Fund income tax and regulatory return instructions

w w w . a t o . g o v . a u

F u n d i n c o m e t a x a n d r e g u l a t o r yr e t u r ni n s t r u c t i o n s

What’s new?

Foreign source incomeThin capitalisation provisions

Uniform capital allowances system (and refer to PS2002/8)

2002

NAT 1601—6.2002

© Commonwealth of Australia 2002

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced byany process without prior written permission from the Commonwealth available from the Department ofCommunications, Information Technology and the Arts. Requests and inquiries concerning reproduction and rightsshould be addressed to the Manager, Copyright Services, Info Access, GPO Box 1920 Canberra ACT 2601.

ForewordThis publication is to assist in the completion of the Fund income and regulatory tax return 2002. This is NOTa guide to the income tax law. More detailed information is available in other publications.

Other publications you may need to refer to when completing the Fund return are:• Capital allowances schedule 2002 instructions• Foreign income return form guide• Foreign investment funds guide• Guide to capital gains tax• Guide to depreciating assets• Guide to thin capitalisation• Income Tax Assessment Act 1936• Income Tax Assessment Act 1997• Losses schedule 2002 instructions• MCS instruction guide• Schedule 25A 2002 instructions• Self Managed Superannuation Funds—A do it yourself guide for trustees

running a Self Managed Superannuation FundTo find out how to obtain copies of these publications, see the inside back cover of these instructions.

Please get help from the Australian Taxation Office or a professional tax practitioner if you feel this publicationdoes not fully cover your circumstances.

As part of our commitment to producing accurate publications, a taxpayer will not be subject to penalties if it isdemonstrated that a tax claim is based on wrong information contained in this publication. However, interestcould be payable depending on the circumstances of each case.

FUND INCOME TAX AND REGULATORY RETURN INSTRUCTIONS

www.ato.gov.au

ContentsNew schedules 1

Thin capitalisation schedule 1

Schedules 1Capital allowances schedule 1Capital gains tax (CGT) schedule 1Losses schedule 2Non-individual PAYG payment summary schedule 2

General information 3Important messages 3

Dividends, interest and royalties 3Election to become a regulated fund 3Penalty for failure to notify 3

Residency status 3Self determination of foreign tax credits 3Self managed superannuation fund 4

Record keeping requirements 4Record keeping and retention 4Capital gains tax record keeping 4Tax losses record keeping 5E-record 5Record keeping for overseas transactions and interests 5

Return form 5First fund return 5Lodging the return, schedules, etc. 5Annual levy 6Assessment 6Objection to self-assessment 6Application to the Commissioner for a private ruling 6Review rights 6Withdrawals 7

Payment arrangements 7Paying your tax debt 7What if the fund cannot pay the tax debt by the due date? 7Penalties 7

Completing the tax return 8Tax file number 8Name of fund or trust 8Australian Business Number 8Previous name of the fund or trust 8Current postal address 8Postal address on previous return 8Contact email address 8Name of trustee and ABN 8Hours taken to prepare and complete this return 8Business postcode 8Was the fund or trust wound up during the year? 8Date wound up 8

1 Superannuation fund number 8

2 Date of establishment of fund or trust 8

2 0 0 1– 0 2

www.ato.gov.au

3 Status of fund or trust 8Membership industry classification 8

Table 1 Membership industry classification codes 9

4 Type of fund or trust 9Table 2 Categories of funds or trusts 9

5 Family trust/interposed entity election status 9Election status codes 10

Table 3 Election status code—Family trust election 10Table 4 Election status code—Interposed entity election 11

Revocation 11

6 Compliance status 11

7 Self managed funds—electronic only 12

Income tax calculation and information statement 13

8 Calculation statement 13Refund of excess imputation credits 13

Taxable income 13Gross tax 13Foreign tax credits 13Rebates/tax offsets 13Commonwealth loan interest rebate 13Total of labels D and C 13Tax payable 13Section 102AAM interest charge 13Credit for interest on early payments—amount of interest 14

Table 5 Interest on early payments rates for 2001–02 income year 14Credit for tax withheld where ABN not quoted 14Other refundable credits 14Total of labels V, M and Q 14Subtotal 14Instalment(s) paid 14Total amount of tax payable (+) or refundable (–) 14Record retention 15

Tax file number 15

Information Statement 15

9 Income 15Did you have a CGT event during the year? 15Net capital gain 15Gross rent and other leasing and hiring income 15Gross interest 16Continuously complying fixed interest ADFs 16Gross Dividends 16

Unfranked amount 16Franked amount 16Imputation credit 16

Gross foreign income 16Net foreign income 16Gross taxable employer contributions 17

Pre-1 July 1988 funding credits 17Gross taxable employee or depositor contributions 17


www.ato.gov.au

Table 6 Superannuation age based limits 17Transfers between superannuation funds 18Approved deposit funds 18

Net private company dividends and other excessive non-arm’s length income 18Sections 288A and 288B net previous income 18Gross distribution from partnerships 19Gross payments where ABN not quoted 19Gross distribution from trusts 19

Table 7 Type of trust 20Table 8 Description of trusts 20

Other income 21Total of above labels excluding label I 21

9 Less 21Interest expenses within Australia 21Interest expenses overseas 21Total salary and wage expenses 21Capital works deductions 21Deduction for decline in value of depreciating assets 22Group life and disability premiums 22Management and administration expenses 22Investment expenses 22Other deductions 23

Table 9 Other deductions 23Potential detriment payments made after the death of a member 23Claw back deductions 23Environment protection expenditure 23Listed investment company (LIC) capital gain amount 23

Transfer of taxable contributions 24Tax losses deducted 24Exempt current pension income 24Exempt section 290A income 25

Continuously complying fixed interest ADFs 25Taxable income or loss 25

10 Losses information 25Tax losses carried forward to later income years 25Net capital losses carried forward to later income years 26

11 Other information 26Intangible depreciating assets first deducted 26Other depreciating assets first deducted 26Termination value of intangible depreciating assets 26Termination value of other depreciating assets 27Total investments 27Number of members 27Exempt section 274(7) contributions 27Exempt section 275B contributions 27Attributed foreign income 27Broad-exemption listed country 27Limited-exemption listed country 27Unlisted country 27FIF/FLP income 28Tax spared foreign tax credits 28

2 0 0 1– 0 2

www.ato.gov.au

12 Landcare and water facility tax offset 28Water facility offset claimed 28Landcare and water facility tax offset brought forward from prior years 28

13 Internet transactions 28

Items 14 to 23 29Note 1: Agents for non-residents 29

Table 10 Overseas transactions or interests Industry types 29Note 2: Dividends as the only international transactions 29Note 3: Schedule 25A and Thin capitalisation schedule 29

14 International related party dealings/Transfer pricing 29

15 Aggregate amount of dealings or transactions 29

16 Overseas interests 29

17 Thin capitalisation 30

18 Foreign source income 30

19 Exempt current pension income 30

20 Death or disability deduction 30

21 Transfer of taxable contributions 30

22 Exempt income claim 30

23 Payments to contributing employers and associates 30

Regulatory information for self managed superannuation funds 30

24 Fund’s auditor details 30

25 Which professional body does the auditor belong to? 30Table 11 Professional Body/Qualification 31

26 Is the auditor’s report qualified? 31

27 Did the fund comply with all the relevant SIS requirements? 31

28 Audit qualification or non-compliance with SIS 31

29 Financial information 31Earnings—column 1 31Asset values—column 2 31

29(a) Managed investments 31Life insurance policies 31Other managed investments 31

29(b) Direct investments 31Overseas assets 31Real property 32Other property 32Listed shares and equities 32Unlisted shares and equities 32Public trusts 32Other trusts 32Cash, debt securities and term deposits 32Loans 32Other 32

30 In-house and related party assets 32Earnings—column 1 32Asset values—column 2 32

In-house assets 32


www.ato.gov.au

Related party investments 32Grandfathered investments 32Transitional investments 32Deemed trust investments 32Any other investment 32

31 Value of leased assets 32

32 Has the fund acquired assets from its members or a related party 32

33 Liability information 33Members entitlements 33Borrowings 33Other liabilities 33

34 Fund expenditure 33Benefit payments 33Outward roll-overs and transfers 33Administration and investment expenses 33Other expenses 33

35 Contribution information 33Non-taxable contributions 33Inward roll-overs and transfers 33

Trustee declaration 33

Tax agent’s declaration 33

Worksheets1 – Depreciating assets 342 – Low-value pool 35Appendices1 – Checklist for self managed superannuation funds 36

Purpose 36How to use the checklist 36Checklist 36

Purpose of fund 36Responsibilities of trustees 36Compliance 36Set up of fund 36Election 36Tax file number and Australian Business Number 36Separate bank account 36Investment strategy 36Accepting contributions 36Investing 36Transactions at arm’s length 36In-house assets 36Paying benefits 37Significant adverse event 37Reporting requirements 37Annual requirements 37Record keeping 37Tax matters 37

2 0 0 1– 0 2

www.ato.gov.au

2 – Capital works deductions 37Capital works 37Who can claim? 37Lessee of a building 37Requirement for deductibility 37No deduction until construction is complete 38Establishing the deduction base 38Construction expenditure 38Construction expenditure area 38Pool of construction expenditure 38Deductible use 38Special rules about uses 38Calculation and rate of deduction 39Capital works begun before 27 February 1992 and used as described in 39Table 43-140 of ITAA 1997Capital works begun after 26 February 1992 39Undeducted construction expenditure 39Balancing deduction on destruction 39

3 – Summary of special responsibilities of trustees 404 – Superannuation fund rates of taxation 415 – Thin capitalisation 42

Do the thin capitalisation rules apply? 42What if the thin capitalisation rules are breached? 42What if the thin capitalisation rules apply? 42

6 – ATO locations 447 – Where to lodge a Fund return and payment options 44

Postal address for lodgment 44Payment advice form 44Payment options 44

Glossary 45

Reference to Taxation Determinations and Taxation Rulings 45

Your helplines for further information Inside back cover

1

2 0 0 1– 0 2

www.ato.gov.au

New schedules• Complete only ONE copy of the Thin capitalisation

schedule.• The completed Thin capitalisation schedule must NOT

be attached to the Fund income tax and regulatoryreturn (Fund return).

Thin capitalisation schedule 2002A new thin capitalisation regime operates for incomeyears commencing on or after 1 July 2001. As aconsequence, a new Thin capitalisation schedule hasbeen introduced for the 2001–02 income year.

If you are subject to the thin capitalisation rules—seeappendix 5—you will need to obtain the publication Guideto thin capitalisation.

The completed Thin capitalisation schedule must NOT beattached to the Fund return. It must be mailed to:

Australian Taxation OfficePO Box 1365ALBURY NSW 2640

Schedules• Complete only ONE copy of the appropriate schedule.• Attach all completed schedules to the Fund return

unless specified otherwise.

Capital allowances schedule 2002From 1 July 2001, the uniform capital allowance system(UCA) applies to most depreciating assets, includingthose acquired before that date. The UCA consolidates arange of former capital allowance provisions, includingthose relating to plant and equipment. As a consequenceof this legislative change the Depreciation scheduleintroduced for the 2000–01 income year has beenreplaced this year by the Capital allowances schedule.

If you have included an amount of more than $1000 atlabel W—Deduction for decline in value ofdepreciating assets in the Information statement, youneed to complete and attach a—Capital allowancesschedule 2002. You will also need to complete thisschedule if you have included an amount of more than$5000 at either label A—Intangible depreciating assetsfirst deducted or label U—Other depreciating assetsfirst deducted—in the Information statement.

For more information refer to the publication Capitalallowances schedule instructions.

The labels G, H, I, J and K on Worksheet 1—Depreciatingassets on page 34 correspond to labels on the Capitalallowances schedule. Similarly, the labels L, M, N, O, Pand Q on Worksheet 2—Low-value pool on page 35correspond to labels on the Capital allowances schedule.These worksheets will assist you to complete thisschedule.

For more information on how to complete the worksheetsrefer to the publication Guide to depreciating assets.

Capital gains tax (CGT) schedule 2002All funds that have one or more CGT events happenduring the income year must complete and attach aCapital gains tax (CGT) schedule (CGT schedule) to theFund return if:• the total current year capital gains for the income year

are greater than $10 000• the total current year capital losses for the income year

are greater than $10 000.

The publication Guide to capital gains tax will assisttaxpayers to meet their CGT obligations by outlining theessential steps involved in calculating their net capitalgain for the income year. It also includes:• aspects of CGT law that may apply to the fund—for

example, record keeping requirements• a Capital gain or loss worksheet for calculating a

capital gain or capital loss for each CGT event• a CGT summary worksheet for calculating the fund’s

net capital gain or net capital loss for the income year• the CGT schedule.

Losses schedule 2002The Losses schedule and, where relevant, the CGTschedule, have replaced most of the labels relating tolosses, that had been included in past fund returns. Totalsof the amounts at part A of the Losses schedule aretransferred to the corresponding labels U and V at item10—Losses information in the Fund return. Funds mustcomplete and attach a Losses schedule where:• the total of tax losses and net capital losses carried

forward to the 2002–03 income year is greater than$100 000

• a deduction is claimed for film losses• film losses have been carried forward to later income

years• a deduction is claimed for foreign source losses• there are ‘current year’ foreign source losses• foreign source losses have been carried forward to

later income years• a deduction is claimed for prior year controlled foreign

companies (CFC) losses• there are ‘current year’ CFC losses or• there are CFC losses carried forward to later income

years.For more information, refer to the Losses scheduleinstructions.

If a fund needs to, under the above criteria, complete aLosses schedule, it may also be necessary for the fund tocomplete a CGT schedule. For more information refer tothe publication Guide to capital gains tax.

2


www.ato.gov.au

Non-individual PAYG payment summary schedule2002Pay as you go (PAYG) withholding which commenced on1 July 2000 replaced several old withholding systems. Italso introduced several new withholding events including:• business to business transactions where the payee—

those people or businesses who receive paymentsfrom payers—does not quote an Australian BusinessNumber (ABN)

• payments under a labour hire arrangement, orspecified by regulations and

• payments made under a PAYG voluntary agreement.

If an amount from a payment was withheld by the payer—those people who make payments and withhold amountsfrom those payments—because the fund did not quote anABN, the fund (payee) should have received a Paymentsummary—withholding where ABN not quoted—from thepayer.

A payer may issue a receipt, remittance advice or similardocument in place of the approved form,

Payment summary—withholding where ABN notquoted.Where the fund did not receive or has lost their copy of apayment summary, contact the payer responsible andrequest a signed photocopy of the payer’s copy.

Details from any Payment summary—withholding whereABN not quoted must be included on a Non-individualPAYG payment summary schedule 2002.

Complete a Non-individual PAYG payment summaryschedule where amounts are reported at:• label L—Gross payments where ABN not quoted in

item 9—Income on page 3 of the Fund return• label M—Credit for tax withheld where ABN not

quoted in the Calculation statement on page 2 of theFund return.

When completing the Non-individual PAYG paymentsummary schedule print neatly in BLOCK LETTERS with ablack pen only.

Print the fund’s TFN and name in the appropriate boxesat the top of the Non-individual PAYG payment summaryschedule.

From each Payment summary—withholding where ABNnot quoted, record on the Non-individual PAYG paymentsummary schedule:• payer’s ABN (or withholding payer number)• total tax withheld• gross payment and• payer’s name.When details of all these payment summaries have beencopied to the schedule, attach the Non-individual PAYGpayment summary schedule to the Fund return.

Copies of any Payment summary—withholding whereABN not quoted are not attached to the Fund return asthey should be retained with the fund’s copy of the return.

A copy of the Non-individual PAYG payment summaryschedule must also be retained with the fund’s taxrecords.

3www.ato.gov.au

2 0 0 1– 0 2

General informationImportant messages

Dividends, interest and royaltiesFor the purposes of the dividend, interest and royaltywithholding tax provisions, the trustee of asuperannuation fund is a non-resident if thesuperannuation fund is not a resident at that time. Foreignsuperannuation funds are exempt from Australian incometax and withholding tax on dividend, interest and royaltyincome derived in Australia. However, other non-residentsuperannuation funds are subject to withholding tax inAustralia on the dividend, interest and royalty income theyderive in the same way as other non-resident taxpayers.

Election to become a regulated fundA trustee must elect to become ‘regulated’ under theSuperannuation Industry (Supervision) Act 1993 (SISA) ifthe fund wishes to receive concessional taxationtreatment. The trustees of a new fund must, within 60days after establishment of the fund, give the ATO anotice of election to be a regulated superannuation fund.

The trustee completes an Application to Register for theNew Tax System Superannuation Entity.

To obtain a copy phone the Superannuation Infoline on13 1020.

Once a trustee has elected to become regulated, thedecision cannot be reversed—that is, the fund wouldhave to be wound up to cease to be regulated underSISA and the Superannuation Industry (Supervision)Regulations 1994 (SISR). When referring to both SISAand SISR the abbreviation used is SIS.

Note: If a fund switched Regulator during the period,there is no need to make a further election to beregulated with the new regulator, be it the AustralianPrudential Regulation Authority (APRA) or the AustralianTaxation Office (ATO), however the fund must completean Application to Register for The New Tax SystemSuperannuation Entities Change of Details.

Penalty for failure to notifyTo avoid this penalty, notify the ATO of the PAYG amountdeducted from employees due to be paid even if youcannot pay the full amount by the due date.

Residency statusA fund is complying only if it is a resident fund as definedthroughout the income year.

A fund is taxed as a resident if it was a resident at anytime during the income year.

A superannuation fund is a resident fund at a particulartime up until 30 September 2001if:

• the fund either was established in Australia or, anyasset of the fund is situated in Australia

• the central management and control of the fund is inAustralia and

• if the fund has at least one active member, the total ofaccumulated entitlements of resident active membersat the relevant time is 50 per cent or more of the totalof accumulated entitlements of all active members. Anactive member is someone who has madecontributions to the fund or someone for whomcontributions have been made to the fund in theincome year.

Effective from 1 October 2001, a superannuation fund is aresident fund at a particular time if:• either the fund was established in Australia or any

asset of the fund is situated in Australia or• the central management and control of the fund is in

Australia if:– the individual/s acting as trustee/s or– the directors of the trustee company are temporarily

overseas, the period overseas does not exceed 2years and

• the fund has at least one active member and the totalof accumulated entitlements of resident activemembers at the relevant time are 50 per cent or moreof the total accumulated entitlements of all activemembers. An active member is someone who hasmade contributions to the fund, or someone for whomcontributions to the fund have been made in the yearof income.

Note: A member is excluded from being an activemember at the relevant time if at the time:• they are not a resident of Australia• they are not a contributor and• only contributions that have been made on their behalf

since they ceased being a resident were made inrespect of a time they were a resident.

An approved deposit fund (ADF) is a resident ADF at aparticular time if:• either the fund was established in Australia or any

asset of the fund is situated in Australia• the central management and control of the fund is in

Australia and• the accumulated entitlements of resident members is

50 per cent or more of total assets of the fund.

Self determination of foreign tax creditsWhere a fund has paid foreign tax and wishes to claim acredit for the foreign tax paid, the fund is required tocalculate the amount of any such credit allowed and toshow it at the appropriate label on the return. For moreinformation on the calculation of foreign tax credits referto the publication Foreign income return form guide.

