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I Gross distribution from partnerships

Last updated 29 March 2021

Did the SMSF receive any gross distributions from partnerships?

No

Leave I blank. Go to J, K, L Dividend amounts and franking credits.

Yes

Read on.

Write at I the total of all gross distributions from partnerships received in 2017–18. If the total amount is a loss, print L in the box to the right of the amount.

A distribution from a partnership can include different types of income. Include all types of income included in the distribution at I except:

  • capital gains (include these at A Net capital gain)
  • foreign income, including New Zealand franking company dividends and supplementary dividends (include it at D1 Gross foreign income)
  • part of a distribution on which family trust distribution tax or trustee beneficiary non-disclosure tax has been paid (do not include anywhere in Section B: Income)
  • franking credits, if the SMSF is not entitled to a corresponding tax offset (do not include these anywhere in the SMSF annual return)
  • the SMSF’s share of net income from pooled superannuation trusts (PSTs)
  • non-arm's-length income of a complying SMSF (include it at U3 Net other non-arm's-length income).

For example, if a distribution from a partnership includes interest, include this interest income at I rather than at C Gross interest.

If the partnership distributions included franking credits attached to dividends and the SMSF is entitled to a corresponding franking credits tax offset (see Entitlement to a franking credits tax offset), include the amount of the franking credit at I and also at either:

  • E1 Complying fund’s franking credits tax offset in Section D if the SMSF is a complying fund
  • C2 Rebates and tax offsets in Section D if the SMSF is a non-complying fund.

If partnership distributions included amounts subject to foreign resident withholding in Australia, include the SMSF's share of credit for foreign resident withholding at I and also at H2 Credit for tax withheld – foreign resident withholding in Section D.

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

Keep a record of the following:

  • full name of the partnership
  • TFN of the partnership if known
  • amount of income.

For more information, see Record-keeping requirements.

Example: Distributions from partnerships

SMSF G had a 50% share in a partnership. In 2017–18, the partnership's income was:

$6,000 bank interest
$10,000 franked dividends, and
$5,000 franking credits.

The SMSF's share of this income was:

$3,000 bank interest
$5,000 franked dividends
$2,500 franking credits

The total of the SMSF's share of the partnership income was $10,500.

Assuming SMSF G is complying and the income is at arm's length, SMSF G reports:

I Gross distributions from partnerships $10,500

E1 Complying fund’s franking credits tax offset in Section D $ 2,500

End of example

QC55254