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GUIDE EXTERNAL 22 NOVEMBER 2013 UNCLASSIFIED FORMAT AUDIENCE DATE CLASSIFICATION

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Annual investment income report (AIIR) companion guide UNCLASSIFIED AIIR companion guide UNCLASSIFIED For further information or questions, call 1800 072 681.

UNCLASSIFIED PAGE 2 OF 124 UNCLASSIFIED AIIR Companion Guide

ENDORSEMENT/VERSION CONTROL

CURRENT VERSION NUMBER Final 01 DATE 4 November 2013

AUTHOR Karen Business Analyst 07 321 38002 Greenaway Manager

CONTACTS Karen Business Analyst 07 321 38002 Greenaway Manager Megan Adams Project Officer 07 321 36977 Shayran Business Analyst 07 312 17091 Shepherd

APPROVAL Karen Business Analyst 07 321 38002 Greenaway Manager Graham Whyte Assistant Commissioner Approved 18/11/2013

VERSION CONTROL

Version Revision date Name of author/modifier Distributed to Draft 0.1 30082013 Karen Greenaway Michael Majoor Jim Gannon

Draft 0.2 21102013 Karen Greenaway Michael Majoor Final 01 14112013 Karen Greenaway Sally Randle Graham Whyte

TABLE OF CONTENTS

Terms & Acronyms...... 6 1 Introduction...... 8 Who should use this guide...... 8 How to use this guide...... 8 Regular updates...... 8 Lodging your AIIR early to assist pre-filling...... 9 Incremental lodgment...... 9 Feedback...... 9 2 Legal requirements...... 10 Retention of Information...... 10 Other obligations...... 11 Requirement to deduct non-resident withholding amounts...... 11 Withholding Payer Numbers...... 12 Managed investment trust fund payments and withheld amounts...... 12 Consolidated reporting...... 13 Mergers...... 14 Example 2.1 – Merged before or after 1 July...... 14 Example 2.2 – Merged on 1 July...... 14 3 Investor and account reporting...... 15 Investor TFN...... 15 Investor entity type...... 17 Reporting for different entity types...... 17 Individuals...... 17 Corporation or incorporated organisation...... 18 Partnerships...... 18 Joint accounts...... 18 Unequal shares in a joint account...... 19 Trusts...... 19 Example 3.1 – Formal trust with trust TFN...... 20 Example 3.2 – Formal trust with trustee TFN...... 20 Superannuation funds...... 21 Government organisation...... 21 Other non-individual...... 21 Third party accounts...... 21 Example 3.3 –Third party account where the income is deemed to be the third party’s. 22 Example 3.4 – Account opened by third party OBO an individual investor...... 23 Example 3.5 – Account opened by third party OBO a non-individual investor...... 23 Payment type...... 24 Payment dates...... 26 Example 3.6 – Multiple interest payments...... 26 Example 3.7 – Multiple franked dividend payments...... 26 Account signatories...... 26 Example 3.8 – Additional signatory on an individual account...... 26 Example 3.9 – Office bearers as signatories...... 27

Substituted accounting periods...... 27 SAP fields and rules...... 27 4 Deferred interest securities...... 29 Identification of investments...... 29 Reporting arrangements...... 30 5 Conduit foreign income...... 31 Income declared to be conduit foreign income by Australian corporate tax entities...... 31 Trust distributions of income declared to be conduit foreign income...... 31 6 Interposed entities...... 33 Example 6.1 – Primary investment body provides investor’s details to secondary investment body...... 34 Non-resident interposed entities/investors...... 35 Entities not considered interposed entities...... 35 7 Non-resident investor reporting...... 36 Withheld amounts from non-residents...... 37 Residency status...... 37 Non-resident for tax purposes for the full year...... 37 Change of residency status during the year...... 37 Example 7.1 – Change of non-resident investor for tax purposes to resident taxpayer. .38 8 Reporting for deceased investors...... 40 Example 8.1 – Single account when a formal trust has been established – interest paid after date of death...... 41 Example 8.2 – Joint account when one investor dies - no interest paid before date of death...... 42 Example 8.3 – Joint account when one investor dies - interest paid before and after date of death...... 43 9 Unit trust distributions...... 47 What can be included in a UTD...... 47 Distributions from corporate unit trusts and public trading trusts...... 48 Legislative changes...... 48 Reporting...... 48 Mandatory requirements...... 48 New definitions and fields...... 48 Example 9.1 – Non-primary production income and a fully franked distribution...... 50 Example 9.2 – Non-primary production income and a partially franked distribution...... 52 Capital Gains Tax (CGT)...... 54 Example 9.3 – Total capital gains is more than net capital gains...... 55 Example 9.4 – Total capital gains equals net capital gains...... 56 Investor Directed Portfolio Services...... 56 Example 9.5 – IDPS reporting in the AIIR...... 57 Example 9.6 – IDPS consolidated reporting in the AIIR...... 62 Stapled Securities...... 64 Example 9.7 – Stapled securities (dividend and UTD payments)...... 64 10 Alignment between the AIIR, SDS and the ITR...... 69 Basis of an SDS...... 69

Examples of SDS and AIIR reporting...... 70 Example 10.1 – SDS - Fully franked distribution...... 70 Example 10.2 – SDS including partially franked distribution...... 73 11 Farm management deposits...... 78 Legislative changes...... 78 Reporting...... 79 Mandatory requirements...... 81 Preferred reporting of optional fields...... 82 Interest payments...... 82 Deposits...... 83 Repayments...... 83 Transfers...... 84 Unclaimed moneys...... 85 Reporting examples...... 85 Example 11.1 – New FMD account with two repayments and interest paid...... 85 Example 11.2 – Existing FMD account with two transfer outs and interest paid...... 87 Example 11.3 – Existing FMD account with 6 repayments, 1 transfer out and interest paid...... 91 Example 11.4 – Existing FMD account with interest paid and a new deposit...... 94 Example 11.5 – Reinvestment of an existing FMD account into a new FMD account....97 12 Amendments processing...... 101 Replacement AIIR...... 101 Example 12.1 – Replacing an AIIR...... 102 AIIR containing corrected records...... 102 Example 12.2 – Correcting a previously lodged AIIR...... 102 Other corrected record examples...... 104 Example 12.3 - Incorrect amount of interest for individual investor...... 104 Example 12.4 - Incorrect amount of interest for joint account...... 104 Example 12.5 - Incorrect amount of interest for non-individual investor...... 104 Lodging by paper...... 104 13 Corrected TFN and ABN return files...... 105 Updating of TFN or ABN fields by investment bodies...... 105 Investors deemed not to have quoted a TFN or ABN...... 105 Non-resident tax identification numbers (TINS)...... 105 14 Frequently asked questions...... 106 General...... 106 Lodgment...... 108 TFN Withholding Tax...... 108 Income...... 110 Foreign source income...... 111 Changes to investor details...... 112 Correcting or amending an AIIR...... 112 Appendices...... 113 Appendix A - ERS/PC spreadsheet field name reference comparison...... 113 Appendix B - AIIR/ITR/SDS comparison...... 118 Appendix C - New UTD field names...... 124

TERMS & ACRONYMS

Term/Acronym Definition ABN Australian Business Number ADI Authorised deposit-taking institution AIIR Annual investment income report ATF As trustee for ATO Australian Taxation Office CFI Conduit foreign income CGT Capital gains tax DA Department of Agriculture (previously known as DAFF, Department of Agriculture, Fisheries and Forestry) DIS Deferred interest security DIV Dividend Entrepot nominee company An entrepot nominee company is a body corporate that is controlled solely by a securities dealer or by two or more persons each of whom is a securities dealer and is operated for the sole purpose of facilitating settlement of security transactions. ERS Electronic reporting specification Final tax Under tax treaties the withholding tax charged by the country of source may be limited to a rate lower than the rate that would be charged in other circumstances - this reduced rate is then the final tax in the country of source. FMD Farm management deposit FSI Foreign source income IDPS Investor directed portfolio services Information exchange country This is a country that has entered into a Tax Information Exchange Agreement with Australia for the allocation of taxing rights with respect to certain income of individuals. Inscribed stock Stock in which ownership information is recorded. The owner's name may be placed on a certificate or recorded electronically. Only the owner of an inscribed stock is entitled to ownership rights.

Term/Acronym Definition INT Interest IRB Investment related betting chance ITAA 1936 Income Tax Assessment Act 1936 ITAA 1997 Income Tax Assessment Act 1997 ITR Individual tax return ITR 1936 Income Tax Regulations 1936 OBO On behalf of SAP Substituted accounting period SDS Standard distribution statement TAA 1953 Tax Administration Act 1953 Taxable Australian property Includes: . a direct interest in real property situated in Australia or a mining, quarrying or prospecting right to minerals, petroleum or quarry materials situated in Australia . a CGT asset that you have used at any time in carrying on a business through a permanent establishment in Australia, and . an indirect Australian real property interest; which is an interest in an entity, including a foreign entity, where you and your associates hold 10% or more of the entity and the value of your interest is principally attributable to Australian real property. . and options or rights over any of the above. TDP Term deposit TFN Tax file number UTD Unit trust distribution WPN Withholding payer number

1 INTRODUCTION

This guide provides information to assist investment bodies complete and supply the Annual investment income report (AIIR).

It contains instructions and examples of legislative requirements and commonly reported scenarios for the 2013–14 reporting period onwards.

Although specifically designed to support users of the AIIR version 10.0.0 electronic reporting specification (ERS) and AIIR PC spreadsheet format version 4.0.0 reporting specification it provides useful information for all AIIR users.

WHO SHOULD USE THIS GUIDE

This guide has been prepared for AIIR suppliers, reporters, software developers and other interested parties.

HOW TO USE THIS GUIDE

Read this guide in conjunction with the:

. AIIR v10.0.0 ERS . AIIR PC spreadsheet format v4.00 reporting specification.

References within this document relate to the AIIR ERS. To assist AIIR PC spreadsheet users Appendix A - contains a comparison of AIIR v10.0.0 and v4.0.0 references and field numbers.

Section 11, Farm management deposits, applies only to AIIR v10.0.0 ERS users. From 2014 Farm management deposit (FMD) information cannot be reported by any other method.

The AIIR specifications are available from the Software Industry Liaison Unit (SILU) website: http://softwaredevelopers.ato.gov.au/aiirspecifications.

REGULAR UPDATES

Tax legislation continues to be a significant part of the government's legislation program. If law changes occur affecting the information collected in the AIIR, then this guide and the reporting specifications will be updated accordingly.

To keep up to date with any changes to this guide or the AIIR specifications, subscribe to the AIIR news and updates bulletin by email to [email protected]

You can also subscribe for news and updates from the Software Developers Homepage on their website.

At the time of original publication, AIIR v10.0.0 and v4.0.0 are the latest AIIR versions however two previous versions are still able to be used if you do not report FMDs or unit trust distributions. These versions do not support the reporting needs of all reporters (for example, some intermediary reporters can have negative amounts). Consultation to address these deficiencies is ongoing.

LODGING YOUR AIIR EARLY TO ASSIST PRE-FILLING

We encourage early lodgment of the AIIR to assist your investors with the completion of their income tax return through providing timely information that is pre-filled into e-tax and the Tax Agent Portal.

You can make it easier for your investors to lodge their tax return by:

. lodging in a timely manner . providing data in the manner set out in the specifications.

INCREMENTAL LODGMENT

For some investment bodies it may be easier to lodge the AIIR incrementally, as the data becomes available, for some investment products such as unit trust distributions. We are prepared to accept incremental AIIR lodgments, provided the data in subsequent AIIR files does not repeat previous client details. This benefits your investors by providing timely information that is pre-filled into e-tax and the Tax Agent Portal.

FEEDBACK

We welcome your feedback – complaints, compliments and suggestions – about the information and examples contained in this guide. Providing feedback on your experience in using this guide helps us improve the way we do things. Provide your feedback and suggestions to [email protected]

2 LEGAL REQUIREMENTS

Under regulation 56 of the Income Tax Regulations 1936 (ITR 1936) an entity defined as an investment body under section 202D of Part VA of the Income Tax Assessment Act 1936 (ITAA 1936), is required to report to the Commissioner of Taxation (the Commissioner) details of investments falling within the provisions of the Tax file number (TFN) legislation and the farm management deposit (FMD) legislation.

Under the legislation, investment bodies are required to give to the Commissioner, an AIIR containing:

. investor identity details (including names, addresses and TFNs or Australian Business Numbers (ABNs) quoted by investors) . details of investment income paid to investors during the financial year . movements of principal of FMDs . amounts withheld (including nil amounts) from any income that the investor is entitled to receive during the financial year and from repayments of FMDs.

The AIIR is an approved form under section 388-50 of Schedule 1 to the Taxation Administration Act 1953 (TAA 1953). The AIIR can therefore seek information not mentioned in regulation 56.

Section 202G of the ITAA 1936 requires an investment body that keeps the whole or part of the information it is obliged to give to the Commissioner on a computer system, to supply this information in a manner and form that is in accordance with the specifications set out by the Commissioner.

Investment bodies must lodge an AIIR with us within four months of the end of the financial year that it relates to – that is by 31 October – or within such further time as the Commissioner, by written notice given to the investment body, allows.

RETENTION OF INFORMATION

Under section 262A(4) of the ITAA 1936, investment bodies must retain investment income information for a statutory period of five years. The information can be retained electronically or on electronic storage media to meet this statutory requirement. A copy of the data file supplied to us must be able to be regenerated on request from us (for example, if a problem has been encountered in processing of the data).

OTHER OBLIGATIONS

Requirement to deduct TFN withholding tax

Investment bodies are required to withhold amounts from investment income payments made to investors who have chosen not to quote their TFN or ABN, have not claimed an exemption from quoting, or have been deemed not to have quoted by us. The amount of tax to be withheld and remitted to us is calculated at the highest marginal rate plus the Medicare levy. Where TFN withholding amounts are withheld, they are reported at the TFN withholding tax deducted (7.66) field.

Requirement to deduct non-resident withholding amounts

If an investment body makes a royalty, interest or dividend payment to a non-resident, it may be required to withhold an amount from the:

. dividend payment under sections 12-210 or 12-215 of Schedule 1 to the TAA 1953 . interest payment under sections 12-245 or 12-250 of Schedule 1 to the TAA 1953 . royalty payment under sections 12-280 or 12-285 of Schedule 1 to the TAA 1953.

Non-resident withholding amounts from royalties paid by investment bodies are reported on the PAYG withholding from interest, dividend and royalty payments paid to non-residents - annual report (NAT 7187).

Do not report non-resident withholding amounts from interest and dividends in both the AIIR and the PAYG withholding from interest etc.

See Section 7 – Non-resident investor reporting for more information.

Australian Business Numbers

Under section 23 of Division 9 of A New Tax System (Australian Business Number) Act 1999, it is an offence to:

. identify yourself or an associated entity using a number that is not an ABN as if it were an ABN . use an ABN that is not your own or an associated entity's own ABN.

ABNs are reported at the Supplier Australian business number (7.3), Investment body Australian business number (ABN) or withholding payer number (WPN) (7.34) and Investor Australian business number (7.139) fields.

Withholding Payer Numbers

If a supplier or an investment body does not have an ABN but has a WPN, the entity may provide their WPN instead of an ABN as their identifier at the Supplier Australian business number (7.3) and Investment body Australian business number or withholding payer number (7.34) fields.

Managed investment trust fund payments and withheld amounts

Withholding arrangements apply to managed investment trust fund payments made to foreign residents directly from managed investment trusts (MIT) or indirectly through intermediaries (custodians and other entities). Withholding is predicated on a foreign resident having a MIT withholding tax liability.

A fund payment is a component of a payment made by the trustee of a MIT that, in effect, represents a distribution of its net income of the trust.

A fund payment does not include dividends, interest, royalties, foreign source income and capital gains on assets that are not taxable Australian property and deductions relating to any of the above amounts. Dividends, interest and royalty payments are excluded because they are subject to their own withholding tax arrangements. Foreign source income and capital gains on assets that are not taxable Australian property are excluded because these are not taxable in the hands of foreign residents. Fund payments are reported at the Managed investment trust fund payments (7.100) field. See section 14, Frequently asked questions, for more information.

Under subsection 16-153(4) of the TAA 1953 an entity is required to withhold and must provide, on an annual basis, a report to the Commissioner on the amounts withheld pursuant to Subdivision 12-H of the TAA 1953. Amounts withheld from MIT fund payments are a final tax and are reported at the Amounts withheld from managed investment trust fund payments (7.101) field.

The imposition of tax and the establishment of the applicable rate of tax are provided for by the Income Tax (Managed Investment Trust Withholding Tax) Act 2008 and the Income Tax (Managed Investment Trust Transitional) Act 2008.

If the entity receiving the payment is a resident of an information exchange country, the tax currently imposed is:

Fund Payment Type Tax Rate Non clean building managed investment trust 15% Clean building managed investment trust 10%

If the entity receiving the payment is not a resident of an information exchange country, the tax rate is 30%.

The annual report to the Commissioner must be in the approved form and is due within 14 days after the end of six months following the end of the MIT’s income year. If, for example, the end of the income year is 30 June 2014, the annual report is due by 14 January 2015. The AIIR is the approved form for the annual report.

If an entity is required to lodge an AIIR and it is also required to provide information about amounts withheld from fund payments, it can include the information about the fund payments in the AIIR. Information provided in the AIIR will be taken to have been provided to us in the approved form for the purposes of subsection 16-153(4). However, the acceptance of the AIIR as the form of reporting of Subdivision 12-H payments does not alter the existing requirements to lodge the AIIR by 31 October each year.

If Subdivision 12-H payments are not able to be reported in the AIIR by 31 October reporting of fund payments and amounts withheld will need to be provided by either submitting:

. a second AIIR disclosing only Subdivision 12-H information and lodged by 14 January . a replacement AIIR disclosing previously lodged AIIR data as well as Subdivision 12-H information, and lodged by 14 January.

Consolidated reporting

Investment bodies that offer units in a range of trusts are required to report income from these trusts in their AIIR in exactly the same format as they report this information to their investors. The information reported in the AIIR must be in the same format as the tax statements to facilitate the pre-filling of income tax returns.

If the trusts have separate identifiers, they are regarded as separate reporting entities and should lodge a separate AIIR and matching tax statements to their investors. However, one consolidated AIIR may be lodged if all of the following conditions are met and approval is granted by us – the:

. responsible entity is the manager of the trust or trusts . trusts do not have their own identifiers (ABN) . trusts do not have to lodge income tax returns . income from the trusts will be reported in the consolidated AIIR in the same format as it is reported to the investors in their tax statement.

Some intermediaries satisfy these requirements.

Requests to lodge a consolidated AIIR should be emailed to [email protected]

Mergers

When two investment bodies merge during the course of a financial year, but not on 1 July of that year, the two entities must each report an AIIR for the year in which the merger occurred.

If the merge occurs on 1 July, both entities report for the year before the merge. One entity will advise they have no future obligations and the other will continue to report annually.

Example 2.1 – Merged before or after 1 July

The Murbah Credit Union is taken over by the Montego Shire Credit Union on 10 October 2013. For the period from 1 July 2013 to 9 October 2013 both investment bodies have an obligation to supply an AIIR as both were investment bodies at this particular time during the financial year.

The obligation operates as follows:

Murbah Credit Union lodges an AIIR for the period of time it was an investment body – that is for the period 1 July 2013 until 9 October 2013. The due date for the 2014 AIIR for the reduced period still remains 31 October 2014 – that is four months after the end of the financial year the report relates. Murbah Credit Union will notify us they no longer have an obligation to lodge future AIIR by reporting N at the Future reporting obligation (7.49) field.

Montego Shire Credit Union, from the date of the merger 10 October 2013, takes on new investors from the Murbah Credit Union and full legislative obligation to report these investors in the 2014 AIIR. Montego Credit Union reports investments relating to its original investors from 1 July 2013 to 30 June 2014 and the new investors from 10 October 2013 until 30 June 2014 in their 2014 AIIR.

Montego Shire Credit Union will have an AIIR obligation for subsequent years and in 2015 will report all investors for the full year.

Example 2.2 – Merged on 1 July

Tembi Bank Ltd was merged into Areba Bank Corporation on 1 July 2013.

The obligation operates as follows:

Tembi Bank Ltd will lodge a 2013 AIIR for the year ended 30 June 2013 as it was an investment body for the full year ending on 30 June 2013. Tembi Bank Ltd notifies us that it no longer has any future obligation to lodge an AIIR by reporting N at the Future reporting obligation (7.49) field in their 2013 AIIR.

