Trustee lodging on behalf of a beneficiary
If you're a trustee lodging on behalf of a beneficiary, you will need to complete a Trust tax return.
There are three main steps to complete:
Step 1: Report the BSWAT lump sum
The BSWAT lump sum is not salary and wages or an Australian government pension or allowance. You need to report the payment on the Trust tax return at item 14 (Other Australian income), as follows:
- at Type of Income, write 'BSWAT lump sum in arrears'
- at label O, write the value of the taxable amount for the BSWAT lump sum in arrears. Do not show cents.
The taxable amount is shown on the individual’s Centrelink PAYG payment summary. No tax is withheld by Centrelink when they pay the BSWAT lump sum in arrears.
Step 2: Attach your Schedule of additional information
So we can calculate the lump sum payment in arrears tax offset, you need to attach a Schedule of additional information. To do this, you need to:
- photocopy 'Attachment E: Important tax information' from the beneficiary's BSWAT letter of offer
- write 'BSWAT schedule of additional information – item 14' as a heading at the top of the photocopy, and then list the following:
- trust name
- trust tax file number (TFN)
- beneficiary's name
- beneficiary's TFN
Attach the Schedule of additional information to page 1 of the Trust tax return. At the question Have you attached any other attachments?, at the top of page 1, print X in the Yes box.
Step 3: Complete the tax return
Complete the rest of the Trust tax return, including the declaration on page 16.
Trust tax return