Important tax report changes — new rules for managed investment trusts

The introduction of the attribution managed investment trust (AMIT) regime, taking effect more widely in the 2016–2017 tax year, has required the addition of new tax components for trust income transactions, as well as new cost-base adjustments for these unit trusts. No action is required from you. We have updated our tax reports accordingly.

Click through the following slides to get an overview of the new AMIT regime and our approach to meeting the new requirements. (Note, the slideshow works best using a new internet browser such as Chrome or Edge.)
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Click to download a PDF of this slideshow.

New tax components

AMIT

Tax component name Description Impact on amount receivable AMIT Only?
Exempt income The amount of ordinary and statutory income that is exempt income, as listed in section 11-15 ITAA 1997. Included Yes
Non-assess non-exempt The amount of ordinary and statutory income that is non-assessable non-exempt income, as listed in section 11-55 ITAA 1997. Included
 Yes
Other non-assess For AMITs only, the amount by which total income distributed for accounting/trust law purposes in respect of an income year exceeds total attributed income for taxation purposes for that year. This is the complement to 'Assessable non-receivable' in the Amounts withheld (or otherwise non-receivable) section. Included
 Yes
Assessable non-receivable This is essentially a non-cash amount. For AMITs, this is possible when the amount by which total attributed income for taxation purposes for an income year exceeds total distributed income for accounting/trust law purposes for that year (e.g. MGR 2015-16). This is the complement to 'Other non-assessable' in the Non-assessable section. For non-AMITs, this is theamount by which the distribution for taxation purposes for an income year exceeds the distribution for accounting/trust law purposes for that year (e.g. SCG 2015-16). Subtracted No
AMIT cost base net amount - excess The excess amount, as calculated under paragraph 104-107C(a) ITAA 1997. Both the cost base and the reduced cost base of the underlying CGT asset are decreased by this amount. No impact Yes
AMIT cost base net amount - shortfall The shortfall amount, as calculated under paragraph 104-107C(b) ITAA 1997. Both the cost base and the reduced cost base of the underlying CGT asset are increased by this amount. No impact
 Yes

Australian income

Tax component name Description Impact on amount receivable
 AMIT Only?
Interest exempt from NRWT Interest that is not subject to non-resident withholding tax. Included
 No
Franking credits total The amount of the franking credit attached to the franked part of a distribution. No impact
 No

Trust capital gains

Tax component name Description Impact on amount receivable
 AMIT Only?
Taxable foreign capital gains For information purposes only, the total capital gains made in respect of foreign CGT assets. These are stated gross of any foreign tax, exclude the CGT concession amount and AMIT CGT gross up amount, and the discount capital gain is grossed up by doubling it. No impact
 No

Australian taxes

Tax component name Description Impact on amount receivable
 AMIT Only?
Trustee TFN credits Includes amount withheld by investment bodies from interest, dividends, and fund payments paid to the trustee. Subtracted
 No
Foreign resident CGWT The amount of tax withheld by purchasers from foreign resident capital gains payments made to vendor in respect of taxable Australian property (TAP). Subtracted
 No

Tax offsets

Tax component name Description Impact on amount receivable
 AMIT Only?
Early-stage investor The amount of any early-stage investor tax offset. No impact
 No
ESVCLP The amount of any early-stage venture capital limited partnership tax offset. No impact
 No
Exploration credits The amount of any exploration credit tax offset. No impact
 No

Changes to existing tax reports

The following table shows the sections within our existing tax reports which will change. You can click the links in the example column to view before and after examples of the report sections. 

Tax report Sub-section changed Summary of change Click to view example
Tax Summary Assessable income
  • Addition of line for Interest exempt from NRWT. 
  • Minor label changes to align with ATO terminology.
  • Revised footnotes (a) and (b) and removed footnote (c).
Tax Summary Australian withholding tax
  • Broken into respective income types and components, to include new AMIT reporting fields.
Tax Summary Additional information
  • Section removed.
Tax Summary Tax offsets and credits
  • New lines under ​Other​ for AMIT reporting.
  • Footnotes revised.
Income Income transactions
  • New Assess non-receivable column as required for AMIT reporting.
  • Columns reordered into more logical groups.
  • Rental income column removed and included in the Other Aust. column.
Income Interest
  • New sub-section now only visible if there are amounts in the Interest exempt from NRWT column.
  • For residents, both the Interest and Interest exempt from NRWT amounts will be subject to TFN/ABN not quoted withholding tax.
Income Gross foreign income
  • Sub-section renamed from Foreign income. 
  • Minor column heading changes.
  • Tax components that are no longer relevant have been removed.
  • Footnotes added.
Income Trust capital gains
  • Sub-section renamed from Trust CGT distributions.
  • Columns renamed.
  • New Taxable foreign capital gains column added.
  • New footnote added and existing footnotes revised.
Income Non-assessable amounts
  • Three new columns added specific to trusts which have adopted the AMIT rules.
  • New footnotes.
Income Australian investment taxes
  • New sub-section.
  • TFN withholding tax now separated from Non-resident withholding tax.
  • Includes new AMIT tax components.
  • If all amounts are zero, the section is hidden.
Income Foreign investment taxes
  • New sub-section.
  • If Foreign tax or NTAP foreign tax amounts are zero, the section is hidden.
Income Income summary
  • Column headings and order changed in line with Income transactions section.
Realised CGT Disposal of CGT assets
  • Revised footnotes.
Realised CGT Adjusted cost
  • Sub-section renamed from Tax free and tax deferred amounts.
  • AMIT distribution cost base net amounts added.
  • Cost base and Reduced cost base amounts resulting from actual cost adjustments are now displayed.
  • New footnotes added.
Unrealised Unrealised CGT gains/losses
  • Revised footnotes.
Unrealised Adjusted cost
  • Sub-section renamed from Tax free and tax deferred amounts.
  • AMIT distribution cost base net amounts added.
  • New footnotes added.

Click to download a PDF of the example images.

Want to test it for yourself?

We have created a new fictional global asset so that you can include it in a portfolio to do your own testing. The asset code is AMIT and you can add it to your portfolio using the Transaction history screen as you would any other asset. 
    
You will need to recalculate the portfolio to apply the distributions to your test portfolio and generate the tax reports to see the new tax components and cost base adjustments for this fictional asset.
Don't forget to delete it from your portfolio when you have finished testing!

More information

Contact our Client Services team if you have any further questions.