myTax 2023 Amount on which family trust distribution tax has been paid

Things to know

Complete this section if you received a distribution on which family trust distribution tax has been paid.

Distributions on which family trust distribution tax is payable include:

• income and property from a trust or partnership
• dividends and property from a company
• the use of property owned by the trust, partnership or company for which you have not paid full value, such as the free use of a holiday house.

The trust, partnership or company should be able to tell you if family trust distribution tax has been paid on a distribution to you.

Family trust distribution tax is payable on any distribution made to a person outside a ‘family group’ by either:

• a trust which has elected to be a family trust
• a trust, partnership or company that has made an interposed entity election to be included in the 'family group' of a family trust.

Show at this section the net amount on which family trust distribution tax has been paid. This is:

• any part of a distribution to you on which family trust distribution tax has already been paid
• less any expenses that would have been deductible against that distribution.

The amount shown at this section isn't included in your assessable income. However, we use it to determine whether you are liable to pay the Medicare levy surcharge (MLS), and the rate of MLS you will have to pay.

Don't include any part of a distribution from a trust, partnership or company for which family trust distribution tax has not been paid or you may be taxed incorrectly, go to Trusts at this section.

Completing this section

To personalise your return to show amounts on which family trust distribution tax has been paid, at Personalise return select:

• You are claiming tax offsets or adjustments
• Amount on which family trust distribution tax has been paid

To show your amounts on which family trust distribution tax has been paid, at Prepare return select 'Add/Edit' at the Adjustments banner.

At the Amount on which family trust distribution tax has been paid heading:

1. Add up the amounts or value of all distributions to you by a trust, partnership or company during 2022–23 that would have been assessable income if family trust distribution tax had not been paid.
2. Add up all the expenses that you would have been able to claim as a deduction if the distributions had been included in your assessable income.
3. Subtract your amount at step 2 from your amount at step 1.
4. Enter the amount from step 3 at Amount in myTax.
   If the amount from step 3 is zero or less than zero, don't enter anything.
5. Select Save and continue when you have completed the Adjustments section.

How to report a distribution on which family trust distribution tax has been paid when you lodge your return using myTax.