Show at R6 the amount, which would otherwise have been included in the fund’s assessable income for the income year under Subdivision 295-C of the ITAA 1997, that the trustee of the complying superannuation fund or a complying approved deposit fund (the ‘transferor’) has agreed to transfer to a life insurance company or PST (the 'transferee') pursuant to an agreement with that transferee entity. The amount of the income transferred is included in the transferee entity’s assessable income instead.
The fund (transferor) must hold sufficient investments in a transferee entity to cover the tax payable by the transferee entity as a result of the transfer.
The total amount transferred by the fund under all such agreements cannot exceed the amount that would otherwise have been included in the fund’s assessable income under Subdivision 295-C of the ITAA 1997.
The agreement to transfer must be in writing, signed by both parties, must be made before the lodgment of the fund’s tax return, and cannot be revoked. The trustee can only make one agreement for an income year with a particular transferee.
Superannuation funds cannot transfer the tax liability on no-TFN contributions income to a life insurance company or a PST. This is the case even if the fund has agreed to transfer 100% of the amount that would otherwise have been included in the fund’s assessable income for the income year under Subdivision 295-C of the ITAA 1997.
R6 is used to determine R Assessable contributions.
Record keeping
Keep all relevant documents as evidence of the transferee’s consent to accept the transfer of assessable contributions and the associated tax liability.
G Foreign exchange gains
Show at G assessable foreign exchange gains (from both foreign and domestic sources) made by the fund. See Foreign exchange (Forex) gains and losses.
If the TOFA rules apply to the fund, include all assessable foreign exchange gains from financial arrangements subject to the TOFA rules at G.
S Other income
Show at S the assessable amount of any income received that does not fall into any of the other categories shown at A to U. Other income may include, but is not limited to, the following categories.
TOFA
If the TOFA rules apply to calculate an assessable gain or deductible loss on the fund’s financial arrangements, include at S any assessable TOFA gains relating to the financial arrangements.
TOFA amounts that have been included elsewhere should not be included here. For example, amounts that have already been included at:
- C Gross interest
- D1 Gross foreign income
- D Net foreign income
- I Gross distribution from partnerships
- J Unfranked dividend amount
- N Trust distributions unfranked amount
- Q Trust distributions other amounts
- G Foreign exchange gains.
If what you show at S or elsewhere in Section B:Income includes an amount brought to account under the TOFA rules, also complete item 16 Taxation of financial arrangements (TOFA).
For more information, see the Guide to the taxation of financial arrangements (TOFA) rules.
Listed investment company (LIC) capital gain amount
If a complying superannuation fund, ADF or PST received a distribution from a partnership or a share of net income from a trust, and that partnership or trust claimed a deduction for a LIC capital gain amount, then the superannuation fund, ADF or PST must add back one-third of its share of the deduction claimed by the partnership or trust and include the amount at S.
If a non-complying superannuation fund or ADF received a distribution from a partnership or a share of net income from a trust, and that partnership or trust claimed a deduction in respect of a LIC capital gain amount, then the non-complying superannuation fund or ADF must add back its share of the deduction claimed by the partnership or trust and include the amount at S.
Assessable balancing adjustment amounts
If the superannuation entity ceases to hold or to use a depreciating asset, it will need to calculate a balancing adjustment amount to include at S as assessable income or to claim as a deduction at L Other deductions item 11. For more information, see the Guide to depreciating assets 2016.
Rebate or refund of premium paid to provide death or disability benefits
Show at S rebates and refunds of insurance premiums received by a complying superannuation fund and attributable to amounts that the fund had previously deducted for insurance premiums to provide:
- superannuation death benefits
- benefits payable because of the existence of a terminal medical condition
- disability superannuation benefits
- benefits payable because of a person's temporary inability to engage in gainful employment.
Only the part of the rebate or refund attributable to the amount deducted is included in the fund's assessable income.
Gross payments subject to foreign resident withholding in Australia
Show at S gross payments made to the fund that are subject to foreign resident withholding in Australia. Gross payments include amounts of tax withheld.
Only include such income at S if the fund is a foreign resident.
If you show a credit for tax withheld at H2 Credit for tax withheld – foreign resident withholding item 12 you must show the corresponding gross payment at S Other income (unless it is already included at I Gross distribution from partnerships or Q Trust distributions other amounts).
A payment may be required to be shown at S even if the credit for tax withheld is nil.
Do not include at S:
- gross distributions of payments subject to foreign resident withholding in Australia that were distributed to the fund from partnerships and trusts. Instead, include the distributions from partnerships at I Gross distribution from partnerships and include the share of net income from trusts at Q Trust distributions other amounts.
- payments where the amount of foreign resident withholding was varied to nil because the income was not taxable under a double tax agreement.
If you show gross payments at S, complete and attach a Non-individual PAYG payment summary schedule 2016.
For instructions on completing this schedule, see Schedules.
Gross distributions of payments prescribed for foreign resident withholding purposes from a partnership or trust do not have an associated payment summary.
Print in the Code box the code from table 3 that best describes the largest amount included at S Other income.
Table 3: Other income codes
Code |
Type |
|---|---|
T |
Assessable TOFA gains |
C |
LIC capital gain amount |
B |
Assessable balancing adjustment amount |
R |
Rebate or refund of premium paid to provide death or disability benefits |
W |
Gross payments subject to foreign resident withholding |
O |
Other income received not listed above |