Areba Bank Corporation received the new investors from Tembi Bank Ltd. Areba Bank Corporation will report on their existing investors for the year ending 30 June 2013, and then all their investors, including those from Tembi Bank Ltd, for future years.

3 INVESTOR AND ACCOUNT REPORTING

The investor information reported assists us to correctly identify the individual or entity for whom the investment income is being reported. A key purpose of the AIIR is to correctly match the investment income reported with the income declared by taxpayers in their tax return.

After processing the AIIR, the investment income is made available to investors by pre-filling to the correct labels in e-tax that assists individuals to complete and lodge their tax returns electronically. If an investor lodges through a tax agent, this information is available to tax agents through the Tax Agent Portal. Additionally, as part of our compliance program, the information is used for post-compliance activity such as data matching. Some of the information is also passed onto other government bodies and foreign tax authorities.

Investment income is reported in the Investment account data record and the Supplementary income account data record. Reporting of movements of principal of FMDs and interest income earned from FMDs is reported in the Farm management deposit account data record.

This section provides guidance on general reporting requirements for investor and account information reported within the AIIR.

INVESTOR TFN

There have been cases where non-individual income is incorrectly mapped to an individual within our systems. This will occur when:

. the Investor entity type (7.137) field code is incorrectly listed as an individual – that is ‘I’ or . an individual's TFN is incorrectly recorded on the account.

Investment bodies should ensure they clarify with their investor, at the time the account is established, that the correct investor entity type and TFN are recorded. This will minimise any post-compliance activity the investor may experience.

In some circumstances an investor is not required to quote, or may choose not to quote, a TFN or ABN. Details of these investors and their investment income must be included in the AIIR. When an investor quotes a TFN exemption code, the appropriate code from the following table is reported at the Investor tax file number (7.138) field and an investment body is not required to deduct TFN withholding tax.

TFN Investor exemption When to use? entity type code code Investor is a child under sixteen on 1 January before the date on which the payment is made and the payment is less than $420 for the financial year. (The $420 payment must be pro-rated when it is not for the whole financial year.) This exemption code does not apply to public company 333333333 I & D share investments.

The Individual investor date of birth (7.144) field must be reported when using this exemption code. Investor is a pensioner. The investor is the recipient of a Centrelink age or disability support pension or a pension under the Veterans' 444444441 I & D Entitlements Act of 1986 and notifies the investment body of their full name and pension entitlement. The investor is the recipient of another eligible Centrelink pension such as a wife's, carer's, special needs, widow's B pension, parenting payment or special benefit, and the investor notifies the investment body 444444442 of their full name and pension entitlement. I & D

Newstart Allowance and Sickness Allowance are not eligible benefits for exemption purposes. The investor is an entity that does not have a TFN and advises that it is exempted from lodging an income tax return.

An entity, for the purpose of a Part VA investment and defined in section 202A of the ITAA 1936 means a body corporate or an unincorporated association, but does not include a natural person or a partnership. C, P, T, 555555555 S & O Examples of such entities include charitable, social and other non-profit organisations, societies and clubs and non-profit companies with taxable incomes below the relevant threshold. These entities are required to notify the investment body of their full name, address and reason for their exempt status. The investor is in the business of providing business or consumer finance and is receiving the income from business or consumer finance provided to a borrower. 666666666 C & O An example of this type of investor is a bank receiving interest on a loan that it made in the course of providing business or consumer finance to a borrower. The investor is a resident of Norfolk Island. The investment income of I, D, C, P, T, 777777777 Norfolk Island residents is exempt from Australian tax. S, G & O I, D, C, P, T, 888888888 The investor is not a resident of Australia for tax purposes. S, G & O

INVESTOR ENTITY TYPE

The Investor entity type (7.137) field identifies the type of investor holding the account and is used in identity matching. It is expected that the investment body will know the entity type of their investor. Currently only the codes listed below are to be reported.

Entity type Code When to use? The investor is an individual person. An account may be held by one or more individual persons. When this occurs, include an Investor Individual I data record with Investor entity type = I for each individual investor in the account. Deceased The investor is an individual person who has died during the D individual reporting period. The investor is a public or private company or an incorporated organisation. Joint investment accounts held by two or more Corporation C companies are usually formal partnership arrangements (joint ventures) and should quote the partnership TFN or ABN of the joint venture rather than the separate company TFNs or ABNs. Partnership P The investor is a formal partnership – a formal partnership exists. Trust T The investor is a formal trust. Super fund S The investor is a super fund. Government G organisation The investor is a government organisation. Other The investor is an unincorporated organisation or a non-individual O non-individual entity not mentioned above such as sports clubs and informal trusts.

REPORTING FOR DIFFERENT ENTITY TYPES

To ensure correct pre-filling and to avoid post-compliance activity for investors, it is critical that individual investor names and TFNs are not reported at non-individual fields when the Investor entity type (7.137) field code equals I or D. For example, individual investor names should not be reported at the Non-individual investor name (7.146) field.

The following rules should be followed:

Individuals

Reference Field name Explanation number 7.59 Account name Account name I = Individual or 7.137 Investor entity type D = Individual is deceased Individual investor’s TFN as 7.138 Investor tax file number quoted Individual investor’s ABN as 7.139 Investor Australian business number quoted

Corporation or incorporated organisation

If an account is held by a company or incorporated corporation, the company or the incorporated corporation’s TFN or ABN and registered name should be reported. The name and TFN of the Public Officer or other signatory to the account should not be reported.

Reference Field name Explanation number Account name of company or 7.59 Account name incorporated organisation 7.137 Investor entity type C = Corporation 7.138 Investor tax file number Company’s TFN as quoted 7.139 Investor Australian business number Company’s ABN as quoted 7.146 Non-individual investor name Registered name of company

Partnerships

A formal partnership arrangement can be identified by the existence of a partnership agreement and a partnership TFN or ABN.

Reference Field name Explanation number 7.59 Account name Account name of partnership 7.137 Investor entity type P = Partnership 7.138 Investor tax file number Partnership’s TFN as quoted 7.139 Investor Australian business number Partnership’s ABN as quoted 7.146 Non-individual investor name Name of partnership Individual investor surname (7.141) and given name (7.142 and 7.143) fields should not be completed.

Joint accounts

If a partnership entity does not exist for tax purposes, the joint holders of the account should be treated as separate investors. An Investor data record is required for each investor.

Individual investor

Reference Field name Explanation number 7.59 Account name Account name 7.137 Investor entity type I = Individual 7.138 Investor tax file number Investor’s TFN as quoted 7.139 Investor Australian business number Investor’s ABN as quoted 7.146 Non-individual investor name Blank fill

Non-individual investor

Reference Field name Explanation number 7.59 Account name Account name 7.137 Investor entity type C, P, T, S, G or O 7.138 Investor tax file number Investor’s TFN as quoted 7.139 Investor Australian business number Investor’s ABN as quoted Individual investor surname (7.141) and given name (7.142 and 7.143) fields should not be completed.

Unequal shares in a joint account

Holders of accounts in joint names are presumed to have joint beneficial ownership of the monies in equal shares, unless they prove otherwise. Therefore income is to be returned equally.

Within the AIIR, the full amount of income attributable to the account is reported for each investor within a joint account. The amount should not be split between the account holders because our system divides the amount of income by the number of investors reported in the joint account record.

If the investor advises the investment body that the beneficial ownership of the monies is not in equal shares – that is unequal shares, the investment body reports this information in the AIIR by providing a separate Investment account data record for each investor with their share of investment income paid.

Trusts

This section relates to trusts established under a formal arrangement such as a trust deed or will. Although it is not a separate legal entity, it is an entity for tax purposes – that is the entity has a trust TFN and the trustee is required to lodge a trust tax return. The trustee can be an individual or a non-individual.

Any use of ITF (in trust for), OBO (on behalf of) or ATF (as trustee for), in the account or investor name fields, MUST be preceded and followed by a space or the account will not be recognised as a trust.

Reference Field name Explanation number Trust name or 7.59 Account name Trustee’s name ATF trust name 7.137 Investor Entity type T = Trust 7.138 Investor tax file number Trust or Trustee’s TFN 7.139 Investor Australian business number Trust’s or Trustee’s ABN Trust name or 7.146 Non-individual investor name Trustee’s name ATF trust name

Example 3.1 – Formal trust with trust TFN

An account opened by trustee Damien Renard for the D R Family Trust and the trust TFN is quoted.

INVESTMENT ACCOUNT DATA RECORD (EXTRACT)

Reference Field name Content Explanation Number 7.59 Account name D R Family Trust Name of Trust

INVESTOR DATA RECORD (EXTRACT)

Reference Field name Content Explanation Number 7.137 Investor entity type T T = Trust 7.138 Investor tax file number 012345678 Trust’s TFN Name of the Trust (NOT the name 7.146 Non-individual investor name D R Family Trust of the trustee)

Example 3.2 – Formal trust with trustee TFN

An account opened by trustee Anson Raines for the AR McPeters Family Trust and the trustee’s TFN is quoted.

Reference Field name Content Explanation Number Anson Raines ATF AR 7.59 Account name Trustee ATF Trust McPeters Family Trust

Reference Field name Content Explanation Number 7.137 Investor entity type T T = trust 7.138 Investor tax file number 912345678 Trustee’s TFN Anson Raines ATF AR 7.146 Non-individual investor name Name of Trustee ATF Trust McPeters Family Trust

Superannuation funds

Reference Field name Explanation number 7.59 Account name Name of super fund 7.137 Investor entity type S = Super fund 7.138 Investor tax file number Super fund’s TFN 7.139 Investor Australian business number Super fund’s ABN 7.146 Non-individual investor name Name of Super fund

Only one investor data record is reported for each Super fund. Do not report the TFNs, or names of individual trustees in separate Investor data records. If the trustee’s names are reported they should be reported at the Account name (7.59) and at the Non-individual investor name (7.146) fields, for example, John and Mary Smith ATF the Smith Superannuation fund.

Government organisation

Reference Field name Explanation number 7.59 Account name Name of government organisation 7.137 Investor entity type G = Government 7.138 Investor tax file number Government body’s TFN 7.139 Investor Australian business number Government body’s ABN 7.146 Non-individual investor name Name of government body

Details of account signatories should not be reported in the Investor data record.

Other non-individual

Reference Field name Explanation number Name of unincorporated 7.59 Account name organisation or non-individual entity 7.137 Investor entity type O = Other non-individual 7.138 Investor tax file number Non-individual’s TFN 7.139 Investor Australian business number Non-individual’s ABN Name of unincorporated 7.146 Non-individual investor name organisation or non-individual entity

Third party accounts

A third party account is an account that has been opened by an entity, other than a solicitor or interposed entity, acting on behalf of an investor and is not a formal trust.

See Section 6 for more information on accounts opened by interposed entities or solicitors. Third party accounts include those opened by principals on behalf of agents, bare trusts, and entrepot nominee companies.

Investment income earned by a third party account can be taxed in the hands of the third party or the investor (beneficiary), depending on the type of account.

For example, if an account is opened by a:

. parent on behalf of an underage child the investment income is to be reported as being earned by the parent while the parent controls the account. In this instance, it is the parent’s (third party) details that are reported. . third party (e.g. bare trust) on behalf of an investor (beneficiary) who is entitled to receive all or some of that income, then it is the investor who is deemed to have received the income. In this instance, it is the beneficiary’s and not the third party’s details reported.

Example 3.3 –Third party account where the income is deemed to be the third party’s

An account held by Samsara Eden West ATF for her daughter, Sutton West. The source of the funds is Samsara and the funds are controlled by Samsara. As trustee, Samsara has quoted her own TFN. This accords with Taxation ruling IT 2486 that indicates that the income belongs to Samsara.

Reference Field name Content Explanation number SAMSARA EDEN WEST 7.59 Account name Third party ATF beneficiary ATF SUTTON WEST

Reference Field name Content Explanation number 7.137 Investor entity type I I = Individual 7.138 Investor tax file number 912345678 TFN of third party 7.141 Individual investor surname WEST Third party’s surname Individual investor first given 7.142 SAMSARA Third party’s first given name name Individual investor second given 7.143 EDEN Third party’s second given name name 7.144 Individual investor date of birth 24041982 DOB of third party 7.145 Sex F Sex of third party

Example 3.4 – Account opened by third party OBO an individual investor

An account was opened by Charlie Jaxon OBO Claudia Belle Gant. Claudia Belle Gant is entitled to receive all of the income from the investment account.

Reference Field name Content Explanation number CHARLIE JAXON OBO 7.59 Account name Third party OBO Client CLAUDIA BELLE GANT

Reference Field name Content Explanation number 7.137 Investor entity type I I = Individual 7.138 Investor tax file number 789456879 TFN of investor 7.143 Individual investor surname GANT Investor’s surname Individual investor first given 7.142 CLAUDIA Investor’s first given name name Individual investor second given 7.143 BELLE Investor’s second given name name 7.144 Individual investor date of birth 17091964 DOB of investor 7.145 Sex F Sex of investor

Example 3.5 – Account opened by third party OBO a non-individual investor

An account opened by T M Able and X J Prince OBO the Channing Darts Club. The darts club is entitled to receive all of the income from the investment account.

Reference Field name Content Explanation number T M ABLE & X J PRINCE 7.59 Account name OBO THE CHANNING Third party OBO client DARTS CLUB

Reference Field name Content Explanation number 7.137 Investor entity type O O = Other non-individual TFN of unincorporated 7.138 Investor tax file number 789412789 organisation CHANNING DARTS CLUB Name of the non-individual or T M ABLE & X J PRINCE investor or 7.146 Non-individual investor name OBO THE CHANNING Name of third party OBO non- DARTS CLUB individual investor

PAYMENT TYPE

There are a number of different payment types reported in the AIIR and reporting the correct code at the Type of payment (7.64) field is critical to ensure the investment income is matched to the right label in the tax return for pre-filling and to avoid post-compliance activity.

For example, amounts reported at the Interest (7.71) field with a payment type of UTD are mapped to label 13U in the Individual tax return (ITR) whereas amounts reported at that field with a payment type of INT are mapped to 10L.

The following table identifies the payment types reported in the AIIR.

Payment type Acronym Details of payment type Interest on deferred interest securities only (see Section 4 Deferred interest securities DIS for reporting requirements) Interest on farm management deposits only (see Section 11 Farm management deposit FMD for reporting requirements) Term deposit TDP Interest on term deposits only Interest INT Interest on all other interest bearing investments Cash or non-cash payments from investment related betting Investment related betting chance IRB chance Dividend DIV Franked, unfranked dividends and franking credits Unit trust distributions including managed investment trust payments made to non-residents and amounts withheld Unit trust distribution UTD under Subdivision 12-H (see Section 6 for reporting requirements and further details) Foreign source income FSI Foreign source investment income that is not part of a UTD

Note: Uninscribed securities are not subject to TFN or AIIR reporting (Tax Determination TD 92/185)

This table indicates which fields relate to each payment type.

Reference Field name DIS INT TDP DIV IRB FMD UTD FSI number Cash or non-cash value of an investment related betting chance 7.70  prize Interest 7.71      Unfranked dividends not declared to 7.72   be conduit foreign income Unfranked dividends declared to be 7.73   conduit foreign income Franked dividends 7.74   Franking credit 7.75   Other taxable Australian income 7.76 

Reference Field name DIS INT TDP DIV IRB FMD UTD FSI number Non-primary production income 7.77  Other deductions relating to 7.78  distributions Capital gains discounted method 7.79  Capital gains indexation method 7.80  Capital gains other method 7.81  CGT concession amount 7.82  Net capital gain 7.83  Total current year capital gains 7.84  Taxable foreign capital gains 7.85  Assessable foreign source income 7.86   Other net foreign source income 7.87   Foreign income tax offset 7.88   Australian franking credits from a 7.89   New Zealand franking company Tax-exempted amounts 7.90  Tax-free amounts 7.91  Tax-deferred amounts 7.92  Other allowable trust deductions 7.93  Share of credit for amounts withheld 7.94  from foreign resident withholding Share of credit for tax paid by trustee 7.95  Non-resident beneficiary ss98(3) 7.96  assessable amount Non-resident beneficiary ss98(4) 7.97  assessable amount Managed investment trust fund 7.100  payments Amounts withheld from managed 7.101  investment trust fund payments Share of National rental affordability 7.105  scheme tax offset Primary production income 7.106  Share of credit for tax withheld 7.107  where ABN not quoted Deductions relating to distribution of 7.108  primary production income Deductions relating to distribution of 7.109  non-primary production income Transferor trust income 7.110  CFC income 7.111  Net foreign rent 7.112  Unfranked distributions from trusts 7.113  Franked distributions from trusts 7.114 

PAYMENT DATES

The Date of payment (7.62) field identifies the date the income was paid or credited to the investment account or in the case of UTDs, the date the investor was entitled to the income. The following rules apply when reporting the date of payment:

. Dividend payments (DIV) –report each dividend payment date separately and do not aggregate payments. . Interest payments (INT) – if multiple payments are received, report payment date as 30 June in year of report and aggregate payments at Interest (7.71) field. . Unit Trust Distributions (UTD) – multiple distributions, report payment date as 30 June in year of report and aggregate the amounts.

An AIIR will not be accepted if the Date of payment (7.62) field is in a year other than the financial year for which the AIIR is lodged.

Example 3.6 – Multiple interest payments

Estelle van Hagen holds an interest bearing account and receives interest payments in October 2013 and in February and June 2014. The payments are aggregated and the payment date is 30062014.

Example 3.7 – Multiple franked dividend payments

Rosita Stavros holds shares in Cold Cables Ltd and receives four franked dividend payments in September and December 2013 and in March and June. Each payment and date of payment is reported in a separate Investment account data record followed by an Investor data record.

ACCOUNT SIGNATORIES

Do not report details of account signatories who are not investors in the account in Investor data records. Such reporting is incorrect and causes errors when the reported investment income amounts are matched to the amounts declared in tax returns.

Example 3.8 – Additional signatory on an individual account

An account is held in the name of Mrs Penelope Costanza, an elderly pensioner. Her daughter Venorika Stone is a signatory to the account but does not own the funds held in the account. The interest paid to the account belongs to Mrs Penelope Costanza. Only one Investor data record containing Penelope's information is provided. Venorika's details are not reported in the AIIR.

Example 3.9 – Office bearers as signatories

An account is held in the name of the Mayberry River Tennis Club. The club office bearers, Roderick Mainstrong, Lourdes Wentworth and Dom Messenger are the authorised signatories to the account. The club, and not the three office bearers, is the owner of the funds in the account and entitled to any investment income earned by the account. When the interest payment is reported, only one Investor data record is provided, containing the name of the Mayberry River Tennis Club at the Non-individual investor name (7.146) field. The club signatories are not reported in the AIIR.

SUBSTITUTED ACCOUNTING PERIODS

A substituted accounting period (SAP) is an accounting period that has a balancing date different to the normal financial year end balancing date of 30 June. In the past, entities applying for a SAP could nominate any date as their balancing date but as this proved administratively difficult, all entities must now nominate the last day of a month.

For the purposes of the AIIR, an investment body is considered to be operating on a SAP when the investment body meets all of the following conditions. It is:

. approved by the Commissioner as operating on a SAP . making payments to investors who are all operating on the same SAP . reporting payments in accordance with that SAP.

The balancing date the entity has chosen determines if the entity is an early or late balancer. From July 2001, an entity whose end of year is before June (December to May) is considered an early balancer and an entity whose end of year is after June (July to November) is considered a late balancer.

For example:

Balancing period Early Normal Late Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

An exception to this rule is for entities that have joined a corporate entity group that already has a late December balancing date.

SAP fields and rules

If an investment body meets the AIIR SAP conditions, rules apply for specific fields including the reporting of each payment and date of payment separately.

7.5 Financial year end date - the investment body reports the end date in accordance with the end date of the normal financial year to which the payment relates OR its own balancing date.

7.33 Financial year - the investment body reports the financial year to which the payment relates.

7.47 Reporting period indicator - must equal S.

7.48 SAP year end date - the SAP year end date or balancing date. The dates reported at this field and the Financial year end date (7.5) field will indicate whether the investment body is a late or early balancer.

