Guidance notes

Part A: Your details

Part A provides the investor with their details as recorded by an AMIT or a non-AMIT and reported in the AIIR. It prompts the investor to let the trust know if there is an error.

1. Name

Full name of investor

2. You are recorded as being a …

Provide the entity type as recorded by the trust. If joint account holders, record the entity that represents each investor. For example, J & A Citizen are both individual joint account holders, record as an individual.

3. Tax file number (TFN)

Select Provided or Not Provided. There is no requirement to include a TFN.

4. Country of residence as at 30/6/2020

Provide country of residence as at 30 June 2020 if known, or if Australia leave blank.

5. Tax identification number (TIN) for country of residence

Select Provided or Not Provided if country of residence as at 30/06/2020 is populated. Leave blank if country of residence is Australia.

Part B: Summary of 2020 tax return items

Most items are self-explanatory. Items that have raised questions are discussed below. Both the AMMA statement and the SDS recommended formats must align with the AIIR as the tax return will be pre-filled according to what is reported in the corresponding fields in the AIIR. A list of these can be found in Attachment 2.

• Only the amounts at 13P, 13Q, 13R, 13S, 13A, 13B and 20O are to include cents.
• Income amounts are net of expenses.
• An AMIT attribution amount cannot be a negative.
• A non-AMIT amount can only be a negative at 13L, 13U, 20R or 20M.

1. U item 13: Non-primary production – Share of non-primary production income less net capital gains, foreign income and franked distributions
   C item 13: Non-primary production – Franked distributions from trusts

The components of these items are set out in part C. At these items investors include their share of Australian sourced non-primary production income and franked distributions (including their share of franking credits) included in the net income of the trust (or, for an AMIT, their member components of those characters).

Include an unfranked dividend paid out of conduit foreign income in Dividends: unfranked amount declared to be CFI, which forms part of the non-primary production income.

An investor's share of the net income of the trust that is attributable to net capital gains and foreign income (or, for an AMIT, their member components of those characters) is not shown here.

AMMA statement - the share of franking credits included in the Franked distributions from trusts component will be the Franking credits (grossed-up) amount (shown in part C) and may not equal the amount at Q item 13 Share of franking credit from franked dividends. This may arise where the Franking credits (grossed-up) amount is reduced by deductions of the AMIT, however investors may be entitled to a tax offset equal to the full amount of their Share of the franking credit from franked dividends.

2. Y item 13: Other deductions relating to non-primary production income

At this item investors show the total of deductible expenses they incurred during 2019–20 in relation to the distributions.

Deductions allowable to the trustees that are taken into account in the net income calculations (or, for an AMIT, the calculation of the trust components) are not shown at this item.

3. Q item 13: Share of franking credit from franked dividends

At this item investors show their share of franking credits from franked distributions relevant to determining their entitlement to a tax offset.

AMMA statement – the investor may be entitled to an offset equal to the full amount of their Share of the franking credit from franked dividends and therefore the amount shown here may not equal the Franking credits (grossed-up) amount shown in part C where deductions have been allocated to the franking credit amount included in the Franked distributions from trusts component.

4. R item 13: Share of credit for tax file number amounts withheld from interest, dividends and unit trust distributions

At this item investors show their share of any credit for TFN amounts withheld from interest, dividends and unit trust distributions paid or payable, in accordance with sections 12-140 and 12-145 of Schedule 1 to the Taxation Administration Act 1953.

5. H item 18: Total current year capital gains
   A item 18: Net capital gain

Investors need to include the amount of any tax paid on capital gains, for example, foreign tax on foreign net capital gains. An individual investor who has capital losses will not simply be able to transfer the net capital gain amount from part B to their tax return. Trustees may wish to refer investors in these circumstances to Guide to capital gains tax 2020 or Personal investors guide to capital gains tax 2020 (NAT 4152), or provide details in their own explanatory material.

Some trusts complete this with a note where the investor has sold membership interests during the year to say this amount attaches to the distribution and is in addition to the capital gain attaching to the sale. Some trusts provide the capital gain attaching to the sale separately.

6. E item 20: Assessable foreign source income
   M item 20: Other net foreign source income
   R item 20: Net foreign rent

The amount at E must be greater than or equal to the sum of the amounts at M and R.

7. O item 20: Foreign income tax offset

For many small investors the $1,000 de minimis rule will apply and they will not need to do any calculations to work out their FITO entitlement. However, as the trustee won't know if an investor can use the de minimis rule, trustees may wish to refer investors to Guide to foreign income tax offset rules 2020.