4


www.ato.gov.au

For help with the calculation, or advice as to allowabilityof the credit, phone the Superannuation Infoline on13 1020.

Self managed superannuation fundThe ATO is responsible for the regulation of funds thatsatisfy the definition of a self managed superannuationfund (SMSF) under SISA.

From 1 July 2000 a SMSF must lodge both its SISA andannual tax return details with the ATO by using thecombined return—Fund income tax and regulatory return.Funds which have not been a SMSF at any time duringthe year must use the combined form to lodge their taxreturn, but do not provide details in relation to items24 to 35.

Where a fund decides to switch from one Regulator (ATO)to the other Regulator (APRA) or vice versa the fund isrequired to lodge its regulatory details in 2 separatereturns. The fund completes the regulatory portion of theFund return for the period it was regulated by the ATOand lodges a separate regulatory Annual Return withAPRA for the period it was regulated by APRA.

Where the fund has switched regulators during the 2001–02 income year, trustees of:• SMSFs must pay the annual $45 superannuation

supervisory levy to the ATO and• Small APRA funds (SAFs) must pay a separate

lodgment levy to APRA.

Record keeping requirements

Record keeping and retentionGenerally, a fund must keep all relevant records for 5years after those records were prepared or obtained, or 5years after the completion of the transactions or acts towhich those records relate, whichever is the later,although this period may be extended in certaincircumstances. Records must be in writing and in English,however they may be kept in an electronic form, or onmicrofiche on the condition that the records are in a formthat ATO staff can access and understand to ascertainthe fund’s taxation liability—refer to Taxation Ruling TR96/7 and Taxation Ruling TR 97/21.

The fund is not expected to duplicate records. Where therecords that the fund normally keeps contain theinformation specified in the instructions, the fund neednot prepare additional records.

For some items on the return, reference to specific recordretention requirements is made in these instructions. Ingeneral, the records specified are intended to coverinstances where the required information may not beavailable in the normal fund accounts. The recordretention requirements within the instructions indicate the

information that you use to calculate the correct amountsto declare in the return but is not an exhaustive list of therecords that a fund maintains.

Documents that should be prepared and kept include:• balance sheet• detailed profit and loss statement—includes profit and

loss appropriation account• notices and elections• documents containing particulars of any estimate,

determination, or calculation made while preparing thereturn, together with details of the basis and methodused in arriving at the amounts in the return

• a statement describing and listing the accountingsystems and records—for example, chart of accountsthat are kept manually and electronically.

If an audit is conducted, the ATO may request, and a fundis expected to make readily available:• a list and description of the main financial products—

for example, bank overdrafts, bills, futures andswaps—that were used by the fund to finance ormanage its activities during the income year

• for funds that have entered into transactions withassociated entities overseas:– an organisational chart of the group structure and– all documents, including worksheets, that explain

the nature and terms of the transactions enteredinto.

The law imposes a tax shortfall penalty on a fund thatdoes not state the correct amount of taxable income andtax payable thereon or overclaims a credit entitlement inthe return. The law imposes a penalty where a fund failsto keep records in the required manner or it fails to retainrecords for the appropriate period.

Under SIS, SMSF trustees are required to:• prepare minutes of trustee meetings and decisions—

where matters effecting the fund were discussed• prepare records of all changes of trustees• keep copies of members written consent to be

appointed as trustees• keep copies of all annual returns lodged and• keep copies of all reports given to members.

Records which relate to the management of the fund asrequired by SISA are kept for 10 years following the endof the income year to which they relate.

Capital gains tax record keepingFor more information on record keeping for capital gainstax refer to the publication Guide to capital gains tax.

Tax losses record keepingWhere a fund incurs tax losses, records may need to bekept longer than 5 years from the date when the losseswere incurred.

5www.ato.gov.au

2 0 0 1– 0 2

Generally tax losses incurred this year can be carriedforward indefinitely, until they are applied by recoupment.When applied, the loss amount is a figure that leads tothe calculation of the fund’s taxable income in that year. Itis in the fund’s interest to keep records substantiating thisyear’s losses until the amendment period for theassessment in which the losses are applied has lapsed(up to 6 years from the date of that assessment).

E-recordThe ATO has developed E-record to assist small/microbusinesses and non-profit organisations keep goodbusiness records electronically.

It is designed for businesses who use a cash basis ofaccounting and who wish to make the transition frompaper based products to an electronic record keepingpackage. It is not designed for those businesses who arealready using a commercially available accountingsoftware package.

The E-record CD-ROM consists of 2 components:• a multi-media component that contains information on

record keeping and a demonstration—throughexamples—of how the E-record package works and

• a set of simple to use electronic worksheets thatproduce daily, weekly and monthly summaries, withthe added benefit of automatic calculations andconsolidations. This will assist businesses in thecompletion of their Business Activity Statement (BAS).

The enhancements contained in the latest version ofE-record include:• The 2001–02 financial year activity statements• Provision for use by multiple businesses—that is,—

more than one business• The ‘derived from accounts method’—that is,—record

actual GST amount• 20 new receipt categories• An increase in the number of payment categories and• New worksheets—asset register, fringe benefits tax

and PAYG instalment worksheet.

Businesses can download E-record version 2.0 from theATO’s website at www.ato.gov.au/erecord or obtain acopy of the CD-ROM by phoning 1300 139 051.

Record keeping for overseas transactions andinterestsKeep records of any overseas transactions in which thefund is involved—or has an interest in—during theincome year.

The involvement can be direct or indirect—for example,through persons, trusts, companies or other entities. Theinterest can be vested or contingent, and includes a casewhere the fund has direct or indirect control of:

• any income from sources outside Australia notdisclosed elsewhere in the return or

• any property—including money—situated outsideAustralia. Where this is the case keep a record of thefollowing:– the location and nature of the property– the name and address of any partnership, trust,

business, company, or other entity in which thefund has an interest and

– the nature of the interest.If an overseas interest was created by exercising anypower of appointment, or if the fund had an ability tocontrol or achieve control of overseas income or property,keep a record of the following:• the location and nature of the property and• the name and address of any partnership, trust,

business, company, or other entity in which the fundhas an interest.

Return form

First fund returnFunds which are lodging their first return should havecompleted an Application to Register for the New TaxSystem Superannuation Entity to:• be allocated a tax file number (TFN)• be allocated an Australian Business Number (ABN) or• make an election to become a regulated fund.

To apply for a TFN only, complete a Tax file numberapplication for Companies and Other organisations.

If you have completed an application but have notreceived notification at the time of lodging your return,you must include a copy of the relevant application withyour return. If that is not possible complete a newapplication and lodge this with your return.

If you have not applied for a TFN, ABN or made anelection, attach the appropriate completed applicationwith your return.

Note: In obtaining registration, the trustee of the fundapplies for and receives the ABN ‘as trustee for the fund’.

A return lodged without an ABN or, in the case of fundsestablished before 1 November 1999 a TFN, mayexperience delays in processing.

Lodging the return, schedules, etc.Do NOT send other schedules or documents with yourtax return. Some schedules, such as the Thincapitalisation schedule, are required to be mailed to aspecified address. All other schedules or documentsshould be kept with your tax records.

SMSFs are required to complete the regulatoryinformation at items 24 to 35 on pages 6–8 of the Fundreturn.

6


www.ato.gov.au

Keep records so the information reported in the returncan be verified at a later date, if required—see Recordkeeping requirements on page 4.

The address for lodging your return is listed at appendix 7on page 44.

Do NOT attach your payment to the Fund return.Payment options are listed at appendix 7 on page 44.

The following are the ONLY schedules that are sent withthe Fund return:• Capital gains tax (CGT) schedule 2002• Capital allowances schedule 2002• Family trust election and/or family trust revocation

2002• Interposed entity election 2002• Losses schedule 2002• Non-individual PAYG payment summary schedule 2002• Schedule 25A 2002• and any elections required by Taxation Ruling IT 2624.

Do NOT send other schedules or documents with yourFund return. Keep these with your tax records.

The details of information required to be provided in theschedules and the date for their lodgment is notified inthe Commonwealth of Australia Gazette (Gazette).

Note: Where a fund has switched Regulators during theyear, the fund is required to lodge an Annual Return withAPRA in respect of the period the fund was regulated byAPRA.

Annual levyThose funds meeting the definition of SMSFs are requiredto pay an annual levy ($45) on the basis of the lodgmentof regulatory information to the ATO. Remittance advicesare forwarded by the ATO to the registered address forservice of the fund.

Where a fund was regulated by APRA at any time duringthe period a lodgment levy is also payable to APRA.

AssessmentAssessments of superannuation funds and PSTs, aredeemed to be made on the day on which the Fund returnis lodged.

Objection to self-assessmentThe situation may occur where taxable income iscalculated according to an ATO ruling or policy, which isunfavourable to the fund. The fund may dispute the rulingor policy by lodging an objection to the self-assessmentwith the Fund return, or within 4 years of the deemedassessment date. The objection must state the fullparticulars of the issue in dispute.

Application to the Commissioner for a private rulingA private ruling is a written expression of opinion by theCommissioner of Taxation (Commissioner) about the wayin which a section or provision of the income tax lawwould apply to a person in relation to an arrangement inrespect of a specified income year.

An application for a private ruling must be in writing andin accordance with the provisions of Part IVAA of theTaxation Administration Act 1953 (TAA 1953). Theinformation and documentation that must accompany aprivate ruling request must be sufficient for theCommissioner to make a private ruling. Such informationwill include the parties involved, the facts, income yearscovered by the arrangement, issues and questions raisedthat relate to specified tax laws, and also an analysis andopinion on such questions.

The Commissioner may request additional information tomake a ruling. The Commissioner will then consider therequest and either issue—or in certain limitedcircumstances refuse to issue—a private ruling. For moreinformation refer to Taxation Ruling TR 93/1 andAddendum.

A fund may apply for a ruling affecting a member’sincome tax affairs with the written consent of the member.

Review rightsTaxpayers can object against adverse private rulings inmuch the same way as they can object againstassessments. They also can seek a review of adverseobjection decisions on a private ruling by theAdministrative Appeals Tribunal (AAT) or a court. Anexplanation of review rights and how to exercise them isissued with the private ruling. An objection to a ruling canbe lodged within the later of:• 60 days after the receipt of the ruling• 4 years from the last day allowed for lodging a Fund

return for the income year covered by the ruling.

A taxpayer cannot object against a private ruling if anassessment has occurred covering the same facts andissues—the taxpayer could, of course, object against theassessment.

Where a taxpayer has objected against a private ruling,the taxpayer cannot object on the same grounds againsta later assessment, unless the facts have changed.

Private rulings dealing with ITAA 1936 continue to applyto ITAA 1997, to the extent that the old law ruled onexpresses the same ideas as the new law in ITAA 1997—refer to—Taxation—Ruling TR 97/16.

7www.ato.gov.au

2 0 0 1– 0 2

WithdrawalsA private ruling can be withdrawn in very limitedcircumstances at a later date by the Commissioner, butnot so as to retrospectively affect the taxpayer’s incometax position.

Payment arrangements

Paying your tax debtIncome tax debts must be paid by the due date. Forpayment options see appendix 7 on page 44.

The ATO will adopt any appropriate collection approachto collect any tax outstanding.

These include telephone contact, letters, payment byinstalments, serving ‘garnishee’ notices on your bank ordebtors, and taking legal action in appropriate cases.

Changes contained in Taxation Laws Amendment Act(No 3) 2001 provide that the rate used to calculate thegeneral interest charge (GIC), which is levied onoutstanding amounts due to the ATO, is now calculatedby adding 7 per cent to the 90-day bank accepted billrate. The GIC rate is updated quarterly. Any GIC ispayable from the statutory due date, which is either 21days from a prescribed date, or 21 days from the date ofdeemed receipt of the notice of assessment, whichever isthe later.

For more information on the GIC, contact the Businesstax reform infoline on 13 2478.

What if the fund cannot pay the tax debt by the duedate?To avoid action being taken to recover the debt,telephone the Small business receivables managementhelpline on 13 1142. Taxpayers are expected to organisetheir affairs to ensure that they pay their debts on time.Nevertheless, the ATO may allow taxpayers to pay theirdebts under a mutually agreed payment plan where theyface genuine difficulty and have the capacity to pay thedebt—and the GIC on outstanding amounts of tax.Approval to do this will not be given automatically. Thetrustee will need to provide details of the fund’s financialposition,’including a statement of the fund’s assets andliabilities and details of the fund’s income andexpenditure. The ATO will also want to know what stepsthe trustee has taken to obtain funds to pay the tax debtand the steps the trustee is taking to meet future taxdebts on time.

PenaltiesThe law imposes penalties on funds for:• failing to lodge a Fund return in time• having a tax shortfall or overclaiming a credit that is

caused by:– making a false or misleading statement– taking a position that is not reasonably arguable

• refusing to provide a Fund return from which theCommissioner can determine a liability

• disregarding a private ruling• failing to keep and produce proper records• preventing access to premises and documents or• failing to retain or produce declarations.

A fund is liable for the GIC where:• tax remains unpaid after the due date for payment or• a variation of the PAYG instalment rate is less than

85 per cent of the amount or rate which would havecovered the fund’s actual liability for the year.

Completing the tax returnPrint neatly in BLOCK LETTERS, using a black or bluepen, with one letter in each box.

If typing or using a laser printer, you can type over theboxes using UPPERCASE only.

You may photocopy the return for your own records.However, only the original can be sent to the ATO.

Note: The Fund return has not been designed to becompleted using a typewriter.

Tax file number (TFN)Print the TFN of the fund in the boxes provided on pages1 and 3 of the Fund return.

If the fund has not been allocated a TFN, see First fundreturn on page 5.

Name of fund or trustWhen recording the name of the fund or trust:• show the fund name exactly as it appears on the

fund’s trust deed or other constituent document• for subsequent Fund returns, the fund name should be

consistent from year to year unless the name changes.If the fund name is legally changed, send written advice ofthe change to the ATO at the time the change is made.Show on the Fund return the current (legal) fund name.

Australian Business Number (ABN)The ABN is the public identification system introduced tosupport business to government interactions across allagencies. An ABN will be allocated to newsuperannuation funds who lodge an Application toRegister for the New Tax System Superannuation Entity.

Print the ABN of the fund in the boxes provided—ifapplicable.

Funds in existence before 1 November 1999 may obtainan ABN by lodging the Application to Register for TheNew Tax System Superannuation Entity with the ATO.

8


www.ato.gov.au

Follow the instructions on the Fund return for thefollowing items:• Previous name of the fund or trust• Current postal address• Postal address on previous return

Contact email addressThe ATO may use this address as an alternative methodfor sending information or educational material direct tothe nominated contact for the fund.

Name of trustee and ABNShow the full name of either the individual or companythat is trustee, whichever applies. Where there is morethan one trustee, show only one name.

Print the ABN of the individual or company in the boxesprovided.

Hours taken to prepare and complete this returnThe ATO is committed to reducing the costs involved incomplying with the fund’s taxation and regulatoryobligations. By completing label J the trustee will help usto monitor these costs as closely as possible. Thetrustee’s response to this item is voluntary.

When completing this item consider the time, rounded upto the nearest hour, that the trustee spent:• reading the Fund return instructions• collecting the necessary information to complete this

Fund return• making any necessary calculations• actually completing this Fund return and/or putting the

tax affairs of the fund in order so the information canbe handed to the fund’s tax agent.

Note:• The answer should relate to the time both the trustee

and tax agent spent in preparing and completing theFund return. This includes the time spent by any otherperson whose assistance was obtained in doing this—such as, an employee.

• Note to tax agents: If you are preparing this Fundreturn on behalf of your client, include your time and areliable estimate of their time.

Business postcodeShow the postcode of the place where most of thebusiness decisions of the fund or trust are made.

Was the fund or trust wound up during the year?Print Y for Yes at label K if the fund or trust has beenwound up, and all assets of the fund or trust have beendistributed.

Print N for No at label K if the fund or trust is continuingor is in the process of winding up but still retains assets.

Funds or trusts which have transferred their liability for taxon contributions under section 275 of ITAA 1936, andhave not wound up, print N in the box at label K.

Date wound upShow at label L the date the fund or trust ceasedoperations.

Each superannuation entity is required to lodge an annualFund return for each year of its operations, up to the dateof its wind up.

1 Superannuation fund numberShow at label A the superannuation fund number. Up to1 November 1999, APRA provided all funds seeking to beregulated for the purposes of SISA with a superannuationfund number (SFN).

From 1 November 1999 all funds regulated by the ATOare not issued with a SFN. However, APRA will continueto use SFNs for funds under their regulation.

2 Date of establishment of fund or trustShow at label B the date of establishment of the fund ortrust. The date of establishment is shown on thegoverning constituent document. If such a document isnot available, provide the date on which the firstcontribution was made.

3 Status of fund or trust

Print X in the applicable boxes to show whether the fundis a:

C1 Resident orC2 Non-resident and either a:D1 Superannuation fundD2 Approved deposit fund (ADF) orD3 Pooled superannuation trust (PST).

For more information on the residency status of a fundsee page 3.

Membership industry classification

Note: Superannuation funds lodging a Fund returncomplete item E1.

ADFs and PSTs do not complete item E1.

Print in the box the code from Table 1, which bestdescribes the industry in which most members of thefund are employed.

9www.ato.gov.au

2 0 0 1– 0 2

Table 1

CODE MEMBERSHIP INDUSTRY CLASSIFICATION

01 Primary production

02 Mining

03 Manufacturing

04 Building and construction

05 Electricity, gas and water

06 Transport, storage and communications

07 Wholesale and retail trade

08 Finance, insurance, real estate and business services

09 Health, education, welfare and community services

10 Entertainment, recreation, hotels, personal serviceand restaurants

11 Government

4 Type of fund or trustNote: To find out if the fund needs to be regulated toobtain a complying fund status under SISA see item 6—Compliance status on page 11.

Print X in the applicable box that best describes the typeof fund or trust at balance date. To assist in determiningthe type of fund or trust at balance date see Table 2below. Mark only one box.

Table 2

CODE CATEGORIES OF FUNDS OR TRUSTSH1 SMSFs—a regulated fund administered by the ATO

that has fewer than 5 members.

H2 Small APRA fund—a regulated fund administered byAPRA that has fewer than 5 members. This categoryincludes those employer sponsored or corporatefunds, which have fewer than 5 members.

H3 Public offer fund or retail fund—a regulated fundconsisting of pooled superannuation soldcommercially through intermediaries such as lifecompanies, bank subsidiaries, or financial planners.This category includes master trusts and personalsuperannuation products.

H4 Industry or award fund—a regulated fund maintainedto accept superannuation contributions fromunrelated employers in a particular industry.

H5 Employer sponsored or corporate fund—a regulatedfund sponsored by a single non-governmentemployer or a group of related employers, excludingindustry funds.

H6 Public sector fund—a regulated fund established byor under a law of the Commonwealth or a State orTerritory or a municipal corporation, another localgoverning body or public authority constituted by orunder a law of the Commonwealth or a State orTerritory.

H7 Non-regulated fund—a fund that does not satisfy theprovisions of section 19 of SISA.

