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Things to note on income from a trust.

Last updated 27 June 2018

If you have received, or are entitled to, an amount of income from a trust which includes a dividend with Australian franking credits from a New Zealand franking company, you may be eligible to claim Australian franking credits. However, you cannot claim New Zealand imputation credits. For more information, see Other foreign income

If you were entitled to an amount of trust income at 30 June 2018, you need to include your share of the net income of the trust in your 2017–18 tax return even if you did not receive an amount from the trust until after 30 June 2018. If you have not been advised about all of your trust entitlements, contact your trustee.

If the trust income which you have received or are entitled to includes an amount described as tax-free, tax deferred, tax exempted or as a capital gains tax (CGT) concession, then read the information on non-assessable payments in Guide to capital gains tax.

While such amounts may not need to be included at this section, they may be relevant in determining the amount of a net capital gain you show at Capital gains or losses or may affect the cost base of your unit or trust interest.

Do not show all categories of income from a trust at this section. For more information, see Do not show at this section.

If you are a foreign resident who has received a fund payment from a managed investment trust on which an amount was withheld, see Withholding tax arrangements for managed investment trust fund payments.

Statement of distribution or advice from the trustee

A statement of distribution or advice from the trustee may show the following details in relation to your share trust net income for tax purposes:  

  • the amount of any primary production income or loss and the amount of any non-primary production income or loss
  • the amount of any franked distribution from a trust
  • the amount of attributed foreign income and other foreign source income
  • the amount of any income on which family trust distribution tax or trustee beneficiary non-disclosure tax has been paid
  • that you are a chosen beneficiary if you are the beneficiary of a discretionary primary production trust that has made a loss
  • your entitlement to any of the following credits or tax offsets  
    • credit for amounts of tax withheld because the trust failed to quote its Australian business number
    • credit for amounts of tax withheld by the trustee of a closely held trust because you did not provide your TFN
    • credit for amounts of tax withheld due to the imposition of non-resident withholding tax or managed investment trust withholding tax from trust income you received when you were a resident
    • share of the 'national rental affordability scheme' tax offset
    • allowable franking credits from franked dividends
    • credit for tax file number amounts withheld
    • credit for tax paid by the trustee.