I Gross distribution from partnerships
Show at I the gross distribution from all partnerships. If the amount is a loss, print L in the Loss box at the right of the amount.
Do not show non-arm’s length income of a complying superannuation fund or a complying ADF or PST. Show that amount at U Net non-arm’s length income.
If the distribution includes an amount of foreign income, including New Zealand franking company dividends and supplementary dividends, do not include it at I. Show that amount at D1 Gross foreign income and take it into account when calculating D Net foreign income.
- any amount subject to foreign resident withholding in Australia that were distributed to the fund from a partnership
- the fund’s share of credit from foreign resident withholding.
You can claim a credit for the fund’s share of credit from foreign resident withholding in the calculation statement at H2 Credit for tax withheld – foreign resident withholding item 12.
If a distribution includes franked dividends (including franked non-share dividends), determine the fund's entitlement to a franking credits tax offset.
The fund is not entitled to a franking credits tax offset if:
- the relevant interest is not held at risk as required under the holding period and related payment rules
- the dividend washing integrity rule applies
- there is some other manipulation of the imputation system (the Commissioner may make a determination to deny imputation benefits where you have entered into a scheme for a non-incidental purpose of obtaining franking credit benefits)
- the gross distribution from the partnership is exempt income or non-assessable non-exempt income (other than a distribution exempted from income tax under the exempt current pension income (ECPI) rules, see Y Exempt current pension income).
If the fund is entitled to a franking credits tax offset, 'gross up' the franked dividend distribution to include the fund’s share of any attached franking credits. Show all grossed up distributions at I. Show the fund’s share of the franking credits attached to such dividend distributions at:
- E1 Complying fund's franking credits tax offset item 12, if the fund is a complying superannuation fund, complying ADF or PST, or
- C2 Rebates and tax offsets item 12, if the fund is a non-complying superannuation fund or non-complying ADF.
If the fund is not entitled to a franking credits tax offset, show only the amount of the franked dividend at I. Do not show the franking credit attached to the dividend anywhere in the fund tax return.
To the extent the fund’s share of partnership income includes an amount on which family trust distribution tax (FTDT) has been paid, do not include that amount in the fund’s assessable income (section 271-105 in Schedule 2F to the Income Tax Assessment Act 1936 (ITAA 1936)).
To the extent the fund’s share of partnership income includes an amount received indirectly from a closely held trust on which trustee beneficiary non-disclosure tax (TBNT) has been paid, do not include that amount in the fund’s assessable income.
Any losses or outgoings that the fund incurred in deriving an amount that is excluded from assessable income because FTDT or TBNT has been paid are not deductible.
The fund cannot claim a franking credit tax offset for any franking credits attributable to the whole or a part of a dividend that is excluded from assessable income because FTDT or TBNT has been paid.
If the TOFA rules apply to the fund, include gross distributions from partnerships from financial arrangements subject to the TOFA rules at I.
Keep a record of the:
- full name of the partnership
- TFN of the partnership if known
- amount of income.