H8 Other—another type of regulated fund not includedin the descriptions above.

5 Family trust/Interposed entity election 2002statusThis item must be completed if any of the following apply.The trustee(s) of the fund or trust:• has previously made a family trust election specifying

the 1994–95, 1995–96, 1996–97, 1997–98, 1998–99,1999–2000–or 2000 01 income year in accordancewith section 272-80 of Schedule 2F to ITAA 1936 and,if applicable, items 22 or 22A of Schedule 1 to theTaxation Laws Amendment (Trust Loss and OtherDeductions) Act 1998 (Trust Loss Act) and thatelection has not been revoked in accordance withsubsections 272-80(6) to (8) in an income year beforethe 2001–02 income year or

• is making a family trust election specifying the2001–02 income year in accordance with section272-80 of Schedule 2F to ITAA 1936 and/or

• has previously made one or more interposed entityelections specifying a day in the 1994–95, 1995–96,1996–97, 1997–98, 1998–99,1999–2000–or 2000–01income year in accordance with section 272-85 ofSchedule 2F to ITAA 1936 and, if applicable, items 23or 23A of Schedule 1 to Trust Loss Act and/or

10


www.ato.gov.au

• is making one or more interposed entity electionsspecifying a day in the 2001–02 income year inaccordance with section 272-85 of Schedule 2F toITAA 1936 or

• is revoking from a time in the 2001–02 income year, apreviously made family trust election in accordancewith subsections 272-80(6) to (8) of Schedule 2F toITAA 1936.Note: Details of any family trust election the trustee(s)has previously made in accordance with section272-80 of Schedule 2F to ITAA 1936 or, if applicable,items 22 or 22A of Schedule 1 to Trust Loss Actspecifying an income year before the 2001–02 incomeyear must have been provided in a 1999, 2000 or2001 Family trust election and/or family trustrevocation and details of any interposed entityelections the trustee(s) has made in accordance withsection 272-85 of Schedule 2F to ITAA 1936 and, ifapplicable, items 23 or 23A of Schedule 1 to TrustLoss Act specifying a day in an income year before the2001–02 income year must have been provided in a1999, 2000 or 2001 Interposed entity election that waseither:– included in the fund’s return for the 1998–99,

1999–2000–or 2000–01 income year, respectively or– if the fund was not required to lodge a Fund return

for the relevant year, sent to the ATO in accordancewith the instructions to the 1999, 2000 or 2001Interposed entity election.

Election forms in relation to family trust and interposedentity elections made specifying an income year beforethe 2001–02 income year–must not be attached to theFund return.

Note: A family trust election can only be revoked by atrust which was a fixed trust at the beginning of thespecified income year and which satisfies all of theconditions in subsections 272-80(6) to (8) of Schedule 2Fto ITAA 1936.

If the trustee(s) has previously made a family trust electionand/or one or more interposed entity election(s)specifying an income year before the 2000–01 incomeyear, print the appropriate election status code at label I.

However, a Family trust election and/or family trustrevocation 2002 and/or Interposed entity election 2002(s)in respect of these election(s) is not required to beattached to the Fund return.

If the trustee(s) is making a family trust election and/orone or more interposed entity election(s) specifying the2001–02 income year, print the appropriate electionstatus codes at label I and a Family trust election and/orfamily trust revocation 2002—if applicable—is completedspecifying the 2001–02 income year and/or an Interposedentity election 2002—if applicable—is completed for eachinterposed entity election specifying a day in the 2001–02income year and attached to the Fund return.

Instructions on how to complete the Family trust electionand/or family trust revocation 2002 and the Interposedentity election 2002 are provided on the approved forms.

If the Fund return is not lodged electronically using theelectronic lodgment service (ELS), send the Fund returnincluding the Family trust election and/or family trustrevocation 2002 and/or the Interposed entity election2002 to:

ATO ProductionNon-individualsP O Box 9990BOX HILL VIC 3128

Election status codesPrint at label I the code from Table 3 below for theincome year which has been specified in the family trustelection. If the trustee(s) of the fund or trust have notmade nor are making a family trust election, do notchoose a code from Table 3.

Table 3

CODE INCOME YEAR SPECIFIED IN FAMILY TRUST

A 1994–95

B 1995–96

C 1996–97

D 1997–98

E 1998–99

F 1999–2000

G 2000–01

H 2001–02

Print at label I the code from Table 4 for the income yearwhich has been specified in the interposed entity election.

Choose the code for the income year which has beenspecified in the interposed entity election made by thetrustee(s)—if only one interposed entity election ismade—or the earliest income year which has beenspecified in all of the interposed entity elections made bythe trustee(s)—if more than—one interposed entityelection is or has been made. If the trustee(s) of the fundor trust has not made nor is making any interposed entityelections, do not choose a code from Table 4.

11www.ato.gov.au

2 0 0 1– 0 2

Table 4

CODE INCOME YEAR SPECIFIED IN FIRSTINTERPOSED ENTITY ELECTION 2002

I 1994–95

J 1995–96

K 1996–97

L 1997–98

M 1998–99

N 1999–2000

O 2000–01

P 2001–02

RevocationPrint code R at label I if the family trust election made bythe fund or trust is being revoked from a time in the2000–01 income year in accordance with subsections272-80(6) to (8) of Schedule 2F to ITAA 1936.

Example 1The trustee of a fund has previously made a family trustelection specifying the 1994–95 income year inaccordance with section 272-80 of Schedule 2F to ITAA1936 and item 22 of Schedule 1 to Trust Loss Act and aninterposed entity election specifying a day in the 1994–95income year in accordance with section 272-85 ofSchedule 2F to ITAA 1936 and item 23 of Schedule 1 toTrust Loss Act.

Print code A I at label I if the trustee is not required tocomplete a Family trust election and/or family trustrevocation 2002 or an Interposed entity election 2002 norattach them to the Fund return.

Example 2

The trustee of a fund previously made a family trustelection specifying the 1996–97 income year inaccordance with section 272-80 of Schedule 2F to ITAA1936 and items 22 or 22A of Schedule 1 to Trust LossAct—whichever is applicable—and an interposed entityelection specifying a day in the 1997–98 income year inaccordance with section 272-85 of Schedule 2F to ITAA1936 and items 23 or 23A of Schedule 1 to Trust LossAct—whichever is applicable. The trustee wants to makeanother interposed entity election specifying a day in the2001–02 income year in accordance with section 272-85of Schedule 2F to ITAA 1936.

Print code C L at label I if the trustee provides details inan interposed entity election and the election it is makingspecifies a day in the 2001–02 income year. Thecompleted Interposed entity election 2002 is attached tothe Fund return.

Example 3The trustee has not previously made a family trustelection specifying an income year before the 2001–02income year or an interposed entity election specifying aday in an income year before the 2001–02 income year,but the trustee wants to make a family trust electionspecifying the 2001–02 income year and an interposedentity election specifying a day in the 2001–02 incomeyear in accordance with sections 272-80 and 272-85 ofSchedule 2F to ITAA 1936, respectively.

Print code H P at label I if the trustee provides details in aFamily trust election and/or family trust revocation 2002and the election it is making specifies the 2001–02income year, as well as an Interposed entity election 2002and the election it is making specifies a day in the2001–02 income year. The completed Family trustelection and/or family trust revocation 2002 andInterposed entity election 2002 are attached to the Fundreturn.

Example 4The trustee previously made a family trust electionspecifying the 1995–96 income year in accordance withsection 272-80 of Schedule 2F to ITAA 1936 and item 22of Schedule 1 to Trust Loss Act and is revoking the familytrust election from a day in the 2001–02 income year inaccordance with subsections 272-80(6) to (8) of Schedule2F to ITAA 1936 and has not made any interposed entityelections.

Print code B R at label I if the Family trust election and/orfamily trust revocation 2002 is completed and attached tothe Fund return.

6 Compliance statusCompliance status from APRA or the ATO under SISA isrestricted to resident entities. Definitions of resident andnon-resident superannuation funds are included in ITAA1936 and residency tests for ADFs in SISA. For moreinformation on residency and the changes effective from1 October 2001, see Residency status on page 3.

Print Y for Yes at label F, if the fund:• elected to become regulated under SISA• was a resident fund at all times during the income year

when the fund was in existence• received or expects to receive a notice of compliance

for the current income year or• received a notice of compliance in relation to a

previous income year and has not received a notice ofnon-compliance in relation to a year later than thatprevious year and a year earlier than the currentincome year.

12


www.ato.gov.au

Print N for No at label F, if the fund:• did not elect to become a regulated fund• received or expects to receive a notice of

non-compliance from APRA or the ATO for the incomeyear or

• was not a resident fund at all times during the incomeyear when the fund was in existence.

It is the responsibility of APRA or the ATO (depending onthe type of fund or trust) to determine a fund’s complyingor non-complying status for tax purposes—except fornon-resident funds, which are automatically treated asnon-complying. The status determines the rate of taxapplicable to the fund’s income. Funds that have notelected to become regulated are automatically regardedas non-complying for tax purposes.

Non-complying funds are not eligible for the following taxconcessions:• tax at the 15 per cent rate• death and disablement insurance deductions• potential detriment deductions• exemption of income related to current pension

liabilities• ability to transfer the liability for tax on contributions• ability to exclude last minute employer contributions

from fund income• ability to invest with pooled superannuation trusts• exemption of income accrued before 1 July 1988• exemption of non-reversionary bonuses on a policy of

life insurance• exemption of certain income of continuously complying

fixed interest ADFs• being treated as an excepted trust under paragraph

272-100(b) of Schedule 2F to ITAA 1936 for thepurposes of the trust loss legislation

• concessional tracing rules under section 272-25 ofSchedule 2F to ITAA 1936 for complyingsuperannuation funds or complying ADFs holding fixedentitlements in a trust, company or partnership for thepurposes of applying the trust loss legislation inSchedule 2F to ITAA 1936 to another trust.

In addition funds, that are not regulated, or are otherwisenon-complying, may have adverse effects in other areassuch as:• employer contributions being subject to fringe benefits

tax (FBT)• employee or depositors (members) who would

otherwise be eligible to claim a deduction for theirpersonal contributions are not entitled to do so

• employer contributions to such funds cannot be usedby an employer as an offset against their minimumcontribution liabilities under the provisions of theSuperannuation Guarantee legislation

• a liability for tax on transfers from certainsuperannuation funds may be imposed

• persons will not be able to elect to transfer theirentitlements from Superannuation Holding AccountsReserve (SHAR) to such funds.

7 Is the entity a self-assessing fund forsuperannuation surcharge purposes, that wishes toprovide surcharge data?

Note: This item only relates to the electronic fund incometax and regulatory return.

Self-Managed Superannuation Funds (SMSFs) regulatedby the ATO and SAFs regulated by the APRA that meetthe definition to be a Self-Assessing SuperannuationProvider have the option of lodging their SuperannuationSurcharge Member Contribution Statement (MCS) withthis Fund return.

Self-Assessing Superannuation Providers must:• have fewer than 5 members• hold contributed amounts in relation to those members

for the income year• be able to calculate the adjusted taxable income for

each of those members for the income year• be able to calculate the surchargeable contributions,

the rate of surcharge that applies, and the surchargepayable for each member whose adjusted taxableincome is greater than the surcharge threshold

• lodge their MCS by electronic transmission on orbefore, but no later than, the day on which thesuperannuation provider is required to lodge its incometax return, and

• pay the total amount of surcharge calculated for allmembers within 7 days of lodgment (see below foradditional information).

If Y for Yes is printed at label J an MCS is included at theend of this return. For more information on how tocomplete item 7 refer to the publication MCS instructionguide.

Self-Assessing Superannuation Providers who choose totransfer their surcharge reporting using the mergedelectronic return must lodge the completed form on orbefore, but no later than, the day on which thesuperannuation provider is required to lodge its incometax return.

A Self-Assessing Superannuation Provider can elect toprint N for No at item 7 and lodge an electronic MCSseparately.

Payment options for a Self-AssessingSuperannuation ProvidersA Self-Assessing Superannuation Provider is required topay the total amount of any self-assessed surchargeliability within 7 days of their MCS lodgment.

To generate a Surcharge self-assessing payment advicerefer to the Internet site www.ato.gov.au/super

13www.ato.gov.au

2 0 0 1– 0 2

The ATO intends sending superannuation self-assessingpayment advice forms to all SMSFs and SAFs in late2002.

Where a Self-Assessing Superannuation Provider isunable to generate a surcharge payment advice from theInternet site, a payment mailed to the ATO without thesurcharge payment advice will be accepted.Superannuation providers MUST include the followinginformation with the payment:• full name• tax file number (TFN)• Australian Business Number (ABN)—if they have one• the words HOR 26.

Note: Surcharge payment advice’s generated from theInternet site cannot be used at Australia Post outlets. Theprint quality of barcodes from a personal printer is notacceptable for Australia Post electronic paymentprocessing.

For more information on Self-Assessing SuperannuationProviders, contact the Superannuation Infoline by phoneon 13 1020.

Income tax calculation and information statement

8 Calculation statementThis statement works out the tax liability where there is ataxable income.

The information provided at certain labels of theCalculation statement are used to calculate theCommissioner’s rate, for quarterly payers under the PAYGincome instalment system for the next income year.Taxpayers must complete all labels as accurately aspossible to ensure that the rate calculated results in areliable estimate of tax payable for the 2002–03 incomeyear. For more information about how the rate iscalculated refer to the worksheet relevant to yourparticular entity type.

Refund of excess imputation creditsSuperannuation funds, ADFs and PSTs may be entitled toclaim a refund of excess imputation credits in respect ofdividends received. If you are one of thesesuperannuation entities, show the amount of imputationcredits that relate to dividends received at label Q—Otherrefundable credits.

Taxable incomeShow at label A the amount of taxable income of $1 ormore. This amount is the amount shown at label

T—Taxable income or loss in the Information statementand takes into account, any concessions or adjustmentsallowable for income tax purposes.

Print zero (0) at label A if you have no taxable income orhave a taxation loss. The actual loss is shown at label T—Taxable income or loss in the Information statement withL printed in the box at the right of the amount.

Gross taxShow at label B the amount of tax payable before theallowance of any rebates/tax offsets and credits. Ensurethat the correct rate of tax is applied at the followinglabels, in the Information statement:• net private company dividends other excessive non-

arm’s length income shown at label H and• sections 288A and 288B of ITAA 1936 net previous

income shown at label W.

Foreign tax creditsShow at label D the self-determined amount that is thelesser of:• the foreign tax paid or• the Australian tax payable.

To calculate foreign tax credit, refer to the publicationForeign income return form guide.

Rebates/tax offsetsShow at label C the total of rebates/tax offsets availableand not the amounts giving rise to that tax rebate/taxoffset. Do not include imputation credits that relate todividends received, show these at label Q—Otherrefundable credits.

Commonwealth loan interest rebateIf the fund has included in label C—Gross interest in theInformation statement, an amount received forCommonwealth bonds issued before 1 November 1968,then the fund is entitled to a rebate on that part of itsinterest income. The rebate is calculated at 10 cents oneach dollar of relevant income and the resulting amountincluded at label C—Rebates/tax offsets in theCalculation statement. For more information refer tosection 160AB of ITAA 1936.

Total of labels D and CAdd the amounts at labels D and C and show the total atlabel G.

Tax payableSubtract the amount at label G from the amount at labelB—Gross tax. The amount shown at label G must beless than or equal to the amount at label B—Gross tax.This cannot be a negative amount.

Section 102AAM interest chargeShow at label H any distribution received from anon-resident trust. Section 102AAM of ITAA 1936imposes an interest charge on certain distributions fromnon-resident trusts. Refer to Chapter 2 of the publicationForeign income return form guide.

14


www.ato.gov.au

Credit for interest on early payments—amount ofinterestShow at label V only the calculated interest amount forearly payments. Do not show actual payments.

Early payments interest is calculated from the date theearly payment is made to the date the amount becomesdue and payable. Interest is payable only where the tax isactually paid more than 14 days before the due date ofpayment. Amounts which may attract early paymentinterest credit are payments of:• income tax• additional tax under Part VII of ITAA 1936• interest under sections 102AAM and 170AA

of ITAA 1936• late lodgment penalties under section 163A

of ITAA 1936.

Early payment interest is not payable on:• any component of the payment that exceeds the

amount due• amounts deducted under arrangements for collection

of tax at the time of payment• amounts credited following assessment in payment of

the tax liability• amounts paid less than 14 days before the due date.

Any amount paid early which is refunded before the datean amount of tax, instalment or interest becomes due andpayable, does not accrue early payment interest for theperiod after the date it is refunded.

Date of payment is:• the date shown on the receipt for payment to the ATO• the date payment is mailed to the ATO plus 3 days• the date shown on the taxpayer’s bank statement

where payment is made through direct debit—that is,electronic funds transfer (EFT).

The rates applicable in the 2001–02 income year forinterest on early payments are the weighted average yieldfor the 13 Week Treasury Note applicable for the relevantquarters—refer to section 214A of ITAA 1936.

Table 5

Interest on early payments rates for the 2001–02 incomeyear:

QUARTER INTEREST RATE (P.A.)

Jul–Sep 2001 4.89%

Oct–Dec 2001 4.95%

Jan–Mar 2002 4.28%

Apr–Jun 2002 4.31%

Note: Keep a record of the amount of early paymentsinterest claimed. This interest is assessable as income inthe income year it is paid or credited against anotherliability.

Credit for tax withheld where ABN not quotedShow at label M the total tax withheld from paymentssubject to withholding where an ABN was not quoted.This amount equals the sum of the amounts shown in thetax withheld boxes on the Non-individual PAYG paymentsummary schedule. For instructions on completing theNon-individual PAYG payment summary schedule seeSchedules on page 2.

Do not include any share of tax withheld from apartnership or trust distribution where an ABN was notquoted. This is shown at label Q—Other refundablecredits.

Note: Where an amount of tax withheld is reported atlabel M the corresponding gross payment must bedeclared at label L—Gross payments where ABN notquoted in the Information statement.

Other refundable creditsShow at label Q:• any amounts deducted from investments where a TFN

has not been provided to the financial institution• the amount of imputation credits relating to dividends

including venture capital franked dividends paid on orafter 1 July 2000 where a fund is eligible for a refund ofexcess imputation credits.

Do not include at label Q those credits included at labelD—Foreign tax credits on payments for the current yeartax liability. Show any amounts already paid for thecurrent year tax liability at label T—Instalment(s) paid.

Total of labels V, M and QShow at label R the total of the amounts at labels V, Mand Q.

SubtotalSubtract the total at label R from the sum of the amountsshown at Tax payable and label H—Section 102AAMinterest charge. Show the resulting amount at Subtotal.

Instalment(s) paidShow at label T any amounts already paid or payable forthe current year tax liability. Include PAYG instalments andany interim payments.

Total amount of tax payable (+) or refundable (–)Show at label S the balance of tax that is owing orrefundable.

Do NOT send your payment with your return. Send yourpayment to the address at appendix 7 on page 44.

The lodgment address is at appendix 7 on page 44.

15www.ato.gov.au

2 0 0 1– 0 2

Record retentionFunds must keep all documentation issued by thefinancial institution detailing payments of income and anyTFN amounts deducted from those payments.