For example:

Early / late AIIR Fields SAP balancing date balancer 7.5 7.33 7.47 7.48 31 December 2013 Early 30 June 2014 2014 S 31 December 2013 31 January 2014 Early 30 June 2014 2014 S 31 January 2014 28 February 2014 Early 30 June 2014 2014 S 28 February 2014 31 March 2014 Early 30 June 2014 2014 S 31 March 2014 30 April 2014 Early 30 June 2014 2014 S 30 April 2014 31 May 2014 Early 30 June 2014 2014 S 31 May 2014 31 July 2014 Late 30 June 2014 2014 S 31 July 2014 31 August 2014 Late 30 June 2014 2014 S 31 August 2014 30 September 2014 Late 30 June 2014 2014 S 30 September 2014 31 October 2014 Late 30 June 2014 2014 S 31 October 2014 30 November 2014 Late 30 June 2014 2014 S 30 November 2014 31 December 2014 Late 30 June 2014 2014 S 31 December 2014 31 December 2014 Early 30 June 2015 2015 S 30 June 2015

7.62 Date of payment - the actual date of each payment to investors must be reported separately regardless of the payment type.

For example, if the investment body is operating on a SAP with a 30 April 2014 balancing date, interest payments made between 1 May 2013 and 30 April 2014 to an investor, cannot be aggregated and reported with a single payment date of 30 April 2014.

4 DEFERRED INTEREST SECURITIES

Securities fall into several categories.

. Uninscribed stock – these are securities in which investors are not recorded on a register. . Inscribed stock – these are securities in which the investors are recorded on a register. These may be transferrable or non-transferrable

Uninscribed stock is not subject to TFN or AIIR reporting (Taxation Determination TD 92/185). The reporting of inscribed stock varies as discussed below.

The reporting requirements of inscribed stock also varies, depending upon whether the security falls within Part III of Division 16E Section159GP of the ITAA 1936 and it is a qualifying security.

To be a qualifying security:

. it must be issued after 16 December 1984 . the expected term must exceed or is likely to exceed 12 months . the sum of all payments under the security must exceed its issue price (Section 159G(1) of Division 16E of the ITAA 1936).

The income earned is taxable on an accruals basis as per Division 16E of the ITAA 1936.

This means that accrued interest must be reported annually, as set out in regulation 56(4)(fa) of the ITR 1936. In addition, the TFN rules relating to TFN or ABN quoting and deduction of withholding tax apply.

IDENTIFICATION OF INVESTMENTS

Payments of interest for transferable deferred interest securities and all non-transferrable eligible securities are to be identified by recording the Type of payment (7.64) field as DIS.

For transferable deferred interest securities the term of investment is also to be at the Term of Investment (7.65) field in the Investment account data record.

REPORTING ARRANGEMENTS

Transferable securities are to be reported as follows:

Timing of interest payment Interest reported (period interest not paid) Year 1 Nil Year 2 and subsequent years (except final) Nil Full amount of interest accrued over the term of the Final year security for the relevant investor

If periodic interest is paid on a transferable security this amount must be reported as a separate transaction. As the taxpayer will generally be required to return the interest as it accrues, the final year's report will overstate the assessable income for that investment.

Failure to identify the investment as a deferred interest security (DIS) could result in an unnecessary income discrepancy letter being sent to the client by us.

Non-transferable eligible securities are to be reported as follows:

Timing of interest payment Interest reported Year 1 Interest paid or liable to be paid plus any accrued Year 2 and subsequent years interest Final year

The income reported each year should equal the amount of income the taxpayer includes in their tax return. However, it is still advisable to identify the investment as a deferred interest security.

5 CONDUIT FOREIGN INCOME

INCOME DECLARED TO BE CONDUIT FOREIGN INCOME BY AUSTRALIAN CORPORATE TAX ENTITIES

In general terms, conduit foreign income is foreign income that is (ultimately) received by a foreign resident through one or more interposed Australian corporate tax entities.

The conduit foreign income measure, broadly, allows Australian corporate tax entities (companies, corporate limited partnerships, public trading trusts and corporate unit trusts) that are deriving foreign income that is not taxed in Australia to declare all or a portion of an unfranked distribution they make to be conduit foreign income.

Conduit foreign income takes on two forms. When an Australian corporate tax entity receives foreign income that it subsequently pays:

. directly to a foreign resident, declaring it to be conduit foreign income (section 802-15 of the Income Tax Assessment Act 1997 (ITAA 1997)) . to another Australian corporate tax entity, declaring it as conduit foreign income. The latter entity would normally be a regional holding company for a foreign group and would in turn pass on the amount it received to the overseas parent of the group as conduit foreign income (section 802-20 of the ITAA 1997).

To the extent that an unfranked distribution is declared to be conduit foreign income, the distribution is exempt from withholding tax in the hands of a non-resident member. The member is notified of the portion of the distribution that is declared to be conduit foreign income through the distribution statement.

An unfranked distribution declared to be conduit foreign income received by a resident individual member is treated no differently to a normal unfranked distribution.

TRUST DISTRIBUTIONS OF INCOME DECLARED TO BE CONDUIT FOREIGN INCOME

A provision included in the Tax Laws Amendment (2007 Measures No. 3) Act 2007 ensures that distributions declared to be conduit foreign income are able to flow through trusts to non- resident beneficiaries free of Australian tax.

If an Australian company makes an unfranked distribution that it declares to be conduit foreign income to a trustee, the trustee is not liable to pay tax in relation to a non-resident beneficiary’s share of the net income of the trust that is reasonably attributable to all or part of that distribution.

The non-resident beneficiary must be presently entitled to the share of the trust income that is reasonably attributable to all or part of that unfranked distribution. (Section 802-17(3) of the ITAA 1997).

A non-resident beneficiary is not assessed on its share of the net income of a trust to the extent the share of the net income is reasonably attributable to a distribution declared to be conduit foreign income (section 802-17(1) of the ITAA 1997).

6 INTERPOSED ENTITIES

An interposed entity (the primary investment body) is a third party that is interposed between the investor (the primary investor) and the investment body (the secondary investment body). An entity includes an individual, company, partnership or trust. This section only applies to solicitors, investor directed portfolio services, nominees, custodial services and similar interposed entities that provide an interposed entity service.

The primary investment body has the same reporting responsibilities as the secondary investment body but can meet its reporting obligations by providing the identity details, including full name and TFN or ABN where quoted, of the primary investors to the secondary investment body. Otherwise, the primary investment body must assume full reporting responsibility under section 202DDB of the ITAA 1936.

Amounts of income reported to us by the secondary investment body on behalf of the primary investor will be attributed to the primary investor, when they can be matched to the primary investor. If the primary investment body varies the amount paid to the primary investor, for example, by deduction of fees or other costs, the primary investor should be advised to return the gross amount of income and claim the costs as allowable deductions in their tax return.

If a primary investment body places an investment with a secondary investment body on behalf of another investor who is entitled to receive all or part of the investment income paid to the account, the primary investment body should make its interposed entity status known to the secondary investment body. The name and TFN or ABN of the interposed entity should be reported at the Interposed entity name (7.98) and Interposed entity TFN or ABN (7.99) fields in the Investment account data record.

Providing the name and TFN or ABN of the primary investment body at the interposed entity fields will help to determine whether the reported investor details belong to the primary investor or the interposed entity.

Where a primary investment body makes its own identity details to a secondary investment body in connection with an investment it makes on behalf of another investor who is entitled to receive all or part of the income paid into the account, the primary investment body is required to lodge an AIIR containing the identity and payment details of the investors entitled to receive the income. It cannot assign its reporting obligations to the secondary investment body.

Reporting the primary investor's TFN with the primary investment body’s name and address in the Investor data record does not enable the income to be attributed to the primary investor. Neither does reporting the primary investment body as the account holder on behalf of the primary investor when the primary investment body’s TFN or ABN, name and address are reported in the Investor data record. In these cases, the primary investment body is required to lodge an AIIR containing full identity and payment details for each of its primary investors.

Reporting the primary investor's TFN with the interposed entity's name and address details does not enable income to be attributed to the primary investor and on its own, does not confirm the interposed entity status of the reported investor.

Below is an example of an interposed entity (primary investment body):

Primary investor Charlotte O’Hare

Interposed entity Tara Lawyers & Assoc

Secondary investment body Gable Bank

Example 6.1 – Primary investment body provides investor’s details to secondary investment body

Solicitors, Tara Lawyers and Associates (primary investment body) do not wish to take on the responsibility of reporting investment income. Therefore, they provide Charlotte O’Hare's details, including her name and TFN or ABN if quoted, to Gable Bank (secondary investment body) when investing money on her behalf.

Gable Bank reports Charlotte O’Hare's identity and income details in their AIIR and includes the name and TFN or ABN of the interposed entity, Tara Lawyers & Associates, at the Interposed entity name (7.98) and Interposed entity TFN or ABN (7.99) fields. The supply of interposed entity details is essential in the event of Charlotte O’Hare being contacted by us as she may not be aware that Tara Lawyers and Associates have invested her funds with the Gable Bank. The interposed entity information is necessary to provide this link.

INVESTMENT ACCOUNT DATA RECORD (EXTRACT) – Gable Bank

Reference Field name Content number 7.98 Interposed entity name TARA LAWYERS AND ASSOCIATES 7.99 Interposed entity TFN or ABN 778889455

INVESTOR DATA RECORD (EXTRACT) – Gable Bank

Reference Field name Content Explanation number 7.137 Investor entity type I Primary investor’s entity type 7.138 Investor tax file number 789456879 Primary investor’s TFN 7.143 Individual investor surname O’HARE Primary investor’s surname Individual investor first given 7.142 CHARLOTTE Primary investor’s first name name Individual investor date of birth 7.144 13091962 Primary investor’s date of birth (DDMMCCYY)

If the primary investment body, Tara Lawyers and Associates, provides its own identity details to the secondary investment body, it is obliged to lodge an AIIR containing the identity and income details of its primary investors.

All other fields in the Investor Data Record are also those of the primary investor.

Non-resident interposed entities/investors

When a non-resident interposed entity receives income from Australian investments on behalf of primary investors who are also non-residents the Australian investment body withholds amounts from the income paid to the interposed entity. The non-resident entity pays the income (net of withholding tax) to the non-resident primary investors. As the interposed entity is a non- resident for tax purposes, it is not required to lodge an AIIR. The Australian investment body reports the amount of non-resident withholding tax, MIT withholding tax etc in their AIIR. It would also report other amounts where relevant, including subsection 98(3) and 98(4) assessable amounts

ENTITIES NOT CONSIDERED INTERPOSED ENTITIES

Unit trusts are not interposed entities. The fact that a fund manager may invest pooled capital in a variety of investments is not relevant. The trustee of a unit trust is an investment body in its own right and issues statements to unit holders relating to interest and other forms of income paid as a result of the investment.

7 NON-RESIDENT INVESTOR REPORTING

A non-resident for tax purposes is a foreign or non-resident investor who invests in Australia.

Under regulation 56 of the ITR 1936 investment bodies who have paid investment income to investors who advise they are a non-resident for tax purposes, are also required to report overseas address details including country code and total amounts withheld from interest and dividend payments and managed investment trust fund payments. It is the investor’s responsibility to advise their financial institution of their residency status for tax purposes and their overseas address.

A full list of country names and country codes is available on the ATO website.

A non-resident for tax purposes investor pays tax differently from residents. Australian residents are generally taxed on their worldwide income from all sources.

In relation to investment income, a non-resident for tax purposes is not entitled to a tax-free threshold, or to claim certain tax offsets or tax credits that are available to residents. Some income may be subject to final withholding tax as follows:

. 10% withholding tax of any interest earned from Australian bank accounts if a resident of a non-treaty country. Some agreements with treaty countries provide an exemption from interest withholding tax in certain circumstances. . 30% withholding tax from unfranked dividends if a resident of a non-treaty country. Most agreements with treaty countries reduce the rate to 15%.

Income subject to final withholding tax is not required to be shown on an Australian income tax return if a tax return is required. In both situations, the investor must advise the Australian company of their overseas address so that the lower level of tax can be withheld, otherwise tax must be withheld at the higher rate of 45% and the taxpayer may have to apply to the ATO to recover the overpaid tax.

When franked dividends are received, no tax is withheld as the company has already paid tax on their behalf. These dividends and franking credits are also not included as assessable income.

Royalties are also paid to foreign residents and are subject to final withholding tax. The withholding rate is 30%. Most treaties reduce the rate to 10%. Royalties paid to foreign residents are reported on the PAYG withholding from interest, dividend and royalty payments paid to non-residents - annual report (NAT 7187) not in the AIIR.

When reporting different Australian and overseas address combinations for a non-resident for tax purposes investor the following rules should be applied:

Australian address Overseas address Address details held by investment body fields fields Australian residential or business or postal address only Complete Blank or zero fill Australian residential or business or postal address and overseas Complete Complete residential, business or postal address Overseas residential, business or postal address only Blank or zero fill Complete

Residential or business address details should be reported in preference to postal address. This will assist with identity matching.

WITHHELD AMOUNTS FROM NON-RESIDENTS

Amounts withheld from interest and dividend payments are reported at the Non-resident withholding amount deducted (7.68) field regardless of the payment type.

Amounts withheld from Managed investment trust fund payments are reported at the Amounts withheld from managed investment trust fund payments (7.101) field.

RESIDENCY STATUS

Non-resident for tax purposes for the full year

If a non-resident investor for tax purposes is a non-resident for the full year, do not complete the Date of change of residency status from resident to non-resident (7.151) or Date of change of residency status from non-resident to resident (7.159) fields.

Change of residency status during the year

If an investor changes residency status during the financial year, the Date of change of residency status from resident to non-resident (7.151) or the Date of change of residency status from non-resident to resident (7.159) fields should be completed.

If investor data is available for both the period the investor was a non-resident and the period the investor was a resident, provide an Investment account data record and an Investor data record for each period.

If the investor data for both periods is not available and the non-resident investor for tax purposes becomes a:

. resident during the year, report the investor as a resident . non-resident during the year, report the investor as a non-resident.

The following reporting fields, in the Investor data record, relate to non-resident investors:

Reference Field name Explanation number Amount of withholding deducted 7.68 Non-resident withholding amount deducted from payments Amount of withholding refunded to 7.69 Non-resident withholding amount refunded the investment account Investor’s Australian tax file 7.138 Investor tax file number number or exemption code Investor’s tax identification number 7.140 Non-resident investor tax identification number of county of residence for tax purposes 7.147 Australian address lines 1 and 2 Investor’s Australian address Suburb, town or locality of the 7.148 Australian suburb, town or locality investor’s Australian address State or territory of the investor’s 7.149 Australian state or territory Australian address Postal code of the investor’s 7.150 Australian postal code Australian address The date the residency status 7.151 Date of change of residency status from resident to non-resident changed from resident to non- resident 7.152 Overseas address lines 1 and 2 Investor’s overseas address Suburb, town or locality of the 7.153 Overseas suburb, town or locality investor’s overseas address State or province of the investor’s 7.154 Overseas state or province overseas address Postal code of the investor’s 7.155 Overseas postal code overseas address Country of the overseas address 7.156 Overseas country of the investor Non-resident investor overseas country code (Report OTH in this Country code for the overseas 7.157 field if overseas address is not available) country of the investor The non-resident country of 7.158 Non-resident investor country of residence for tax purposes residence for tax purposes The date the residency status 7.159 Date of change of residency status from non-resident to resident changed from non-resident to resident

Example 7.1 – Change of non-resident investor for tax purposes to resident taxpayer

Genevieve Eriksen holds an interest bearing account with Ashdown Bank Ltd in Perth Australia. Genevieve was a non-resident investor for tax purposes when she lived in Canada. Her residential address, at that time, was 217 Hockey Street, Apartment 28, Montreal H1A 0A1 Quebec. On 3 March 2014, Genevieve returned to live in Perth permanently and changed her residency status from non-resident to resident. As Genevieve has a TFN it is reported instead of the TFN non-resident exemption code of 888888888.

Ashdown Bank Ltd is able to report for the period Genevieve was a non-resident and a resident. For the purposes of this example, only the investor records are shown.

An Investment account data record is required for each Investor data record if the data is available.

INVESTOR DATA RECORD 1 (EXTRACT) – reporting period the investor was a non-resident

Reference Field name Content number 7.138 Investor tax file number 123456784 7.147 Australian address – line 1 C/- BARTHOLOMEW & KIDD 7.147 Australian address – line 2 PO BOX 945 7.148 Australian suburb, town or locality PERTH 7.149 Australian state or territory WA 7.150 Australian postcode 6001 Date of change of residency status from resident to non-resident 7.151 00000000 (DDMMCCYY) 7.152 Overseas address – line 1 217 HOCKEY STREET 7.152 Overseas address – line 2 APARTMENT 28 7.153 Overseas suburb, town or locality MONTREAL 7.154 Overseas state or province QUEBEC 7.155 Overseas postal code H1A OA1 7.156 Overseas country CANADA 7.157 Non-resident investor overseas country code CAN 7.158 Non-resident investor country of residence for tax purposes CANADA Date of change of residency status from non-resident to resident 7.159 03032014 (DDMMCCYY)

INVESTOR DATA RECORD 2 (EXTRACT) – reporting period the investor was a resident

Reference Field name Content number 7.138 Investor tax file number 123456784 7.147 Australian address – line 1 C/- ELISE ERIKSEN 7.147 Australian address – line 2 11/21 CARPATHIA AVENUE 7.148 Australian suburb, town or locality CITY BEACH 7.149 Australian state or territory WA 7.150 Australian postcode 6015 Date of change of residency status from resident to non-resident 7.151 00000000 (DDMMCCYY) 7.152 Overseas address – line 1 Blank fill 7.152 Overseas address – line 2 Blank fill 7.153 Overseas suburb, town or locality Blank fill 7.154 Overseas state or province Blank fill 7.155 Overseas postal code Blank fill 7.156 Overseas country Blank fill 7.157 Non-resident investor overseas country code Blank fill 7.158 Non-resident investor country of residence for tax purposes Blank fill 7.159 Date of change of residency status from non-resident to resident 03032014

8 REPORTING FOR DECEASED INVESTORS

When an individual investor has died during the reporting period, it is important that the correct account changes are reported and that reporting for an individual or individuals (where the account was jointly held) is adjusted to reflect the income that belongs to the account holders during the year of income. The income paid or credited up to the date of death and after the date of death should be reported in the proportions according to the ownership of the account at the date the payment is made or credited.

For example, as at the date of death, ownership of the investor’s investment account is treated as follows – for:

. individual account holders ownership reverts to the deceased estate . joint account holders – held as joint tenants, the deceased’s ownership is extinguished and ownership is passed to the surviving account holder – held as tenants in common, the deceased’s share reverts to the deceased’s estate.

There is no requirement to apportion income that has not been paid or credited prior to the date of death.

After notification of the date of death, the following Investor data record reporting requirements apply:

1 Income paid or credited before date of death – individual account

Reference Field name Explanation number 7.137 Investor entity type D = Deceased 7.138 Investor tax file number Investor’s TFN 7.141 Individual investor surname Investor’s surname 7.142 Individual investor first given name Investor’s first given name 7.143 Individual investor second given name Investor’s second given name 7.146 Non-individual investor name Blank fill

2 Income paid or credited after date of death

a No formal trust but change of account name to non-individual name

Reference Field name Explanation number 7.137 Investor entity type O = Other 7.138 Investor tax file number Investor’s TFN 7.141 Individual investor surname Blank fill

Reference Field name Explanation number 7.142 Individual investor first given name Blank fill 7.143 Individual investor second given name Blank fill Informal Trust’s name ie ‘The 7.146 Non-individual investor name estate of …’

b Formal trust

Reference Field name Explanation number 7.137 Investor entity type T = Trust 7.138 Investor tax file number Trust’s TFN 7.141 Individual investor surname Blank fill 7.142 Individual investor first given name Blank fill 7.143 Individual investor second given name Blank fill 7.146 Non-individual investor name Trust’s name

Example 8.1 – Single account when a formal trust has been established – interest paid after date of death

The Southbank Credit Union was notified of the death of Katy Regan-Jones on 1 March 2013. Interest of $130.00 was paid on 1 June 2013. A formal trust, Katy Regan-Jones Trust, was established to administer the estate. Southbank Credit Union does not report an Investment account data record or Investor data record for Katy Jones.

