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H5 Credit for TFN amounts withheld from payments from closely held trusts

Last updated 12 February 2019

Show at H5 the total amount withheld from payments where the fund has not provided its TFN to the trustee of a closely held trust.

Unless the fund is an exempt beneficiary, the trustee of a closely held trust, which is subject to the TFN withholding rules, is required to withhold amounts from payments if the fund did not provide a TFN. The rate of withholding is 46.5% (top rate plus Medicare levy) of the payments made.

Where amounts have been withheld the trustee of a closely held trust is required to provide a beneficiary with a payment summary in the approved format. The credit amount claimed at H5 appears on the payment summary.

Do not include at H5 amounts from any other withholding rules.

If a credit is reported at H5 for tax withheld, the corresponding gross payment is included as a trust distribution at N to Q, item 10 (as applicable).

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