They must also maintain details of any TFN amountsdeducted from an income payment made to the fundsand subsequently refunded by their financial institution.Funds must keep a record of the following details ofrefund receipts:• amount of refund received• date of refund• investment reference number—for example, bank

account number of investment relating to refund.

Tax file number (TFN)Print the TFN of the fund in the boxes provided on pages1 and 3 of the Fund return.

Information statementNote: The assessable income of a complyingsuperannuation fund, ADF or PST does not includenon-reversionary bonuses paid on life insurance policies.

Funds which invest wholly in life offices or registeredorganisations are not required to include income fromthese sources in their Fund returns.

The life insurance company or registered organisation isliable for tax on the income of its superannuationbusiness. Similarly, for funds, that invest wholly in PSTs,the return of the trust includes the relevant income. Inthese circumstances, if the fund has no investmentincome, the trustee of the investor fund leaves the itemsdealing with investment income blank.

Proceeds received on redemption or disposition ofpolicies or units from life insurance companies, registeredorganisations or PSTs are not included as income of theinvestor fund.

9 IncomeNote: Where goods and services tax (GST) is payable inrelation to income, the GST must be excluded from theincome derived. Deductions are reduced by the input taxcredit entitlement. If you are not registered or required tobe registered for GST purposes or not entitled to claiminput tax credits, then your income and deductions arenot adjusted for GST. You claim the GST inclusive amountincurred on outgoings. Special rules apply to GSTadjustments.

Did you have a CGT event during the year?A fund makes a capital gain or capital loss if certainevents or transactions—called CGT events—happen.Most commonly, CGT events happen to a fund’s CGTassets—for example, the disposal of a CGT asset—butsome CGT events can happen without involving a CGT

asset. A dividend, that includes a LIC capital gainamount, paid to a fund by a listed investment company, isnot a CGT event. For more information about CGT eventsrefer to the publication Guide to capital gains tax.

Print Y for Yes or N for No at label G.

If the fund had a CGT event happen during the incomeyear, or if the fund received a distribution of a capital gainfrom a trust, print Y for Yes at label G.

The publication Guide to capital gains tax includes a:• Capital gain or loss worksheet for calculating a capital

gain or capital loss for each CGT event• CGT summary worksheet for calculating the fund’s net

capital gain or capital loss• CGT schedule.

The worksheets are provided to assist you in calculatingyour net capital gain or capital loss for the income yearand completing the CGT labels in the Fund return.Completion of the worksheets is not mandatory. They arenot to be attached to the Fund return but are retainedwith the fund’s tax records.

However if the fund has:• total current year capital gains for the income year

greater than $10 000• total current year capital losses for the income year

greater than $10 000

then a CGT schedule needs to be completed andattached to the Fund return.

Net capital gainThe fund’s net capital gain is the total capital gains madefor the income year reduced by current year capitallosses, prior year net capital losses and any other relevantconcessions.

Show at label A the amount of net capital gain calculatedor transferred from:• label G at part H of the CGT summary worksheet or• label G at part H of the CGT schedule, if one is

required.

For more information on how to calculate the fund’s netcapital gain, refer to the publication Guide to capital gainstax.

Note: The fund may need to complete a Lossesschedule. For more information see Schedules on page 1and refer to the Losses schedule instructions.

Gross rent and other leasing and hiring incomeShow at label B all income from rents—being incomefrom land and buildings—leasing and hiring. This itemcannot be a loss.

16


www.ato.gov.au

Gross interestShow at label C the total interest from all sourcesreceived by the fund. This item cannot be a loss.

Record retention—Keep a record of the following:• name and address of the borrower• amount received or credited.

Continuously complying fixed interest ADFsFor more information see Exempt section 290A incomeon page 25.

Gross DividendsDividends paid by resident entities that have paidsufficient Australian tax on or after 1 July 1987 may carryimputation credits for resident recipients of thesedividends. These dividends are known as frankeddividends.

Note: Show at label H private company dividends. Formore information see label H—Net private companydividends and other excessive non-arm’s lengthincome in the Information statement.

Dividends where no tax has been paid by resident entitiesaretreated as unfranked dividends.

A franking rebate may be allowable for franked dividendsderived by a superannuation fund even if they are exemptbecause the income relates to current pension liabilities.

Similarly a venture capital franking rebate may beavailablefrom a venture capital franked dividend paid by a pooleddevelopment fund (PDF) even though the dividend isexempt. A franking rebate is allowed for the imputationcredit attached to franked dividends.

Include the total of franked and unfranked amount ofdividends received from resident entities and theimputation credit in the fund’s assessable income todetermine the fund’s net income or loss.

Note: To the extent that family trust distribution (FTD) taxhas been paid on a dividend paid or credited to the fundby a company which has made an interposed entityelection, the dividend is excluded from the assessableincome of the fund under section 271-105 of Schedule 2Fto ITAA 1936. Any losses or outgoings incurred in derivingan amount which is excluded from assessable incomeunder section 271-105 of Schedule 2F are not deductibleand a credit or rebate cannot be claimed by the fund forany imputation credit attached to the whole or portion ofthe dividend which is exempt income undersection 271-105 of Schedule 2F.

Labels D, J and K refer to dividends derived frominvestments in resident entities (including listedinvestment companies).

Unfranked amountShow at label D the total amount of unfranked dividendsderived.

Franked amountShow at label J the total amount of franked dividendsderived by the fund before grossing up by the amount ofcompany tax attributable to the dividends.

Imputation creditShow at label K the amount of the imputation creditsallowed.

A franking rebate is allowed for the imputation creditattached to franked dividends. Show the amount of therebate at label Q—Other refundable credits in theCalculation statement on page 2 of the Fund return.

Imputation credits may be offset against the tax on alltaxable income of a fund, including taxable contributionsand capital gains.

Any excess imputation credits that relate to dividendsreceived may be refunded.

Gross foreign incomeShow at label I the gross assessable income derived bythe fund from foreign sources.

Where a distribution involving foreign source income wasreceived from a partnership or trust show the foreignsource income at label I. Do not show it at:• label V—Gross distribution from partnerships• label X—Gross distribution from trusts.

Australian resident funds make a capital gain if a CGTevent happens to any of its worldwide CGT assets.

A fund which is not an Australian resident makes a capitalgain, generally speaking, if its CGT asset has thenecessary connection with Australia just before the CGTevent happens. Do not show at label I any capital gainsmade from these assets. Include the capital gains at labelA—Net capital gain. For more information refer to thepublication Guide to capital gains tax.

Net foreign income

Show at label E assessable income derived by the fundfrom foreign sources, net of expenses, includingattributed foreign income. Exclude net foreign sourcecapital gains, which are shown at label A—Net capitalgain.

Foreign source tax losses, excluding capital losses, maybe offset only against foreign source income. Do notshow negative amounts at label E.

Any excess of such foreign source losses over foreignsource income is quarantined, and may be carriedforward to be offset against future foreign source income

17www.ato.gov.au

2 0 0 1– 0 2

of the same class. For more information on this processrefer to the publication Foreign income return form guide.

Note: Complete a Losses schedule if the fund has:• claimed a deduction for foreign source losses• ‘current year’ foreign source losses• foreign source losses carried forward to later income

years• claimed a deduction for prior year CFC losses• ‘current year’ CFC losses• CFC losses carried forward to later income years.

Gross taxable employer contributionsShow at label F the gross taxable amount of employercontributions. This includes certain taxable contributionsof both complying and non-complying funds asassessable income of the entity.

Generally the liability for tax on contributions lies with thetrustee of the entity receiving the contributions. ADFs andresident funds are entitled to deduct the costs ofcollecting all contributions.

The deductions for expenditure incurred by a residentfund are not reduced because it received non-taxablecontributions—for example, non-deductible employeecontributions.

However, non-resident funds are only entitled to adeduction for the cost of collecting taxable contributions.

Deductions allowable against employer contributions areshown at the appropriate expense labels in theInformation statement.

Most contributions made to an employer sponsored fundby a person other than the employee or member areassessable to the fund and are, therefore, taxablecontributions. The amounts assessable to the fundinclude:• all contributions paid by an employer, or another

person—apart from the member—to a residentsuperannuation fund, excluding contributions paid bythe trustee of an exempt life insurance fund, acomplying superannuation fund, a complying ADF or acomplying PST

• all contributions paid by an employer to a non-residentfund that relate to a period when the member was aresident, or was a non-resident deriving salary andwage income assessable in Australia, excludingpersonal contributions and contributions in respect ofan employee who is an exempt visitor.

• An exempt visitor is a resident of Australia who has atemporary entry permit granted under the MigrationAct 1958 for no more than 4 years and who is notawaiting the outcome of an application for apermanent entry permit

• the untaxed element of the post 30 June 1983component of a rolled-over eligible terminationpayment (ETP) paid to a fund—for example, goldenhandshakes—known as the specified roll-over amount

• specified rollover amounts of a complyingsuperannuation fund that arose as a result of thecomplying superannuation fund ceasing to be aconstitutionally protected superannuation fund duringthe year of income or at the end of the previous year ofincome

• shortfall (voucher) amounts payable under theprovisions of the Superannuation Guarantee legislation

• amounts transferred from SHAR under the SmallSuperannuation Accounts Act 1995.

For more information on which transfer transactions maycomprise taxable contributions to a fund see Transfersbetween superannuation funds on page 18.

Pre-1 July 1988 funding creditsEmployer contributions to complying funds after 30 June1988 may be exempt from contributions tax if they aremade for a funding shortfall that existed at 30 June 1988.A fund with such a shortfall may make an application toAPRA for a notice approving a pre-1 July 1988 fundingtax credit. However, specific limits apply to the amount ofcredit that can reduce a fund’s taxable employercontributions figure.

The trustee of the fund must elect in writing to treatcertain contributions as exempt. Do not attach thiselection to the Fund return.

Show at item 11, label N—Exempt section 275Bcontributions the amount exempt by the election.

Gross taxable employee or depositor contributionsShow at label M the gross taxable amount of employee ordepositor contributions. The trustee of a fund is to treatemployee or depositor (member) contributions as taxablecontributions only if the employee, depositor or anapproved person, gives a notice stating that they areintending to claim a deduction for their contributions.

The contributing employee, depositor or approved personmust lodge the notice with the trustee and once lodged,the notice is irrevocable. The trustee must acknowledgethe notice. Generally, only the amount up to the maximumdeductible contribution level can be included as taxablecontributions. Currently, the maximum amount for which adepositor, who is an eligible person, may claim adeduction—excluding any part of a rolled-over ETP—isthe lesser of:• $3000 plus 75 per cent of contributions in excess of

$3000 or• the maximum deductible contribution based on the

member’s age in Table 6—refer to—TaxationDetermination TD2001/15.

18


www.ato.gov.au

Table 6

AGE IN YEARS DEDUCTION LIMIT

under age 35 $11 912

age 35 to 49 $33 087

age 50 and over $82 054

Depositor contributions in excess of these limits must betreated as undeducted contributions.

Note:• The rebate available for contributions to an eligible

scheme by employee or depositor members has noeffect on the exclusion of those contributions fromassessable income of the fund.

• Eligible spouse superannuation contributions are nottaxable contributions and are not shown at any label inthe Information Statement.

For SMSFs the amount is shown at item 35, label H—Non-taxable contributions.

Transfers between superannuation fundsNon-complying funds must also include as taxablecontributions, amounts transferred from a complying fundor a non-complying superannuation fund other than acontinuously non-complying fund.

Special rules apply to amounts transferred to residentfunds from eligible non-resident, non-complying funds.

Approved deposit fundsWhere an ETP is rolled over into an ADF, a specifiedroll-over amount is to be included in the taxable incomeof the ADF. The amount is the untaxed element of thepost 30 June 1983 component of a rolled-over ETP thatis paid to the ADF after 30 June 1988.

Net private company dividends and other excessivenon-arm’s length incomeShow at label H the net amount where a superannuationfund, ADF or PST has received income from a transactionor series of transactions between parties not at arm’slength.

Income included is:• private company dividends• certain distributions from trusts and• other excessive non-arm’s length income, that is

greater than might have been expected had it beenderived from an arm’s length source.

Allowable deductions off-set against the income are thosethat relate exclusively to the non-arm’s length income andso much of any other allowable deductions that, in theopinion of the Commissioner, appropriately relate to thatincome.

• The amount of private company dividends is grossed-up to include any attached imputation credit, and thisamount is then reduced by any related deductions.Show, in the Calculation statement, the amount ofimputation credit attached to such dividends at labelQ—Other refundable credits.

If this amount is a loss, the loss must be quarantined forfuture offset against income of the same class. Do notshow a loss at label H, but keep a record of thequarantined loss amount with the fund’s tax records.

If a fund is in receipt of a distribution from a trust, thecircumstances of the distribution must be examined todetermine if the income is ‘special income’ as defined insubsections 273(6), (7) and (8) of ITAA 1936. Specialincome includes:• distributions from all trusts other than where the fund

has a fixed entitlement to income from that trust and• non-arm’s length trust distributions of income where

the fund has a fixed entitlement to income from thattrust.

Where a distribution includes franked dividends, thedistribution is grossed-up to include any attachedimputation credit. Show, in the calculation statement, theamount of imputation credit attached to such dividends atlabel Q—Other refundable credits.

For a fund in receipt of private company dividends, forwhich the Commissioner has formed the opinion that itwould be reasonable not to treat the dividends as specialincome, the dividends received are taxed at 15 per cent.

Note: All other income shown at label H is taxed at47 per cent.

Sections 288A and 288B net previous incomeShow at label W the total net previous income.

A fund, that changes from complying to non-complying(Formula A), or a non-resident fund, that becomesresident during or after the 1995–96 income year(Formula B), must calculate its net previous income inrespect of previous income years and include it asassessable income in the year the status change occurs.

Formula AWhere a complying fund changes to a non-complyingfund in the current income year, the fund’s net previousincome years in respect of previous income years is theamount calculated by the formula below.

Asset values minus undeducted contributions where:• asset values are the market value of the fund’s assets

immediately before the start of the current income yearand

• undeducted contributions are the total amount ofundeducted contributions in the fund—as defined insection 27A of ITAA 1936—immediately before thestart of the current income year that were made bycurrent members of the fund.

19www.ato.gov.au

2 0 0 1– 0 2

The amount calculated at label W is shown in the fund’sassessable income for the current year and taxed at 47per cent.

Formula BWhere a non-resident superannuation fund becomes aresident fund in the current income year the fund’s netprevious income in respect of the previous income yearsis the amount calculated by the formula below.

Asset values minus member contributions where:• asset values are the sum of the market values of the

fund’s assets immediately before the start of thecurrent income year and

• member contributions are the total amount ofcontributions in the fund immediately before the startof the current income year that were made by currentmembers of the fund.

The amount calculated at label W is shown in the fund’sassessable income for the current year and is taxed asfollows:• funds that change their status from a non-resident

fund to a resident non-complying fund are taxed at47 per cent

• funds that change their status from a non-residentfund to a resident complying superannuation fund aretaxed at 15 per cent.

Gross distribution from partnershipsShow at label V the gross distribution from allpartnerships. If the distribution includes an amount offoreign income then that portion of the distribution isshown at label E—Net foreign income.

If this amount is a loss, print L in the box at the right ofthe amount.

Where a distribution includes franked dividends, thedistribution is grossed-up to include any attachedimputation credit. Show, in the Calculation statement, theamount of imputation credit attached to such dividends atlabel Q—Other refundable credits.

Note: To the extent that family trust distribution (FTD) taxhas been paid on income received by the fund frompartnership(s), that amount is excluded from theassessable income of the fund under section 271-105 ofSchedule 2F to ITAA 1936.

If ultimate beneficiary non-disclosure tax (UBNT) has beenpaid on a share of the net income of a closely held trustto which another trust is presently entitled, that incomeattributable to the UBNT to which the fund is presentlyentitled or which has been distributed to the fund isexcluded from the assessable income of the fund undersections 102UK and 102UM of ITAA 1936.

Any losses or outgoings incurred in deriving an amountwhich is excluded from assessable income under section271-105 of Schedule 2F or sections 102UK or 102UM arenot deductible. A tax offset cannot be claimed by thefund for any imputation credit attributable to the whole ora part of a dividend which is exempt from income taxunder section 271-105 of Schedule 2F, section 102UK orsection 102UM of ITAA 1936.

If the loss exceeds the total of the income labels, onlyshow an amount at label V to reduce label S to zero (0).Show the remainder of the loss at item 9—Less, labelD—Other deductions.

Record retention—Keep a record of the following:• full name of the partnership• TFN of the partnership—if known• amount of income.

Gross payments where ABN not quotedShow at label L gross payments made to the fund thatwere subject to withholding where an ABN was notquoted. Gross payments include amounts withheld.

Where an amount is reported at label L complete aNon-individual PAYG payment summary schedule. Forinstructions on completing the Non-individual PAYGpayment summary schedule see Schedules on page 2.

Note: Complete label L where an amount was reported atlabel M—Credit for tax withheld where ABN notquoted in the Calculation statement.

Record retention—Keep a record of the following:• full name of the partnership• TFN of the partnership—if known• amount of income.

Gross distribution from trustsShow at label X the total amount of gross distributionsreceived from trusts. This amount cannot be a loss.Capital gains received from a trust are not shown at labelX but included at label A—Net capital gain.

For information on how to include a capital gain receivedfrom a trust at label A—for example, how to gross-up acapital gain for a trust distribution—refer to thepublication—Guide to capital gains tax.

Do not show distributions from PSTs at label X.

If this distribution includes an amount of foreign incomeinclude that portion of the distribution at label I—Grossforeign income and take it into account in calculatinglabel E—Net foreign income.

Where a distribution includes franked dividends,thedistribution is grossed-up to include any attachedimputation credit. Show, in the Calculation statement, theamount of imputation credit attached to such dividends atlabel Q—Other refundable credits.

20


www.ato.gov.au

Note: To the extent that family trust distribution (FTD) taxhas been paid on income or capital of a trust to which thefund is presently entitled or which has been distributed tothe fund, that income or capital is excluded from theassessable income of the fund section 271-105 ofSchedule 2F to ITAA 1936.

If ultimate beneficiary non-disclosure tax (UBNT) has beenpaid on a share of the net income of a closely held trustto which another trust is presently entitled, that incomeattributable to the UBNT to which the fund is presentlyentitled or which has been distributed to the fund isexcluded from the assessable income of the fund undersections 102UK and 102UM of ITAA 1936.

Any losses or outgoings incurred in deriving an amountwhich is excluded from assessable income under section271-105 of Schedule 2F or sections 102UK or 102UM arenot deductible. A tax offset cannot be claimed by thefund for any imputation credit attributable to the whole orpart of a dividend which is exempt income under section271-105 of Schedule 2F, section 102UK or section102UM.

Print in the CODE box the code from Table 7 which bestdescribes the type of trust for the amount of incomeshown at label X—Gross distribution from trusts. If thisamount is from more than one type of trust, print thecode that represents the trust with the greatest amount ofincome. Descriptions of the types of trusts listed inTable 7 are at Table 8.

Note: If the type of trust making the distribution isunknown, contact the trustee of that trust.

