Instructions to complete items 59 to 61 in the tax return for the trust.
This section deals with item 59 in the tax return.
The trustee of a resident trust may choose (if permitted by the trust deed), to be assessed on a capital gain of the trust. This is allowed provided no beneficiary has received any amount referable to the gain during the income year or within 2 months of the end of the income year. The choice must be made in respect of the whole capital gain. For example, the trustee will be able to make the choice if under the terms of the trust the income beneficiary cannot benefit from the capital gains. It is only the trustee that can make this choice.
If the trustee makes a choice in respect of a capital gain, then:
- the trustee will be assessed on the capital gain under section 99 or 99A of the ITAA 1936, as appropriate
- the capital gain is not taken into account in working out any beneficiary's net capital gain for an income year.
You should include the amount of the capital gain for which the trustee is making this choice at label Y Amount of capital gains on which the trustee has chosen to be assessed on behalf of beneficiaries. Where the trustee is making the choice in respect of more than one capital gain, you should show the total of all capital gains at label Y.
Capital gains under which this choice has been made should only be shown at label Y and should not be shown at item 58 – label F Capital gains for the relevant beneficiary.
You will need to insert an assessment calculation code from Appendix 12 at label X Assessment calculation code as appropriate for your trust. The relevant codes are:
- for inter-vivos trusts
- 36 where the trustee is assessed under section 99A ITAA 1936
- 37 where the trustee is assessed under section 99 ITAA 1936
- for deceased estates
- 15 where the trustee is assessed under section 99 ITAA 1936
- 16 where the trustee is assessed under section 99 ITAA 1936 without the tax-free threshold.
This section deals with item 60 in the tax return.
Was any beneficiary in this trust, who was under a legal disability on 30 June 2023, also presently entitled to a share of the income of another trust?
- Yes – print X in the Yes box.
- No – print X in the No box.
The trustee is liable to be assessed on the share of net income of the trust if a beneficiary is presently entitled to a share of the income of the trust but under a legal disability. Where the beneficiary is presently entitled to a share of the income from more than one trust, the beneficiary’s share of the net income from each of the trusts is taken into account in working out the tax rate to apply in the trustee’s assessment on behalf of the beneficiary. For more information on the tax rates and relieving provisions, see Appendix 10.
Where the beneficiary is presently entitled to income from one or more other trusts, give the following information for each of those trusts:
- name of the trust
- trust TFN
- income to which the beneficiary is presently entitled.
If a trustee is unable to provide any part of this information, they must provide all the available details together with the name and address of the parent or guardian of the beneficiary.
Attach the information to the tax return and print X in the Yes box at Have you attached any ‘other attachments’? at the top of page one of the tax return.
A trust is a non-resident of Australia if:
- no trustee of the trust was a resident of Australia, at any time during the income year, or
- the central management and control of the trust was not in Australia at any time during the income year.
If the trust is a non-resident trust, print X in the Yes box.
If not, print X in the No box.
If the trust is a non-resident trust, print in the box marked $ at this item the amount of income derived outside Australia to which no beneficiary is presently entitled.
Print NIL in the last 3 boxes at this item if applicable.
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