If a trustee has paid foreign income tax on income or capital gains to overseas tax authorities, then the trustee needs to provide the following additional information in case the investor has to calculate their FITO entitlement:

• the foreign tax paid on capital gains included in the investor’s distribution or attributed amount. The amount allowable as a FITO to the individual investor may be reduced if their own capital losses are offset against these amounts.
• the foreign tax paid on other foreign source income included in the investor’s distribution or attributed amount.
• the foreign tax paid on non-assessable non-exempt income, namely attributed income under section 23AI of the ITAA 1936 and attributed foreign investment fund income under section 23AK of the ITAA 1936.

Part C: Components of an attribution (AMMA statement) or a distribution (SDS)

8. Australian income

These details provide a break up of:

• C item 13 Non-primary production – Franked distributions from trusts
• L item 13 Primary production income – Share of net income from trusts
• U item 13 Non-primary production – Share of net income from trusts less capital gains, foreign income and franked distributions

The information is necessary for those investors who use the Application for refund of franking credits for individuals 2020 (NAT 4098) and Refund of franking credits instructions and application for individuals 2020 (NAT 4105).

Primary production income – This item also includes the investor’s share of NCMI primary production income, for example, income attributable to agricultural land held for rent and Excluded from NCMI amount in relation to primary production income, that is, income from transitional arrangements or approved economic infrastructure facilities.

Non-primary production income – This item also includes the investor’s share of NCMI non-primary production income, that is, cross staple income, trading trust income and residential housing income and Excluded from NCMI amount in relation to non-primary production income such as income from transitional arrangements or approved economic infrastructure facilities.

LIC capital gain deduction – If a listed investment company (LIC) pays a dividend that includes a LIC capital gain amount, the shareholder may be entitled to an income tax deduction for the part of the dividend attributable to that amount. If a shareholder in a LIC is a trust, a beneficiary of that trust has no share of the attributable part, however the trustee can deduct 50% of the attributable part in calculating the net income of the trust. Trustees may choose to disclose the amount of the dividend attributable to a LIC capital gain for information only.

AMMA statement – Dividends: Franked amount (Franked distributions) is the amount after the allocation of deductions to the Franked dividend and Franking credits (grossed-up), if applicable. Franking credits (grossed up) may be less than the tax offset available to the investor where the Franking credit (grossed up) amount has been reduced by deductions. Show the amount of Share of franking credit from franked dividends in part B at Franking credit tax offset at Table 4 – Tax offsets.

9. Capital gains discount – Taxable Australian property
   Capital gains discount – Non-taxable Australian property

If the trust's capital gain has been reduced by the 50% discount, show the part of the discount capital gain (for example, after applying the CGT discount) that is included in the investor's share of net income (or, for an AMIT, their member components of those characters).

10. Capital gains other – Taxable Australian property
    Capital gains other – Non-taxable Australian property

These items show the part of the capital gain included in the investor's share of net income (or, for an AMIT, their member components of those characters) where the trustee has not applied the discount method.

These four capital gains items (Capital gains discount and Capital gains other), which are required to allow an investor to make choices about the order in which capital losses are applied against capital gains, form part of the calculation of the Net capital gain, and are also relevant for investors preparing CGT schedules.

11. Net capital gain

This item is the sum of the Attribution column (AMMA statement) / Taxable amount column (SDS) of Table 2 – Capital gains and represents the total net capital gain included in the investor's share of net income (or, for an AMIT, their member components of those characters). In our example, this is $155, which is taken into account at A item 18 on the Tax return for individuals (supplementary section) 2020 in part B.

This item also includes the investor's share of income categorised as NCMI income and Excluded from NCMI income.

Where the individual investor has no current year capital losses or unapplied prior year net capital losses, this figure can be used directly to complete A item 18. If the investor has current year capital losses or unapplied prior year net capital losses that can be applied against their share of these capital gains, they would need to refer to the Guide to capital gains tax 2020 or Personal investors guide to capital gains tax 2020 (NAT 4152).

12. AMIT CGT gross up amount (AMMA statement)
    CGT concession amount (SDS)

AMMA statement – the AMIT CGT gross up amount is the additional amount treated as capital gains of members under subsections 276-85(3) and (4) of the ITAA 1997, and included in the AMIT cost base increase amount under subsection 104-107E(4) of the ITAA 1997. This amount should be equal to the sum of the Attribution column for Capital gains discount – Taxable Australian property and Capital gains discount – Non-taxable Australian property. This amount is shown in the Attribution column at Table 2 – Capital gains to reconcile the total current year capital gains amount to be shown at 18H on the individual tax return. Do not include any amount in the Cash distribution column.

