Did the SMSF receive any gross distributions from partnerships?
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No |
Leave I blank. Go to J, K, L Dividend amounts and franking credits. |
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Yes |
Read on. |
Write at I the total of all gross distributions from partnerships received in 2018–19. If the total amount is a loss, print L in the box to the right of the amount.
A distribution from a partnership can include different types of income. Include all types of income included in the distribution at I except:
- capital gains (include these at A Net capital gain)
- foreign income, including New Zealand franking company dividends and supplementary dividends (include it at D1 Gross foreign income)
- part of a distribution on which family trust distribution tax or trustee beneficiary non-disclosure tax has been paid (do not include anywhere in Section B: Income)
- franking credits, if the SMSF is not entitled to a corresponding tax offset (do not include these anywhere in the SMSF annual return)
- the SMSF’s share of net income from pooled superannuation trusts (PSTs)
- non-arm's length income of a complying SMSF (include it at U3 Net other non-arm's-length income).
For example, if a distribution from a partnership includes interest, include this interest income at I rather than at C Gross interest.
If the partnership distributions included franking credits attached to dividends and the SMSF is entitled to a corresponding franking credits tax offset (see Entitlement to a franking credits tax offset), include the amount of the franking credit at I and also at either:
- E1 Complying fund’s franking credits tax offset in section D if the SMSF is a complying fund
- C2 Rebates and tax offsets in section D if the SMSF is a non-complying fund.
If partnership distributions included amounts subject to foreign resident withholding in Australia, include the SMSF's share of credit for foreign resident withholding at I and also at H2 Credit for tax withheld – foreign resident withholding in section D.
If you include an amount at I that is exempt current pension income, include it also at Y Exempt current pension income.
Keep a record of the following:
- full name of the partnership
- TFN of the partnership if known
- amount of income.
For more information, see Record-keeping requirements.
Example: Distributions from partnerships
SMSF G had a 50% share in a partnership. In 2018–19, the partnership's income was:
$6,000 bank interest
$10,000 franked dividends, and
$5,000 franking credits.
The SMSF's share of this income was:
$3,000 bank interest
$5,000 franked dividends
$2,500 franking credits
The total of the SMSF's share of the partnership income was $10,500.
Assuming SMSF G is complying and the income is at arm's length, SMSF G reports:
I Gross distributions from partnerships $10,500
E1 Complying fund’s franking credits tax offset in section D $2,500
End of exampleContinue to: J, K, L Dividends and franking credits