Reference Field name Content number 7.54 Sequence number of DACCOUNT record 01 7.55 Investment reference number 123456789 7.56 Account reference number Savings account S1 7.57 BSB number 163554 7.58 Branch location Blank fill 7.59 Account name KATY REGAN-JONES TRUST 7.60 Number of investors in the account 01 7.61 Number of investor records provided 01 7.62 Date of payment (DDMMCCYY) 01062013 7.63 Type of investment 1 7.64 Type of payment INT 7.71 Interest (cents) 000000013000

Reference Field name Content number 7.55 Investment reference number 123456789 7.136 Customer reference number Savings account S1 7.137 Investor entity type T 7.138 Investor tax file number 991991991 7.139 Investor Australian business number 00000000000 7.140 Non-resident investor tax identification number Blank fill 7.141 Individual investor surname Blank fill 7.142 Individual investor first given name Blank fill 7.143 Individual investor second given name Blank fill 7.144 Individual investor date of birth (DDMMCCYY) 00000000 7.145 Sex Blank fill 7.146 Non-individual investor name KATY REGAN-JONES TRUST 7.147 Australian address line 1 21 BRETT AVE 7.147 Australian address line 2 Blank fill 7.148 Australian suburb, town or locality HOLLAND PARK 7.149 Australian state or territory QLD 7.150 Australian postcode 4121 7.160 Investor daytime contact telephone number Blank fill

Example 8.2 – Joint account when one investor dies - no interest paid before date of death

Joint account is held by resident individuals Maxwell & Leonie Mansworthy. An interest payment of $97.00 is paid on 1 December 2013. Leonie Manning died in October 2013. Robert does not open a new account or change the account name.

Reference Field name Content number 7.54 Sequence number of DACCOUNT record 01 7.55 Investment reference number 15915925 7.56 Account reference number Savings account S1 7.57 BSB number 163554 7.58 Branch location Blank fill MAXWELL & LEONIE 7.59 Account name MANSWORTHY 7.60 Number of investors in the account 01 7.61 Number of investor records provided 01 7.62 Date of payment (DDMMCCYY) 01122013 7.63 Type of investment 1 7.64 Type of payment INT 7.71 Interest (cents) 000000009700

INVESTOR DATA RECORD 1 (EXTRACT)

Reference Field name Content number 7.55 Investment reference number 15915925 7.136 Customer reference number Savings account S1 7.137 Investor entity type I 7.138 Investor tax file number 456123789 7.139 Investor Australian business number 00000000000 7.140 Non-resident investor tax identification number Blank fill 7.141 Individual investor surname MANSWORTHY 7.142 Individual investor first given name MAXWELL 7.143 Individual investor second given name Blank fill 7.144 Individual investor date of birth (DDMMCCYY) 24061937 7.145 Sex M 7.146 Non-individual investor name Blank fill 7.147 Australian address line 1 2 WYONA AVE 7.147 Australian address line 2 Blank fill 7.148 Australian suburb, town or locality MORAYFIELD 7.149 Australian state or territory QLD 7.150 Australian postcode 4506 7.160 Investor daytime contact telephone number 0755556776

Example 8.3 – Joint account when one investor dies - interest paid before and after date of death

Joint account is held by resident individuals Jon and Gretel Harris. Interest is paid bi-annually on 1 December 2013 and 1 June 2014. A statement of account with an interest payment of $200.00 was issued on 5 December 2013. Jon Harris died in March 2014. On 1 June 2014 another $200.00 was credited to the account. Gretel does not open a new account or change the account name.

Two Investment account data records and three Investor data records are required:

The first Investment account data record would report the payment of interest before the date of death accompanied by two Investor data records.

The second would report the payment after the date of death accompanied by one Investor data record as follows:

INVESTMENT ACCOUNT DATA RECORD 1 (EXTRACT) - reporting payment before date of death

Reference Field name Content number 7.54 Sequence number of DACCOUNT record 01 7.55 Investment reference number 36547951 7.56 Account reference number Savings account S1 7.57 BSB number 123456 7.58 Branch location Blank fill 7.59 Account name J & G HARRIS 7.60 Number of investors in the account 02 7.61 Number of investor records provided 02 7.62 Date of payment (DDMMCCYY) 01122013 7.63 Type of investment 1 7.64 Type of payment INT 7.71 Interest (cents) 000000020000

INVESTOR DATA RECORD 1 (EXTRACT) – Jon Harris

Reference Field name Content number 7.135 Sequence number of DINVESTOR record 01 7.55 Investment reference number 36547951 7.136 Customer reference number 987654321 7.137 Investor entity type D 7.138 Investor tax file number 187123654 7.139 Investor Australian business number 00000000000 7.140 Non-resident investor tax identification number Blank fill 7.141 Individual investor surname HARRIS 7.142 Individual investor first given name JON 7.143 Individual investor second given name Blank fill 7.144 Individual investor date of birth (DDMMCCYY) 08071959 7.145 Sex M 7.146 Non-individual investor name Blank fill 7.147 Australian address line 1 27 ONDINE AVENUE 7.147 Australian address line 2 Blank fill 7.148 Australian suburb, town or locality HOLLAND PARK 7.149 Australian state or territory QLD 7.150 Australian postcode 4121 7.160 Investor daytime contact telephone number Blank fill

INVESTOR DATA RECORD 2 (EXTRACT) –Gretel Harris

Reference Field name Content number 7.135 Sequence number of DINVESTOR record 02 7.55 Investment reference number 36547951

Reference Field name Content number 7.136 Customer reference number 987654322 7.137 Investor entity type I 7.138 Investor tax file number 187123655 7.139 Investor Australian business number CB393939S 7.140 Non-resident investor tax identification number Blank fill 7.141 Individual investor surname HARRIS 7.142 Individual investor first given name GRETEL 7.143 Individual investor second given name Blank fill 7.144 Individual investor date of birth (DDMMCCYY) 27101962 7.145 Sex F 7.146 Non-individual investor name Blank fill 7.147 Australian address line 1 27 ONDINE AVENUE 7.147 Australian address line 2 Blank fill 7.148 Australian suburb, town or locality HOLLAND PARK 7.149 Australian state or territory QLD 7.150 Australian postcode 4121 7.151 Date of change of residency status from resident to non-resident 00000000 7.160 Investor daytime contact telephone number Blank fill

INVESTMENT ACCOUNT DATA RECORD 2 (EXTRACT) – reporting payment after date of death

Reference Field name Content number 7.54 Sequence number of DACCOUNT record 01 7.55 Investment reference number 36547951 7.56 Account reference number Savings account S1 7.57 BSB number 123456 7.58 Branch location Blank fill 7.59 Account name J & G HARRIS 7.60 Number of investors in the account 01 7.61 Number of investor records provided 01 7.62 Date of payment (DDMMCCYY) 01062014 7.63 Type of investment 1 7.64 Type of payment INT 7.71 Interest (cents) 000000020000

INVESTOR DATA RECORD 3 (EXTRACT) –Gretel Harris

Reference Field name Content number 7.135 Sequence number of DINVESTOR record 01 7.55 Investment reference number 36547951 7.136 Customer reference number 987654322

Reference Field name Content number 7.137 Investor entity type I 7.138 Investor tax file number 187123655 7.139 Investor Australian business number 00000000000 7.140 Non-resident investor tax identification number Blank fill 7.141 Individual investor surname HARRIS 7.142 Individual investor first given name GRETEL 7.143 Individual investor second given name Blank fill 7.144 Individual investor date of birth (DDMMCCYY) 27101962 7.145 Sex F 7.146 Non-individual investor name Blank fill 7.147 Australian address line 1 27 ONDINE AVENUE 7.147 Australian address line 2 Blank fill 7.148 Australian suburb, town or locality HOLLAND PARK 7.149 Australian state or territory QLD 7.150 Australian postcode 4121 7.160 Investor daytime contact telephone number Blank fill

9 UNIT TRUST DISTRIBUTIONS

Investment bodies that are unit trusts are required to lodge an AIIR. These are trusts where the interests of beneficiaries are denominated by units that can often be bought and sold in a way similar to trading in shares in a company. Unit trusts are used in many commercial arrangements, including managed investment schemes.

Unit trusts can be cash management trusts, pooled super funds, mortgage trusts, property trusts, share trusts, growth trusts, imputation trusts, balanced trusts, money market trusts, managed investment schemes, managed funds, bond funds, growth funds, income funds, share funds, other wholesale and retail funds and unit trust schemes typically distributing income that is subject to varying forms of tax treatment.

Investment products offered through other trusts (including Investor directed portfolio services (IDPS) may be required to lodge an AIIR to report investment income that often includes UTDs, including fund payments and other investment types such as dividends and interest. Another type of product that can include UTDs is a stapled security.

This section includes a number of examples for reporting UTDs in the AIIR including franked and unfranked distributions, capital gains, stapled securities and IDPS data.

WHAT CAN BE INCLUDED IN A UTD

As well as assessable net Australian income, distributions can include:

. capital gains . foreign source income . foreign tax credits . tax exempted, tax-free and tax-deferred amounts.

Generally an expense should first be offset against the income item that best represents the expense incurred. If the expense exceeds the income then the balance should be offset against other income items on a reasonable basis. Should the expense exceed all income items, then any excess can be offset against a capital gain (if any). If the expense cannot be matched against an item of income, for example, an administrative expense in managing the investment, then the expense should be apportioned against all income items on a reasonable basis.

If the investment body is a trust then an amount of negative return (a loss) cannot be distributed and must be carried forward to a future year.

The table on page 26 identifies investment income fields that are reported as UTDs. Although repayments of principal can be part of the distribution made to clients this principal amount is not investment income and should not be reported in the AIIR.

Distributions from corporate unit trusts and public trading trusts

Corporate unit trusts and public trading trusts, whose distributions to unit holders are treated as dividends for income tax purposes, should report these amounts at the appropriate dividend amount fields and report DIV (not UTD) at the Type of payment (7.64) field.

LEGISLATIVE CHANGES

In June 2011, legislative changes to improve the taxation of trust income were introduced through the Tax Laws Amendment (2011 Measures No. 5) Act 2011.This has led to a number of changes from 1 July 2013 for unit funds reporting UTDs in the AIIR including reporting franked and unfranked distributions and the calculation of non-primary production income.

REPORTING

Mandatory requirements

All unit trusts reporting UTDs must supply:

. an Investment account data record and . a Supplementary income account data record.

The Supplementary income account data record is no longer an optional data record as it is required to report franked and unfranked distributions.

Details of the various taxable net income and other components of the distribution are identified by setting the Type of payment (7.64) field in the Investment account data record to UTD. Failure to do so is likely to result in discrepancies between amounts reported in the AIIR and amounts declared in investor’s tax returns.

New definitions and fields

To minimise the risk of misreporting the same data in different reports, field names have been updated, where possible, to align with the same labels reported in the ITR and the Standard distribution statement (SDS).

. Section 10 contains additional information on the alignment of the AIIR, SDS and ITR . Appendix B contains a table showing the relationship between AIIR account data fields, the ITR and the SDS. . Appendix C contains the new names of the UTD fields.

7.77 Non-primary production income - the method of calculation used to determine the amount reported at this field has been changed. This income is calculated from the amounts at the following fields:

. Interest (7.71) plus . Unfranked distributions from trusts (7.113) plus . Other taxable Australian income (7.76) less . Other allowable trust deductions (7.93).

To align with the ITR previously included Unfranked dividends not declared to be conduit foreign income (7.72), Unfranked dividends declared to be conduit foreign income (7.73), Franked dividends (7.74) and Franking credit (7.75) fields have been removed from this calculation.

It is still a requirement to separately report these fields when included in UTDs.

7.113 Unfranked distributions from trusts - the amount reported in this field equals the amount of the dividend distribution that is 100% unfranked.

If an associated franked distribution is fully franked the amount will be equal to the sum of the amounts reported at:

. Unfranked dividends not declared to be conduit foreign income (7.72) plus . Unfranked dividends declared to be conduit foreign income (7.73).

The amount will be less than the sums reported at these fields when the franked distribution is not fully franked.

7.114 Franked distributions from trusts - the amount reported in this field equals the amount of franked distributions received from a trust regardless of whether it is fully or partially franked.

Section 995-1(1) of the ITAA97 states if the company paying a dividend can frank the dividend, and allocates a franking credit to the dividend, then the dividend is a franked distribution. The franked distribution amount includes both the franked and unfranked amounts of the distribution.

To align with the reporting of franked distributions in the ITR, the amount reported at this field will also include any share of franking credits attached to the distribution.

The total of the amounts reported at this field will be equal to the sum of:

. Franked dividends (7.74) plus . Franking credit (7.75) when the franked distribution is fully franked.

The amount will be greater than the sum of these fields when the franked distribution is not fully franked. When this occurs, it will include the portion of the amounts reported at the Unfranked dividends not declared to be conduit foreign income (7.72) and/or the Unfranked dividends declared to be conduit foreign income (7.73) fields that were part of the franked distribution.

Example 9.1 – Non-primary production income and a fully franked distribution

Azzopardi Infrastructure Trust is reporting the following distribution for resident investor Melody Johannson:

. Interest of $8,279.00 . Other taxable Australian income of $4,620.00 . Unfranked distribution that was made up of non-CFI dividend of $7,000.00 . Other allowable trust deductions of $1,810.00 . Fully franked dividends of $10,150.00 with a franking credit of $4,350.00.

Reference Field name Content number 7.55 Investment reference number 4587221488 7.56 Account reference number 3214566936 7.57 BSB number 000000 7.58 Branch location Blank fill 7.59 Account name MELODY JOHANNSON 7.60 Number of investors in the account 01 7.61 Number of investor records provided 01 7.62 Date of payment (DDMMCCYY) 30062014 7.63 Type of investment 05 7.64 Type of payment UTD 7.65 Term of investment 00 7.66 TFN withholding tax deducted (cents) 000000000000 7.67 TFN withholding tax refunded (cents) 000000000000 7.68 Non-resident withholding amount deducted (cents) 000000000000 7.69 Non-resident withholding amount refunded (cents) 000000000000 Cash or non-cash value of an investment related betting chance 7.70 000000000000 prize (cents) 7.71 Interest (cents) 000000827900 Unfranked dividends not declared to be conduit foreign income 7.72 000000700000 (cents) Unfranked dividends declared to be conduit foreign income 7.73 000000000000 (cents) 7.74 Franked dividends (cents) 000001015000 7.75 Franking credit (cents) 000000435000 7.76 Other taxable Australian income (cents) 000000462000

Reference Field name Content number 7.77 Non-primary production income (cents) 000001808900 7.78 Other deductions relating to distributions (cents) 000000000000 7.79 Capital gains discounted method (cents) 000000000000 7.80 Capital gains indexation method (cents) 000000000000 7.81 Capital gains other method (cents) 000000000000 7.82 CGT concession amount (cents) 000000000000 7.83 Net capital gain (cents) 000000000000 7.84 Total current year capital gains (cents) 000000000000 7.85 Taxable foreign capital gains (cents) 000000000000 7.86 Assessable foreign source income (cents) 000000000000 7.87 Other net foreign source income (cents) 000000000000 7.88 Foreign income tax offset (cents) 000000000000 Australian franking credits from a New Zealand franking company 7.89 000000000000 (cents) 7.90 Tax-exempted amounts (cents) 000000000000 7.91 Tax-free amounts (cents) 000000000000 7.92 Tax-deferred amounts (cents) 000000000000 7.93 Other allowable trust deductions (cents) 000000181000 Share of credit for amounts withheld from foreign resident 7.94 000000000000 withholding (cents) 7.95 Share of credit for tax paid by trustee (cents) 000000000000 7.96 Non-resident beneficiary ss98(3) assessable amount (cents) 000000000000 7.97 Non-resident beneficiary ss98(4) assessable amount (cents) 000000000000 7.98 Interposed entity name 000000000000 7.99 Interposed entity TFN or ABN 000000000000 7.100 Managed investment trust fund payments (cents) 000000000000 Amounts withheld from managed investment trust fund payments 7.101 000000000000 (cents)

SUPPLEMENTARY INCOME ACCOUNT RECORD (EXTRACT)

Reference Field name Content number 7.103 Supplementary income payment type UTD 7.104 Sequence number of DACCSUPP record 01 7.105 Share of National rental affordability scheme tax offset (cents) 000000000000 7.106 Primary production income (cents) 000000000000 7.107 Share of credit for tax withheld where ABN not quoted (cents) 000000000000 Deductions relating to distribution of primary production income 7.108 000000000000 (cents) Deductions relating to distribution of non-primary production 7.109 000000000000 income (cents) 7.110 Transferor trust income (cents) 000000000000 7.111 CFC income (cents) 000000000000 7.112 Net foreign rent (cents) 000000000000

Reference Field name Content number 7.113 Unfranked distributions from trusts (cents) 000000700000 7.114 Franked distributions from trusts (cents) 000001450000 One Investor data record is required for Sequence number of DACCSUPP record 01.

Example 9.2 – Non-primary production income and a partially franked distribution

Infinity Endurance Trust is reporting the following distribution for resident investor Charlize Jacks:

. Partially franked distribution of $3,000.00 that was franked to 60%, Franked amount equals $1,800.00, unfranked amount equals $1,200.00 (non-CFI) and the franking credit equals $771.00 . Unfranked distribution of $1,500.00 that was made up of an unfranked dividend (non- CFI) of $700.00 and an unfranked dividend (CFI) of $800.00

. Interest of $250.00, other taxable Australian income of $900.00 . Other allowable trust deductions of $530.00.

Reference Field name Content number 7.55 Investment reference number 4587233774 7.56 Account reference number 17590756 7.57 BSB number 000000 7.58 Branch location Blank fill 7.59 Account name CHARLIZE JACKS 7.60 Number of investors in the account 01 7.61 Number of investor records provided 01 7.62 Date of payment (DDMMCCYY) 30062014 7.63 Type of investment 05 7.64 Type of payment UTD 7.65 Term of investment 00 7.66 TFN withholding tax deducted (cents) 000000000000 7.67 TFN withholding tax refunded (cents) 000000000000 7.68 Non-resident withholding amount deducted (cents) 000000000000 7.69 Non-resident withholding amount refunded (cents) 000000000000 Cash or non-cash value of an investment related betting chance 7.70 000000000000 prize (cents) 7.71 Interest (cents) 000000025000 Unfranked dividends not declared to be conduit foreign income 7.72 000000190000 (cents) Unfranked dividends declared to be conduit foreign income 7.73 000000080000 (cents)

Reference Field name Content number 7.74 Franked dividends (cents) 000000180000 7.75 Franking credit (cents) 000000077100 7.76 Other taxable Australian income (cents) 000000090000 7.77 Non-primary production income (cents) 000000212000 7.78 Other deductions relating to distributions (cents) 000000000000 7.79 Capital gains discounted method (cents) 000000000000 7.80 Capital gains indexation method (cents) 000000000000 7.81 Capital gains other method (cents) 000000000000 7.82 CGT concession amount (cents) 000000000000 7.83 Net capital gain (cents) 000000000000 7.84 Total current year capital gains (cents) 000000000000 7.85 Taxable foreign capital gains (cents) 000000000000 7.86 Assessable foreign source income (cents) 000000000000 7.87 Other net foreign source income (cents) 000000000000 7.88 Foreign income tax offset (cents) 000000000000 Australian franking credits from a New Zealand franking company 7.89 000000000000 (cents) 7.90 Tax-exempted amounts (cents) 000000000000 7.91 Tax-free amounts (cents) 000000000000 7.92 Tax-deferred amounts (cents) 000000000000 7.93 Other allowable trust deductions (cents) 000000053000 Share of credit for amounts withheld from foreign resident 7.94 000000000000 withholding (cents) 7.95 Share of credit for tax paid by trustee (cents) 000000000000 7.96 Non-resident beneficiary ss98(3) assessable amount (cents) 000000000000 7.97 Non-resident beneficiary ss98(4) assessable amount (cents) 000000000000 7.98 Interposed entity name 000000000000 7.99 Interposed entity TFN or ABN 000000000000 7.100 Managed investment trust fund payments (cents) 000000000000 Amounts withheld from managed investment trust fund payments 7.101 000000000000 (cents)

Reference Field name Content number 7.103 Supplementary income payment type UTD 7.104 Sequence number of DACCSUPP record 01 7.105 Share of National rental affordability scheme tax offset (cents) 000000000000 7.106 Primary production income (cents) 000000000000 7.107 Share of credit for tax withheld where ABN not quoted (cents) 000000000000 Deductions relating to distribution of primary production income 7.108 000000000000 (cents) Deductions relating to distribution of non-primary production 7.109 000000000000 income (cents) 7.110 Transferor trust income (cents) 000000000000 7.111 CFC income (cents) 000000000000 7.112 Net foreign rent (cents) 000000000000 7.113 Unfranked distributions from trusts (cents) 000000150000 7.114 Franked distributions from trusts (cents) 000000377100 One Investor data record is required for Sequence number of DACCSUPP record 01.