AMMA statement – Other capital gains distribution is shown in the Cash distribution column to represent the total amount of cash distributed in relation to all capital gains, other than amounts already shown in the Cash distribution columns in Table 2 – Capital gains. This need not be equal to the AMIT CGT gross up amount.

SDS – the CGT concession amount (non-AMIT) is identified as the amount referred to in subsection 104-71(4) of the ITAA 1997, including CGT discount amounts paid to the investor. Frozen indexation amounts paid to the investor should not be shown as CGT concession amounts on the distribution statement. Show this amount in the Cash distribution column. Do not include the CGT concession amount in the Taxable amount column.

A trustee must provide its members with the information needed to determine cost base adjustments. The trustees of AMITs should consider providing additional information in the AMMA statement in relation to capital gain amounts they distribute, for instance, to enable a non-AMIT investing in an AMIT to provide its investors with the necessary information to determine their CGT event E4 cost base adjustments. This could include, for example, the extent to which an underlying discount capital gain is reflected in a payment to the non-AMIT.

13. Total current year capital gains

This item represents the total amount of capital gains attributed (AMMA statement) or included in the investor's share of the capital gains (SDS) and includes the grossed up amount of the gains at Capital gains discount – Taxable Australian property and Capital gains discount – Non-taxable Australian property in the Attribution (AMMA statement) or Taxable amount (SDS) column. The total amount of capital gains distributed (cash) should be shown in the Cash distribution column.

14. Foreign income

Capital gains made by Australian residents from foreign sources are not assessable foreign income and should not be shown in this section of part C but in the capital gains section of part C.

Other net foreign source income includes income derived from foreign sources including dividend, interest, royalties, any other foreign source income and foreign tax paid on those amounts. Foreign rental income can be included at Net foreign rent.

Assessable foreign source income includes the amounts reported at Other net foreign source income and Net foreign rent.

Complete these fields exactly as you would report them in the corresponding fields in the AIIR.

15. Tax offsets (AMMA statement)

These are the offsets that may be available to be claimed by the investor. The items and amounts shown will help the investor to complete their tax return. Where the investor's circumstances are relatively straightforward, they may be able to use these amounts directly, however some investors may require additional information to determine their tax offset entitlement. Table 4 does not include all tax offsets that may be available to the investor and the trustee should add any other applicable tax offsets.

Depending on the particular tax offset, the trustee may also need to include additional information on the AMMA statement to reflect the character of the member components attributed to the investor, as the character should generally reflect the amount that gives rise to the tax offset. For example, for a Foreign income tax offset, the character of the member component will be the 'foreign income tax paid that counts towards a tax offset under Division 770' (see, for example, section 276-335 of the ITAA 1997).

Franking credit tax offset is the total amount of the franking credits available to the investor to claim as a tax offset. This amount may be greater than the franking credits (grossed up) amount shown at Table 1 – Australian income.

Foreign income tax offset is the maximum amount available to the investor to claim.

16. Other non-assessable amounts

Net exempt income is the investor's share of the net exempt income of the trust as per section 36-20 of the ITAA 1997. Investors may be required to adjust either the cost base or reduced cost base of their membership interests for this amount. The nature of the adjustment will depend on whether the trust is an AMIT or a non-AMIT.

Non-assessable non-exempt amount is the investor's share of the amounts referred to in section 6-23 of the ITAA 1997. AMIT investors are required to adjust the cost base and reduced cost base of their membership interests for this amount.

Other non-attributable amounts (AMMA statement) are cash distributions and other entitlements from an AMIT that exceed the attribution amount, to the extent they are not already shown in other tables. For a non-AMIT, these broadly correspond to amounts that are categorised as, for example, tax-deferred amounts (including returns of capital) and tax-free amounts (other than those amounts that are included in Net exempt income). As these amounts comprise cash distributions by the AMIT, they are reflected in the calculation of the AMIT cost base net amount. It does not include Other capital gains distributions shown at Table 2 – Capital gains.

Tax free amounts (SDS) are amounts referred to in subsection 104-71(3) of the ITAA 1997. Investors are required to reduce the reduced cost base (but not reduce the cost base) of their membership interests by these amounts. These amounts now only include:

• infrastructure borrowing amounts under section 159GZZZZE
• exempt income arising from shares in a pooled development fund under sections 124ZM, and 124ZN of the ITAA 1936, and
• certain amounts relating to an investment in an early stage venture capital limited partnership.

