Write at I the gross distribution from all partnerships. If the distribution includes an amount of foreign income, including New Zealand franking company dividends and supplementary dividends, include that portion of the distribution at D1 Gross foreign income and take it into account in calculating D Net foreign income.
Include any amounts subject to foreign resident withholding that were distributed to the fund from a partnership. Also include the fund's share of credit from foreign resident withholding. A credit can be claimed for the fund's share of credit from foreign resident withholding in the calculation statement at F2 Credit: foreign resident withholding item 12.
If the amount calculated is a loss, print L in the Loss box at the right of the amount.
If a distribution includes franked dividends (including franked non-share dividends), gross up the distribution to include any attached franking credit. If your fund is a complying superannuation fund, complying ADF or PST, write the amount of franking credit attached to such dividends at F4 Credit: refundable franking credits item 12. If your fund is a non-complying superannuation fund or non-complying ADF, include the amount of franking credits attached to such dividends at C2 Credit: rebates and tax offsets item 12.
If family trust distribution tax (FTDT) has been paid on income received by the fund from partnerships, exclude that amount from the assessable income of the fund (under section 271-105 of Schedule 2F to the ITAA 1936).
If ultimate beneficiary non-disclosure tax (UBNT) has been paid on a share of the net income of a closely held trust to which another trust is presently entitled, that income attributable to the UBNT to which the fund is presently entitled or which has been distributed to the fund is excluded from the assessable income of the fund under sections 102UK and 102UM of the ITAA 1936.
Losses and outgoings incurred in deriving an amount that is excluded from assessable income under section 271-105 of Schedule 2F or sections 102UK or 102UM of the ITAA 1936 are not deductible. A tax offset cannot be claimed by the fund for any franking credits attributable to the whole or a part of a dividend that is exempt from income tax under section 271-105 of Schedule 2F, section 102UK or section 102UM of the ITAA 1936.
Record keeping
Keep a record of the:
- full name of the partnership
- TFN of the partnership if known
- amount of income.
Notes for completing J Unfranked dividend amount, K Franked dividend amount, L Dividend franking credit and M gross trust distributions
Dividends or non-share dividends that the fund receives from Australian payers may carry franking credits. Such dividends are called franked dividends, and the franking credits they carry reflect the amount of tax paid by the payer.
Dividends and non-share dividends where no tax has been paid are called unfranked dividends.
Add all the franked and unfranked dividend amounts received and all the franking credits to determine the fund's assessable income from these dividends.
Non-share dividends are treated in the same way as dividends. Write the amount of the non-share dividends, whether franked or unfranked, and any amount of franking credit attached to those dividends, at the appropriate place on the tax return as if they were for shares.
Non-share dividends are returns paid on non-share equity interests. These interests are not shares in legal form but are treated in the same way as shares under the debt and equity measures.
For more information on the debt and equity rules and what a non-share equity interest is, see the Guide to the debt and equity test
If family trust distribution tax (FTDT) has been paid on a dividend (including a non-share dividend) paid or credited to the fund by a company that has made an interposed entity election, do not include that dividend in the assessable income of the fund (section 271 105 of Schedule 2F to the ITAA 1936).
- Losses and outgoings that the fund incurred in deriving (that is, an amount that is excluded from assessable income under section 271-105 of Schedule 2F) are not deductible.
- The fund cannot claim a credit (or tax offset) for any franking credit attached to the whole or portion of the dividend which is exempt income under section 271-105 of Schedule 2F.
If the fund received a dividend from a private company, you must establish whether the dividend is classified as non-arm's length income.
For more information, refer to Taxation Ruling TR 2006/7 Income tax: special income derived by a complying superannuation fund, a complying deposit fund or a pooled superannuation trust in relation to the year of income.
If such a dividend is considered non-arm's length income, write the amount at U Net non-arm's length income.
J, K and L refer to dividends derived from investments in resident entities (including listed investment companies). Dividends that form part of a trust distribution must be written at N or O and P.