Capital Gains Tax (CGT)

Capital gains distributions are reported using the following fields. An investor can receive a distribution calculated by using more than one capital gain method and it can include income from Australian and foreign sources.

7.79 Capital gains discounted method - the amount of capital gain included in the investor’s share of the net income distributed after the 50% discount has been applied.

For example, if the capital gain before discount equals $1000.00, the amount reported at this field equals $500.00 – that is the amount is not ‘grossed up’.

7.80 Capital gains indexation method - the amount of the capital gain included in the investor’s share of net income distributed after applying the indexation method.

7.81 Capital gains other method - the amount of capital gain included in the investor’s share of net income distributed where the trustee has not applied the indexation or discount method. Fields 7.79, 7.80 and 7.81 form part of the calculation of the Net capital gain (7.83) and Total current year capital gains (7.84) fields.

7.82 CGT concession amount - the amount comprises the non-assessable CGT discount amount paid to the investor. Also included is the amount of any capital losses (including unapplied net capital losses carried forward from previous years) applied by the trust (or another trust in a chain of trusts) to reduce capital gains made, that is reflected in the payment to the investor.

7.83 Net capital gain - the amount equals the sum of the amounts reported at the following fields:

. Capital gains discounted method (7.79) . Capital gains indexation method (7.80) . Capital gains other method (7.81).

7.84 Total current year capital gains - the total amount of Australian and foreign sources income subject to CGT.

This amount is equal to or greater than the sum of the following fields:

. Capital gains discounted method (grossed up amount) (7.79) . Capital gains indexation method (7.80) . Capital gains other method (7.81).

7.85 Taxable foreign capital gains - the amount that is deemed to be foreign income under Division 770 of the ITAA97. Although this amount is also a component of the above fields when there is a foreign sourced capital gain, there is a requirement to also report these amounts separately for foreign income tax offset calculations.

Example 9.3 – Total capital gains is more than net capital gains

Blues Unit Trust has 10 units and 10 investors – one unit is distributed to each investor.

Income available for distribution:

Trust income $ $ Discounted capital gains 1,000 Other gains 1,000 Less capital losses 500 500 Net capital gain 1,500 Total current year capital gains 2,500

The amount reported in the AIIR for each investor:

Reference Field name Amount Workings Number 7.79 Capital gains, discounted method $100 $1,000/10 7.81 Capital gains other method $50 $500/10 $1,500/10 7.83 Net capital gain $150 (7.79 + 7.81) $2,500/10 7.84 Total current year capital gains $250 (7.79 ‘grossed up’ + 7.81)

Example 9.4 – Total capital gains equals net capital gains

Maroon Unit Trust has 10 units and 10 investors – one unit is distributed to each investor.

Income available for distribution:

Trust income Amount Workings Other gains $700 Net capital gain $700 Total current year capital gains $700

The amount reported in the AIIR for each investor:

Reference Field name Amount Workings Number 7.81 Capital gains other method $70 $700/10 7.83 Net capital gain $70 $700/10 (7.81) 7.84 Total current year capital gains $70 $700/10 (7.81)

Investor Directed Portfolio Services

IDPS are services for acquiring and holding investments that generally involve custody arrangements and consolidated reporting. There is often a menu of investment products available through this service including UTDs, dividends and interest related investments.

These services include products typically marketed as master funds and wrap accounts. A distinguishable feature of IDPS is the investor generally makes all the investment decisions, including acquiring, holding and withdrawing from a range of investment products. The trustee of an IDPS is operating as an intermediary and supplies the trustee TFN to the investment body rather than the investor’s TFN. When supplying an AIIR, an IDPS is required to provide an Investment account data record (and Supplementary account data record (if required)) followed by an Investor data record for each investment type.

The following example shows the recommended way for an IDPS to lodge an AIIR on behalf of its investors. By lodging an AIIR, the IDPS’s investors’ income will be made available for pre- filling.

Example 9.5 – IDPS reporting in the AIIR

Thirdwest Direct, an IDPS, makes the following payments to resident investor Kuan Ziang:

Term Deposit Interest $7,109.00

Dividend payments:

. Unfranked dividends (non-CFI) $3,000.00 . Unfranked dividends (CFI) $1,700.00 . Franked dividends $6,000.00 . Franking credits $2,571.00

. A partially franked distribution of $3,000.00 that was franked to 70% (Franked amount equals $2,100.00, unfranked amount equals $900.00 (non-CFI) and the franking credit equals $900.00 . An unfranked distribution of $8,000.00 that was made up of an unfranked dividend (non- CFI) of $3,000.00 and an unfranked dividend (CFI) of $5,000.00 . Interest of $890.00, other taxable Australian income of $1,200.00 and other allowable trust deductions of $2,100.00

INVESTMENT ACCOUNT DATA RECORD 1 (EXTRACT)

Reference Field name Content number 7.54 Sequence number of DACCOUNT record 01 7.55 Investment reference number 4587221444 7.56 Account reference number 3214566977 7.57 BSB number 000000 7.58 Branch location Blank fill 7.59 Account name KUAN ZIANG 7.60 Number of investors in the account 01 7.61 Number of investor records provided 01 7.62 Date of payment (DDMMCCYY) 30062014 7.63 Type of investment 02 7.64 Type of payment TDP 7.65 Term of investment 00 7.66 TFN withholding tax deducted (cents) 000000000000

Reference Field name Content number 7.67 TFN withholding tax refunded (cents) 000000000000 7.68 Non-resident withholding amount deducted (cents) 000000000000 7.69 Non-resident withholding amount refunded (cents) 000000000000 Cash or non-cash value of an investment related betting chance 7.70 000000000000 prize (cents) 7.71 Interest (cents) 000000710900 Unfranked dividends not declared to be conduit foreign income 7.72 000000000000 (cents) Unfranked dividends declared to be conduit foreign income 7.73 000000000000 (cents) 7.74 Franked dividends (cents) 000000000000 7.75 Franking credit (cents) 000000000000 7.76 Other taxable Australian income (cents) 000000000000 7.77 Non-primary production income (cents) 000000000000 7.78 Other deductions relating to distributions (cents) 000000000000 7.79 Capital gains discounted method (cents) 000000000000 7.80 Capital gains indexation method (cents) 000000000000 7.81 Capital gains other method (cents) 000000000000 7.82 CGT concession amount (cents) 000000000000 7.83 Net capital gain (cents) 000000000000 7.84 Total current year capital gains (cents) 000000000000 7.85 Taxable foreign capital gains (cents) 000000000000 7.86 Assessable foreign source income (cents) 000000000000 7.87 Other net foreign source income (cents) 000000000000 7.88 Foreign income tax offset (cents) 000000000000 Australian franking credits from a New Zealand franking company 7.89 000000000000 (cents) 7.90 Tax-exempted amounts (cents) 000000000000 7.91 Tax-free amounts (cents) 000000000000 7.92 Tax-deferred amounts (cents) 000000000000 7.93 Other allowable trust deductions (cents) 000000000000 Share of credit for amounts withheld from foreign resident 7.94 000000000000 withholding (cents) 7.95 Share of credit for tax paid by trustee (cents) 000000000000 7.96 Non-resident beneficiary ss98(3) assessable amount (cents) 000000000000 7.97 Non-resident beneficiary ss98(4) assessable amount (cents) 000000000000 7.98 Interposed entity name 000000000000 7.99 Interposed entity TFN or ABN 000000000000 7.100 Managed investment trust fund payments (cents) 000000000000 Amounts withheld from managed investment trust fund payments 7.101 000000000000 (cents) An Investor data record is required following Sequence number of DACCOUNT record 01.

Reference Field name Content number 7.54 Sequence number of DACCOUNT record 02 7.55 Investment reference number 4587221444 7.56 Account reference number 3214566977 7.57 BSB number 000000 7.58 Branch location Blank fill 7.59 Account name KUAN ZIANG 7.60 Number of investors in the account 01 7.61 Number of investor records provided 01 7.62 Date of payment (DDMMCCYY) 30062014 7.63 Type of investment 06 7.64 Type of payment DIV 7.65 Term of investment 00 7.66 TFN withholding tax deducted (cents) 000000000000 7.67 TFN withholding tax refunded (cents) 000000000000 7.68 Non-resident withholding amount deducted (cents) 000000000000 7.69 Non-resident withholding amount refunded (cents) 000000000000 Cash or non-cash value of an investment related betting chance 7.70 000000000000 prize (cents) 7.71 Interest (cents) 000000000000 Unfranked dividends not declared to be conduit foreign income 7.72 000000300000 (cents) Unfranked dividends declared to be conduit foreign income 7.73 000000170000 (cents) 7.74 Franked dividends (cents) 000000600000 7.75 Franking credit (cents) 000000257100 7.76 Other taxable Australian income (cents) 000000000000 7.77 Non-primary production income (cents) 000000000000 7.78 Other deductions relating to distributions (cents) 000000000000 7.79 Capital gains discounted method (cents) 000000000000 7.80 Capital gains indexation method (cents) 000000000000 7.81 Capital gains other method (cents) 000000000000 7.82 CGT concession amount (cents) 000000000000 7.83 Net capital gain (cents) 000000000000 7.84 Total current year capital gains (cents) 000000000000 7.85 Taxable foreign capital gains (cents) 000000000000 7.86 Assessable foreign source income (cents) 000000000000 7.87 Other net foreign source income (cents) 000000000000 7.88 Foreign income tax offset (cents) 000000000000 Australian franking credits from a New Zealand franking company 7.89 000000000000 (cents) 7.90 Tax-exempted amounts (cents) 000000000000 7.91 Tax-free amounts (cents) 000000000000 7.92 Tax-deferred amounts (cents) 000000000000

Reference Field name Content number 7.93 Other allowable trust deductions (cents) 000000000000 Share of credit for amounts withheld from foreign resident 7.94 000000000000 withholding (cents) 7.95 Share of credit for tax paid by trustee (cents) 000000000000 7.96 Non-resident beneficiary ss98(3) assessable amount (cents) 000000000000 7.97 Non-resident beneficiary ss98(4) assessable amount (cents) 000000000000 7.98 Interposed entity name 000000000000 7.99 Interposed entity TFN or ABN 000000000000 7.100 Managed investment trust fund payments (cents) 000000000000 Amounts withheld from managed investment trust fund payments 7.101 000000000000 (cents) An Investor data record is required following Sequence number of DACCOUNT record 02.

Reference Field name Content number 7.54 Sequence number of DACCOUNT record 03 7.55 Investment reference number 4587221444 7.56 Account reference number 3214566977 7.57 BSB number 000000 7.58 Branch location Blank fill 7.59 Account name KUAN ZIANG 7.60 Number of investors in the account 01 7.61 Number of investor records provided 01 7.62 Date of payment (DDMMCCYY) 30062014 7.63 Type of investment 05 7.64 Type of payment UTD 7.65 Term of investment 00 7.66 TFN withholding tax deducted (cents) 000000000000 7.67 TFN withholding tax refunded (cents) 000000000000 7.68 Non-resident withholding amount deducted (cents) 000000000000 7.69 Non-resident withholding amount refunded (cents) 000000000000 Cash or non-cash value of an investment related betting chance 7.70 000000000000 prize (cents) 7.71 Interest (cents) 000000089000 Unfranked dividends not declared to be conduit foreign income 7.72 000000390000 (cents) Unfranked dividends declared to be conduit foreign income 7.73 000000500000 (cents) 7.74 Franked dividends (cents) 000000210000 7.75 Franking credit (cents) 000000090000 7.76 Other taxable Australian income (cents) 000000120000 7.77 Non-primary production income (cents) 000000799000

Reference Field name Content number 7.78 Other deductions relating to distributions (cents) 000000000000 7.79 Capital gains discounted method (cents) 000000000000 7.80 Capital gains indexation method (cents) 000000000000 7.81 Capital gains other method (cents) 000000000000 7.82 CGT concession amount (cents) 000000000000 7.83 Net capital gain (cents) 000000000000 7.84 Total current year capital gains (cents) 000000000000 7.85 Taxable foreign capital gains (cents) 000000000000 7.86 Assessable foreign source income (cents) 000000000000 7.87 Other net foreign source income (cents) 000000000000 7.88 Foreign income tax offset (cents) 000000000000 Australian franking credits from a New Zealand franking company 7.89 000000000000 (cents) 7.90 Tax-exempted amounts (cents) 000000000000 7.91 Tax-free amounts (cents) 000000000000 7.92 Tax-deferred amounts (cents) 000000000000 7.93 Other allowable trust deductions (cents) 000000210000 Share of credit for amounts withheld from foreign resident 7.94 000000000000 withholding (cents) 7.95 Share of credit for tax paid by trustee (cents) 000000000000 7.96 Non-resident beneficiary ss98(3) assessable amount (cents) 000000000000 7.97 Non-resident beneficiary ss98(4) assessable amount (cents) 000000000000 7.98 Interposed entity name 000000000000 7.99 Interposed entity TFN or ABN 000000000000 7.100 Managed investment trust fund payments (cents) 000000000000 Amounts withheld from managed investment trust fund payments 7.101 000000000000 (cents)

Reference Field name Content number 7.103 Supplementary income payment type UTD 7.104 Sequence number of DACCSUPP record 01 7.105 Share of National rental affordability scheme tax offset (cents) 000000000000 7.106 Primary production income (cents) 000000000000 7.107 Share of credit for tax withheld where ABN not quoted (cents) 000000000000 Deductions relating to distribution of primary production income 7.108 000000000000 (cents) Deductions relating to distribution of non-primary production 7.109 000000000000 income (cents) 7.110 Transferor trust income (cents) 000000000000 7.111 CFC income (cents) 000000000000 7.112 Net foreign rent (cents) 000000000000 7.113 Unfranked distributions from trusts (cents) 000000800000 7.114 Franked distributions from trusts (cents) 000000390000 One Investor data record is required following Sequence number of DACCSUPP record 01.

As noted in the Introduction, reporting by intermediaries is under review. The ATO is aware that some intermediaries provide consolidated statements to clients. The ATO neither approves nor disapproves this practice. The way of reporting the above example if the IDPS has aggregated all of the investments into one standard distribution advice would be as follows.

Example 9.6 – IDPS consolidated reporting in the AIIR

Reference Field name Content number 7.54 Sequence number of DACCOUNT record 01 7.55 Investment reference number 4587221444 7.56 Account reference number 3214566977 7.57 BSB number 000000 7.58 Branch location Blank fill 7.59 Account name KUAN ZIANG 7.60 Number of investors in the account 01 7.61 Number of investor records provided 01 7.62 Date of payment (DDMMCCYY) 30062014 7.63 Type of investment 05 7.64 Type of payment UTD 7.65 Term of investment 00 7.66 TFN withholding tax deducted (cents) 000000000000 7.67 TFN withholding tax refunded (cents) 000000000000

Reference Field name Content number 7.68 Non-resident withholding amount deducted (cents) 000000000000 7.69 Non-resident withholding amount refunded (cents) 000000000000 Cash or non-cash value of an investment related betting chance 7.70 000000000000 prize (cents) 7.71 Interest (cents) 000000799900 Unfranked dividends not declared to be conduit foreign income 7.72 000000690000 (cents) Unfranked dividends declared to be conduit foreign income 7.73 000000670000 (cents) 7.74 Franked dividends (cents) 000000810000 7.75 Franking credit (cents) 000000347100 7.76 Other taxable Australian income (cents) 000000120000 7.77 Non-primary production income (cents) 000001979900 7.78 Other deductions relating to distributions (cents) 000000000000 7.79 Capital gains discounted method (cents) 000000000000 7.80 Capital gains indexation method (cents) 000000000000 7.81 Capital gains other method (cents) 000000000000 7.82 CGT concession amount (cents) 000000000000 7.83 Net capital gain (cents) 000000000000 7.84 Total current year capital gains (cents) 000000000000 7.85 Taxable foreign capital gains (cents) 000000000000 7.86 Assessable foreign source income (cents) 000000000000 7.87 Other net foreign source income (cents) 000000000000 7.88 Foreign income tax offset (cents) 000000000000 Australian franking credits from a New Zealand franking company 7.89 000000000000 (cents) 7.90 Tax-exempted amounts (cents) 000000000000 7.91 Tax-free amounts (cents) 000000000000 7.92 Tax-deferred amounts (cents) 000000000000 7.93 Other allowable trust deductions (cents) 000000210000 Share of credit for amounts withheld from foreign resident 7.94 000000000000 withholding (cents) 7.95 Share of credit for tax paid by trustee (cents) 000000000000 7.96 Non-resident beneficiary ss98(3) assessable amount (cents) 000000000000 7.97 Non-resident beneficiary ss98(4) assessable amount (cents) 000000000000 7.98 Interposed entity name 000000000000 7.99 Interposed entity TFN or ABN 000000000000 7.100 Managed investment trust fund payments (cents) 000000000000 Amounts withheld from managed investment trust fund payments 7.101 000000000000 (cents) SUPPLEMENTARY INCOME ACCOUNT RECORD (EXTRACT)

Reference Field name Content number 7.103 Supplementary income payment type UTD

Reference Field name Content number 7.104 Sequence number of DACCSUPP record 01 7.105 Share of National rental affordability scheme tax offset (cents) 000000000000 7.106 Primary production income (cents) 000000000000 7.107 Share of credit for tax withheld where ABN not quoted (cents) 000000000000 Deductions relating to distribution of primary production income 7.108 000000000000 (cents) Deductions relating to distribution of non-primary production 7.109 000000000000 income (cents) 7.110 Transferor trust income (cents) 000000000000 7.111 CFC income (cents) 000000000000 7.112 Net foreign rent (cents) 000000000000 7.113 Unfranked distributions from trusts (cents) 000001270000 7.114 Franked distributions from trusts (cents) 000001247100 One Investor data record is required following Sequence number of DACCSUPP record 01.

Stapled Securities

A stapled security is created when two or more different securities such as units in a unit trust and shares in one company are contractually bound together and cannot be sold separately. The controlling entity is required to supply an AIIR.

Although the securities cannot be sold separately they are treated separately for tax purposes.

When reporting stapled security income in the AIIR, the dividend and UTD payments must be reported in separate Investor account data records, each followed by an Investor data record. A Supplementary income account data record must also be provided when reporting UTDs.

Example 9.7 – Stapled securities (dividend and UTD payments)

Forestwade Group Trust is reporting stapled securities (dividend and UTD payments) for resident investor Raphael East.

Dividend payments:

. Unfranked dividends (non-CFI) $1,000.00 . Unfranked dividends (CFI) $500.00 . Franked dividends $1,000.00 . Franking credits $429.00

. A partially franked dividend of $4,000.00 that was franked to 80%. The franked amount was $3,200.00, the unfranked amount was $800.00 (non-CFI) and the franking credit was $1,371.00 . An unfranked distribution of $2,000.00 that was made up of an unfranked dividend (non- CFI) of $2,000.00

Reference Field name Content number 7.54 Sequence number of DACCOUNT record 01 7.55 Investment reference number 963963444 7.56 Account reference number 45546 7.57 BSB number 000000 7.58 Branch location Blank fill 7.59 Account name RAPHAEL EAST 7.60 Number of investors in the account 01 7.61 Number of investor records provided 01 7.62 Date of payment (DDMMCCYY) 30062014 7.63 Type of investment 06 7.64 Type of payment DIV 7.65 Term of investment 00 7.66 TFN withholding tax deducted (cents) 000000000000 7.67 TFN withholding tax refunded (cents) 000000000000 7.68 Non-resident withholding amount deducted (cents) 000000000000 7.69 Non-resident withholding amount refunded (cents) 000000000000 Cash or non-cash value of an investment related betting chance 7.70 000000000000 prize (cents) 7.71 Interest (cents) 000000000000 Unfranked dividends not declared to be conduit foreign income 7.72 000000100000 (cents) Unfranked dividends declared to be conduit foreign income 7.73 000000050000 (cents) 7.74 Franked dividends (cents) 000000100000 7.75 Franking credit (cents) 000000042900 7.76 Other taxable Australian income (cents) 000000000000 7.77 Non-primary production income (cents) 000000000000 7.78 Other deductions relating to distributions (cents) 000000000000 7.79 Capital gains discounted method (cents) 000000000000 7.80 Capital gains indexation method (cents) 000000000000 7.81 Capital gains other method (cents) 000000000000 7.82 CGT concession amount (cents) 000000000000 7.83 Net capital gain (cents) 000000000000 7.84 Total current year capital gains (cents) 000000000000 7.85 Taxable foreign capital gains (cents) 000000000000

Reference Field name Content number 7.86 Assessable foreign source income (cents) 000000000000 7.87 Other net foreign source income (cents) 000000000000 7.88 Foreign income tax offset (cents) 000000000000 Australian franking credits from a New Zealand franking company 7.89 000000000000 (cents) 7.90 Tax-exempted amounts (cents) 000000000000 7.91 Tax-free amounts (cents) 000000000000 7.92 Tax-deferred amounts (cents) 000000000000 7.93 Other allowable trust deductions (cents) 000000000000 Share of credit for amounts withheld from foreign resident 7.94 000000000000 withholding (cents) 7.95 Share of credit for tax paid by trustee (cents) 000000000000 7.96 Non-resident beneficiary ss98(3) assessable amount (cents) 000000000000 7.97 Non-resident beneficiary ss98(4) assessable amount (cents) 000000000000 7.98 Interposed entity name 000000000000 7.99 Interposed entity TFN or ABN 000000000000 7.100 Managed investment trust fund payments (cents) 000000000000 Amounts withheld from managed investment trust fund payments 7.101 000000000000 (cents) An Investor data record is required following Sequence number of DACCOUNT record 01.