Tax deferred amounts (SDS) are amounts referred to in subsection 104-70(1) note 2 of the ITAA 1997. Investors are required to reduce both the cost base and reduced cost base of their membership interests by these amounts. Building allowance amounts paid on or after 1 July 2001 are now treated as tax deferred amounts.

To provide MITs and their investors with the necessary information to determine the amount of CGT event E4 cost base adjustments, Division 6 trusts may need to separately identify amounts excluded under table item 7 in subsection 104-71(4) of the ITAA 1997.Gross cash distribution includes all cash distributions as well as other non-cash entitlements that the investor may have, such as an entitlement to additional membership interests.

AMIT cost base net amount (AMMA statement)
Under Subdivision 276-H of ITAA 1997 trustees of AMITs are required to state their reasonable estimate of this amount on the AMMA statement for the income year. The trustees may need to include additional fields to separately report the AMIT cost base net amount in respect of each of the investor’s membership interests. The investor's actual AMIT cost base net amount may differ as a result of the investor's particular circumstances.

Tax free amounts and Tax deferred amounts are not used by the investor to calculate their cost base or reduced cost base adjustment, but are generally reflected in the calculations for the AMIT cost base net amount. They may be reflected in Other non-attributable amounts.

AMIT cost base net amount – excess (decrease) (AMMA statement)
There will be an AMIT cost base net amount – excess where the AMIT cost base reduction amount exceeds the AMIT cost base increase amount. The investor must reduce the cost base and reduced cost base of their membership interests in the AMIT by the AMIT cost base net amount – excess (decrease).

A capital gain may also arise if the investor's AMIT cost base net amount - excess (decrease) is greater than their cost base in the membership interests.

AMIT cost base net amount – shortfall (increase) (AMMA statement)
There will be an AMIT cost base net amount – shortfall (increase)where the AMIT cost base reduction amount falls short of the AMIT cost base increase amount. The investor must increase the cost base and reduced cost base of their membership interests in the AMIT by the AMIT cost base net amount – shortfall (increase).

There is no requirement to provide the AMIT cost base reduction amount or the AMIT cost base increase amount in working out the AMIT cost base net amount (excess or shortfall) but trustees may choose to do so.

The AMIT cost base reduction amount is the sum of Gross cash distribution (G) and Total tax offsets (E).

AMIT cost base increase amount is the sum of amounts in the Attribution column in the:

• Australian income table at (A), (B), (X)
• Capital gains table at (C)
• Foreign income table at (D)
• Other non-assessable amounts and cost base details table at (F).

17. Other amounts deducted from trust distributions

TFN amounts withheld
This item allows the cash amount to be reconciled in part C.

Other expenses
This item allows the cash amount to be reconciled in part C. This is used for expenses incurred by investors (for example, management fees) and not deductions allowable to the trustee that are taken into account in the net income calculation.

Only the deductible expenses component of this amount should feed through to part B, Y item 13.

The Credit for foreign resident capital gains withholding amounts allows the cash amount to be reconciled in part C. Write at this label the amount of the entitlement to a share of a credit that is recorded at label 18X. For more information about foreign resident capital gains withholding, see Capital gains withholding: Impacts on foreign and Australian residents.

Non-resident reporting
Additional information specific to non-residents has been included for trusts that provide statements to non-residents. Relevant fields indicate which table they should be shown in. The example numbers used in the Table 7 – Reporting for the purposes of non-resident withholding tax and income tax may not reconcile with the example numbers in the rest of part C because those numbers relate to a resident investor. The rest of part C would need to be reworked for the numbers to reconcile for a non-resident.

Show:

• Interest exempt from withholding in Table 1 and include it in the calculation of Non-primary production income
• total dividend, interest and royalties non-resident withholding amount in Table 6
• NCMI withheld amounts at non-resident withholding amount in Table 6
• Managed investment trust fund payments in Table 6 and include the fund payments for both actual and deemed payments
• Deemed payments for interest, dividends, royalties and fund payments separately in Table 7, however trustees may choose to show an aggregate total for deemed interest, dividends and royalties. Show deemed fund payments separately.

18. 'Please retain this statement for income tax purposes'

The inclusion of this wording in the AMMA statement or SDS exempts the trustee from the requirement to include the words 'Payment summary' on the statement where TFN amounts have been withheld from the investment. Our position on this and other PAYG withholding payer issues was provided to the FSC on 21 December 2001.