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Capital account election

Last updated 26 June 2023

Instructions to follow if the trustee of the AMIT has made a capital account election.

Has the trustee made an election into managed investment trust capital account treatment?

Trustees of eligible AMITs may make an irrevocable election to apply the CGT provisions for the taxation of gains and losses on disposal of eligible assets. A trust will be eligible for capital treatment if it meets the definition of a MIT at the relevant time.

The trustee of an AMIT may make the election. The election must be made:

  • in the first year the trust is a MIT
  • in an approved form.

If you make an election for capital treatment, or have previously made an election, answer Yes to this question in the AMIT tax return. Otherwise, answer No.

How to make a capital account election

The trustee of an AMIT makes a capital account election by answering Yes to the following question on the AMIT tax return: Has the trustee made an election into managed investment trust capital account treatment?

The election must be made on or before:

  • the day the AMIT is required to lodge its tax return for the income year in which it became a MIT, or
  • if the Commissioner allows a later day, that later date.

You must make the election in relation to the first year the trust qualifies as a MIT, and it is irrevocable as long as the MIT remains eligible. If you are the trustee of a MIT that came into existence in an earlier income year (and are therefore no longer eligible to make the election), you must still answer the question asked in the AMIT tax return to confirm whether you have previously made an election for capital treatment.

When does the election take effect?

For trusts that became a MIT before 2009–10, the election will have effect for 2008–09 and later years.

For trusts that became a MIT in 2009–10 or a later year, the election will have effect for the income year in which the trust became a MIT and later income years.

Stapled entities

Instructions to follow if the trust is stapled to another entity.

Is the trust stapled to another entity?

An entity is a stapled entity in relation to stapled securities if ownership interests in the entity form part of the stapled securities.

Answer Yes or No as appropriate.

If the AMIT is stapled to another entity, enter the ABN for each of the entities the AMIT is stapled to.

Capital allowances

Instructions for advising your choice to opt out of temporary full expensing for some or all of your eligible assets.

Answer the following:

Are you making a choice to opt out of temporary full expensing for some or all of your eligible assets?

You can choose to opt out of temporary full expensing on an asset-by-asset basis in an income year and apply the other depreciation rules to that asset. You make this choice for a particular depreciating asset. Once you have made a choice, you cannot revoke it.

Select either:

  • A if you are opting out for some of your assets
  • B if you are opting out for all of your assets.

Number of assets you are opting out for

Show the number of assets for which you made the choice to opt out of temporary full expensing.

Value of assets you are opting out for

Show the value of the assets for which you made the choice to opt out of temporary full expensing. The value is the amount you would have otherwise claimed for these assets under temporary full expensing.

Temporary full expensing deductions

Show the total amount of the deductions that you are claiming under temporary full expensing.

Ensure that the amount claimed is included at Total depreciation deducted for income year.

Number of assets you are claiming for

Show the number of assets for which you are claiming temporary full expensing.

You will not be penalised for specifying an incorrect number of assets where you have made your best attempt to determine the number of assets you are claiming for.

Have you self-assessed the effective life of any depreciating assets acquired in the income year?

Answer Yes or No as appropriate.

Check the Effective life of an asset or the Guide to depreciating assets 2023 for more information.

Did you recalculate the effective life for any of your depreciating assets this income year?

Answer Yes or No as appropriate.

For more information, see Uniform capital allowance system – Changing a depreciating asset's effective life or Guide to depreciating assets 2023

Total depreciation deducted for income year

Enter your depreciation expense deduction amount, calculated under section 40-25 of the ITAA 1997.

Include here claims for temporary full expensing.

For more information, see Uniform capital allowance system: calculating the decline in value of a depreciating asset

Total section 40-880 deductions

Enter the total amount of the trust’s deductions allowable under section 40-880 of the ITAA 1997.

For more information, see Claiming a tax deduction for depreciating assets and other capital expenses

Total Division 43 capital works deductions (special building write-off)

Enter the amount of your capital works deductions allowable under Division 43 of the ITAA 1997.

For more information, see Capital works deductions.

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