Table 7

CODE TYPE

D Deceased estate

F Fixed trust—other than a fixed unit trust or a publicunit trust at U, P or Q

H Hybrid trust

S Discretionary trust—where the main source ofincome of the trust is from service and/ormanagement activities

T Discretionary trust—where the main source ofincome of the trust—is from trading activities

I Discretionary trust—where the main source ofincome of the trust is from investment activities

M Cash management unit trust

U Fixed unit trust—other than a public trust describedin P or Q

P Public unit trust (listed)—other than a cashmanagement unit trust

Q Public unit trust (unlisted)—other than a cashmanagement unit trust

Table 8 Description of trusts

Fixed trustA trust in which persons have fixed entitlements—as definedin section 272-5 of Schedule 2F to ITAA 1936—to all of theincome and capital of the trust at all times during the incomeyear.

Hybrid trustA trust which is not a fixed trust but in which persons havefixed entitlements—as defined in section 272-5 of Schedule2F to ITAA 1936—to income or capital of the trust during theincome year.

Discretionary trustA trust which is neither a fixed trust nor a hybrid trust andunder which person(s) benefit from income or capital of thetrust upon the exercise of a discretion by person(s), usuallythe trustee.

Fixed unit trustA fixed trust in which interest in the income and capital of thetrust are represented by units.

Public unit trustA fixed unit trust which is a widely held unit trust—as definedin section 272-105 of Schedule 2F to ITAA 1936—at all timesduring the income year.

Public unit trust—listedA public unit trust in which any of its units were listed forquotation in the official list of a stock exchange in Australia orelsewhere during the income year.

Public unit trust—unlistedA public unit trust in which none of its units were listed forquotation in the official list of a stock exchange in Australia orelsewhere during the income year.

Record retention—Keep a record of the following:• full name of trust• tax file number of trust• amount of income.

Other incomeShow at label R the net amount of any income receivedthat does not fall into any of the other categories.

If a complying superannuation fund, ADF or PST receivesa distribution from a partnership or a trust, and thepartnership or trust (that made the distribution) claimed adeduction in respect of a ‘LIC capital gain amount’, thecomplying superannuation fund, ADF or PST is requiredto ‘add-back’ as income one-third of their share of thededuction claimed by the partnership or trust.

If a non complying superannuation fund or ADF receives adistribution from a partnership or a trust, and thepartnership or trust (that made the distribution) claimed adeduction in respect of a ‘LIC capital gain amount’, thenon complying superannuation fund or ADF is required to‘add back’ as income their share of the deductionclaimed by the partnership or trust.

Rebates or the refund of a premium for death anddisablement cover received by a complying fund that hasbeen—in whole or in part—allowed as a deduction or isallowable as a deduction is treated as assessable income.

21www.ato.gov.au

2 0 0 1– 0 2

Total of above labels excluding label IShow at label S the total income from labels A to R. Donot include any amount from label I—Gross foreignincome. The amount shown at label S cannot be anegative amount.

9 LessNote: Input tax credit entitlements that arise in relation tooutgoings are excluded from expenses—see Income onpage 15.

Interest expenses within Australia and overseasThin capitalisation rules may apply to reduce interestdeductions. These rules place a limit on the amount ofinterest and other borrowing costs that can be deductedfor Australian tax purposes. For more information seeappendix 5 on page 42.

For income years commencing on or after 1 July 2001section 25-90 of ITAA 1997 allows some interestexpenses incurred in the derivation of certain exemptincome to be deducted from assessable income. Therelevant exempt income is foreign source incomeexempted from income tax under section 23AI, 23AJ or23AK of ITAA 1936. Therefore interest expenses incurredin the derivation of this income are to be included here atlabels A and B to the extent that they are not disallowedby the thin capitalisation provisions.

Further, for income years commencing on or after 1 July2001 sections 160AF and 160AFD of ITAA 1936 havebeen amended to remove the need to subtract most debtdeductions from assessable foreign income indetermining net foreign income (for foreign tax creditpurposes), an overall foreign loss and whether anydeductions are denied by section 79D of ITAA 1936(foreign loss quarantining). These debt deductions arenow effectively deductible against Australian sourceincome.

As these interest expenses are deductible fromassessable income (subject to the thin capitalisationprovisions) they should also be included at labels A and Bnet of any amounts disallowed by the thin capitalisationprovisions.

Allowable deductions relating to foreign source incomeshould not be included at this part of item 9. Suchdeductions should have been made from the grossforeign income amount identified at label I—Grossforeign income, and the resulting net foreign incomerecorded at label E—Net foreign income at item 9—Income.

Interest expenses within AustraliaShow at label A the deductible interest incurred on moneyborrowed from Australian sources:• to acquire income producing assets• to finance operations or• to meet current expenses.

Interest expenses overseasShow at label B the deductible interest incurred onmoney borrowed from overseas sources:• to acquire income producing assets• to finance operations or• to meet current expenses.

Note: An amount of tax—withholding tax—is generallywithheld from interest paid or payable to non-residents,and from interest derived by a resident through anoverseas branch. These amounts must be remitted to theATO.

Record retention—If interest is paid to non-residentskeep a record of the following:• name and address of recipient(s)• amount of interest paid or credited• amount of withholding tax withheld and the date it was

remitted to the ATO.

Total salary and wage expensesShow at label C the total salary, wage and other labourcosts incurred in respect of employees employed by thetrustee of the fund.

These expenses include any salary and wages,allowances, bonuses, casual labour, retainers andcommissions paid to people who receive a retainer, andworkers’ compensation paid through the payroll, whereany of these payments are applicable to the fund.

Also included are direct and indirect labour, holiday pay,long service leave, lump sum payments, other employeebenefits, overtime, payments under an incentive or profitsharing scheme, retiring allowances and sick pay, whereany of these payments are applicable to the fund. Includeany salary and wages paid to an associated person of thefund.

However, these expenses exclude agency fees, contractpayments, sub-contract payments, service fees,superannuation, reimbursements or allowances for travel,wages or salaries reimbursed under a governmentprogram, management fees and consultant fees.

Capital works deductionsShow at label Q the deduction claimed for capitalexpenditure on special buildings, which include eligiblecapital expenditure on extensions, alterations orimprovements. Exclude capital expenditure for mininginfrastructure buildings and timber milling buildings.

For more information on capital works deductions seeappendix 2 on page 37.

22


www.ato.gov.au

Deduction for decline in value of depreciatingassetsShow at label W the deduction for decline in value ofdepreciating assets for taxation purposes.

Note: If you have included an amount of more than$1000 at label W, you need to complete and attach aCapital allowances schedule. For more information referto the publication Capital allowances scheduleinstructions.

From 1 July 2001, the uniform capital allowance system(UCA) applies to most depreciating assets, includingthose acquired before that date. The UCA consolidates arange of former capital allowance provisions, includingthose relating to plant and equipment. It does this byproviding a set of general rules that applies across avariety of depreciating assets and certain other capitalexpenditure. It maintains some concessional taxtreatments such as those applying to primary productioncapital expenditure and primary production depreciatingassets and also introduces new deductions for certaintypes of capital expenditure that did not previously attracta deduction.

You now calculate deductions for the decline in value ofyour depreciating assets using these new rules. You candeduct an amount equal to the decline in value for anincome year of a depreciating asset that you held for anytime during that year. However, your deduction is reducedto the extent you use it or have it installed ready for usefor other than a taxable purpose.

You work out the decline in value of a depreciating assetusing either the prime cost or diminishing value method.Both methods are based on the effective life of an asset.For most depreciating assets, you choose whether toself-assess the effective life or to adopt theCommissioner’s determination.

The decline in value of a depreciating asset costing lessthan $300 is its cost (but only to the extent the asset isused for a taxable purpose) where the asset satisfies all ofthe following requirements:• it is used predominantly for the purpose of producing

assessable income that is not income from carrying ona business,

• it is not part of a set of assets acquired in the sameincome year that costs more than $300 and

• it is not one of any number of substantially identicalitems acquired in the same income year that togethercost more than $300.

The decline in value of certain assets with a cost oropening adjustable value of less than $1000 can becalculated through a low-value pool. Assets eligible forthe immediate deduction cannot be allocated to alow-value pool.

For more information on deductions for decline in value,refer to the publication Guide to depreciating assets.

Group life and disability premiumsA deduction is allowable where a premium for aninsurance policy is wholly or partly for death and disabilitycover. The amount allowable as a deduction for deathcover is:• 30 per cent of the premium where the policy is a whole

of life policy• 10 per cent of the premium paid where the policy is an

endowment policy.

For both whole of life and endowment policies, anydisability component of a premium specifically identified inthe policy is deductible.

Show at label J the amount of the deduction. No actuary’scertificate is needed in the above circumstances.

In any other case, the amount of the premium attributableto the death and disability cover is allowable. This needsto be evidenced by an actuary’s certificate.

A complying fund is not allowed a deduction forpremiums on insurance policies where the incomepayments are made during periods of temporary disabilitylonger than 2 years. This applies to policies entered intoor renewed since 2 December 1998. For more informationrefer to Taxation Determination TD 98/27.

In the case of funds which self-insure, the deduction isequal to a reasonable arm’s length premium, rather thanthe lowest arm’s length premium, for the cost of deathand disability cover provided.

An actuary’s certificate is also required.

Management/administration expensesShow at label K the amount of expenses of a revenuenature incurred in the management and administration ofsuperannuation entities, unless allowed by other specificincome tax provisions.

Investment expensesShow at label L the amount of investment expenses of arevenue nature incurred in the derivation of investmentincome, unless allowed by other specific income taxprovisions. Do not include any amount that is shown atlabel K—Management and administration expenses.

Complying funds and complying ADFs may claimdeductions for expenses incurred in relation to acquiring,holding or disposing of:• units in a PST• life insurance policies issued by life insurance

companies or registered organisations• interests in trusts whose assets consist wholly of such

life insurance policies.

The deduction can be claimed if the expenditure wouldqualify for deduction under the deduction provisions ofITAA 1936 or ITAA 1997 as if any profits, gains or

23www.ato.gov.au

2 0 0 1– 0 2

bonuses derived from investments in PSTs, life insurancepolicies or interests in trusts (as above) that are of acapital nature, were instead assessable as being of anincome nature.

The ATO view on the application of the relevantprovisions—sections 279E and 289A of ITAA 1936—is setout in Taxation Determination TD 1999/6.

Investment charges that are deducted by the PST or lifeinsurance company from gross contributions transferredfrom the fund results in a reduced amount ofcontributions for investment by the PST or life insurancecompany. In this case, the charges are of a capital natureas they reduce the amount of the investment, and aretherefore not deductible.

Thin capitalisation rules may apply to reduce deductions.These rules place a limit on the amount of interest andother borrowing costs that can be deducted for Australiantax purposes. For more information see appendix 5page 42.

Other deductionsShow at label D the amount claimed for expenditure asbelow.

Print in the CODE box the code from Table 9 if a fund hasclaimed a deduction for a potential detriment payment orclaw back deduction.

Table 9

CODE OTHER DEDUCTIONS IN RESPECT OF:

D Potential detriment payments

C Claw back deduction

M Both potential detriment payments and claw backdeduction

O Other deductions not listed above

Note:• No deduction is allowable against the assessable

income of the fund for benefits paid.• There is no provision for funds to transfer or pass on

deductions to other entities—for example, PSTs or lifeinsurance companies.

• A deduction is available to funds for an amount equalto the total of any taxable contributions included asincome that are fringe benefits and FBT has been paidby the contributor.

• Thin capitalisation rules may apply to reducedeductions. These rules place a limit on the amount ofinterest and other borrowing costs that can bededucted for Australian tax purposes. For moreinformation see appendix 5 page 42.

Note: Certain expenses relating to foreign exempt incomeare allowable deductions where the expenses areincurred in an income year that begins on or after 1 July2001. (See section 25-90 of ITAA 1997).

Potential detriment payments made after the deathof a memberA deduction is allowable where payments are made bycontinuously complying funds, life insurance companiesor registered organisations on the death of a member. Acontinuously complying fund is one that has compliedwith SISA standards at all times since 1 July 1988.

The payment must be made to the trustee of the estate ofthe deceased member or to a person who was adependant of that member immediately before or at thetime of payment. The deduction is available to ensure thatdeath benefits do not have to be reduced because of thetax on contributions.

To receive the deduction, the relevant actuarial or auditcertificates must be obtained and the fund must satisfythe Commissioner that the full benefit of the deductionhas been passed on to the dependants of the deceasedperson.

Claw back deductionsSpecial deductions known as claw back deductions areallowable for contributions incorrectly included in theassessable income of a complying fund.

This is the case where notices causing contributions tobe treated as non-taxable—see label M—Gross taxableemployee or depositor contributions—are not receivedby the trustee or the Commissioner until after thelodgment of the Fund return or are not received until alater income year.

Generally, the adjustment is made by allowing adeduction in the year in which the notice is received but,in cases where a fund is unable to utilise the deductionfully—for example, where that year’s taxable income isexceeded by the deduction or the fund would lose thebenefit of imputation credits—the Commissioner mayamend the earlier assessment.

Environment protection expenditureA deduction is allowed for any cost incurred on or after19 August 1992 for the sole or dominant purposegenerally of:• preventing, combating or rectifying pollution of the

environment or• treating, cleaning up, removing or storing waste.

Listed investment company (LIC) capital gainamountIf a complying superannuation fund, ADF or PST was paida dividend by a listed investment company, and thedividend included a ‘LIC capital gain amount’, thecomplying superannuation fund, ADF or PST can claim adeduction of 33 1/3 per cent of the ‘LIC capital gainamount’. The listed investment company’s dividendadvice statement shows the ‘LIC capital gain amount’.

24


www.ato.gov.au

If a non-complying superannuation fund or ADF was paida dividend by a listed investment company, and thedividend included a ‘LIC capital gain amount’, thenon-complying superannuation fund or ADF is not entitledto claim a deduction for the ‘LIC capital gain amount’.

Transfer of taxable contributionsShow at label E the amount of taxable contributionstransferred. A complying fund—transferor—may transferthe liability for tax on contributions to any PST, lifeinsurance company or registered organisation in which ithas an investment.

The amount transferred cannot exceed the total taxablecontributions paid to the transferor in the year and isfurther limited to an amount calculated by reference to thehighest value of the fund’s investment’in the transferee inthe income year concerned.

The transferee must agree to the transfer and theagreement must be evidenced in writing and signed byboth the transferor and transferee.

The agreement is irrevocable for that particular year.

The transferor must include the gross amount ofcontributions received at:• label F—Gross taxable employer contributions• label M—Gross taxable employee or depositor

contributions.

The transferee must include the amounts transferred to itat the appropriate label.

Record retention—Keep documents that evidence thetransferee’s consent to accept the transfer of taxablecontributions and the associated taxation liability.

Tax losses deductedShow at label F the carried forward tax losses claimedthis year less any amount, which has been offset againstcurrent year exempt income.

Do not show net capital losses at label F, see item 10,label V—Net capital losses carried forward to laterincome years.

Domestic losses can be used to offset foreign sourceincome. The trustee of the fund makes an election andkeeps it with the fund’s tax records. Foreign sourcelosses may be deducted against foreign source income ofthe same class. For more information refer to thepublication Foreign income return form guide.

Note:• The trust loss legislation in Schedule 2F to ITAA 1936

affects the deductibility of prior year losses by all trustswhich are not excepted trusts as defined in section272-100 of Schedule 2F to ITAA 1936, such asnon-complying superannuation funds ornon-complying ADFs.

• The fund may need to complete and attach a Lossesschedule to the Fund return. For more information seeSchedules on page 1 and refer to the Losses scheduleinstructions.

Exempt current pension incomeShow at label G income that is exempt from the normalassessable income of a complying superannuation fundor PST. This exemption applies to income that isattributable to the liability of the fund to pay currentpensions.

Normal assessable income of a complying fund is incomeother than certain non-arm’s length income and taxablecontributions.

Note: This exemption applies to all funds currently payingpensions including allocated pensions. It does not providean automatic exemption of the fund’s total income ascertain conditions must be met to obtain an exemption,including the lodgment of ATO and APRA returns.

There are 2 methods by which the trustee of a fund candetermine the exempt income shown at label G. Either orboth methods may be used, depending on thecircumstances. The methods are as follows:• If the fund segregates its assets so that the income

can be identified as derived from the segregatedpension assets to provide for current pensionliabilities—that income is the exempt income.

• If the fund’s income is derived from assets that are notsegregated between current and non-current pensionliabilities, the exempt portion is to be calculated as theratio of unsegregated current pension liabilities to totalunsegregated superannuation liabilities.

For both methods, use the average liabilities of a fund in aparticular year. The valuation of liabilities is in accordancewith an actuary’s certificate. In a year where an actuaryhas not valued the total unsegregated superannuationliabilities, an interim valuation of those total liabilities maybe made, provided the fund has no segregated assets.

The interim valuation must apply the proportionateincrease or decrease in the value of all assets of the fundsince the last valuation to the value of the fund’s liabilitiesat the last actuarial valuation.

An actuarial valuation must still be made of the fund’scurrent assets and its average current pension liabilities inrelation to the income year.

Note:• PSTs are entitled to an exemption for the part of the

income that is derived from their business withcomplying funds which the Commissioner is satisfiedwould have been exempt as above, had it beenderived directly by the funds.

25www.ato.gov.au

2 0 0 1– 0 2

• Alternatively, PSTs can claim the exemption in theproportion that unit holdings of complyingsuperannuation funds that are segregated currentpension assets bear to the total unit holdings in thePST.

• If part of the fund’s franked dividend income is exemptbecause the fund has current pension liabilities, thefund is entitled to full imputation credits.

Exempt section 290A incomeShow at label H the amount of normal assessable incometreated as exempt income. Show all normal assessableincome at item 9—Income.

Continuously complying fixed interest ADFsA continuously complying fixed interest ADF may beexempt on part of its taxable income. A continuouslycomplying fixed interest ADF is one that:• complied with SISA requirements at all times since

1 July 1988• in each income year during that time, received at least

90 per cent of its income from interest or in the natureof interest

• has not held investments in units of a PST or in lifepolicies in each income year during that time.

The exempt income is that part of the ADFs normalassessable income—therefore income other than taxablecontributions and certain non-arm’s length incomeattributable to amounts held on deposit, includingaccumulated earnings, at 25 May 1988 for certain eligibledepositors.

An eligible depositor is one-aged 55 or more at 25 May1988, or a depositor aged 50 or more at that date whorolled over the whole or part of an ETP, which had aconcessional component, regardless of whether any partof the concessional component was rolled over. Theexemption is denied unless the Commissioner is satisfiedthat the fund has passed, or will pass, to eligibledepositors the tax benefit of the exemption. See item22(a)—Exempt income claim on page 30.

The trustee of the ADF must elect in writing the date atwhich the proportion of exempt income is determined, ifthe date chosen is not the beginning of the income year—see item 22(b)—Exempt income claim on page 30.

Taxable income or lossShow at label T all assessable income less allowabledeductions. This amount takes into account anyconcessions or adjustments allowable for income taxpurposes. Where the fund has a taxable income of $1 ormore, transfer the amount at this label to label A—Taxable income in the Calculation statement on page 2of the Fund return.

