020–21 Budget, the government announced a temporary full expensing incentive to support businesses and encourage new investment:
- Businesses with an aggregated turnover of less than $5 billion can deduct the business portion of the cost of eligible new depreciating assets.
- Businesses with an aggregated turnover of less than $50 million can also deduct the business portion of eligible second-hand depreciating assets.
- The eligible new assets must be first held, and first used or installed ready for use for a taxable purpose, between 7:30pm AEDT on 6 October 2020 and 30 June 2022.
Businesses can also immediately deduct the business portion of the cost of improvements to:
- eligible depreciating assets
- assets acquired before 7.30pm AEDT on 6 October 2020 that would otherwise be eligible assets
- for costs incurred between 7.30pm AEDT on 6 October 2020 and 30 June 2022.
If an asset qualifies for an immediate deduction under temporary full expensing in an income year, you can choose not to apply temporary full expensing and claim a deduction using other depreciation rules. However, you must notify us in an approved form (such as using the new items on the AMIT tax return) that you have chosen not to apply temporary full expensing to the asset. Your choice cannot be changed, and you must notify us by the day you lodge your tax return for the income year to which the choice relates.
Backing Business Investment (BBI) for eligible businesses
For 2019–20 and 2020–21, eligible businesses may be able to deduct the cost of eligible new depreciating assets at an accelerated rate using the Backing business investment – accelerated depreciation rules.
For each eligible new asset, the Backing business investment – accelerated depreciation deduction applies for the income year in which the asset is first used, or installed ready for use, for a taxable purpose.
- Claim the deduction when lodging your tax return for that income year.
- The usual depreciating asset arrangements apply in the subsequent income years that the asset is held.
You can choose not to apply Backing business investment – accelerated depreciation on an asset-by-asset basis. Your choice cannot be changed once made. You make the choice in your tax return, and you must notify us by the day you lodge your tax return for the income year to which the choice relates.
Instant asset write-off (IAWO)
If you cannot, or choose not to, claim Temporary full expensing, the existing enhanced instant asset write-off incentive with a threshold of $150,000 extends to 30 June 2021.
Businesses with an aggregated turnover of $10 million or more and less than $500 million can claim assets purchased by 31 December 2020, and first used, or installed ready for use, from 12 March 2020 until 30 June 2021.
Significant global entity (SGE) definition amendment
From 1 July 2019, an entity is an SGE for a period if:
- it is a global parent entity with an annual global income of $1 billion or more
- it is a member of a group of entities consolidated for accounting purposes, and one of the other group members is a global parent entity with an annual global income of $1 billion or more
- it is a member of a notional listed company group, and one of the other group members is a global parent entity with an annual global income of $1 billion or more
- it, or any other member of the actual or notional accounting consolidated group of which it is a member, has been given a notice by the Commissioner determining that its global parent entity would have an annual global income of $1 billion or more for any period during the income year.
A notional listed company group is a group of entities that would be required to be consolidated as a single group for accounting purposes if a member of that group was a listed company. Any exceptions in accounting principles that may permit an entity not to consolidate with other entities are disregarded.
If an entity is an SGE, show the SGE status at Additional Information on the AMIT tax return.
Country by country (CBC) reporting entity definition
Due to legislative changes to the definition of SGE, the scope of an SGE is now wider than the scope of entities required to undertake CBC reporting. A new definition of ‘country by country reporting entity’ (CBC reporting entity) has therefore been introduced. In effect, a CBC reporting entity is an entity that would be an SGE, had the definition of an SGE permitted the exception to consolidation related to investment entities in the accounting principles.
An entity is a CBC reporting entity if it is not an individual, and is:
- a CBC reporting parent
- a member of a CBC reporting group, and one of the other group members is a CBC reporting parent with an annual global income of $1 billion or more.
A CBC reporting group may be a group that is:
- consolidated for accounting purposes as a single group, or
- a notional listed company group.
A notional listed company group is a group of entities that would be required to be consolidated as a single group for accounting purposes if a member of that group was a listed company.
When determining whether an entity is a CBC reporting entity, apply the investment entity exception in the accounting principles; that is, unlike the SGE definition, the exception to consolidation in the accounting principles related to investment entities is not disregarded.
If an entity is a CBC reporting entity, it will have CBC reporting obligations. CBC reporting obligations depend on whether an entity was a CBC reporting entity at any time in the preceding income year.
If an entity is a CBC reporting entity this must be recorded at Additional information in the AMIT tax return.
The Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 allows an eligible managed investment trust (MIT) to choose to apply the AMIT regime. The choice to apply it and become an AMIT is irrevocable.
The AMIT regime includes the following features:
- AMITs apply an attribution method of taxation in lieu of the present entitlement to income method
- AMITs may carry forward under- and over-attribution amounts into a later year, generally without adverse taxation consequences
- AMITs are deemed to be fixed trusts
- adjustments may be made to decrease or increase the cost base of members' unit holdings in an AMIT to eliminate double taxation that may otherwise arise
- AMITs (and other MITs) are subject to an arm’s length rule that aims to ensure that related entities undertake transactions between one another in a manner that reflects commercial dealings.
AMIT technical amendments
Since 12 March 2019 the Treasury Laws Amendment (2018 Measures No. 5) Act 2019
- clarifies the operation of the income tax law applying to AMITs
- makes a number of modifications.
Features of this tax return
The Attribution Managed Investment Trust (AMIT) Tax Return 2021 is tailored to the specific aspects of the AMIT regime for MITs. Some features of this tax return include:
- electronic-only lodgment via Standard Business Reporting (SBR)
- streamlined information requirements compared to the Trust income tax return
- reduced statement of distribution requirements; specifically, the trustee is only required to complete information on foreign resident members in respect of which the trust is not a withholding MIT and the trustee is liable to pay an amount
- automated assessment process, including where the trustee is liable to pay an amount.
When you lodge this tax return, we issue a comprehensive notice of assessment (NOA) where a trustee is liable to pay an amount. Specifically, the NOA will provide details of trustee assessment in respect of:
- amounts of tax the trustee is required to pay on behalf of foreign resident members (for AMITs that are not withholding MITs)
- amounts of tax the trustee is required to pay in its own right.
Ceasing to be an AMIT
A trust that was an AMIT for an income year but is not eligible to be an AMIT in a later income year ceases to be an AMIT. In that case, the trust may need to lodge a trust or other tax return for that later income year.
If you are not eligible to be an AMIT for 2020–21, do not lodge an AMIT tax return. You should instead lodge:
- a 2020–21 Trust tax return, or
- a 2020–21 Company tax return if Division 6C applies to you.
Where instructed, you must complete the required schedules.
Returns lodged without all the required schedules may be considered not to have been lodged in the approved form. Unless all schedules are lodged by the due date, a failure to lodge on time penalty may be applied.
The schedules that may be required to be sent with the AMIT tax return are:
- AMIT tax schedule
- Capital gains tax (CGT) schedule
- International dealings schedule (IDS)
- Rental property schedule
- Non-individual PAYG payment summary schedule
Number of schedules required for separate AMIT classes
If you have not made the election to treat classes of interests as separate AMITs, you should only lodge one AMIT tax schedule and, only one of any other schedule that may be applicable.
Where you have elected to treat classes of interests as separate AMITs, you must complete one AMIT tax schedule for each AMIT class. Where applicable you should also complete:
- a separate CGT schedule for each AMIT class
- a separate Rental property schedule for each AMIT class
- one International dealings schedule for the trust as a whole
- one non-individual PAYG summary schedule for the trust as a whole.