Reference Field name Content number 7.54 Sequence number of DACCOUNT record 02 7.55 Investment reference number 963963444 7.56 Account reference number 45546 7.57 BSB number 000000 7.58 Branch location Blank fill 7.59 Account name RAPHAEL EAST 7.60 Number of investors in the account 01 7.61 Number of investor records provided 01 7.62 Date of payment (DDMMCCYY) 30062014 7.63 Type of investment 05 7.64 Type of payment UTD 7.65 Term of investment 00 7.66 TFN withholding tax deducted (cents) 000000000000 7.67 TFN withholding tax refunded (cents) 000000000000 7.68 Non-resident withholding amount deducted (cents) 000000000000 7.69 Non-resident withholding amount refunded (cents) 000000000000 Cash or non-cash value of an investment related betting chance 7.70 000000000000 prize (cents) 7.71 Interest (cents) 000000000000

Reference Field name Content number Unfranked dividends not declared to be conduit foreign income 7.72 000000280000 (cents) Unfranked dividends declared to be conduit foreign income 7.73 000000000000 (cents) 7.74 Franked dividends (cents) 000000320000 7.75 Franking credit (cents) 000000137100 7.76 Other taxable Australian income (cents) 000000000000 7.77 Non-primary production income (cents) 000000200000 7.78 Other deductions relating to distributions (cents) 000000000000 7.79 Capital gains discounted method (cents) 000000000000 7.80 Capital gains indexation method (cents) 000000000000 7.81 Capital gains other method (cents) 000000000000 7.82 CGT concession amount (cents) 000000000000 7.83 Net capital gain (cents) 000000000000 7.84 Total current year capital gains (cents) 000000000000 7.85 Taxable foreign capital gains (cents) 000000000000 7.86 Assessable foreign source income (cents) 000000000000 7.87 Other net foreign source income (cents) 000000000000 7.88 Foreign income tax offset (cents) 000000000000 Australian franking credits from a New Zealand franking company 7.89 000000000000 (cents) 7.90 Tax-exempted amounts (cents) 000000000000 7.91 Tax-free amounts (cents) 000000000000 7.92 Tax-deferred amounts (cents) 000000000000 7.93 Other allowable trust deductions (cents) 000000000000 Share of credit for amounts withheld from foreign resident 7.94 000000000000 withholding (cents) 7.95 Share of credit for tax paid by trustee (cents) 000000000000 7.96 Non-resident beneficiary ss98(3) assessable amount (cents) 000000000000 7.97 Non-resident beneficiary ss98(4) assessable amount (cents) 000000000000 7.98 Interposed entity name 000000000000 7.99 Interposed entity TFN or ABN 000000000000 7.100 Managed investment trust fund payments (cents) 000000000000 Amounts withheld from managed investment trust fund payments 7.101 000000000000 (cents) SUPPLEMENTARY INCOME ACCOUNT RECORD (EXTRACT)

Reference Field name Content number 7.103 Supplementary income payment type UTD 7.104 Sequence number of DACCSUPP record 01 7.105 Share of National rental affordability scheme tax offset (cents) 000000000000 7.106 Primary production income (cents) 000000000000 7.107 Share of credit for tax withheld where ABN not quoted (cents) 000000000000

Reference Field name Content number Deductions relating to distribution of primary production income 7.108 000000000000 (cents) Deductions relating to distribution of non-primary production 7.109 000000000000 income (cents) 7.110 Transferor trust income (cents) 000000000000 7.111 CFC income (cents) 000000000000 7.112 Net foreign rent (cents) 000000000000 7.113 Unfranked distributions from trusts (cents) 000000200000 7.114 Franked distributions from trusts (cents) 000000537100 One Investor data record is required following Sequence number of DACCSUPP record 01.

10 ALIGNMENT BETWEEN THE AIIR, SDS AND THE ITR

The SDS is the format recommended by us and the Financial Services Council for disclosure by unit trusts of tax information to certain resident individuals holding units on capital account for completion of their tax returns, relevant schedules and other requirements. It is predicated on trustees applying the relevant provisions of the income tax laws, including correctly determining the net income of the trust pursuant to Division 6 of the ITAA 1936.

Unit trusts also report the information supplied in the SDS to us through the AIIR in both the Investment account data record and the Supplementary income account data record.

One of the objectives of the AIIR is to align the information reported by unit trusts to their individual investors through the SDS, with the information reported in the AIIR. This enables us to:

. continue to increase the data available to pre-fill for unit trusts . minimise the risk of incorrect post-compliance action through misreporting of data . assist investors to complete their tax return with more accurate information.

Basis of an SDS

The standard format does not purport to deal with all possible scenarios that a fund manager may encounter. Where funds' circumstances are outside those shown in the standard format, additional information or requirements need to be considered. For example, indexed capital gains may need to be included. The basic structure of the SDS consists of three parts:

. Part A explains where amounts are shown on the Tax return for individuals (supplementary section). . Part B explains the components of a distribution that investors may need to know to work out their net capital gain or loss and specifically provides the CGT concession amount as well as the tax-deferred amounts required to adjust the cost base and reduced cost base of their units. . Part C allows a reconciliation of the net cash amount distributed to the unit holder and provides other information of amounts distributed in excess of the trust’s net income and that may be relevant, for instance, to adjustments to cost base and reduced cost base of units, where that is appropriate to resident individual circumstances.

Examples of SDS and AIIR reporting

The example 2013 SDS extracts used in this section are based on the 2014 AIIR, the 2013 SDS and the 2013 ITR with minor modifications in the SDS to include franked and unfranked distributions from trusts in Part A and C. This section will be updated, after consultation with industry, to include references to the 2014 SDS.

Example 10.1 – SDS - Fully franked distribution

Abernathy Unit Trust provides a SDS to resident investor, Yon Shen Goh for distributions made up of non-primary production income, a fully franked distribution, capital gains income and foreign source income.

2013 SDS AND ITR (EXTRACTS)

Part A: Summary of 2013 tax return (supplementary section) items

Tax return Tax return (supplementary section) Amount AIIR reference number label Share of non-primary production income less capital 65 13U 7.77 gains, foreign income and franked distributions Franked distributions from trusts 100 13C 7.114 Other deductions relating to non-primary production 4 13Y 7.78 distributions Share of franking credit from franked dividends 30.00 13Q 7.75 Share of credit for TFN amounts withheld from 10.00 13R 7.66 minus 7.67 interest, dividends and unit trust distributions Total current year capital gains 225 18H 7.84 Net capital gain 155 18A 7.83 Assessable foreign source income 220 20E 7.86 Other net foreign source income 220 20M 7.87 Foreign income tax offsets* 38.00 20O 7.88

Part B: CGT information – additional information for item 18

Tax return Capital Gains Labels Amount AIIR reference number label Capital gains: discounted method 140 7.79 x 2 (grossed up amount) Capital gains: other method 85 18 7.81 Total current year capital gains 225 7.84 CGT concession amount 70 7.82 Tax-deferred amounts 30 7.92

Part C: Components of distribution

Tax paid Cash Taxable AIIR reference Income component or tax distribution amount number offsets Franking Australian income credits Interest 15 15 7.71 Other income 75 75 7.76 Less Other allowable trust deductions –25 –25 7.93 Non-primary production income (A) 65 65 7.77 Dividend: franked amount 70 30.00 100 7.74 & 7.75 Franked distribution from trusts (B) 70 30.00 100 7.114 Foreign Capital gains income tax offset Capital gains: discounted method 65 5.00 70 7.79 CGT concession amount 70 0 7.82 Capital gains: other method 83 2.00 85 7.81 Net capital gain 155 7.83 Distributed capital gains (C) 218 7.00 225 7.84 Foreign income Assessable foreign source income 189 31.00 220 7.86 38.00 Cash distribution (D) 189 (7.88) Cash distribution sub-total (add A, B, C and D) 542 Other non-assessable amounts Tax-exempted amounts 25 7.90 Tax-free amounts 15 7.91 Tax-deferred amounts 30 7.92 Gross cash distribution 612 Other deductions from distribution TFN amounts withheld –10 7.66 Other expenses –4 7.78 Net cash distribution 598 These details would be reported using both the Investment account data record and the Supplementary income account data record as follows:

Reference Field name Content Explanation number 7.63 Type of investment 5 Unit Trust 7.64 Type of payment UTD Payment type 7.65 Term of investment 00 NA to UTD 7.66 TFN withholding tax deducted (cents) 000000001000 $10.00 7.67 TFN withholding tax refunded (cents) 000000000000 $0.00 Non-resident withholding amount deducted 7.68 000000000000 $0.00 (cents) Non-resident withholding amount refunded 7.69 000000000000 $0.00 (cents) Cash or non-cash value of an investment 7.70 000000000000 $0.00 related betting chance prize (cents) 7.71 Interest (cents) 000000001500 $15.00 Unfranked dividends not declared to be conduit 7.72 000000000000 $0.00 foreign income (cents) Unfranked dividends declared to be conduit 7.73 000000000000 $0.00 foreign income (cents) 7.74 Franked dividends (cents) 000000007000 $70.00 7.75 Franking credit (cents) 000000003000 $30.00 7.76 Other taxable Australian income (cents) 000000007500 $75.00 7.77 Non-primary production income (cents) 000000006500 $65.00 Other deductions relating to distributions 7.78 000000000400 $4.00 (cents) 7.79 Capital gains discounted method (cents) 000000007000 $70.00 7.80 Capital gains indexation method (cents) 000000000000 $0.00 7.81 Capital gains other method (cents) 000000008500 $85.00 7.82 CGT concession amount (cents) 000000007000 $70.00 7.83 Net capital gain (cents) 000000015500 $155.00 7.84 Total current year capital gains (cents) 000000022500 $225.00 7.85 Taxable foreign capital gains (cents) 000000000000 $0.00 7.86 Assessable foreign source income (cents) 000000022000 $220.00 7.87 Other net foreign source income (cents) 000000022000 $220.00 7.88 Foreign income tax offset (cents) 000000003800 $38.00 Australian franking credits from a New Zealand 7.89 000000000000 $0.00 franking company (cents) 7.90 Tax-exempted amounts (cents) 000000002500 $25.00 7.91 Tax-free amounts (cents) 000000001500 $15.00 7.92 Tax-deferred amounts (cents) 000000003000 $30.00 7.93 Other allowable trust deductions (cents) 000000002500 $25.00 Share of credit for amounts withheld from 7.94 000000000000 $0.00 foreign resident withholding (cents) 7.95 Share of credit for tax paid by trustee (cents) 000000000000 $0.00 Non-resident beneficiary ss98(3) assessable 7.96 000000000000 $0.00 amount (cents) Non-resident beneficiary ss98(4) assessable 7.97 000000000000 $0.00 amount (cents)

Reference Field name Content Explanation number 7.98 Interposed entity name Blank fill Leave blank 7.99 Interposed entity TFN or ABN 00000000000 00000000000 Managed investment trust fund payments 7.100 000000000000 $0.00 (cents) Amounts withheld from managed investment 7.101 000000000000 $0.00 trust fund payments (cents)

SUPPLEMENTARY INCOME ACCOUNT DATA RECORD (EXTRACT)

Reference Field name Content Explanation number Share of National rental affordability scheme 7.105 000000000000 $0.00 tax offset (cents) 7.106 Primary production income (cents) 000000000000 $0.00 Share of credit for tax withheld where ABN not 7.107 000000000000 $0.00 quoted (cents) Deductions relating to distribution of primary 7.108 000000000000 $0.00 production income (cents) Deductions relating to distribution of non- 7.109 000000000000 $0.00 primary production income (cents) 7.110 Transferor trust income (cents) 000000000000 $0.00 7.111 CFC income (cents) 000000000000 $0.00 7.112 Net foreign rent (cents) 000000000000 $0.00 7.113 Unfranked distributions from trusts (cents) 000000000000 05.00 7.114 Franked distributions from trusts (cents) 000000010000 $100.00

Example 10.2 – SDS including partially franked distribution

Mosaic Unit Trust provides a SDS to resident investor, Emily Fisch for distributions made up of non-primary production income, a franked and unfranked distribution (comprising fully-franked, partially franked and unfranked dividends), capital gains income and foreign source income.

2013 SDS AND ITR (EXTRACTS)

Part A: Summary of 2013 tax return (supplementary section) items

Tax return Tax return (supplementary section) Amount AIIR reference number label Share of non-primary production income less capital 45 13U 7.77 gains, foreign income and franked distributions Franked distributions from trusts 120 13C 7.114 Other deductions relating to non-primary production 4 13Y 7.78 distributions Share of franking credit from franked dividends 30.00 13Q 7.75 Share of credit for TFN amounts withheld from 10.00 13R 7.66 minus 7.67 interest, dividends and unit trust distributions Total current year capital gains 225 18H 7.84

Tax return Tax return (supplementary section) Amount AIIR reference number label Net capital gain 155 18A 7.83 Assessable foreign source income 220 20E 7.86 Other net foreign source income 220 20M 7.87 Foreign income tax offsets* 38.00 20O 7.88

Part B: CGT information – additional information for item 18

Tax return Capital Gains Labels Amount AIIR reference number label Capital gains: discounted method 140 7.79 x 2 (grossed up amount) 18 Capital gains: other method 85 7.81 Total current year capital gains 225 7.84 18 CGT concession amount 70 7.82 Tax-deferred amounts 30 7.92

Part C: Components of distribution

Tax paid Cash Taxable AIIR reference Income component or tax distribution amount number offsets Franking Australian income credits Unfranked distributions from trusts (X) 45 45 7.113 Interest 15 15 7.71 Other income 10 10 7.76 Less Other allowable trust deductions –25 –25 7.93 7.77 (7.70 + Non-primary production income (A) 45 45 7.71 +7.76 + 7.113 – 7.93) Franked distribution from trusts (B), (Y) 90 30.00 120 7.114 Dividend: franked amount 70 30.00 100 7.74 Dividend: unfranked amount not declared to be 65 65 7.72 conduit foreign income 7.72 + 7.73 + Dividend: total (equals X + Y) 135 30 165 7.74 + 7.75 Foreign Capital gains income tax offset Capital gains: discounted method 65 5.00 70 7.79 CGT concession amount 70 0 7.82 Capital gains: other method 83 2.00 85 7.81 Net capital gain 155 7.83 Distributed capital gains (C) 218 7.00 225 7.84 Foreign income Assessable foreign source income 189 31.00 220 7.86 38.00 Cash distribution (D) 189 (7.88)

Tax paid Cash Taxable AIIR reference Income component or tax distribution amount number offsets Cash distribution sub-total (add A, B, C and D) 542 Other non-assessable amounts Tax-exempted amounts 25 7.90 Tax-free amounts 15 7.91 Tax-deferred amounts 30 7.92 Gross cash distribution 612 Other deductions from distribution TFN amounts withheld –10 7.66 Other expenses –4 7.78 Net cash distribution 598 These details would be reported using both the Investment account data record and the Supplementary income account data record as follows:

Reference Field name Content Explanation number 7.63 Type of investment 5 Unit Trust 7.64 Type of payment UTD Payment type 7.65 Term of investment 00 NA to UTD 7.66 TFN withholding tax deducted (cents) 000000001000 $10.00 7.67 TFN withholding tax refunded (cents) 000000000000 $0.00 Non-resident withholding amount deducted 7.68 000000000000 $0.00 (cents) Non-resident withholding amount refunded 7.69 000000000000 $0.00 (cents) Cash or non-cash value of an investment 7.70 000000000000 $0.00 related betting chance prize (cents) 7.71 Interest (cents) 000000001500 $15.00 Unfranked dividends not declared to be conduit 7.72 000000006500 $65.00 foreign income (cents) Unfranked dividends declared to be conduit 7.73 000000000000 $0.00 foreign income (cents) 7.74 Franked dividends (cents) 000000007000 $70.00 7.75 Franking credit (cents) 000000003000 $30.00 7.76 Other taxable Australian income (cents) 000000001000 $10.00 7.77 Non-primary production income (cents) 000000004500 $45.00 Other deductions relating to distributions 7.78 000000000400 $4.00 (cents) 7.79 Capital gains discounted method (cents) 000000007000 $70.00 7.80 Capital gains indexation method (cents) 000000000000 $0.00 7.81 Capital gains other method (cents) 000000008500 $85.00 7.82 CGT concession amount (cents) 000000007000 $70.00 7.83 Net capital gain (cents) 000000015500 $155.00

Reference Field name Content Explanation number 7.84 Total current year capital gains (cents) 000000022500 $225.00 7.85 Taxable foreign capital gains (cents) 000000000000 $0.00 7.86 Assessable foreign source income (cents) 000000022000 $220.00 7.87 Other net foreign source income (cents) 000000022000 $220.00 7.88 Foreign income tax offset (cents) 000000003800 $38.00 Australian franking credits from a New Zealand 7.89 000000000000 $0.00 franking company (cents) 7.90 Tax-exempted amounts (cents) 000000002500 $25.00 7.91 Tax-free amounts (cents) 000000001500 $15.00 7.92 Tax-deferred amounts (cents) 000000003000 $30.00 7.93 Other allowable trust deductions (cents) 000000002500 $25.00 Share of credit for amounts withheld from 7.94 000000000000 $0.00 foreign resident withholding (cents) 7.95 Share of credit for tax paid by trustee (cents) 000000000000 $0.00 Non-resident beneficiary ss98(3) assessable 7.96 000000000000 $0.00 amount (cents) Non-resident beneficiary ss98(4) assessable 7.97 000000000000 $0.00 amount (cents) 7.98 Interposed entity name Blank fill Leave blank 7.99 Interposed entity TFN or ABN 00000000000 00000000000 Managed investment trust fund payments 7.100 000000000000 $0.00 (cents) Amounts withheld from managed investment 7.101 000000000000 $0.00 trust fund payments (cents)

SUPPLEMENTARY INCOME ACCOUNT DATA RECORD (EXTRACT)

Reference Field name Content Explanation number Share of National rental affordability scheme 7.105 000000000000 $0.00 tax offset (cents) 7.106 Primary production income (cents) 000000000000 $0.00 Share of credit for tax withheld where ABN not 7.107 000000000000 $0.00 quoted (cents) Deductions relating to distribution of primary 7.108 000000000000 $0.00 production income (cents) Deductions relating to distribution of non- 7.109 000000000000 $0.00 primary production income (cents) 7.110 Transferor trust income (cents) 000000000000 $0.00 7.111 CFC income (cents) 000000000000 $0.00 7.112 Net foreign rent (cents) 000000000000 $0.00 7.113 Unfranked distributions from trusts (cents) 000000004500 $45.00 7.114 Franked distributions from trusts (cents) 000000012000 $120.00

11 FARM MANAGEMENT DEPOSITS

The Farm management deposit (FMD) scheme enables eligible primary producers to deduct from their assessable income the amount of FMDs made in an income year. This enables primary producers to claim a tax deduction for FMDs and for before-tax income to be carried over from years of good cash flow to better manage their exposure to seasonal fluctuations. Income is drawn down in years when it is most needed.

