What's new?
A new tax system for managed investment trusts (MITs) has been enacted which will apply from 1 July 2016. However, a trustee of a MIT may choose to apply those rules from 1 July 2015.
Trustees of MITs and other trusts treated as MITs will continue to be able to choose to apply the 2011 trust streaming provisions for income years up to 2016–17 (after which the choice will not be available to MITs).
Introduction
The 2016 standard distribution statement (SDS) is the format recommended by the ATO, the Financial Services Council (FSC) and the Australian Custodial Services Association (ACSA) for disclosure by managed funds of tax information to resident individuals for completion of the 2016 tax returns, relevant schedules and other requirements.
This format can also be used by MITs who meet the eligibility requirements and choose to apply the rules under the New tax system for MITs from 1 July 2015, as it aligns with the Annual investment income report (AIIR). The statement should be identified as an Attribution managed investment trust members annual statement (AMMA statement).
The 2016 statement that appears below shows amounts as examples that we will refer to in the guidance notes that follow it.
Abbreviations
AIIR |
annual investment income report |
AMMA statement |
Attribution managed investment trust members annual statement |
CFC |
controlled foreign company |
CGT |
capital gains tax |
FSC |
Financial Services Council |
ITAA 1936 |
Income Tax Assessment Act 1936 |
ITAA 1997 |
Income Tax Assessment Act 1997 |
MIT |
Managed investment trust |
SDS |
standard distribution statement |
TAP |
taxable Australian property |
TFN |
tax file number |
Purpose
These notes are designed to help those preparing fund manager distribution statements understand the basis that the 2016 statement format has been determined on, and the rationale behind the various items disclosed on the statement.