Distributions on which family trust distribution tax is payable include:
- income and property from a trust or partnership
- dividends and property from a company
- the use of property owned by the trust, partnership or company for which you have not paid full value, such as the free use of a holiday house.
Family trust distribution tax is payable on any distribution made to a person outside a ‘family group’ by:
- a trust which has elected to be a family trust, or
- a trust, partnership or company which has made an interposed entity election to be included in the 'family group' of a family trust.
You do not include in your assessable income any part of a distribution to you on which family trust distribution tax has already been paid, and which would otherwise be assessable income.
However, to determine your liability for the Medicare levy surcharge, we take into account any part of a distribution to you on which family trust distribution tax has already been paid (that would otherwise have been assessable income) reduced by any expenses that would have been deductible against it. This is the amount that you need to show at this section.
Completing this section
The trust, partnership or company should be able to tell you if family trust distribution tax has been paid on a distribution to you.
- Add up the amounts or value of all distributions to you by a trust, partnership or company during 2017–18 which would have been assessable income if family trust distribution tax had not been paid.
- Add up all the expenses which you would have been able to claim as a deduction if the distributions had been included in your assessable income.
- Take away your step 2 amount from your step 1 amount.
- Enter the amount from step 3 in your tax return.
If the amount from step 3 is zero or less than zero, do not enter anything.
- Select Save and continue.