If the amount calculated is an overall loss for the yearprint L in the box at the right of label T.

10 Losses informationNote: If the total of the fund’s tax losses and net capitallosses carried forward to later income years is greaterthan $100 000, a Losses schedule is completed andattached to the Fund return.

Tax losses carried forward to later income yearsShow at label U the undeducted amount of tax lossesincurred by the fund and carried forward to the 2001–02income year under section 36-15 of ITAA1997.

Any net capital losses to be carried forward to laterincome years are not included at label U but are shown atlabel V—Net capital losses carried forward to laterincome years and in the CGT schedule, if a schedule isrequired.

Net exempt income reduces a current year tax loss and,to the extent of any excess, reduces prior year tax losses.

If the fund is required to complete a Losses schedule, theamount shown at label U—Tax losses carried forwardto later income years in part A of that schedule must bethe same as the amount shown at label U in the Fundreturn.

Net capital losses carried forward to later incomeyearsShow at label V the total of any unapplied net capitallosses from collectables and unapplied net capital lossesfrom all other CGT assets and events.

This information is calculated or transferred from:• label V in part I of the CGT summary worksheet or• labels H and I in part I of the CGT schedule, if one is

required.

For more information refer to the publication Guide tocapital gains tax.

If the fund is required to complete a Losses schedule, theamount shown at label V—Net capital losses carriedforward to later income years in part A of that schedulemust be the same as the amount shown at label V in theFund return.

26


www.ato.gov.au

11 Other information

Intangible depreciating assets first deductedThe following intangible assets are regarded asdepreciating assets (as long as they are not tradingstock):• certain items of intellectual property (patents,

registered designs, copyrights and licences of these)• computer software (or a right to use computer

software) that you acquire, develop or have someoneelse develop for your use for the purposes for which itis designed (in-house software)

• mining, quarrying or prospecting rights and information• spectrum licences• datacasting transmitter licences• certain indefeasible rights to use international

submarine cable systems (IRUs).

A depreciating asset that you hold starts to decline invalue from the time you use it (or install it ready for use)for any purpose, including a private purpose. However,you can only claim a deduction for the decline in value tothe extent that you use the asset for a taxable purpose,such as for producing assessable income.

Show at label A the cost of all intangible depreciatingassets for which you are claiming a deduction for declinein value for the first time. If you have allocated anyintangible depreciating assets with a cost of less than$1000 to a low-value pool for the income year, you alsoneed to include the cost of those assets at label A. Donot reduce the cost for estimated non-taxable use. Donot show cents.

While expenditure on developing in-house software maynot give rise to a depreciating asset when the expenditureis incurred and while any deduction for this year’sexpenditure allocated to a software development pool isnot available until next year, you must include at label Aany expenditure you incurred during this income year todevelop or have developed in-house software and whichyou allocated to a software development pool. You mustalso include expenditure incurred this year on anyin-house software development that you have notallocated to a software development pool.

For more information on decline in value, cost, low-valuepools, in-house software and software developmentpools, refer to the publication Guide to depreciatingassets.

Note: If you have included an amount of more than$5000 at label A, you need to complete and attach aCapital allowances schedule. For more information referto the publication Capital allowances scheduleinstructions.

Other depreciating assets first deductedA depreciating asset that you hold starts to decline invalue from the time you use it (or install it ready for use)for any purpose, including a private purpose. However,you can only claim a deduction for the decline in value tothe extent you use the asset for a taxable purpose, suchas for producing assessable income.

Show at label U the total cost of all depreciating assets(other than intangible depreciating assets) for which youare claiming a deduction for the decline in value for thefirst time. If you have allocated any assets (other thanintangible depreciating assets) with a cost of less than$1000 to a low-value pool for the income year, you alsoneed to include the cost of those assets at label U. Donot reduce the cost for estimated non-taxable use. Donot show cents.

For more information on decline in value, cost andlow-value pools, refer to the publication Guide todepreciating assets.

Note: If you have included an amount of more than$5000 at label U, you need to complete and attach aCapital allowances schedule. For more information referto the publication Capital allowances scheduleinstructions.

Termination value of intangible depreciating assetsShow at label B the termination value of each balancingadjustment event occurring for intangible depreciatingassets (including pooled assets). A balancing adjustmentevent occurs if you stop holding or using a depreciatingasset or decide not to use it in the future—for example,the assets were sold, lost or destroyed.

Generally, the termination value is the amount you receiveor are deemed to receive in relation to the balancingadjustment event. It includes the market value of anynon-cash benefits such as goods and services youreceive for the asset.

While amounts received in relation to in-house softwaremay not constitute the termination value from a balancingadjustment event, you must include at label B anyconsideration you receive during the income year inrelation to in-house software for which you have allocatedexpenditure to a software development pool.

For more information on balancing adjustment events,termination value, in-house software and softwaredevelopment pools, refer to the publication Guide todepreciating assets.

Step 1Add up any amounts received in relation to in-housesoftware and the termination values for all intangibledepreciating assets other than:• assets falling within the provisions relating to

investments in Australian films

27www.ato.gov.au

2 0 0 1– 0 2

• IRUs where the expenditure was incurred at or before11.45 a.m. (by legal time in the ACT) on 21 September1999

• IRUs used at or before that time fortelecommunications purposes.

Step 2Insert the amount at label B. Do not show cents.

For more information about intangible depreciatingassets, refer to the instructions relating to label A—Intangible depreciating assets first deducted onpage 26.

Termination value of other depreciating assetsShow at label W the termination value of each balancingadjustment event occurring for depreciating assets(including pooled assets). A balancing adjustment eventoccurs if you stop holding or using a depreciating assetor decide not to use it in the future—for example, theassets were sold, lost or destroyed.

Generally, the termination value is the amount you receiveor are deemed to receive in relation to the balancingadjustment event. It includes the market value of anynon-cash benefits such as goods and services youreceive for the asset.

For more information on balancing adjustment events andtermination value, refer to the publication Guide todepreciating assets.

Step 1Add up the termination values for all depreciating assetsthat you stopped holding or using other than:• intangible depreciating assets• buildings or structures for which a deduction is

available under the capital works provisions• assets used in research and development activities• assets falling within the provisions relating to

investments in Australian films.

Step 2Insert the amount at label W. Do not show cents.

Total investmentsShow at label Q the total value of all assets includingitems such as life policies, units held in PSTs and assetsfunding current pension liabilities at the balance date. Ifthe value of life policies is not known, use the total ofcontributions to date.

Number of membersShow at label R the total number of members ordepositors as at the balance date. Members for this itemare persons who are:• making contributions• on whose behalf contributions are being made and• are in receipt of pension entitlements.

In the case of superannuation based on individual lifepolicies, it is sufficient to show the number of policies ifthe number of members is not readily available. Wherethe fund has been wound up during the year, the numberof members must be shown as zero (0).

Exempt section 274(7) contributionsShow at label M otherwise taxable contributions, whichthe trustee of the fund, with the consent of thecontributor, has elected to have treated as exempt underthis section of ITAA 1936.

Exempt section 275B contributionsShow at label N otherwise taxable contributions, whichthe trustee of the fund has elected to have treated asexempt under this section of ITAA 1936.

Attributed foreign income

Broad-exemption listed countryShow at label O the amount of gross attributed foreignincome from controlled foreign entities and transferortrusts in broad-exemption listed countries.

Gross attributed foreign income is the income attributedto the taxpayer from controlled foreign entities, calculatedin accordance with Division 7 of Part X of ITAA 1936, andgrossed-up under section 392 of ITAA 1936, asappropriate, to the extent of any foreign taxes paid.

Broad-exemption listed countries are listed in Part 1 ofSchedule 10 of the Income Tax Regulations. The definitionof a broad-exemption listed country trust is in section102AAE of ITAA 1936.

Limited-exemption listed countryShow at label L the amount of gross attributed foreignincome from controlled foreign entities inlimited-exemption listed countries. The attributed foreignincome from transferor trusts is the total amount ofincome attributed to the fund, from the foreign trusts thatare transferor trusts, calculated in accordance withDivision 6AAA of Part III of ITAA 1936, and grossed-upunder section 102AAU(1)(d) of ITAA 1936, as appropriate,to the extent of any foreign taxes paid.

Limited-exemption listed countries are listed in Part 2 ofSchedule 10 of the Income Tax Regulations.

Also include at label L the amount of income attributedfrom a transferor trust if the entire income and profits ofthe trust are subject to tax in a limited-exemption listedcountry. Do not include the amount at label L if it hasalready been included at label O—Broad-exemptionlisted country.

Unlisted countryShow at label J the amount of gross attributed foreignincome from controlled foreign entities in unlistedcountries.

28


www.ato.gov.au

Unlisted countries are countries not listed in Schedule 10of the Income Tax Regulations.

Also include at label J the amount of income attributedfrom a transferor trust if the amount has not beenincluded at:• label O—Broad-exemption listed country or• label L—Limited-exemption listed country.

FIF/FLP incomeShow at label P the amount of gross attributed foreignincome from foreign investment funds (FIFs) and foreignlife policies (FLPs).

The terms FIF and FLP have the same meaning as set outin sections 481 and 482 respectively Part XI of ITAA1936.

Attributed foreign income of a FIF or FLP is the incomeattributed to the taxpayer from FIFs or FLPs, calculated inaccordance with Subdivisions B, C or D (for FIFs) andSubdivisions E or F (for FLPs) of Division 18 of Part XI ofITAA 1936, as appropriate.

If any attributed foreign income is included at the abovelabels, section B of Schedule 25A together with any otherrelevant section or schedule, must be completed andlodged as part of the return.

Note: For more information on the calculation of theamounts to be returned at labels O, L or J refer to thepublication Foreign income return form guide.

For more information on the calculation of the amount tobe returned at label P refer to the publication Foreigninvestment funds guide.

Tax spared foreign tax creditsShow at label K the amount of foreign tax credit relatingto foreign tax forgone under an investment incentivescheme provided by a foreign government, where that taxforgone is deemed to have been paid for the purposes ofAustralia’s foreign tax credit system.

12 Landcare and water facility tax offsetYou cannot choose a tax offset for expenditure incurredafter the 2000–01 income year.

If you have chosen to take the water facility tax offset forcapital expenditure incurred in the 1999–2000 or the2000–01 income year, a tax offset is available in thisincome year. Additionally, any landcare or water facilitytax offset brought forward is available for offset.

Due to the sole purpose test in SISA, it is unlikely that acomplying superannuation fund, complying ADF or a PSTwould be carrying on a business. Therefore they wouldnot be entitled to this tax offset.

However, if you consider that you are entitled to apply anylandcare or water facility tax offset in this income year,you may phone the Superannuation Infoline on 13 1020 ifyou require more information.

Water facility tax offset claimedShow at label A the amount of any water facility tax offsetto which you became entitled in the 1999–2000 and2000–01 income years for capital expenditure on a waterfacility incurred in those years and which is available foroffset in this income year.

The tax offset available for this year is the amount equalto one-third of the relevant expenditure. It is applied at arate of 30 per cent.

Print code W in the CODE box.

Landcare and water facility tax offset brought forwardfrom prior yearsShow at label B the total of any landcare and waterfacility tax offsets carried forward and available for offsetin this income year.

13 Internet transactionsPrint Y for Yes at label I if, in deriving income, you usedthe Internet to:• receive orders for goods and/or services. For example,

you received orders by e-mail or a web page form—rather than by conventional post, telephone orfacsimile

• receive payment for goods and/or services.For example, you received:– credit card or charge card details by e-mail or web

page form—rather than by conventional post,telephone or facsimile

– digital cash• deliver goods and/or services. For example, you:

– used e-mail, the World Wide Web (www) or FileTransfer Protocol (FTP) to deliver digitised music,news articles or software—rather than conventionalpost to deliver software on a floppy disc

– used e-mail to give financial advice and received acommission in connection with this advice

– advertised goods or services of other businessesfor a fee on the Internet

– hosted websites or– provided access to the Internet.

Print N for No at label I, if you only used the Internet to:• advertise your goods or services• give support to your customers• buy your stock.

29www.ato.gov.au

2 0 0 1– 0 2

Items 14 to 23These items must be answered even if you have nooverseas transactions or interests.

Note 1: Agents for non-residentsWhere a return that includes income or deductions fromonly the following activities, is lodged in accordance withthe following sections of ITAA 1936 and does not includeincome or deductions from any other source, print N forNo at items 14, 15 and 16 in respect of overseastransactions and interests in foreign companies and donot complete a Schedule 25A.

Table 10

INDUSTRY TYPE INDUSTRY SECTIONCODE

Overseas shipping 99060 129

Agents for non-resident insurers 99050 144

Agents for non-resident reinsurers 99040 148

Control of non-resident’s money 99070 255

Note 2: Dividends as the only international transactionsWhere dividends were paid to or received from a relatedoverseas entity and those dividends were the onlytransactions with related overseas entities, print N for Noat item 14 in respect of overseas transactions and do notcomplete section A of a Schedule 25A. Answer items 15and 16 as required.

Note 3: Schedule 25A and Thin capitalisation schedulesWhere a Schedule 25A or Thin capitalisation schedule isrequired to be lodged, more information is available in theinstructions to these schedules.

Overseas transactions or interests/Thincapitalisation/Foreign source income

14 International related party dealings/Transferpricing

Print Y for Yes or N for No at label X.

International related parties are persons, includingpermanent establishments, who are parties tointernational dealings that can be subject to Division 13 ofITAA 1936 and/or the business profits article, orassociated enterprises article, of a relevant double taxagreement. The term includes the following:• Any overseas entity or person who participates directly

or indirectly in your management, control or capital.• Any overseas entity or person in respect of which you

participate directly or indirectly in the management,control or capital.

• Any overseas entity or person in respect of whichpersons who participate directly or indirectly in itsmanagement, control or capital are the same personswho participate directly or indirectly in yourmanagement, control or capital.

• A permanent establishment and its head office.• Two permanent establishments of the same person.

Participates includes a right of participation, the exerciseof which is contingent on an agreed event occurring andPerson has the same meaning as in section 6 (1) of ITAA1936 and section 995-1 of ITAA 1997.

The type of dealings or transactions that will require theentity to answer Y for Yes at this question are dealings bythe entity with related parties as above, such as anoverseas holding company, overseas subsidiary, overseaspermanent establishment of the entity, or non residenttrust in which the entity has an interest. These dealingsor transactions may be the provision or receipt ofservices, or transactions in which money or property hasbeen sent out of Australia, or received in Australia from anoverseas source during the income year. The dealingsmay also include transfer of tangible or intangibleproperty, provision or receipt of services, or the provisionor receipt of loans or financial services.

Where money or property is not actually sent out ofAustralia or received in Australia, but accounting entriesare made that have the effect of money or property beingtransferred, this is also to be taken as an internationaltransaction.

15 Aggregate amount of dealings or transactionsIf the aggregate amount of the dealings or transactions isgreater than $1 million you should print Y for Yes or N forNo at label Y.

The aggregate amount of the dealings is the total amountof all dealings, whether on revenue or capital account,and includes the balance of any loans or borrowingsoutstanding with international related parties.

If the answer at label Y is Yes, complete section A ofSchedule 25A, together with any other relevant part orschedule, and attach the completed Schedule 25A to theFund return.

16 Overseas interestsIf the answer to label Z is Yes, complete section B, andany other relevant part, of Schedule 25A. The schedulemust be completed, attached to the Fund return, andlodged as part of that return.

The interests in item 16 that will require the entity tocomplete the Schedule 25A, are those where the fundhas:• an interest in a controlled foreign company or trust

30


www.ato.gov.au

• an interest in a foreign investment fund or foreign lifeassurance policy or

• transferred property, at any time, including money orservices, to a non-resident trust, or is able to influencethe decisions relating to a non-resident trust.

An interest in a controlled foreign company or trust maybe either direct or indirect, and is taken to have the samemeaning as set out in Division 3 Part X of ITAA 1936.

An interest in a foreign investment fund, or foreign lifeassurance policy has the same meaning as set out insection 483 of ITAA 1936

A fund has an interest in a transferor trust if it has evermade, or caused to be made, a transfer of property orservices to a non-resident trust. Transfer, property andservices are defined in section 102AAB of ITAA 1936.Sections 102AAJ and 102AAK of ITAA 1936 provideguidance in relation to whether there has been a transferor deemed transfer of property or services to a nonresident trust.

17 Thin capitalisationSee appendix 5 on page 42 for information as to whetherthe fund is subject to the thin capitalisation provisions. Ifthe fund is subject to the thin capitalisation provisionsprint Y for Yes in the box at label O and complete the Thincapitalisation schedule.

The completed schedule should NOT be attached to theFund return but mailed to:


If the answer to item 17 is No, print N at label O.

18 Foreign source incomeAssessable foreign income is all income sourced fromoverseas, and including interest, dividends, attributableforeign income, and foreign-sourced capital gains.

Print Y for Yes or N for No at label P.

19 Exempt current pension incomePrint Y for Yes or N for No at item 19.

20 Death or disability deductionPrint Y for Yes or N for No at item 20.

21 Transfer of taxable contributionsPrint Y for Yes or N for No at item 21.

If the answer to this item is Yes, show:• the name of the transferee(s)• the amount of contributions for each transferee.

22 Exempt income claimPrint Y for Yes or N for No at item 22(a). If the fund isclaiming an exemption, the fund must maintain astatement explaining how the tax saving gained undersection 290A of ITAA 1936 has been, or is to be,distributed to eligible depositors.

Print Y for Yes or N for No at item 22(b). If the reckoningdate was other than the beginning of the income year, thefund must show the reckoning date.

23 Payments to contributing employers andassociatesItem 23 relates to payments made from a fund to anemployer sponsor or to an associate. Print Y for Yes or Nfor No at item 23.

Only funds which indicated they were a SMSF at question4 are required to complete the remaining questions

Regulatory information for self managedsuperannuation fundsAny fund that was a SMSF at any time during the2001–02 income year must answer the following items.

If a fund switched Regulator—that is, from an APRAregulated SAF to an ATO regulated SMSF or, vice versa—during the year, answer the following questions in respectof the period that the fund was a SMSF.

For the period the fund was not a SMSF, the fund mustlodge a separate Annual Return with APRA.

For more information on how to complete the regulatoryinformation in this Fund return, phone the SuperannuationInfoline on 13 1020.

24 Fund’s auditor details

Name Print the full name of the approved auditorwho completed the audit report.

Organisation Print the name of the firm of the auditor.

Address Print the postal address of the auditor.

Telephone Print the telephone number including thearea code of the auditor.

25 Which professional body does the auditorbelong to?

Print in the CODE box the code from Table 11, whichbest describes the qualification that the approved auditorhas or a professional body that the approved auditorbelongs to. If the auditor has more than one qualificationand/or belongs to more than one professional body,select the first code that applies.

31www.ato.gov.au

2 0 0 1– 0 2

Table 11

CODE PROFESSIONAL BODY/QUALIFICATION

1 The Auditor General of the Commonwealth, a Stateor Territory

2 A member of the Australian Society of CertifiedPractising Accountants (ASCPA)

3 A member of the Institute of Chartered Accountants(ICA)

4 A member of the National Institute of Accountants(NIA)

5 A member or fellow of the Association of Taxationand Management Accountants (ATMA)

6 A fellow of the National Taxation and AccountantsAssociation (NTAA)

7 A registered company auditor

26 Is the auditor’s report qualified?Print Y for Yes or N for No at item 26.

If the audit report has been qualified brief details of thequalification must be shown at item 26.