The deposits must normally remain invested for at least 12 months. The total amount of repayments is included in assessable income in the income year in which it is repaid. Special rules apply if the deposit is repaid in exceptional circumstances or in the event of an applicable natural disaster. FMD owners identify whether a FMD has been repaid under these circumstances when lodging their income tax return. Deposits electronically transferred between FMD providers maintain their FMD status. Deposits may also be reinvested without losing their FMD status.

An eligible primary producer can open an FMD account with any Authorised deposit-taking institution (ADI) including most banks, credit unions and building societies. The minimum deposit is $1,000 and the total must not exceed $400,000 at any one time. All ADIs offering FMD accounts must also report monthly to the Department of Agriculture (DA).

An FMD account can only be held by one individual. Interest income from FMDs is assessable in the income year it is paid and amounts paid or credited to accounts during the financial year must be reported in the Farm management deposit account data record. Interest earnings must be paid to the FMD owner before reinvesting as a new FMD.

The usual reporting provisions associated with investments also apply to FMDs. TFNs or ABNs quoted by investors must be reported in the Quarterly tax file number and Australian business number report.

LEGISLATIVE CHANGES

In 2011, the Tax Laws Amendment (2011 Measures No. 7) Act 2011 introduced a number of changes to the FMD scheme flowing from the government’s measure titled Early access for primary producers suffering natural disasters and improved administration arrangements.

The changes included:

. early repayments of FMDs for primary producers affected by applicable natural disasters within 12 months of making those deposits without the loss of any tax concessions . reporting monthly to DA . holding FMDs with more than one ADI

. ensuring that inactive FMD accounts are only treated as unclaimed moneys if the account has been inactive for a minimum of seven years and the financial institution is unable to contact the FMD owner following reasonable efforts to do so.

In December 2012, the laws governing unclaimed money were changed through the Treasury Legislation (Unclaimed Money and Other Measures) Act 2012. This has reduced the period that an FMD account may be treated as unclaimed money from seven to three years.

In April 2013, the government announced Farm Finance that enhances the FMD scheme. One of the enhancements enables FMD owners to consolidate existing eligible FMD accounts. The proposed start date is 1 July 2014. When the legislation is enacted, guidance will be provided to FMD providers on how to report consolidated FMD accounts in the AIIR.

REPORTING

A number of changes have been made to FMD reporting in the AIIR from the 2013–14 reporting period to accommodate the enacted legislative changes.

To simplify reporting for FMD providers all FMD transactions, including interest, will be reported in the Farm management deposit account data record – that is FMD providers will no longer report an Investment account data record for interest earned or paid during the financial year.

Additionally, to minimise the need to report more than one record when there are multiple allowable transactions, such as repayments and transfer outs, during the financial year from the same account, the following fields have been repeated four times:

. Amount of repayment (7.123) . Date of repayment (7.124) . Amount of transfer out (7.128) . Date of transfer out (7.129) . Transferee BSB number (7.130).

A separate Investor data record is still required for each Farm management deposit account data record even where multiple records for the same account are lodged.

The table below provides a quick reference of the data types to be reported.

Reference First FMD record Second FMD record Field Name Number 7.117 = 01 7.117 = 02 7.1 Record length Mandatory Mandatory 7.115 Record identifier (=DFMDACCT) Mandatory Mandatory 7.116 Sequence number of DFMDACCT record Mandatory Mandatory Sequence number of multiple DFMDACCT 7.117 Mandatory Mandatory records

Reference First FMD record Second FMD record Field Name Number 7.117 = 01 7.117 = 02 7.55 Investment reference number Mandatory Mandatory 7.56 Account reference number Optional Optional 7.57 BSB number Optional Optional 7.58 Branch location Optional Optional 7.59 Account name Mandatory Mandatory 7.118 Personal identification number (PIN) Mandatory Mandatory 7.119 ANZSIC code Mandatory Mandatory 7.62 Date of payment Conditional No 7.63 Type of investment Conditional No 7.64 Type of payment Conditional No 7.71 Interest Conditional No 7.66 TFN withholding tax deducted Conditional No 7.67 TFN withholding tax refunded Conditional No 7.120 Amount of deductible deposit Conditional No 7.121 Date of deductible deposit Conditional No 7.122 Date of original deductible deposit Conditional Conditional 7.123 Amount of repayment (first) Conditional Conditional 7.124 Date of repayment (first) Conditional Conditional 7.123 Amount of repayment (second) Conditional Conditional 7.124 Date of repayment (second) Conditional Conditional 7.123 Amount of repayment (third) Conditional Conditional 7.124 Date of repayment (third) Conditional Conditional 7.123 Amount of repayment (fourth) Conditional Conditional 7.124 Date of repayment (fourth) Conditional Conditional 7.125 Amount of transfer in Conditional No 7.126 Date of transfer in Conditional No 7.127 Transferor BSB number Conditional No 7.128 Amount of transfer out (first) Conditional Conditional 7.129 Date of transfer out (first) Conditional Conditional 7.130 Transferee BSB number (first) Conditional Conditional 7.128 Amount of transfer out (second) Conditional Conditional 7.129 Date of transfer out (second) Conditional Conditional 7.130 Transferee BSB number (second) Conditional Conditional 7.128 Amount of transfer out (third) Conditional Conditional 7.129 Date of transfer out (third) Conditional Conditional 7.130 Transferee BSB number (third) Conditional Conditional 7.128 Amount of transfer out (fourth) Conditional Conditional 7.129 Date of transfer out (fourth) Conditional Conditional 7.130 Transferee BSB number (fourth) Conditional Conditional TFN withholding tax deducted from 7.131 Conditional No repayments in the financial year 7.132 Amount of closing balance Mandatory Mandatory 7.133 Unclaimed moneys Conditional No 7.11 Filler Mandatory Mandatory

Mandatory requirements

Every FMD provider must report a Farm management deposit account data record regardless of whether any interest or movements in principal have occurred to advise the closing balance at the end of the financial year.

The mandatory fields to be completed for every record, even when a second record is provided for the same account, are:

7.115 Record identifier - must equal DFMDACCT.

7.116 Sequence number of DFMDACCT record - the sequence number of the Farm management deposit account data record in the AIIR.

7.117 Sequence number of multiple DFMDACCT records - this field identifies where more than one Farm management deposit account data record is lodged for the same account.

If only one DFMDACCT is lodged this must equal 01. If more than one DFMDACCT is lodged then each subsequent record will have a sequential number.

For example: if an FMD owner makes five repayments from the account in a financial year, this field will equal 01 for the first Farm management deposit account data record and 02 for the second as follows:

Sequence number of multiple Investment reference Record type DFMDACCT records (7.116) number (7.55) Farm management deposit account data 01 123456789 record Investor data record na 123456789 Farm management deposit account data 02 123456789 record Investor data record na 123456789

The next three items are also supplied to DA. DA and the ATO jointly administer the FMD scheme and exchange information other than the identity of the FMD owner.

7.55 Investment reference number - the account number or other number that appears on the FMD owner’s account statement.

7.59 Account name - the full name of the investment account.

7.118 Personal identification number (PIN) - this number uniquely identifies the FMD owner in reports to DA. Those reports cannot disclose the identity of the FMD owner. This number remains the same while the FMD owner holds any deposits with the FMD provider. The field length and format of this number may vary between FMD providers.

7.119 ANZSIC code - the industry code for the FMD owner by reference to the Australian and New Zealand Standard Industrial Classification. This code is the same code reported monthly to DA for the FMD owner.

7.132 Amount of closing balance - this amount is the closing balance as at midnight on 30 June each financial year. If multiple Farm management deposit account data records are lodged for the same account this amount will be the same in each data record. It is not a running balance. This amount will also be the same closing balance amount reported in the June monthly report to DA.

Preferred reporting of optional fields

Although identified as optional fields, to assist pre-filling and post compliance activities, if the data is available it is recommended that the following fields are reported:

. Account reference number (7.56) . BSB number (7.57) . Branch location (7.58).

Interest payments

Interest paid or credited is reported in the Farm management deposit account data record but not as a new deposit.

When interest is paid during the financial year interest fields must be reported in the first Farm management deposit account data record – that is Sequence number of multiple DFMDACCT records (7.117) must equal 01.

Reporting interest fields in a second Farm management deposit account data record when more than four repayments or transfer outs from the same FMD account occur may cause the record to be rejected or incorrect reporting in Pre-fill.

If interest is paid or credited, the following fields must be completed:

7.62 Date of payment - the date the interest amount was paid or credited. If more than one interest payment is made during the financial year, the date of payment should be set to 3006CCYY.

For example – Portia Bravermann holds an FMD account with Northern Sun Bank. Interest was credited to this account on 30 November 2013 and 31 May 2014, the date reported is 30062014.

7.63 Type of investment - must equal 2.

7.64 Type of payment - must equal FMD.

7.71 Interest - interest amounts paid or credited on an FMD. If more than one interest payment is made during a financial year, the amounts must be aggregated.

Reporting of the following two fields are conditional upon the quotation of a TFN or ABN:

7.66 TFN withholding tax deducted - if the FMD owner does not quote a TFN or ABN, interest paid or credited is subject to withholding tax at the top marginal rate plus the Medicare levy. If tax is withheld from more than one interest payment during a financial year, the amounts must be aggregated.

7.67 TFN withholding tax refunded - report any TFN or ABN withholding amounts refunded from interest paid or credited that has been offset by TFN withholding tax remitted at this field. If more than one refund is made during a financial year, the amounts must be aggregated.

Deposits

An FMD owner may have multiple deposits with more than one FMD provider. The total amount of all deposits at any one time cannot be greater than $400,000. There can only be one deposit for each Farm management deposit account data record. Additional deposits are treated as new accounts and a separate Farm management deposit account data record would be completed for each deposit.

When a deposit is received, both these fields must be completed:

7.120 Amount of deductible deposit - this field is used for reporting new deductible deposits within the financial year. The minimum deposit amount is $1,000.

7.121 Date of deductible deposit - the date the deductible deposit was made with the FMD provider. This field is only reported in the financial year the deposit is opened.

However, in the second year of reporting, this date is reported at the Date of original deductible deposit (7.122) field when repayments or transfer ins occur.

Repayments

An FMD owner may make multiple repayments in a financial year. Repayments are reported separately and not aggregated. The minimum repayment amount is $1,000 unless the account is being closed and the balance is less than $1,000.

If more than four repayments are made in a financial year, a second Farm management deposit account data record is required followed by a second Investor data record.

7.122 Date of original deductible deposit - the date of the original deductible deposit when the FMD account was opened. This field is required when repayments and transfers occur.

Do I report both the Date of deductible deposit and the Date of original deductible deposit when a new deposit is made and a repayment occurs in the reporting period? Yes. The same date will be reported at the Date of deductible deposit (7.121) and Date of original deductible deposit (7.122) fields.

Do I report the Date of original deductible deposit on the second Farm management deposit account data record when I have more than four repayments in one financial year? Yes. The same date will be reported at the Date of original deductible deposit (7.122) field in both records.

7.123 Amount of repayment - each repayment is separately reported.

7.124 Date of repayment - for each repayment, a date of repayment must be reported. The date of the repayment must be within the current financial year.

How do I report the Date of original deductible deposit when a repayment and a transfer in occur in the same financial year? Two Farm management deposit account data records followed by an Investor data record are required as this scenario impacts two FMD accounts. A transfer in creates a new FMD account.

7.131 TFN withholding tax deducted from repayments in the financial year - if an FMD owner has not provided a TFN for the FMD account TFN withholding tax must be deducted from repayments in the financial year and reported at this field.

Do I report the TFN withholding tax deducted from repayments in the financial year in both Farm management deposit account records when more than four repayments have occurred in the same financial year? No. The TFN amount withheld from the repayments is only reported in the first Farm management deposit account data record – that is the Sequence number of multiple DFMDACCT records (7.117) field equals 01.

Transfers

An FMD owner may hold multiple deposits at the same time with more than one FMD provider and can transfer all or part of their deposit to another FMD provider electronically without losing their tax concessions. The process commences with the FMD owner providing the bank with written instructions.

The data reported in the Farm management deposit account data record for transfers is:

Transfer ins

. Date of original deductible deposit (7.122) . Amount of transfer in (7.125) . Date of transfer in (7.126) . Transferor BSB number (7.127)

Transfer outs

. Amount of transfer out (7.128) . Date of transfer out (7.129) . Transferee BSB number (7.130)

If an FMD deposit is reinvested for a new term do I need to report it as a transfer out? Only if a new account (Investment reference number) is created when the amount is reinvested. If this occurs, then a minimum of two Farm management deposit account data records are required. Record 1 (existing investment reference number) – report the reinvested amount at the transfer out fields. Record 2 (new investment reference number) – report the reinvested amount at the transfer in fields (see example 11.5).

Unclaimed moneys

FMD providers are required to report if moneys have been forwarded to the Commonwealth in accordance with the unclaimed moneys provisions contained in section 69 of the Banking Act 1959.

For example, if an FMD has been inactive for not less than three years – that is no deposits, repayments or transfer outs, and reasonable efforts, with no success, have been made to contact the FMD owner, the balance transferred to the Commonwealth during the financial year must be reported at the Unclaimed moneys (7.133) field.

When a balance is transferred under these circumstances the Amount of closing balance (7.132) field will be zero.

Reporting examples

Example 11.1 – New FMD account with two repayments and interest paid

Ephraim Takacs opened an FMD account with Northern Sun Bank with a deposit of $200,000.00 on 21 August 2013.

He made two cash repayments, $100,000.00 on 10 December 2013 and $50,000.00 on 3 March 2014. Interest of $3,500.00 was paid on 27 May 2014.

FARM MANAGEMENT DEPOSIT ACCOUNT DATA RECORD

Reference Field name Content number 7.1 Record length (=850) 850 7.115 Record identifier DFMDACCT 7.116 Sequence number of DFMDACCT record 00000001 7.117 Sequence number of multiple DFMDACCT records 01 7.55 Investment reference number 8524569871 7.56 Account reference number FMD123 7.57 BSB number 272808 7.58 Branch location Blank fill 7.59 Account name EPHRAIM TAKACS 7.118 Personal identification number (PIN) 1437 7.119 ANZSIC code 0172 7.62 Date of payment (DDMMCCYY) 27052014 7.63 Type of investment 2 7.64 Type of payment FMD 7.71 Interest (cents) 000000350000 7.66 TFN withholding tax deducted (cents) 000000000000 7.67 TFN withholding tax refunded (cents) 000000000000 7.120 Amount of deductible deposit (cents) 000020000000 7.121 Date of deductible deposit (DDMMCCYY) 21082013 7.122 Date of original deductible deposit (DDMMCCYY) 21082013 7.123 Amount of repayment (first) (cents) 000010000000 7.124 Date of repayment (first) (DDMMCCYY) 10122013 7.123 Amount of repayment (second) (cents) 000005000000 7.124 Date of repayment (second) (DDMMCCYY) 03032014 7.123 Amount of repayment (third) (cents) 000000000000 7.124 Date of repayment (third) (DDMMCCYY) 00000000 7.123 Amount of repayment (fourth) (cents) 000000000000 7.124 Date of repayment (fourth) (DDMMCCYY) 00000000 7.125 Amount of transfer in (cents) 000000000000 7.126 Date of transfer in (DDMMCCYY) 00000000 7.127 Transferor BSB number 000000 7.128 Amount of transfer out (first) (cents) 000000000000 7.129 Date of transfer out (first) (DDMMCCYY) 00000000 7.130 Transferee BSB number (first) 000000 7.128 Amount of transfer out (second) (cents) 000000000000 7.129 Date of transfer out (second) (DDMMCCYY) 00000000 7.130 Transferee BSB number (second) 000000 7.128 Amount of transfer out (third) (cents) 000000000000

Reference Field name Content number 7.129 Date of transfer out (third) (DDMMCCYY) 00000000 7.130 Transferee BSB number (third) 000000 7.128 Amount of transfer out (fourth) (cents) 000000000000 7.129 Date of transfer out (fourth) (DDMMCCYY) 00000000 7.130 Transferee BSB number (fourth) 000000 TFN withholding tax deducted from repayments in the financial 7.131 000000000000 year (cents) 7.132 Amount of closing balance (cents) 000005000000 7.133 Unclaimed moneys (cents) 000000000000 7.11 Filler Blank fill An Investor data record is required for Sequence number of DFMDACCT record 01.

Example 11.2 – Existing FMD account with two transfer outs and interest paid

Sebastian Copperfield has an FMD account, with Northern Sun Bank, opened on 11 July 2008. Closing balance as at 30 June 2013 is $50,000.00. He made two transfer outs, first transfer to Merlon Bank Ltd of $35,000.00 on 10 November 2013 and second transfer to Southbank Credit Union of $15,000.00 on 8 January 2014. Interest of $1,833.00 was paid on 8 January 2014.

FARM MANAGEMENT DEPOSIT ACCOUNT DATA RECORD – Northern Sun Bank

Reference Field name Content number 7.1 Record length (=850) 850 7.115 Record identifier DFMDACCT 7.116 Sequence number of DFMDACCT record 00000001 7.117 Sequence number of multiple DFMDACCT records 01 7.55 Investment reference number 3265879256879 7.56 Account reference number FMD104 7.57 BSB number 272808 7.58 Branch location Blank fill 7.59 Account name SEBASTIAN COPPERFIELD 7.118 Personal identification number (PIN) 6611 7.119 ANZSIC code 0160 7.62 Date of payment (DDMMCCYY) 08012014 7.63 Type of investment 2 7.64 Type of payment FMD 7.71 Interest (cents) 000000183300 7.66 TFN withholding tax deducted (cents) 000000000000 7.67 TFN withholding tax refunded (cents) 000000000000 7.120 Amount of deductible deposit (cents) 000000000000 7.121 Date of deductible deposit (DDMMCCYY) 00000000 7.122 Date of original deductible deposit (DDMMCCYY) 00000000

Reference Field name Content number 7.123 Amount of repayment (first) (cents) 000000000000 7.124 Date of repayment (first) (DDMMCCYY) 00000000 7.123 Amount of repayment (second) (cents) 000000000000 7.124 Date of repayment (second) (DDMMCCYY) 00000000 7.123 Amount of repayment (third) (cents) 000000000000 7.124 Date of repayment (third) (DDMMCCYY) 00000000 7.123 Amount of repayment (fourth) (cents) 000000000000 7.124 Date of repayment (fourth) (DDMMCCYY) 00000000 7.125 Amount of transfer in (cents) 000000000000 7.126 Date of transfer in (DDMMCCYY) 00000000 7.127 Transferor BSB number 000000 7.128 Amount of transfer out (first) (cents) 000003500000 7.129 Date of transfer out (first) (DDMMCCYY) 10112013 7.130 Transferee BSB number (first) 568192 7.128 Amount of transfer out (second) (cents) 000001500000 7.129 Date of transfer out (second) (DDMMCCYY) 08012014 7.130 Transferee BSB number (second) 358741 7.128 Amount of transfer out (third) (cents) 000000000000 7.129 Date of transfer out (third) (DDMMCCYY) 00000000 7.130 Transferee BSB number (third) 000000 7.128 Amount of transfer out (fourth) (cents) 000000000000 7.129 Date of transfer out (fourth) (DDMMCCYY) 00000000 7.130 Transferee BSB number (fourth) 000000 TFN withholding tax deducted from repayments in the financial 7.131 000000000000 year (cents) 7.132 Amount of closing balance (cents) 000000000000 7.133 Unclaimed moneys (cents) 000000000000 7.11 Filler Blank fill An Investor data record is required for Sequence number of DFMDACCT record 01.

