• Type of trust

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Print in the first box at this item the code from table 1 that best describes the type of trust for which the trust tax return is being lodged. Descriptions of the types of trust are at table 2.

    Table 1: Trust codes

    Code

    Type

    D

    Deceased estate

    F

    Fixed trust, - other than a fixed unit trust or public unit trust described in U, P or Q

    H

    Hybrid trust

    S

    Discretionary trust, - where the main source of income of the trust is from service and/or management activities

    T

    Discretionary trust, - where the main source of income of the trust is from trading activities

    I

    Discretionary trust, - where the main source of income of the trust is from investment activities

    M

    Cash management unit trust

    U

    Fixed unit trust, - other than a public unit trust described in P or Q

    P

    Public unit trust (listed) - other than a cash management unit trust

    Q

    Public unit trust (unlisted) - other than a cash management unit trust


    Charitable trust

    Print X in the second box at Type of trust if the trust is also an item 1.5 charitable trust in section 50-5 of the ITAA 1997.

    Description of Trusts

    Table 2: Description of trusts

    Deceased estate

    See appendix 9

    Fixed trust

    A trust in which persons have fixed entitlements (as defined in section 272-5 of Schedule 2F to the ITAA 1936) to all income and capital of the trust at all times during the income year

    Hybrid trust

    A trust that is not a fixed trust but in which persons have fixed entitlements (as defined in section 272-5 of Schedule 2F to the ITAA 1936) to income or capital of the trust during the income year

    Discretionary trust

    A trust that is neither a fixed trust nor a hybrid trust and under which persons benefit from income or capital of the trust upon the exercise of discretion by persons, usually the trustee

    Fixed unit trust

    A fixed trust in which interest in the income and capital of the trust are represented by units

    Public unit trust

    A fixed unit trust that is a widely held unit trust (as defined in section 272-105 of Schedule 2F to the ITAA 1936) at all times during the income year

    Public unit trust - listed

    A public unit trust in which any of its units were listed for quotation on the official list of a stock exchange in Australia or elsewhere during the income year

    Public unit trust - unlisted

    A public unit trust in which none of its units was listed for quotation on the official list of a stock exchange in Australia or elsewhere during the income year

    Managed investment trusts

    If the trust is a managed investment trust, has the trustee made an election into capital account treatment?

    With effect from the 2008-09 income year, trustees of eligible Australian managed investment trusts (MITs) can make an irrevocable election to apply the CGT provisions for the taxation of gains and losses on disposal of eligible assets.

    Meaning of 'eligible MIT'

    An eligible MIT is a managed fund that meets:

    • the definition of a 'managed investment trust' in Subdivision 12-H in Schedule 1 to the TAA 1953 (concerning MIT withholding on payments to non-residents); or
    • one of the extended definitions that allow the trust to be treated in the same way as a MIT for the purposes of the capital treatment election.

    Proposed changes to the definition of a MIT

    On 10 February 2010, the Government announced further changes to the definition of a MIT in Subdivision 12-H in Schedule 1 to the TAA 1953. These changes were introduced into Parliament on 26 May 2010 as part of Tax Laws Amendment (2010 Measures No. 3) Bill 2010.

    At the time of preparing these instructions, legislation had not been enacted to give effect to these changes. Information on the progress of the Bill that includes these changes can be found on our website at New legislation.

    Who is eligible to make an election?

    The trustee of an eligible MIT may make an election. The election must be made in the approved form.

    How to make an election having effect for the 2009-10 and later income years

    For MITs coming into existence in the 2009-10 income year, a valid election is made by answering 'Yes' to the question asked on page 2 of the trust tax return. The election must be made on or before the day the trust is required to lodged its tax return for the 2009-10 income year, or if the Commissioner allows a later day - that later day.

    Attention

    If you are the trustee of a MIT that came into existence in the 2008-09 income year or an earlier income year, and you have previously made an election for capital treatment, you must still answer 'Yes' to the question asked on page 2 of the trust tax return.

    End of attention

    How to make an election having effect for the 2008-09 and later income years

    If the MIT came into existence in the 2008-09 income year or an earlier income year, use the approved form Managed investment trusts election for capital treatment for making an election. The election can only be made on or before the last day of the 3 month period starting on 3 June 2010, or if the Commissioner allows a later day - that later day.

    From when is the election in force?

    For trusts that became a MIT prior to the 2009-10 income year, the election once made will have effect from the 2008-09 and later income years.

    For trusts that become a MIT in the 2009-10 income year or a later year of income, the election once made will have effect for the income year in which the trust becomes a MIT and later income years.

    Further Information

    Further information can be found in Managed Investment Trusts: election into capital treatment.

    End of further information
    Last modified: 13 Aug 2014QC 22968