Do not send the audit report or a copy of the audit reportto the ATO. All SMSFs retain the audit report with theirrecords.

For more information refer to Australian Taxation Office –Superannuation Circular–– Responsibility of the ApprovedAuditor.

Note:• A fund, which has switched Regulators is only required

to obtain one audit report covering the income year.• Where a fund has switched Regulators during the year,

the fund is required to lodge the audit report—andother regulatory information—with APRA in respect ofthe period it was regulated by APRA.

27 Did the fund comply with all the relevant SISrequirements?Print Y for Yes or N for No at item 27.

If the fund did not comply with all the relevant SISrequirements the fund must provide a brief explanation ofthe non-compliance at item 28.

A compliance checklist for trustees is included atappendix 1 on page 36.

28 Audit qualification or non-compliance with SISIf the audit report is qualified, or there has been someother contravention of the SIS requirements, provide abrief explanation, including any action that has or is beingtaken to rectify the contravention.

29 Financial informationALL the earnings and assets of the fund are shown atitem 29 in the relevant categories.

This includes in-house assets, related party investmentsand leased assets, which are also shown at:• item 30—In-house and related party assets• item 31—Value of leased assets.

Earnings—column 1Show at labels A to L the earnings for each category ofinvestment. This is the net income—gross income lessexpenses incurred in earning the income—including anyrealised gain or loss. If the earning amount is negativeprint—L in the box at the right of the amount.

Note: Do not include unrealised gains as earnings.

Asset values—column 2Show at labels M to X the asset value of each category ofinvestment. This is the value shown in the fund’s balancesheet as at the balance date.

29(a) Managed investments

Life insurance policies

Life insurance policies include all individual, group,investment or other types of policies.

Other managed investments

This category includes placements with all externalinvestment managers and PSTs.

An external investment manager is someone appointedby the trustee of the fund in accordance with section 124of SISA to make investments on behalf of the fund.A PST is a resident unit trust:• the trustee of which is a trading or financial

corporation formed within the limits of theCommonwealth and

• that is used only for investing assets of a regulatedsuperannuation fund, ADF or a PST—assets of a lifeinsurance company that are assets of atax-advantaged insurance fund or assets of aregistered organisation solely for the tax-advantagedbusiness of the organisation—and assets of an exemptentity within section 102M of ITAA 1936.

29(b) Direct investments

Overseas assetsOverseas assets include holdings of public trusts orcompanies that are managed by overseas domiciledmanagers—that is, where the fund purchased theinterests directly from the overseas manager. Do notshow holdings of PSTs, other superannuation investmenttrusts, public trusts or companies managed by Australiandomiciled managers that have invested overseas.

32


www.ato.gov.au

Real propertyReal property includes investments in land and buildingsthat are located within Australia.

Show investments in real property that are locatedoutside Australia in the Overseas assets category.

Other propertyOther property includes investments in items such asmachinery, cars, artworks and antiques.

Listed shares and equitiesThis category relates to shares, equities and similarfinancial contracts—not debt securities—that are tradedon the Australian stock exchanges. Do not showinvestments in listed trusts here—include them at Publictrusts.

Unlisted shares and equitiesThis category refers to shares, equities and similarfinancial contracts that are not listed on the Australianstock exchanges.

Public trustsFor the purposes of this item a public trust is a widelyheld unit trust or a fixed trust listed on the Australianstock exchanges.

This category does not include investments in PSTs,which are shown at Other managed investments.

Other trustsThis category includes investments in any trust that is nota public trust or a PST.

Cash, debt securities and term depositsThis category includes amounts invested in bonds,debentures, income securities, cash managementaccounts and cash and term deposits held in financialinstitutions.

LoansThis category includes any loans given by the fund.

OtherThis category includes income—excluding contributions—or assets, which do not fall within any of the othercategories.

30 In-house and related party assetsEarnings—column 1Show at labels A and B the net earnings—gross incomeless expenses incurred in earning the income—for eachcategory of asset. If the earnings amount is negative,print L in the box at the right of the amount.

Asset values—column 2Show at labels C and D the asset value of each categoryof asset.

Note: The amounts shown at item 30 are also included atitem 29a—Managed investments and item 29b—Directinvestments in the relevant asset categories.

In-house assetsGenerally an in-house asset of a fund is an asset of thefund that is:• a loan to, or an investment in, a related party of the

fund• an investment in a related trust of the fund or• subject to a lease or lease arrangement between the

trustee of the fund and a related party of the fund.

Note: Do not include investments that are not in-houseassets because of the operation of the grandfathering, ordeeming provisions. Show these categories in relatedparty investments.

The in-house asset rules were amended by theSuperannuation Legislation Amendment Act (No 4) 1999.The in-house asset rules are contained in Part 8 of SISA.

Related party investmentsThese investments include:• Grandfathered investments—these are investments

or acquisitions of assets made before 11 August 1999that were not in-house assets at that time, andadditions to these existing investments up to theallowable limits.

• Deemed trust investments—these are investments inrelated trusts that satisfy the conditions of the SISR sothat they are deemed not to be in-house assets.

• Any other investment with a related party that is notan in-house asset.

The definition of a related party is contained in subsection10(1) of SISA.

31 Value of leased assetsShow at labels E, F and/or G the value of the fundsassets that are leased or subject to a lease arrangement.The value of leased assets are shown at (if applicable):• item 29—Financial information• item 30—In-house and related party assets.

32 Has the fund acquired assets from its membersor a related partyPrint Y for Yes or N for No at label H.

33

2 0 0 1– 0 2

www.ato.gov.au

33 Liability information

Members entitlementsShow at label A the total amount relating to:• accrued benefits, in the case of accumulation funds.

This is generally equal to the sum of all the members’benefit accounts—that is, not just vested amounts—plus any amounts not yet allocated to the memberaccount or

• total vested benefits, in the case of defined benefitfunds.

BorrowingsShow at label B the total amount of borrowings by thefund, including accrued interest, at the fund’s balancedate.

Other liabilitiesShow at label C any other liabilities of the fund—includingany tax liability.

34 Fund expenditure

Benefit paymentsShow at label D the total of benefit payments madeduring the year.

Outward roll-overs and transfersShow at label E the total amounts transferred out of thefund directly by a member, or on account of a member, toanother superannuation fund, retirement savings accountprovider, ADF or deferred annuity.

Administration and investment expensesShow at label F all expenses of an investmentmanagement and administrative nature—for example,audit fees. Do not include investment management feesassociated with unitised investment instruments—forexample, PSTs—where these amounts are reflected in thenet earnings from these products.

Other expensesShow at label G any other expenses not already includedat item 34.

If the calculation of the other expenses results in anegative amount as a consequence of tax effectaccounting, print N in the box at the right of label G.

35 Contribution information

Non-taxable contributionsShow at label H the total amount of non-taxablecontributions—for example, a member’s contributions forwhich they were not claiming a tax deduction undersection 82AAT of ITAA 1936—and eligible spousecontributions.

Inward roll-overs and transfersShow at label I the total amounts transferred directly intothe fund by a member, or on account of a member, fromanother superannuation fund, retirement savings accountprovider, ADF or deferred annuity for the relevant incomeyear.

Trustee declarationFor trustees of SMSFs the signing of this declarationconfirms that the fund has satisfied the SISA regulatoryrequirements.

Include in the declaration a signature, date, contact nameand telephone number for the trustee.

Note: Trustees of non-self managed superannuationfunds lodge a separate Annual Return with APRA.

Tax agent’s declarationWhere the agent is a partnership or a company, thisdeclaration is signed in the name of the partnership orcompany by a person who is registered as a nominee ofthat partnership or company.

That person’s name is also printed at this item.

34


www.ato.gov.au

Worksheet 1 Depreciating assets

For more information refer to the publication Guide to depreciating assets. This worksheet has been reduced in size tofit on this page.

Primary production only

Non-primary production only

Description of assetDate ofacqu-isition

CostOpening

adjustablevalue

DateTerm

inationvalue

AssessableDeductable

Decline in value

Effective lifePercent-

agerate

Prime cost

Diminishing

valuePrim

e costDim

inishingvalue

Adjustable valueat end of year

Percent-age

Non-taxable

use

Subtotal

Assessable income

(Do not deduct from Total deduction for dec line in value)

Less balancing adjustment relief

JI

K

Balancing adjustment events

Balancing adjustment am

ounts

G

HTotals

Amount to be claim

ed as a deduction(Do not include in Total deduction for dec line in value)

Total deduction for decline in v alue

Deduction for decline in value

35

2 0 0 1– 0 2

www.ato.gov.au

Worksheet 2 Low-value pool

For more information refer to the publication Guide to depreciating assets. This worksheet has been reduced in size tofit on this page.

1De

scrip

tion

of lo

w-v

alue

ass

et (L

VA)

2Op

enin

gad

just

able

val

ue(O

AV) o

f LVA

4Re

duce

d OA

Vof

LVA

(2 X

3)

5De

scrip

tion

oflo

w-c

ost

asse

t (LC

A) o

r 2nd

elem

ent

cost

of a

sset

in p

ool

6Co

st o

f LCA

72n

d el

emen

tco

st

8Ta

xabl

eus

epe

rcen

t-ag

e

9Re

duce

d co

st o

f LCA

or 2

nd e

lem

ent c

ost

(6 o

r 7 X

8)

O

3Ta

xabl

eus

epe

rcen

t-ag

e

10De

scrip

tion

of a

sset

for w

hic h

bala

ncin

g ad

just

men

t eve

nt o

ccur

red

11Te

rmin

atio

n va

lue

(TV)

13Re

duce

d TV

( 11

X 12

)

12Ta

xabl

eus

epe

rcen

t-ag

e

Tota

l

Add

clos

ing

pool

bal

ance

for p

revi

ous

inco

me

year

Sum

of A

and

L

C X

37.5

%

Sub

tota

lTo

tal

Sub

tota

l

E X

18.7

5%

ME F

* If a

mou

nt a

t P w

ould

oth

erw

ise

be n

egat

ive,

incl

ude

that

am

ount

in y

our a

sses

sabl

ein

com

e as

a b

alan

cing

adj

ustm

ent a

mou

nt a

nd re

duce

the

amou

nt s

how

n at

P to

nil.

P*GDe

clin

e in

val

ue(D

+ F

)

Clos

ing

pool

bal

ance

(C +

E –

G –

H)

A L C D

NTo

tals

QH

Bala

ncin

g ad

jstm

ent e

vent

s

36


www.ato.gov.au

Appendix 1 Checklist for self managedsuperannuation funds

Purpose

This brief checklist is designed to draw your attention tothose details that you, as a trustee of a self-managedsuperannuation fund (SMSF), must be aware of in the dayto day operation of your fund.

A fund that is complying with the rules is taxed at 15 percent. A long form checklist is also available on theInternet site www.ato.gov.au/super

This checklist is intended to be only used as a guide.Compliance of your fund is a matter, which can only bedetermined at a given point in time, on all the facts aspresented at that time.

How to use the checklistThe checklist highlights some of the more important rulesunder SISA that you, as a trustee, must comply with.

If, when using the checklist, you identify

you may have a problem with your fund or need moreinformation the following may assist you:• seek advice from your professional adviser—for

example, financial planner, accountant, tax agent, etc• visit the Internet site for assistance at

www.ato.gov.au/super• obtain a fact sheet• obtain a fax from tax on 13 2860• obtain a copy of the long form checklist• phone the Superannuation Infoline on 13 1020 for the

cost of a local call• add your name to the register of interested parties

which has been developed so that practitioners andtrustees can continually update their knowledge.

Checklist

Purpose of fundMy fund is managed and maintained by thetrustees for the sole purpose of providingretirement benefits for members.

Responsibilities of trusteesAll the trustees of my fund are aware that theyare solely responsible for the compliance ofthe fund, even if advice is obtained from a taxagent, financial planner, accountant, etc.

ComplianceIf my fund complies with ALL the rules of SISit can take advantage of tax concessions.

Set up of FundThe members of my fund are also trustees. Myfund meets the new SMSF definition.

ElectionA one-off election to be regulated and complywith section 19 of SISA was made by my fundwith the ATO, within 60 days of establishingthe fund. (Funds in existence prior to1 November 1999 would have lodged anelection with APRA.)

Tax file number and Australian BusinessNumberMy SMSF has its own tax file number (TFN)and Australian Business Number (ABN).

Note: In obtaining registration, the trustee ofthe fund applies for and receives the ABN ‘astrustee for the fund’.

Separate bank accountMy fund maintains a separate bank account.Money belonging to the fund is kept entirelyseparate from accounts of the members, thetrustees and related employers(employer-sponsors).

Investment strategyMy fund has a medium to long terminvestment strategy. The aim of my fund’sstrategy is to increase members’ benefits overtime.

Accepting contributionsMy fund accepts contributions only as set outin the Trust Deed and allowed under the SISA.

InvestingThe assets of the fund are kept separate at alltimes from those of:• the members• the trustees and• related employers.

Transactions at arm’s lengthAll transactions by the fund are conducted ona strict commercial basis.

The fund can demonstrate that market valuehas been paid and received on alltransactions.

In-house assetsI am aware that special rules apply to restrictcertain investments in assets when dealingwith a related party of the fund. These areknown as In-house assets.

37www.ato.gov.au

2 0 0 1– 0 2

Paying benefitsMy fund makes payments only as allowedunder the Trust Deed and the SISA.

Significant adverse eventIf my fund cannot meet payments to abeneficiary due to lack of funds, the ATO willbe notified within 3 business days and allmembers of the fund will be informed.

Reporting requirementsMy fund prepares all necessary paperwork inrelation to:• eligible termination payments (ETPs)• Business Activity Statements (BAS)• PAYG instalment and withholding

payments• reasonable benefit limits (RBLs) and• surcharge.

Annual requirementsThe fund:• has the records examined by an

approved auditor and prepare memberreports at the end of each year

• lodges its Fund return, on time, with theappropriate authority. For the 2001–02income year and subsequent years thesereturns are combined and lodged withthe ATO

• pays the supervisory levy and its taxliability when due

• complies with surcharge requirements.

Record keepingThe fund keeps accounting records, whichcomply with accounting guidelines for true andaccurate accounts for 5 years.

Responsible accounting practices will beadopted by the trustees.

The trustee keeps records, which relate to themanagement of the fund—for example,minutes of all meetings for 10 years.

Tax mattersMy fund keeps a record of the following:• deductions claimed for administrative

and operating expenses of the fund• sales/purchases of assets for capital

gains tax (CGT) purposes• TFNs of members• deductions claimed for the provision of

death and disability benefits for members• copy of the audit report is retained with

the tax records of the fund.

Appendix 2 Capital works deductions

Capital worksConstruction costs in respect of the following capitalworks may be deducted:• buildings or extensions, alterations or improvements to

a building• structural improvements or extensions, alterations or

improvements to structural improvements• environmental protection earthworks.

Deductions for construction costs and structuralimprovements to residential rental properties must bebased on actual costs incurred. If it is not possible togenuinely determine the actual costs, provide an estimateby a quantity surveyor or other independent qualifiedperson. The costs incurred by the fund for the provisionof this estimate are deductible as a tax related expense,not as an expense in gaining or producing assessableincome.

Who can claim?You can only claim a deduction under this Division for anincome year if:• you own, lease or hold part of a construction

expenditure area of capital works• you incurred the expense and• you use the building to produce income.

The area you own, lease or hold is called ‘your area’.

In calculating your deduction you must identify your areafor each construction expenditure area of the capitalworks. Your area may comprise the whole of theconstruction area or part of it.

Lessee of a buildingA lessee can claim a deduction in respect of an arealeased or held under a quasi-ownership right.

To claim a deduction the lessee must have:• incurred the construction expenditure or is an assignee

of the lessee who incurred the expenditure• continuously leased or held the building itself, or been

so held by previous lessees, holders or assigneessince completion of construction and

• used the building to produce assessable income.

If there is a lapse in the lease the entitlement to thededuction reverts to the building owner.

Requirement for deductibilityYou can deduct an amount for capital works in an incomeyear if:• the capital works have a ‘construction expenditure

area’• there is a ‘pool of construction expenditure’ for that

area and• you use the area in the income year to produce

assessable income.

38


www.ato.gov.au

No deduction until construction is completeYou cannot claim a deduction for any period before thecompletion of construction of the capital works eventhough you used them, or part of them, beforecompletion. Additionally, your deduction cannot exceedthe undeducted construction expenditure for your area.

Capital works are taken to have commenced when thefirst step in the construction phase starts—for example,the pouring of foundations or sinking of pylons for abuilding.

Establishing the deduction baseExpenditure in respect of the construction of capitalworks is deductible if there is a construction expenditurearea for the capital works.

Whether there is a construction expenditure area for thecapital works and how it is identified depends on thefollowing factors:• the type of expenditure incurred• the time the capital works commenced• the area of the capital works to be owned, leased or

held by the entity that incurred the expenditure and• for capital works begun before 1 July 1997, the area of

the capital works that was to be used in a particularmanner—refer to section 43-90 of ITAA 1997.

Construction expenditureIncludes:• preliminary expenses such as architect’s fees,

engineering fees, foundation excavation expenses andcosts of building permits

• costs of structural features that are an integral part ofthe income producing building or income producingstructural improvements—for example, lift wells andatriums

• some portion of indirect costs.

In relation to an owner/builder entitled to a deductionunder Division 43, the value of the owner/builder’scontributions to the works—that is, labour or expertiseand any notional profit element do not form part ofconstruction expenditure. Refer to Taxation Ruling TR 97/25 and Addendum.

Construction expenditure does not include expenditureon:• acquiring land• demolishing existing structures• clearing, levelling, filling, draining or otherwise

preparing the construction site prior to carrying outexcavation work

• landscaping• plant• property or expenditurefor which a deduction is allowable or would be allowable

if the property were for use for the purpose of producingassessable income under another specified provision ofITAA 1936 or ITAA 1997.

Construction expenditure areaThe construction of the capital works must be completebefore the construction expenditure area is determined. Aseparate construction expenditure area is created eachtime an entity undertakes the construction of capitalworks.

Note: For construction area expenditure before 1 July1997, the capital works must have been constructed for aspecified use at the time of completion, depending uponthe time when the capital works commenced. The firstspecified use construction time was 22 August 1979—refer to Table 43-90 and subsection 43-75(2) of ITAA1997.

Pool of construction expenditureThe pool of construction expenditure is the portion of theconstruction expenditure incurred by an entity on capitalworks, which is attributable to the constructionexpenditure area.

Deductible useYou can only claim a deduction under this Division if youuse your area in a way described in Table 43-140 or43-145 of Subdivision 43-D of ITAA 1997.

Special rules about usesYour area, is taken to be used for a particular purpose ormanner if:• it is maintained ready for that use, is not used for

another purpose and its use has not been abandonedor

• its use has temporarily ceased because ofconstruction, repairs, or for seasonal or climaticconditions.

