• Public unit trust: statement of distribution

    This information is for trustees of public unit trusts who are required to lodge an Annual Investment Income Report (AIIR).

    When completing the statement of distribution in their trust tax return, these trustees can aggregate reporting of certain amounts, such as most distributions to resident beneficiaries.

    This arrangement is intended to minimise duplicated reporting for trustees that must lodge an AIIR for the same year of income, while still providing sufficient information for the ATO to determine whether an assessment should issue to the trustee.

    Trustees that are not required to lodge an AIIR must complete the tax return statement of distribution in full.

    How to complete the statement of distribution

    The trustee must:

    Fully report amounts for which the trustee is to be assessed

    Where a trustee is to be assessed on amounts of trust income, the trustee must fully complete the statement of distribution for the amounts to be assessed, as described in the trust tax return instructions.

    This applies where the trustee is to be assessed:

    • on an amount of net income where there is income of the trust estate to which no beneficiary is presently entitled
    • under subsection 98(1) of the Income Tax Assessment Act (ITAA) 1936 for beneficiaries that are resident or non-resident individuals under a legal disability
    • under subsection 98(3) of the ITAA 1936 for beneficiaries that are non-resident individuals not under a legal disability (see the exception below for non-resident companies)
    • under subsection 98(4) of the ITAA 1936 for non-resident trustee beneficiaries.

    Aggregate amounts where beneficiaries are non-resident companies

    Where the trustee is to be assessed under subsection 98(3) of the ITAA 1936 for beneficiaries that are non-resident companies, the beneficiary companies can be aggregated into one entry in the statement of distribution using the appropriate assessment calculation code. Aggregation is permitted because a flat rate of tax applies to companies.

    Use the same process (including name and address details) as described below for aggregated reporting.

    Aggregate amounts for which the trustee is not to be assessed

    Where a trustee will not be assessed on any net income of the trust for a year of income, the trustee must:

    • aggregate these beneficiary distributions on the statement of distribution – for example:
      • aggregate resident individual beneficiaries under the assessment calculation code (30)
      • aggregate resident company beneficiaries under the assessment calculation code (34)
      • aggregate resident trust beneficiaries under the assessment calculation code (35).
       
    • provide the following name and address details for the aggregated information:
      • in the Non Individual Name field enter: '[trustee's name] – Aggregated for [insert assessment code]'
      • trustee's address.
       

    Aggregated reporting of beneficiary distributions is required to allow reconciliation of the trust's net income.

    Completion of the name and address fields is necessary for electronic lodgment purposes.

    See also

    To check if your trust is required to lodge an AIIR, see:

      Last modified: 22 Apr 2016QC 42295