Did you receive, or were you entitled to receive, a share of the income of a trust or managed fund?
Managed funds (unit trusts) include:
- property trusts
- share trusts
- equity trusts
- growth trusts
- imputation trusts
- balanced trusts.
Other trusts include:
- discretionary trusts
- family trusts
- hybrid trusts
- business trusts.
Distributions from trusts and managed funds can include two components that have CGT consequences:
- distributions of trust income where the trust's net income for tax purposes includes a net capital gain
- distributions of non-assessable amounts.
You need to know whether your distribution includes these two amounts. To find out, check the statement (distribution statement, year-end or annual statement) from the trust. The statement should also show which method the trust used to calculate the capital gains included in the trust's net capital gain. There are three methods of calculating capital gains:
- indexation
- discount
- 'other'.
You must use the same method as the trust to calculate your own net capital gain.
Trustees and fund managers may use different terms to describe the calculation methods they have used and they may refer to capital gains calculated using the indexation and 'other' methods as 'non-discount gains'. If you are in doubt, check with your trust or fund manager.
Your distribution statement may include amounts called:
- NCMI capital gains
- Excluded from NCMI capital gains
Include both these amounts in the calculation of the net capital gain.
See also:
These myTax 2020 instructions are about capital gains tax events, capital gains (income) and capital losses.