The distribution statement must show only Australian source income or loss, as shown at item 20 on the partnership tax return.
item 8 Partnerships and trusts in the Trust tax return 2016, except for distributions of income subject to foreign resident withholding, which are shown at item 5 Business income and expenses.
Do not show capital gains, attributed foreign income, foreign source income or foreign income tax offsets on the distribution statement. Record and distribute these separately, keeping details for your records.
For more information on capital gains, see the Guide to capital gains tax 2016.
If you are completing a tax return on paper and the total number of partners is more than four, photocopy page 11 of the tax return before filling it in, one copy for each additional partner. Complete the copies showing the details of each additional partner. Attach these to the tax return and print X in the Yes box at Have you attached any ‘other attachments’? at the top of page 1 of the tax return.
non-individual’s Australian business number (ABN).
Show the full name and TFN/ABN of each partner. If the TFN or ABN is not shown, show the partner’s address. If the partner is a trustee, show the name and TFN of the trust.
Show each partner’s share of income in whole dollars only, separated into primary production income and non-primary production income. While the partnership's non-primary production income includes franked distributions, for the purposes of recording partners' franked distributions in the distribution statements, franked distributions should not be included at B. Franked distributions should be shown at L.
If a loss is distributed, print L in the box at the right of the amount.
C item 8 Share of credit for tax withheld where ABN not quoted.
Show each partner’s share of franked distributions (net of relevant expenses) and its share of the franking credits referable to those franked distributions (the franking credit 'gross-up') in whole dollars only.
M item 12 Franking credit.
N item 12 TFN amounts withheld from dividends.
Show at O the share of the net amount of TFN amounts withheld by a trustee of a closely held trust, which is subject to the TFN Withholding rules. The total amounts for each partner at this entry should equal the amount reported at O item 8, and the amount of credit claimed by each partner should be claimed in proportion to their partnership interest.
Credits for the TFN amounts withheld may be claimed by the partners when they lodge their income tax returns.
For more information on the TFN withholding rules for closely held trusts, see TFN withholding for closely held trusts – Who the rules apply to.
Show each partner’s share of credit for amounts withheld under foreign resident withholding. Show whole dollars only. The aggregate of each amount shown at F for each completed distribution statement must equal the total amount of credit shown on the tax return at U item 6 and U item 8.
Show each partner’s share of Australian franking credits that were attached to franked dividends received from a New Zealand franking company either directly or indirectly through another partnership or trust.
the partner is entitled to a foreign income tax offset because the franked dividend is included in their assessable income, see Appendix 1.
If the above conditions exist, the reduction should be made on the partner’s own tax return.
Show each partner's share of net small business income. Show whole dollars only. The aggregate of each amount shown at H for each completed distribution statement must equal the amount shown at V item 5 Net small business income.
You need to advise any partners who are individuals of their share of net small business income from the partnership to assist them to work out their entitlement to the small business income tax offset.
Partners who are prescribed persons (under 18 years of age and not excepted persons) can only claim the offset on their share of net small business income if they were actively involved in carrying on the business of the partnership.
Show each partner’s share of the NRAS tax offset. The aggregate of each amount shown at I for each completed distribution statement must equal the amount of NRAS tax offset entitlement shown at F item 49 on the partnership tax return. With this figure, include cents.
Show each partner’s share of net financial investment income or loss. Show whole dollars only. The aggregate of each amount shown at J for each completed distribution statement must equal the amount shown at G item 50.
Show each partner’s share of net rental property income or loss. Show whole dollars only. The aggregate of each amount shown at K for each completed distribution statement must equal the amount shown at H item 50.
Show each partner’s share of exploration credits. Show whole dollars only. The aggregate of each amount shown for each completed distribution statement must equal the total exploration credits received by the partnership.
If a partner aged 18 years or more on the last day of the partnership’s income year does not have real and effective control and disposal of part or the whole of their share of partnership net income, the partner pays further tax, see section 94 of the ITAA 1936. Provide the partner's details at the top of page 13 of the tax return.
Real control depends on the constitution and control of the partnership and the conduct of its operations. Broadly, there is a lack of real control if the partner must allow any part of their share of income to be dealt with in a particular way so that the partner cannot, on their own, deal with it in another way.
If you are completing a tax return on paper, and there is more than one partner without real or effective control over their part of the partnership income, then on a separate sheet of paper titled ‘Additional partners without real or effective control’ list the title and full names of the additional partners. Attach it to the tax return and print X in the Yes box at Have you attached any ‘other attachments’? at the top of page 1 of the tax return.
Under special circumstances, the Commissioner may treat a partner as having real control of a share or part of a share of partnership income. If you want a partner to be treated as having real control of a share or part of a share of partnership income, provide full details on a separate sheet of paper in support of your request. Attach it to the tax return and print X in the Yes box at Have you attached any ‘other attachments’? at the top of page 1 of the tax return.