Things to know
If you're the principal beneficiary of a special disability trust, you can claim a tax offset for the amount of tax paid by the trustee on your behalf.
If the trustee of the special disability trust has lodged a tax return and paid tax on the net income of the trust, you're entitled to claim the amount of the tax paid by the trustee as a refundable tax offset.
For more information, see Completing an individual tax return for a principal beneficiary.
Completing this section
To personalise your tax return to show other refundable tax offsets, at Personalise return, select:
- You're claiming tax offsets or adjustments
- Other tax offsets
To show your other refundable tax offsets, at Prepare return select 'Add/Edit' at the Offsets banner.
At the Other refundable tax offsets heading:
- Enter the total of the tax paid the trustee on your behalf at Offset amount.
Only include your share of the offsets you're entitled to claim.
When the Offset amount is greater than zero, myTax will automatically complete Other refundable tax offset code type (code type S). - Select Save and continue when you have completed the Offsets section.
Completing an individual tax return for a principal beneficiary
If the principal beneficiary is required to lodge an individual tax return, the guidance below will help in completing it.
If the special disability trust has a net income amount at item 26 of the trust tax return, the principal beneficiary should include that amount at Trusts.
If the trustee paid tax on that net income, at Other refundable tax offsets, the principal beneficiary should claim the tax paid by the trustee as a credit at Offset amount.
In addition to any income from the special disability trust, the principal beneficiary should include in their tax return any other personally derived assessable income or deductible expenditure incurred.
If the special disability trust has net income but isn't required to lodge a trust tax return, the principal beneficiary should:
- still include the amount of net income at Trusts
- not include any amount as a credit at Other refundable tax offsets, as the trustee won't have paid any tax.