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IT5 Net financial investment loss 2018

Complete question IT5 to include a net loss from any financial investments you owned.

Last updated 30 May 2018

This question is about the net loss, if any, from any financial investments you owned.

Did you receive income from, or claim deductions for, shares or investments in managed investment schemes?

Did you receive income from, or claim deductions for:

  • shares in a company
  • an investment in a managed investment scheme, including a forestry managed investment scheme
  • rights or options for shares or managed investment schemes
  • distributions from a partnership that included income or losses from an investment listed above
  • any investment that is of a similar nature to those listed above?


Write 0 at X item IT5, then go to question IT6 Net rental property loss, or return to main menu Individual tax return instructions 2018.


Read on.

The loss you show at this item is the amount by which your deductions relating to your financial investments exceed your income from those investments.

When calculating your net financial investment loss, do not include interest from your everyday transaction accounts.

Managed investment schemes

The investment manager will be able to tell you whether your investment is a managed investment scheme. Managed investment schemes include:

  • cash management trusts
  • property trusts
  • Australian equity (share) trusts
  • agricultural schemes (which include horticultural, aquaculture and commercial horse breeding schemes).

Investments that are not managed investment schemes include:

  • regulated superannuation funds
  • approved deposit funds
  • debentures issued by a body corporate
  • franchises
  • schemes operated by an Australian bank in the ordinary course of banking business (such as term deposits).


Deductions you can claim for an investment include expenses you pay to:

  • borrow money to purchase an investment
  • manage your investments
  • obtain advice about changes in the mix of your investments.

Completing your tax return

Complete worksheet 1a and 1b below.

If you are a partner in one or more partnerships, add up your share of all net financial investment income and deduct your share of all net losses from the partnerships' financial investments. The statement of distribution from each partnership should show these amounts. Write the total at row q.

Worksheet 1a


Financial investment income



Dividends from Australian shares from item 11 – Unfranked amount



Dividends from Australian shares from item 11 – Franked amount



Dividends from Australian shares from item 11 – Franking credit



Managed investment scheme income included at U item 13



Share of franked distributions and franking credits from managed investment scheme included at C item 13



Dividend income or managed investment scheme income from foreign companies included at M item 20



Australian franking credits from a New Zealand franking company from F item 20



Forestry managed investment scheme income from A item 23



Any other assessable income from a financial investment



Add all amounts from rows a to i.


Worksheet 1b


Financial investment deductions



Dividend deductions from Australian shares included at item D8



Managed investment scheme deductions included at Y item 13 and H item D8



Forestry managed investment scheme deductions from F item D14



Any other deductions attributable to a financial investment including debt deductions at J item D15



Add all amounts from rows k to n.



Take row o away from row j. Show a loss as a negative.



Total partnerships investment net income or loss. Show a loss as a negative.



Add rows p and q.


If the amount at row r is negative, write this amount at X item IT5. Otherwise write 0 at X.

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