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D Net foreign income

Last updated 24 March 2021

Do not include:

  • losses or deductible expenses from a foreign source (include these at D Net foreign income)
  • Australian franking credits attached to New Zealand dividends (include these at E Australian franking credits from a New Zealand company)
  • foreign exchange gains and losses from both foreign and domestic sources (write gains at S Other income and losses at L1 or L2 Other amounts in Section C)
  • foreign source capital gains and losses (net capital gains should be included at A Net capital gain)
  • foreign income that is non-arm's-length income of a complying SMSF (include this at Non-arm's-length income items U1, U2, or U3).

You must complete D if you write a value at D1.

Write at D the SMSF's net income from foreign sources in 2016–17.

To calculate the SMSF's net foreign income, take the amount at D1 Gross foreign income and subtract:

  • foreign source losses incurred in 2016–17 (but not CGT losses) and
  • deductible expenses to the extent to which they relate to foreign income.

If the total amount at D is negative, print L in the Loss box to the right of the amount.

If you include an amount at D that is exempt current pension income, include it also at Y Exempt current pension income.

Do not subtract debt deductions in calculating net foreign income at D, except where they are attributable to an overseas permanent establishment of the SMSF. Include the debt deductions at the relevant question in Section C.

Start of example

Example: Foreign income

In 2016–17, SMSF D held shares that were listed on a foreign stock exchange. The SMSF received $20,000 dividends, $5,000 foreign franking credits and has deductible expenses of $200 that relate solely to the dividends.

SMSF D reports:

D1 Gross foreign income $20,000

D Net foreign income $19,800

It does not include the foreign franking credits anywhere on the SMSF annual return.

End of example