You must complete Section D. You must answer questions A, T1, J, T2, T5, I and S.
This section works out the amount of tax and other charges payable by, or refundable to, the SMSF. We also use the information which you provide in this section to work out the SMSF's 2016–17 PAYG instalment essentials (if applicable to the SMSF).
Work through each question from A Taxable income to S Amount due or refundable and:
- write the relevant amount if the question applies to your SMSF, or
- write 0 if the question:
- does not apply to your SMSF, and
- is one of the mandatory questions (A, T1, J, T5 and I) or
- leave the answer box blank for any other question that does not apply to your SMSF.
Answer the questions in their sequence.
- Some questions rely on information you have already entered in previous questions.
- On page 5 you will need to go through the questions in the left-hand column (C1-2, E1-3, H1-6) before you can complete three questions in the right-hand column (C, E, H).
Entitlement to franking credits tax offset
Under the imputation system, tax paid by a company is able to be passed on to its members (shareholders) as a credit (referred to as a franking credit). The member may be able to claim a tax offset for that franking credit (referred to as a franking credits tax offset).
If the SMSF receives dividends with franking credits attached, and none of the exceptions in the following paragraph apply, the SMSF can claim a franking credits tax offset equal to the amount of the franking credit or the SMSF's share of the franking credit.
The SMSF is not entitled to a franking credits tax offset if:
- the SMSF was not an Australian resident
- the SMSF did not satisfy the holding period rule and the related payments rule for the dividend
- the dividend washing integrity rule applies
- there is some other manipulation of the imputation system
- the franking credits are attached to tax exempt dividends (unless they are exempt from income tax under the exempt current pension income rules)
- the franking credits are attached to dividends that are non-assessable non-exempt income.
If the SMSF is entitled to a franking credits tax offset, include the amount of the franking credit (along with the dividend income) at the appropriate question in Section B and include the franking credit amount at either:
- E1 Complying fund’s franking credits tax offset if the SMSF is complying, or
- C2 Rebates and tax offsets if the SMSF is non-complying.
A complying SMSF is entitled to a refund if it is unable to fully utilise the tax offset in reducing its income tax whereas a non-complying SMSF is not entitled a refund of the unused portion of a tax offset amount.