53 National rental affordability scheme (NRAS) tax offset
Show at label F National rental affordability scheme tax offset entitlement the total NRAS tax offset available to the beneficiaries or trustee (including any NRAS tax offset received indirectly through a partnership or other trust) for the income year.
The beneficiaries and trustee's share of the NRAS tax offset must be shown at this item and at item 58 Statement of distribution.
Refundable NRAS tax offsets may flow indirectly to certain beneficiaries of a trust or to the trustee of the trust provided the Secretary of the Department of Social Services has issued the trust (or a trust through which their interest is ultimately obtained) a certificate under NRAS and the income year of that trust begins in the NRAS year to which the certificate relates.
The amount of the tax offset is the amount stated on the certificate shared between the beneficiaries of the trust (or the trustee) according to their share of the NRAS rent of the trust for the NRAS year and the total NRAS rent derived by rental dwellings covered by the certificate for the relevant income year.
If a trustee is assessed under section 98 of the ITAA 1936 on behalf of a beneficiary who is entitled to a share of the NRAS rent, then the trustee is entitled to that percentage share of the NRAS tax offset.
If the trustee is assessed under section 99 or 99A of the ITAA 1936, the trustee may also be entitled to a share of the NRAS tax offset.
In circumstances where the trust has no net income for the year, for the purposes of the NRAS provisions, no beneficiary can receive a share of NRAS rent indirectly and, as a result, no NRAS tax offset can flow indirectly to the beneficiaries. In these circumstances, the trustee may be able to claim the refundable tax offset.
The amount of the trust’s tax offset is the amount stated on the certificate issued by the Secretary of the Department of Social Services. However, if the Secretary issues the entity with an amended certificate under the National Rental Affordability Scheme Act 2008External Link, the amount of the trust’s tax offset is the amount stated in the amended certificate.
Note the NRAS is no longer taking new investments.
For more information, see National rental affordability scheme – taxation issues.
54 Other refundable tax offsets
Show at label G Other refundable tax offsets the total exploration credits received by the trust during the income year (including any exploration credits received indirectly through a partnership or other trust) and print E in the CODE box.
Show the beneficiaries and trustee's share of the exploration credit tax offset at this item and at item 58 Statement of distribution.
For more information, see What to do if you receive exploration credits.
55 Non-refundable carry forward tax offsets
Show the following amounts that the trust has available to allocate to the beneficiaries and the trustee for 2023–24 at:
- label H Early stage venture capital limited partnership tax offset the total amount of the Early stage venture capital limited partnership tax offset for the current year
- label I Early stage investor tax offset the total amount of the .
If the trustee has a carried forward amount of either of these tax offsets from the previous year, show them under item 58 Statement of distribution – Income to which no beneficiary is presently entitled at:
- label K Early stage venture capital limited partnership tax offset carried forward from previous year or
- label M Early stage investor tax offset carried forward from previous year.
Early stage venture capital limited partnership tax offset for the current year
An entitlement to the early stage venture capital limited partnership (ESVCLP) tax offset may be available for eligible contributions made to an ESVCLP during the current year.
The ESVCLP must have become unconditionally registered on or after 7 December 2015.
If the trust is a limited partner of an ESVCLP, the amount of the tax offset that the trust would be entitled to is 10% of the lesser of the following:
- the trust's total contribution to the ESVCLP during 2023–24 (certain exclusions apply), and
- the trust's share (based on the trust's interest in the entire capital of the ESVCLP at the end of the current income year) of the sum of eligible venture capital investments made by the ESVCLP during the period starting at the start of the current income year and ending 2 months after the end of the current income year.
If the trust is a partner in a partnership or a beneficiary of another trust which has contributed to an ESVCLP, the trust may be entitled to an amount of ESVCLP tax offset. A written notification will be provided by the partnership or trustee of the other trust setting out the trust's entitlement to this tax offset. If a written notification has not been provided, contact the partnership or the trustee of that other trust.
Show at label H the sum of the ESVCLP tax offset amounts:
- to which the trust would have been entitled for 2023–24
- that have been allocated to the trust as a member of another trust or a partnership.
The amount at label H is the amount of the ESVCLP tax offset that is available for allocation to the beneficiaries and trustee for 2023–24.
This tax offset is non-refundable. If the trustee is entitled to an amount of tax offset and is unable to utilise it in the current year, the trustee may be able to carry forward the tax offset.
The amount of unused ESVCLP tax offset from the current year will be shown on the trustee’s notice of assessment for 2023–24.
For more information on working out the amount of the ESVCLP tax offset available to the trust for allocation in 2023–24, see ESVCLP tax incentives and concessions.
Early stage investor tax offset for the current year
An entitlement to the early stage investor tax offset may be available for investments made in an eligible early stage innovation company during the current year. To qualify for this tax offset there are requirements that need to be satisfied by the investor (that is, trust) and by the early stage innovation company. If the investor is entitled to an early stage investor tax offset for the current year, this amount is worked out as set out below.
Calculating the 2023–24 early stage investor tax offset available to the trust
- Step 1: Work out the total amount the trust paid for newly issued shares in all early stage innovation companies in 2023–24.
If the trust does not meet the requirements of the 'sophisticated investor' test for at least one of the investments in an early stage innovation company in 2023–24, the step 1 amount must not exceed $50,000. If the step 1 amount exceeds $50,000 the trust can't claim this offset. - Step 2: Multiply the step 1 amount by 20%.
- Step 3: Identify the amount of any early stage investor tax offsets that have been allocated to the trust as a beneficiary of another trust, or a partner in a partnership, that has invested in an early stage innovation company during 2023–24.
- Step 4: Add together the amounts at step 2 and step 3. This is the step 4 amount.
- Step 5: Subtract from $200,000 the amount (if any) reported at item 58 Statement of distribution – label M Early stage investor tax offset carried forward from previous year. This result is the step 5 amount.
- Step 6: If the step 4 amount is equal to or less than the step 5 amount, write the step 4 amount at label I.
If the step 4 amount is greater than the step 5 amount, write the step 5 amount at label I.
The amount reported at label I may need to be further reduced if any of the trust's affiliates are entitled to the early stage investor tax offset (whether for investments they made in 2023–24 or carried forward from 2022–23). The maximum offset (including current year and carried forward from prior year amounts) that you and your affiliates combined, are entitled in 2023–24 is $200,000.
The amount at label I is the amount of the early stage investor tax offset that is available for allocation to the beneficiaries and trustee for 2023–24.
This tax offset is non-refundable. If the trustee is entitled to an amount of tax offset and is unable to utilise it in the current year, the trustee may be able to carry forward the tax offset.
The amount of unused early stage investor tax offset from the current year will be shown on the trustee’s notice of assessment for 2023–24.
For more information, see Tax incentives for early stage investors.
Continue to: Medicare levy reduction or exemption – item 56
Return to: Instructions to complete the Trust tax return 2024