Did the SMSF earn interest income from an Australian source?
Leave C blank. Go to X.
Write at C the total interest income that the SMSF earned in 2017–18. The amount at C should not be reduced by any loss or outgoing related to the income.
Include at C:
- interest earned on money (for example)
- in a bank (or similar institution) account
- that the SMSF has lent to another person or organisation
- interest that is paid by us or credited against another SMSF liability because the SMSF paid a tax liability early (see H1 Credit for interest on early payments – amount of interest in Section D).
If you include an amount at C that is exempt current pension income, include it also at Y Exempt current pension income.
Do not include interest income that is:
- derived from foreign sources (write it at D1 Gross foreign income)
- part of a distribution from a partnership (write it at I Gross distribution from partnerships)
- non-share dividends received from holding a non-share equity interest (write it at J Unfranked dividend amount, K Franked dividend amount and L Dividend franking credit as applicable; for more information, see Guide to the debt and equity tests)
- included in a share of net income from a trust (write it at M Gross trust distributions)
- non-arm's-length income of a complying SMSF (write it at U3 Net other non-arm's-length income).
Example: Interest income
In 2017–18, SMSF C had $50,000 in a bank term deposit. The bank paid $4,000 interest to SMSF C.
SMSF C reports $4,000 at C Gross interest.End of example