Your area is not accepted as being used to produceassessable income if:• it is used for exhibition or display in connection with

the sale of all or part of any building—other than ahotel or apartment building—and where constructionbegan after 17 July 1985 but before 1 July 1997. Ifconstruction commenced after 30 June 1997,buildings that are used for display are eligible

• it is used:– wholly or mainly for residential accommodation or– for exhibition or display in connection with the sale

of all or part of any building or the lease of all orpart of the building for use wholly or mainly for or inassociation with residential accommodation and thebuilding construction began after 19 July 1982 andbefore 18 July 1985

39www.ato.gov.au

2 0 0 1– 0 2

• you use it for residential accommodation—and it is nota hotel or apartment building. Refer to section43-170(2) of ITAA 1997 for exceptions to this rule.

Your area, is taken to be used as residentialaccommodation if it is:• part of an individual’s home—other than a hotel or

apartment building• used as a hotel, motel or guest house but does not

satisfy the definition of a hotel building• owned by a private company and used, or reserved for

use, as residential accommodation for a director ormember of the company, or a spouse, parent or childof such a director or member.

Note: Special rules for hotel and apartments arecontained in section 43-180 of ITAA 1997.

Calculation and rate of deductionYour entitlement to a deduction begins on the date thebuilding is first used to produce assessable income. Thefirst and last years of use may be apportioned. Theentitlement to a deduction runs for either 25 or 40years—the limitation period—depending on the rate ofdeduction applicable.

The legislation contains 2 calculation provisions.• section 43-210 of ITAA 1997—the deduction for

capital works, which began after 26 February 1992• section 43-215 of ITAA 1997—deductions for capital

works, which began before 27 February 1992.

Capital works begun before 27 February 1992 andused as described in Table 43-140 of ITAA 1997

The deduction is calculated separately for each part thatmeets the description of your area.

Your construction expenditure is multiplied by theapplicable rate—either 4 per cent if the capital workswere begun after 21 August 1984 and before 16September 1987 or 2.5 per cent in any other case—andby the number of days in the income year in which youowned, leased or held your area and used it in a relevantway. That amount is divided by the number of days in theincome year.

You apportion the amount if your area is used only partlyto produce assessable income.

The amount you claim cannot exceed the undeductedconstruction expenditure.

Capital works begun after 26 February 1992The deduction is calculated separately for each part ofcapital works that meets the description of your area.

There is a basic entitlement to a rate of 2.5 per cent forparts used as described in Table 43-140—Current yearuse. The rate increases to 4 per cent for parts used asdescribed in Table 43-145—Use in the 4 per cent manner.

Undeducted construction expenditureThe undeducted construction expenditure for your area isthe part of your construction expenditure that remains towrite-off. It is used to work out:• the number of years in which you can deduct amounts

for your construction expenditure and• the amount that you can deduct under section 43-40

of ITAA 1997 if your area or a part of it is destroyed.

Balancing deduction on destructionIf a building is destroyed or damaged during an incomeyear, the remaining amount of undeducted constructionexpenditure that has not yet been deducted less anycompensation received is allowed as a deduction. Wherethe destruction or demolition is voluntary, the entitlementto a deduction is unaffected.

The deduction is allowable in the income year in whichthe destruction occurs. The deduction is reduced wherethe capital works are used in an income year only partlyfor the purpose of producing assessable income.

For guidelines issued by the Commissioner on thesemeasures refer to Taxation Ruling 97/25 and Addendum.

40


www.ato.gov.au

Appendix 3 Summary of specialresponsibilities of trustees

The following is a summary of special responsibilitiestrustees have in the preparation of returns.• the fund must have a governing trust deed or a

constituent document• ensure all assets are in the name of the trustee of the

fund• elect to become a regulated fund under the SISA and

either:– obtain an APRA or ATO notice of compliance– evidence that compliance has been sought and is

expected to be granted for the year or– retain a notice of compliance from a previous year

provided the fund has not since received a notice ofnon-compliance

• if the fund operates under a substituted accountingperiod (SAP), proof that the SAP has been approvedby the ATO

• if the fund has capital gains or losses, records must beavailable of the market value and original cost used asat 30 June 1988 if the asset was purchased prior tothat date

• keep separate records of private company dividends,certain trust distributions or other excessive non-arm’slength income

• keep records of all foreign source income andcalculation of foreign tax credits

• contributions—keep records of:– contributions received from employers and

employees or depositors– roll-over notifications to verify untaxed elements

where roll-overs are received• keep records of how contributions excluded from

income are determined under subsection 274(7) ofITAA 1936. If pre-1 July 1988 funding credits areclaimed, obtain a notice under section 342 of the SISA(or as formerly known an APRA section 15D notice) orkeep evidence that the notice has been sought

• keep records of notices received excluding member ordepositor contributions. If the contributions tax liabilityis transferred, obtain evidence in writing of anagreement signed by the transferor and the transferee

• deductions—keep records of expenditure and to whatincome it relates. If a potential detriment deduction isclaimed, keep records of how the claim was calculatedand obtain the relevant actuarial certificates. Also keepevidence that the benefit of the deduction is passed onto the dependant.

If premiums for death and disablement cover are claimed,where relevant, keep a copy of the policy or actuarialcertificate.

If a future service element deduction is claimed, keepevidence of the calculation and full details of the relevanteligible termination payments (ETP) details.

For more information on trustees’ duties andresponsibilities, trustees of SMSFs refer to the publicationSelf-Managed Superannuation Funds– A do it yourselfguide for trustees running a Self-ManagedSuperannuation Fund.

41

2 0 0 1– 0 2

www.ato.gov.au

Appendix 4 Superannuation fund rates of taxation

The following rates of tax apply to superannuation funds, ADFs and PSTs for the 2001–02 income year.

Superannuation funds certified by APRA or the ATO as complying with Rate %superannuation fund conditions

• assessed on income, including realised capital gains, tax deductible contributions received and anynet previous income 15

• assessed on private company dividends (unless the Commissioner is of the opinion that the dividendsare not special income), certain trust distributions and non-arm’s length income—see label H—Net privatecompany dividends and other excessive non-arm’s length income on page 18. 47

Superannuation funds not certified by APRA or the ATO as complying with superannuation fund conditions

• assessed on income, including realised capital gains, tax deductible contributions received and any netprevious income 47

ADFs certified by APRA as complying with ADF conditions

• assessed on income, including realised capital gains and certain roll-over deposits 15

• assessed on non-arm’s length income, private company dividends (unless the Commissioner is ofthe opinion that the dividends are not special income) and certain distributions from trusts—seelabel H—Net private company dividends and other excessive non-arm’s length income on page 18. 47

ADFs not certified by APRA as complying with ADF conditions

• assessed on income, including realised capital gains and certain roll-over deposits 47

Unit trusts certified by APRA as complying with conditions for PSTs

• assessed on income, including realised capital gains and any liability attached to tax deductiblecontributions transferred from investing funds 15

• assessed on non-arm’s length income, private company dividends (unless the Commissioner is of theopinion that the dividends are not special income) and certain distributions from trusts—seelabel H—Net private company dividends and other excessive non-arm’s length income on page 18. 47

42


www.ato.gov.au

Appendix 5 Thin capitalisation

The thin capitalisation provisions apply to reduce certainexpenditure (called ‘debt deductions’) incurred inobtaining and servicing debt where the debt used tofinance the Australian operations of the trust fundexceeds the limits set out in Division 820 of ITAA 1997.These rules ensure that entities fund their Australianassets with an appropriate amount of equity.

Do the thin capitalisation rules apply?

The thin capitalisation rules will apply to a fund or trust if:(a) the fund or trust is an Australian resident and either:

(i) the fund or trust, or any of its associate entities, isan Australian controller of a foreign entity (explainedbelow) or carries on business overseas at orthrough a permanent establishment or

(ii) the fund or trust is foreign controlled, either directlyor indirectly (see below) or

(b) the fund or trust is a foreign resident and carries onbusiness in Australia at or through a permanentestablishment or otherwise has assets that produceassessable income.

However, the thin capitalisation rules will NOT apply if:• the fund or trust debt deductions (combined with the

debt deductions of its associate entities) do notexceed $250 000 in the income year or

• in the case of an Australian fund or trust which is notforeign controlled, the combined value of the fund’s ortrust’s Australian assets and the Australian assets of itsassociates comprise at least 90 per cent of the valueof the total assets of the fund or trust and thoseassociates.

The rules measuring control take into account both directand indirect interests that the fund or trust holds in theother entity (or vice-versa) and the direct and indirectinterests that associate entities of the fund or trust hold inthe other entity. This means that an Australian fund ortrust can be an Australian controller of a foreign entityeven if it holds a direct interest of less than 50 per cent inthe foreign entity.

Additionally, an Australian trust is foreign controlled wherea foreign entity is in a position to control the trust.

What if the thin capitalisation rules are breached?If the thin capitalisation rules are breached, some of thefund’s or trust’s deductions may be denied. The amountdenied will reduce the amounts shown at item 9 onpage 4 of the Fund return, usually at one or more of thelabels A, B, L or D. In addition, the question at item 17,label O—Thin capitalisation, is answered Y for Yes.

What if the thin capitalisation rules apply?If the thin capitalisation rules apply, or further informationis required, please refer to the publication Guide to thincapitalisation. If the thin capitalisation rules apply, thefund or trust must complete the Thin capitalisationschedule. Send the completed schedule to:


Note:Early Balancers: The thin capitalisation rules outlinedabove apply to the first income year commencing on orafter 1 July 2001. If the fund is completing the Fundincome tax and regulatory return 2002 in respect of anincome year that commenced before 1 July 2001, the oldthin capitalisation regime contained in Division 16F of PartIII of ITAA 1936 applies. If further information is required,call the ATO on 13 2478.

43

2 0 0 1– 0 2

www.ato.gov.au

Appendix 6 ATO locations

For more information regarding PART IX—taxation of superannuation business and related business (sections 267 to315F of ITAA 1936) and the regulatory information for SMSFs (SIS) phone the Superannuation Infoline on 13 1020.

If you wish to write to the ATO concerning superannuation, send your correspondence to:

Superannuation Business LinePO Box 2000MOONEE PONDS VIC 3039

Below are our street addresses for ATOaccess.

If you have an enquiry, we can usually assist you faster by telephone. The inside back cover lists our telephone infolineservices.

New South WalesChatswoodATOaccessShop 43 Lemon GroveShopping Centre441 Victoria AvenueChatswood

HurstvilleATOaccess1st Floor MacMahon Plaza14–16 Woodville StreetHurstville

ParramattaATOaccessGround floorCommonwealth Offices2–12 Macquarie StreetParramatta

QueenslandBrisbaneATOaccess280 Adelaide StreetBrisbane

TownsvilleATOaccessStanley Place235 Stanley StreetTownsville

Australian Capital TerritoryCanberraATOaccessGround Floor Ethos House28–36 Ainslie AvenueCanberra

VictoriaCheltenhamATOaccess4A, 4–10 Jamieson StreetCheltenham

Northern TerritoryAlice SpringsATOaccessJock Nelson Centre16 Hartley StreetAlice Springs

DarwinATOaccessCnr Mitchell & Briggs StreetsDarwin

44


www.ato.gov.au

BPAY, using the phone or Internet. Contact yourfinancial institution and follow the prompts.

Your nominated account must be a cheque or savingsaccount. Enter the ATO’s biller code 75556 and your EFTcode as your customer reference number. Your EFT codeis found immediately above the barcode on your paymentadvice form. For more information or to request and EFTcode phone 1800 815 886. A BPAY receipt number willbe issued which is your record of payment.

✉ Mail, by mailing your payment with the paymentadvice form to the address printed on the advice form.

Where a payment advice form is not available, paymentscan be mailed to the appropriate address below. Includeyour full name, address, telephone number, type ofpayment and ABN or TFN.

Clients in NSW, ACT and QLD send your mail paymentsto:

ATO Locked Bag 1793PENRITH NSW 1793

Clients in VIC, TAS, SA, NT and WA send your mailpayments to:

ATO Locked Bag 1936ALBURY NSW 1936

Cheques and money orders are made payable to theDeputy Commissioner of Taxation with Not negotiableprinted across the cheque. Tender all cheques inAustralian currency. Do not send cash by mail. Do not usepins, staples, paper clips or adhesive tape.

In person, at any Australia Post agency, by cash, moneyorder or cheque. A $3000 cash limit applies. You mustpresent your payment advice form when making apayment. A receipt will be issued.

Note: Australia Post will not accept a photocopy of apayment advice form.

For more information on any payment method:Phone: 1800 815 886Email: [email protected]: www.ato.gov.au

Appendix 7 Where to lodge a Fund returnand payment options

Postal address for lodgment of the Fund return:

Clients in NSW, ACT and QLDATO Corporate data capturePO Box 2246CHERMSIDE QLD 4032

Clients in VIC, TAS, SA, NT and WAATO Corporate data captureGPO Box X2229PERTH WA 6847

Note: The address must appear as shown.

Payment advice formUse the 2 separate payment advice forms provided by theATO to pay the actual amount of tax payable and theannual levy for SMSFs.

The payment advice forms are expected to issue inNovember 2002 to the current postal address of the fund.

Payment optionsYou can make payments by one of 5 methods:

Direct credit, by arranging to have your paymentcredited to the ATO electronically, via a desktop bankingpackage. Use the following information to transmit apayment to the ATO’s bank account:

Bank Reserve Bank of AustraliaBSB No 093 003Account No 316 385Account Name ATO EFT Deposits Trust Account

Record your EFT Code in the Direct Entry System (DES)Lodgment Reference Field. Your EFT code is foundimmediately above the barcode on your payment adviceform. For more information or to request an EFT codephone 1800 815 886.

Direct debit, by authorising the ATO to debit yournominated financial institution account (savings or chequeaccounts only) for your payment.

This method can only be used through a tax agent oraccountant authorised to use the electronic lodgmentservice (ELS).

The completed Direct Debit Request (DDR) must bereceived by the ATO at least 5 working days before thefirst direct debit is due. Once the ATO processes yourDDR, payment details or recurring tax liabilities must beprovided to the ATO by your agent or accountant no laterthan 3 working days before the due date.

45www.ato.gov.au

2 0 0 1– 0 2

GLOSSARY

AAT Administrative Appeals Tribunal

ABN Australian Business Number

ADF approved deposit fund

APRA Australian Prudential Regulation Authority

ATO Australian Taxation Office

BAS Business Activity Statement

CFC controlled foreign company

CGT capital gains tax

Commissioner Commissioner of Taxation

DDR Direct Debit Request

DES Direct Entry System

EFT electronic funds transfer

ELS electronic lodgment service

ETP eligible termination payment

FBT fringe benefits tax

FTD family trust distribution

FIF foreign investment fund

FLP foreign life policies

FTP File Transfer Protocol

fund superannuation fund, approved deposit fund andpooled superannuation trust

Gazette Commonwealth of Australia Gazette

GIC general interest charge

GST goods and services tax

ITAA Income Tax Assessment Act

MCS member contributions statements

PAYG Pay as you go

PDF pooled development fund

PST pooled superannuation trust

RBL reasonable benefit limit

SAF small APRA fund

SFN superannuation fund number

SHAR Superannuation Holding Accounts Reserve

SIS Superannuation Industry (Supervision) Act 1993 andSuperannuation Industry (Supervision) Regulations 1994

SISA Superannuation Industry (Supervision) Act 1993

SISR Superannuation Industry (Supervision) Regulations 1994

SMSF self managed superannuation fund

TAA Taxation Administration Act

TFN tax file number

Trust Loss ActTaxation Laws Amendment (Trust Loss and OtherDeductions) Act 1998

UCA uniform capital allowance system

www world wide web

REFERENCE TO TAXATION DETERMINATIONS ANDTAXATION RULINGS

IT 2624 Income tax: company self assessment;elections and other notifications; additional(penalty) tax; false or misleading statement

TD 98/27 Income tax: is a deduction allowable tocomplying superannuation funds undersection 279 of the Income Tax AssessmentAct 1936 (ITAA 1936), for insurancepremiums attributable to the provision ofbenefits for members in the event oftemporary disability longer than two years

TD 1999/6 Income tax: what is the purpose of sections279E and 289A of the ITAA 1936

TR 93/1 Income tax and fringe benefits tax: privaterulings

TR 96/7 Income tax: record keeping – section 262A –general principles

TR 97/16 Income tax: status of taxation rulingsfollowing the income tax law rewrite

TR 97/21 Income tax: record keeping: electronicrecords

TR 97/25 Income tax: property development: deductionfor capital expenditure on construction ofincome producing capital works, includingbuildings and structural improvements

Your infolines for further information

Publications, taxation rulings, forms

Tax agents please use the following numbers:

ATOPOS web address ➔ www.iOrder.com.au/ato

Publications distribution service by fax ➔ 1300 361 462

If you have a query on your order status, phone ➔ 1300 362 883

Non tax agents please use the following numbers:

Publications Distribution Service ➔ 1300 720 092

From July to the end of October, this service operates from 8 a.m. to at least 10 p.m. on weekdays and from10 a.m. to 5 p.m. on weekends—AEST. From November to June, the normal operating hours of thedistribution service are 9 a.m. to 7 p.m. weekdays; the distribution service will NOT operate duringweekends.

Before you ring, check to see if there are other publications you may need—this will save you time and help us.

This distribution service is not run by ATO staff. Your tax questions cannot be answered on thistelephone number.

Other enquiries are available through the following services:

Website—ATOassistThe Internet site at www.ato.gov.au gives access to ATO publications and general information on tax matters,24 hours a day, every day.

a FAX from TAX—13 2860If you have access to a fax machine, tax information is available 24 hours a day, every day.When you phone, follow the instructions to obtain a list of available documents.

Business tax reform infoline—13 2478This service operates from 8 a.m. to 6 p.m. Mon–Fri.The Internet site at www.taxreform.ato.gov.au gives access to business tax reform information 24 hours a day,every day.

Superannuation enquiries—13 1020For assistance with all your superannuation enquiries.

Business infoline—13 2866Notify the ATO of the amount of tax instalments deducted from employees every quarter to avoid a penalty forfailure to notify, even if you cannot pay the full amount by the due date.Phone this number also for information on the general interest charge.If you are unsure whether you need to lodge a return or you want to know where or when to lodge a return.If you need information on the ABN, how to apply for one or assistance in completing an application.

ATO account management line—13 1142If you cannot pay your tax debt contact the ATO on, this number to avoid action being taken to recover the debt.

General enquiries—13 2861This helpline is for tax questions on topics other than those already described.

Translating and interpreting service—13 1450If you do not speak English and need help on tax matters, this service sets up a 3-way conversation betweenyou, an interpreter and a tax officer.

Hearing or speech impairment—13 2544If you have access to appropriate TTY or modem equipment, contact the Australian Communication ExchangeNational Relay Service on 1300 130 478. You will need to quote one of the helplines listed on this page. Therelay service will then connect you with a tax officer.

Produced by

Personal Tax Publishing Group

Australian Taxation Office 2002

Fu

nd

inco

me

tax a

nd

reg

ulato

ry ta

x retu

rn 2

00

2 in

structio

ns

Fund income tax and regulatory return instructions

Documents

Transcript of Fund income tax and regulatory return instructions