Broadly the TOFA rules will apply to the following partnerships:
- authorised deposit-taking institutions, securitisation vehicles and financial sector entities with an aggregated annual turnover of $20 million or more
- entities with a similar status to managed investment schemes under foreign law relating to corporate regulation with assets of $100 million or more
- any other partnership which satisfies one or more of the following
- an aggregated turnover of $100 million or more
- assets of $300 million or more
- financial assets of $100 million or more.
Regardless of whether the TOFA rules would otherwise apply, they apply to all qualifying securities acquired during an income year beginning on or after 1 July 2010 that have a remaining life of more than 12 months after the partnership starts to have them.
The new rules apply to all financial arrangements that the partnership subject to TOFA starts to have during income years commencing on or after 1 July 2010. In addition, a partnership may elect to have the new rules apply to its financial arrangements for income years commencing on or after 1 July 2009. Partnerships will also be able to make a transitional election to apply the new rules to their existing financial arrangements. Partnerships operating under the new rules who lodge their income tax returns on the basis of a substituted accounting period, will need to determine when the new rules will start for them.
The aggregated turnover tests may mean that the TOFA rules will apply to partnerships that do not exceed the thresholds on their own. Aggregated turnover includes the annual turnover of any entity a partnership is connected with or any affiliate of the partnership (including overseas entities).
End of attentionFor further information on when and how the TOFA rules apply to partnerships, see Guide to the taxation of financial arrangements (TOFA) rules.
End of further informationL - Did you make a gain, loss or transitional balancing adjustment from a financial arrangement subject to the TOFA rules?
Print X in the appropriate box at L.
Print X in the Yes box only if the partnership elected for the TOFA rules to apply to it early for the 2009-10 income year, and:
- made a gain or loss under the TOFA rules, or
- had an assessable or deductible amount from a transitional balancing adjustment as a result of making the transitional election for existing financial arrangements.
For further information on when the TOFA rules apply to partnerships, see Taxation of financial arrangements (TOFA) under What's new, or Guide to the taxation of financial arrangements (TOFA) rules.
End of further informationM - Total TOFA gains
Show at M the partnership's total TOFA gains from financial arrangements. Include TOFA gains you show at:
- S Net income or loss from business item 5
- JGross interest item 11
- KUnfranked amount item 12
- OOther Australian income item 14
- BGross other assessable foreign source income item 23.
N - Total TOFA losses
Show at N the partnership's total TOFA losses from financial arrangements. Include TOFA losses you show at:
- SNet income or loss from business item 5
- GInterest deductions item 9
- QOther deductions item 18
- VNet other assessable foreign source income item 23.
O - TOFA transitional balancing adjustment
Show at O the partnership's transitional balancing adjustment amount for the income year as a result of making the transitional election for existing financial arrangements.
If the transitional balancing adjustment is a deductible amount, print L in the box next to O.
P - TOFA gains from unrealised movements in the value of financial arrangements
Show at P the partnership's TOFA gains from unrealised movements in the value of financial arrangements. This may include TOFA gains shown at:
- Other business income at G and H item 5
- Other assessable foreign source income item 23.
For further information on when and how the TOFA rules apply to partnerships, see Guide to the taxation of financial arrangements (TOFA) rules.
End of further information