FARM MANAGEMENT DEPOSIT ACCOUNT DATA RECORD – Merlon Bank Ltd

Reference Field name Content number 7.1 Record length (=850) 850 7.115 Record identifier DFMDACCT 7.116 Sequence number of DFMDACCT record 00000001 7.117 Sequence number of multiple DFMDACCT records 01 7.55 Investment reference number 2381436874569 7.56 Account reference number FMD1025 7.57 BSB number 568192 7.58 Branch location Blank fill 7.59 Account name SEBASTIAN COPPERFIELD 7.118 Personal identification number (PIN) 9125 7.119 ANZSIC code 0160 7.62 Date of payment (DDMMCCYY) 00000000 7.63 Type of investment Blank fill 7.64 Type of payment Blank fill 7.71 Interest (cents) 000000000000 7.66 TFN withholding tax deducted (cents) 000000000000 7.67 TFN withholding tax refunded (cents) 000000000000 7.120 Amount of deductible deposit (cents) 000000000000 7.121 Date of deductible deposit (DDMMCCYY) 00000000 7.122 Date of original deductible deposit (DDMMCCYY) 11072008 7.123 Amount of repayment (first) (cents) 000000000000 7.124 Date of repayment (first) (DDMMCCYY) 00000000 7.123 Amount of repayment (second) (cents) 000000000000 7.124 Date of repayment (second) (DDMMCCYY) 00000000 7.123 Amount of repayment (third) (cents) 000000000000 7.124 Date of repayment (third) (DDMMCCYY) 00000000 7.123 Amount of repayment (fourth) (cents) 000000000000 7.124 Date of repayment (fourth) (DDMMCCYY) 00000000 7.125 Amount of transfer in (cents) 000003500000 7.126 Date of transfer in (DDMMCCYY) 10112013 7.127 Transferor BSB number 272808 7.128 Amount of transfer out (first) (cents) 000000000000 7.129 Date of transfer out (first) (DDMMCCYY) 00000000 7.130 Transferee BSB number (first) 000000 7.128 Amount of transfer out (second) (cents) 000000000000 7.129 Date of transfer out (second) (DDMMCCYY) 00000000 7.130 Transferee BSB number (second) 000000 7.128 Amount of transfer out (third) (cents) 000000000000 7.129 Date of transfer out (third) (DDMMCCYY) 00000000 7.130 Transferee BSB number (third) 000000 7.128 Amount of transfer out (fourth) (cents) 000000000000

Reference Field name Content number 7.129 Date of transfer out (fourth) (DDMMCCYY) 00000000 7.130 Transferee BSB number (fourth) 000000 TFN withholding tax deducted from repayments in the financial 7.131 000000000000 year (cents) 7.132 Amount of closing balance (cents) 000003500000 7.133 Unclaimed moneys (cents) 000000000000 7.11 Filler Blank fill An Investor data record is required for Sequence number of DFMDACCT record 01.

FARM MANAGEMENT DEPOSIT ACCOUNT DATA RECORD – Southlake Credit Union

Reference Field name Content number 7.1 Record length (=850) 850 7.115 Record identifier DFMDACCT 7.116 Sequence number of DFMDACCT record 00000001 7.117 Sequence number of multiple DFMDACCT records 01 7.55 Investment reference number 4598721455978 7.56 Account reference number FMD812 7.57 BSB number 358741 7.58 Branch location Blank fill 7.59 Account name SEBASTIAN COPPERFIELD 7.118 Personal identification number (PIN) FM12568 7.119 ANZSIC code 0160 7.62 Date of payment (DDMMCCYY) 00000000 7.63 Type of investment Blank fill 7.64 Type of payment Blank fill 7.71 Interest (cents) 000000000000 7.66 TFN withholding tax deducted (cents) 000000000000 7.67 TFN withholding tax refunded (cents) 000000000000 7.120 Amount of deductible deposit (cents) 000000000000 7.121 Date of deductible deposit (DDMMCCYY) 00000000 7.122 Date of original deductible deposit (DDMMCCYY) 11072008 7.123 Amount of repayment (first) (cents) 000000000000 7.124 Date of repayment (first) (DDMMCCYY) 00000000 7.123 Amount of repayment (second) (cents) 000000000000 7.124 Date of repayment (second) (DDMMCCYY) 00000000 7.123 Amount of repayment (third) (cents) 000000000000 7.124 Date of repayment (third) (DDMMCCYY) 00000000 7.123 Amount of repayment (fourth) (cents) 000000000000 7.124 Date of repayment (fourth) (DDMMCCYY) 00000000 7.125 Amount of transfer in (cents) 000001500000 7.126 Date of transfer in (DDMMCCYY) 08012014

Reference Field name Content number 7.127 Transferor BSB number 272808 7.128 Amount of transfer out (first) (cents) 000000000000 7.129 Date of transfer out (first) (DDMMCCYY) 00000000 7.130 Transferee BSB number (first) 000000 7.128 Amount of transfer out (second) (cents) 000000000000 7.129 Date of transfer out (second) (DDMMCCYY) 00000000 7.130 Transferee BSB number (second) 000000 7.128 Amount of transfer out (third) (cents) 000000000000 7.129 Date of transfer out (third) (DDMMCCYY) 00000000 7.130 Transferee BSB number (third) 000000 7.128 Amount of transfer out (fourth) (cents) 000000000000 7.129 Date of transfer out (fourth) (DDMMCCYY) 00000000 7.130 Transferee BSB number (fourth) 000000 TFN withholding tax deducted from repayments in the financial 7.131 000000000000 year (cents) 7.132 Amount of closing balance (cents) 000001500000 7.133 Unclaimed moneys (cents) 000000000000 7.11 Filler Blank fill An Investor data record is required for Sequence number of DFMDACCT record 01.

Example 11.3 – Existing FMD account with 6 repayments, 1 transfer out and interest paid

Esther McManus has an FMD account, with Northern Sun Bank, opened on 17 September 2009. Closing balance as at 30 June 2013 is $133,000.00. She makes 6 repayments.

. $10,000.00 on 23 July 2013 . $12,000.00 on 15 August 2013 . $5,000.00 on 12 September 2013 . $7,000.00 on 21 October 2013 . $9,000.00 on 12 February 2014 . $10,000.00 on 7 May 2014

Interest of $2,600.00 was paid on 8 April 2014. She makes one transfer out of $40,000.00 to Southlake Credit Union on 20 June 2014. FARM MANAGEMENT DEPOSIT ACCOUNT DATA RECORD 1 – Northern Sun Bank

Reference Field name Content number 7.1 Record length (=850) 850 7.115 Record identifier DFMDACCT 7.116 Sequence number of DFMDACCT record 00000001 7.117 Sequence number of multiple DFMDACCT records 01

Reference Field name Content number 7.55 Investment reference number 2225556748 7.56 Account reference number FMD001 7.57 BSB number 272808 7.58 Branch location Blank fill 7.59 Account name ESTHER MCMANUS 7.118 Personal identification number (PIN) 2634 7.119 ANZSIC code 0141 7.62 Date of payment (DDMMCCYY) 08042014 7.63 Type of investment 2 7.64 Type of payment FMD 7.71 Interest (cents) 000000260000 7.66 TFN withholding tax deducted (cents) 000000000000 7.67 TFN withholding tax refunded (cents) 000000000000 7.120 Amount of deductible deposit (cents) 000000000000 7.121 Date of deductible deposit (DDMMCCYY) 00000000 7.122 Date of original deductible deposit (DDMMCCYY) 17092009 7.123 Amount of repayment (first) (cents) 000001000000 7.124 Date of repayment (first) (DDMMCCYY) 23072013 7.123 Amount of repayment (second) (cents) 000001200000 7.124 Date of repayment (second) (DDMMCCYY) 15082013 7.123 Amount of repayment (third) (cents) 000000500000 7.124 Date of repayment (third) (DDMMCCYY) 12092013 7.123 Amount of repayment (fourth) (cents) 000000700000 7.124 Date of repayment (fourth) (DDMMCCYY) 21102013 7.125 Amount of transfer in (cents) 000000000000 7.126 Date of transfer in (DDMMCCYY) 00000000 7.127 Transferor BSB number 000000 7.128 Amount of transfer out (first) (cents) 000004000000 7.129 Date of transfer out (first) (DDMMCCYY) 20062014 7.130 Transferee BSB number (first) 358741 7.128 Amount of transfer out (second) (cents) 000000000000 7.129 Date of transfer out (second) (DDMMCCYY) 00000000 7.130 Transferee BSB number (second) 000000 7.128 Amount of transfer out (third) (cents) 000000000000 7.129 Date of transfer out (third) (DDMMCCYY) 00000000 7.130 Transferee BSB number (third) 000000 7.128 Amount of transfer out (fourth) (cents) 000000000000 7.129 Date of transfer out (fourth) (DDMMCCYY) 00000000 7.130 Transferee BSB number (fourth) 000000 TFN withholding tax deducted from repayments in the financial 7.131 000000000000 year (cents) 7.132 Amount of closing balance (cents) 000004000000 7.133 Unclaimed moneys (cents) 000000000000

Reference Field name Content number 7.11 Filler Blank fill An Investor data record is required for Sequence number of DFMDACCT record 01.

FARM MANAGEMENT DEPOSIT ACCOUNT DATA RECORD 2 – Northern Sun Bank

Reference Field name Content number 7.1 Record length (=850) 850 7.115 Record identifier DFMDACCT 7.116 Sequence number of DFMDACCT record 00000002 7.117 Sequence number of multiple DFMDACCT records 02 7.55 Investment reference number 2225556748 7.56 Account reference number FMD001 7.57 BSB number 272808 7.58 Branch location Blank fill 7.59 Account name ESTHER MCMANUS 7.118 Personal identification number (PIN) 2634 7.119 ANZSIC code 0141 7.62 Date of payment (DDMMCCYY) 00000000 7.63 Type of investment Blank fill 7.64 Type of payment Blank fill 7.71 Interest (cents) 000000000000 7.66 TFN withholding tax deducted (cents) 000000000000 7.67 TFN withholding tax refunded (cents) 000000000000 7.120 Amount of deductible deposit (cents) 000000000000 7.121 Date of deductible deposit (DDMMCCYY) 00000000 7.122 Date of original deductible deposit (DDMMCCYY) 17092009 7.123 Amount of repayment (first) (cents) 000000900000 7.124 Date of repayment (first) (DDMMCCYY) 12022014 7.123 Amount of repayment (second) (cents) 000001000000 7.124 Date of repayment (second) (DDMMCCYY) 07052014 7.123 Amount of repayment (third) (cents) 000000000000 7.124 Date of repayment (third) (DDMMCCYY) 00000000 7.123 Amount of repayment (fourth) (cents) 000000000000 7.124 Date of repayment (fourth) (DDMMCCYY) 00000000 7.125 Amount of transfer in (cents) 000000000000 7.126 Date of transfer in (DDMMCCYY) 00000000 7.127 Transferor BSB number 000000 7.128 Amount of transfer out (first) (cents) 000000000000 7.129 Date of transfer out (first) (DDMMCCYY) 00000000 7.130 Transferee BSB number (first) 000000 7.128 Amount of transfer out (second) (cents) 000000000000

Reference Field name Content number 7.129 Date of transfer out (second) (DDMMCCYY) 00000000 7.130 Transferee BSB number (second) 000000 7.128 Amount of transfer out (third) (cents) 000000000000 7.129 Date of transfer out (third) (DDMMCCYY) 00000000 7.130 Transferee BSB number (third) 000000 7.128 Amount of transfer out (fourth) (cents) 000000000000 7.129 Date of transfer out (fourth) (DDMMCCYY) 00000000 7.130 Transferee BSB number (fourth) 000000 TFN withholding tax deducted from repayments in the financial 7.131 000000000000 year (cents) 7.132 Amount of closing balance (cents) 000004000000 7.133 Unclaimed moneys (cents) 000000000000 7.11 Filler Blank fill An Investor data record is required Sequence number of DFMDACCT record 02.

The Farm management deposit account data record for Southlake Credit Union reporting the transfer in is not shown in this scenario as it is described in example 11.2.

Example 11.4 – Existing FMD account with interest paid and a new deposit

Isobelle Ashingly has an FMD account with Northern Sun Bank opened on 7 November 2005. Closing balance as at 30 June 2013 is $74,600.00. Interest of $2,984.00 was paid on 3 March 2014. She makes an FMD deposit of $27,000.00 on 18 April 2014.

FARM MANAGEMENT DEPOSIT ACCOUNT DATA RECORD 1

Reference Field name Content number 7.1 Record length (=850) 850 7.115 Record identifier DFMDACCT 7.116 Sequence number of DFMDACCT record 00000001 7.117 Sequence number of multiple DFMDACCT records 01 7.55 Investment reference number 22233356879 7.56 Account reference number FMD427 7.57 BSB number 272808 7.58 Branch location Blank fill 7.59 Account name ISOBELLE ASHINGLY 7.118 Personal identification number (PIN) 2802 7.119 ANZSIC code 0160 7.62 Date of payment (DDMMCCYY) 03032014 7.63 Type of investment 2 7.64 Type of payment FMD 7.71 Interest (cents) 000000298400 7.66 TFN withholding tax deducted (cents) 000000000000 7.67 TFN withholding tax refunded (cents) 000000000000 7.120 Amount of deductible deposit (cents) 000000000000 7.121 Date of deductible deposit (DDMMCCYY) 00000000 7.122 Date of original deductible deposit (DDMMCCYY) 00000000 7.123 Amount of repayment (first) (cents) 000000000000 7.124 Date of repayment (first) (DDMMCCYY) 00000000 7.123 Amount of repayment (second) (cents) 000000000000 7.124 Date of repayment (second) (DDMMCCYY) 00000000 7.123 Amount of repayment (third) (cents) 000000000000 7.124 Date of repayment (third) (DDMMCCYY) 00000000 7.123 Amount of repayment (fourth) (cents) 000000000000 7.124 Date of repayment (fourth) (DDMMCCYY) 00000000 7.125 Amount of transfer in (cents) 000000000000 7.126 Date of transfer in (DDMMCCYY) 00000000 7.127 Transferor BSB number 000000 7.128 Amount of transfer out (first) (cents) 000000000000 7.129 Date of transfer out (first) (DDMMCCYY) 00000000 7.130 Transferee BSB number (first) 000000 7.128 Amount of transfer out (second) (cents) 000000000000 7.129 Date of transfer out (second) (DDMMCCYY) 00000000 7.130 Transferee BSB number (second) 000000 7.128 Amount of transfer out (third) (cents) 000000000000 7.129 Date of transfer out (third) (DDMMCCYY) 00000000 7.130 Transferee BSB number (third) 000000

Reference Field name Content number 7.128 Amount of transfer out (fourth) (cents) 000000000000 7.129 Date of transfer out (fourth) (DDMMCCYY) 00000000 7.130 Transferee BSB number (fourth) 000000 TFN withholding tax deducted from repayments in the financial 7.131 000000000000 year (cents) 7.132 Amount of closing balance (cents) 000007460000 7.133 Unclaimed moneys (cents) 000000000000 7.11 Filler Blank fill An Investor data record is required for Sequence number of DFMDACCT record 01.

A second Farm management deposit account data record is required for the new deposit:

Reference Field name Content number 7.1 Record length (=850) 850 7.115 Record identifier DFMDACCT 7.116 Sequence number of DFMDACCT record 00000002 7.117 Sequence number of multiple DFMDACCT records 01 7.55 Investment reference number 22233356880 7.56 Account reference number FMD481 7.57 BSB number 272808 7.58 Branch location Blank fill 7.59 Account name ISOBELLE ASHINGLY 7.118 Personal identification number (PIN) 2802 7.119 ANZSIC code 0160 7.62 Date of payment (DDMMCCYY) 00000000 7.63 Type of investment Blank fill 7.64 Type of payment Blank fill 7.71 Interest (cents) 000000000000 7.66 TFN withholding tax deducted (cents) 000000000000 7.67 TFN withholding tax refunded (cents) 000000000000 7.120 Amount of deductible deposit (cents) 000002700000 7.121 Date of deductible deposit (DDMMCCYY) 18042014 7.122 Date of original deductible deposit (DDMMCCYY) 00000000 7.123 Amount of repayment (first) (cents) 000000000000 7.124 Date of repayment (first) (DDMMCCYY) 00000000 7.123 Amount of repayment (second) (cents) 000000000000 7.124 Date of repayment (second) (DDMMCCYY) 00000000 7.123 Amount of repayment (third) (cents) 000000000000 7.124 Date of repayment (third) (DDMMCCYY) 00000000 7.123 Amount of repayment (fourth) (cents) 000000000000

Reference Field name Content number 7.124 Date of repayment (fourth) (DDMMCCYY) 00000000 7.125 Amount of transfer in (cents) 000000000000 7.126 Date of transfer in (DDMMCCYY) 00000000 7.127 Transferor BSB number 000000 7.128 Amount of transfer out (first) (cents) 000000000000 7.129 Date of transfer out (first) (DDMMCCYY) 00000000 7.130 Transferee BSB number (first) 000000 7.128 Amount of transfer out (second) (cents) 000000000000 7.129 Date of transfer out (second) (DDMMCCYY) 00000000 7.130 Transferee BSB number (second) 000000 7.128 Amount of transfer out (third) (cents) 000000000000 7.129 Date of transfer out (third) (DDMMCCYY) 00000000 7.130 Transferee BSB number (third) 000000 7.128 Amount of transfer out (fourth) (cents) 000000000000 7.129 Date of transfer out (fourth) (DDMMCCYY) 00000000 7.130 Transferee BSB number (fourth) 000000 TFN withholding tax deducted from repayments in the financial 7.131 000000000000 year (cents) 7.132 Amount of closing balance (cents) 000002700000 7.133 Unclaimed moneys (cents) 000000000000 7.11 Filler Blank fill An Investor data record is required for Sequence number of DFMDACCT record 01.

Example 11.5 – Reinvestment of an existing FMD account into a new FMD account

Central River Bank’s current system creates a new account when an existing FMD deposit matures and it is reinvested for a further term.

Cong Nguyen opened an FMD account with a deposit of $100,000.00 on 1 June 2013, account number 457568879241. The deposit matured on 1 June 2014 and Cong reinvested the deposit for three months. Interest of $4,125.00 was paid on 1 June 2014.

Central River Bank will report:

. one Farm management deposit account data record for the Amount of transfer out on 1 June 2014 . one Farm management deposit account data record for the Amount of transfer in on 1 June 2014. FARM MANAGEMENT DEPOSIT ACCOUNT DATA RECORD 1

Reference Field name Content number 7.1 Record length (=850) 850 7.115 Record identifier DFMDACCT

Reference Field name Content number 7.116 Sequence number of DFMDACCT record 00000001 7.117 Sequence number of multiple DFMDACCT records 01 7.55 Investment reference number 457568879241 7.56 Account reference number AA71 7.57 BSB number 232128 7.58 Branch location Blank fill 7.59 Account name CONG NGUYEN 7.118 Personal identification number (PIN) 9771 7.119 ANZSIC code 0160 7.62 Date of payment (DDMMCCYY) 01062014 7.63 Type of investment 2 7.64 Type of payment FMD 7.71 Interest (cents) 000000412500 7.66 TFN withholding tax deducted (cents) 000000000000 7.67 TFN withholding tax refunded (cents) 000000000000 7.120 Amount of deductible deposit (cents) 000000000000 7.121 Date of deductible deposit (DDMMCCYY) 00000000 7.122 Date of original deductible deposit (DDMMCCYY) 00000000 7.123 Amount of repayment (first) (cents) 000000000000 7.124 Date of repayment (first) (DDMMCCYY) 00000000 7.123 Amount of repayment (second) (cents) 000000000000 7.124 Date of repayment (second) (DDMMCCYY) 00000000 7.123 Amount of repayment (third) (cents) 000000000000 7.124 Date of repayment (third) (DDMMCCYY) 00000000 7.123 Amount of repayment (fourth) (cents) 000000000000 7.124 Date of repayment (fourth) (DDMMCCYY) 00000000 7.125 Amount of transfer in (cents) 000000000000 7.126 Date of transfer in (DDMMCCYY) 00000000 7.127 Transferor BSB number 000000 7.128 Amount of transfer out (first) (cents) 000010000000 7.129 Date of transfer out (first) (DDMMCCYY) 01062013 7.130 Transferee BSB number (first) 272808 7.128 Amount of transfer out (second) (cents) 000000000000 7.129 Date of transfer out (second) (DDMMCCYY) 00000000 7.130 Transferee BSB number (second) 000000 7.128 Amount of transfer out (third) (cents) 000000000000 7.129 Date of transfer out (third) (DDMMCCYY) 00000000 7.130 Transferee BSB number (third) 000000 7.128 Amount of transfer out (fourth) (cents) 000000000000 7.129 Date of transfer out (fourth) (DDMMCCYY) 00000000 7.130 Transferee BSB number (fourth) 000000 TFN withholding tax deducted from repayments in the financial 7.131 000000000000 year (cents)

Reference Field name Content number 7.132 Amount of closing balance (cents) 000000000000 7.133 Unclaimed moneys (cents) 000000000000 7.11 Filler Blank fill An Investor data record is required for Sequence number of DFMDACCT record 01.

Character Field name Content position 7.1 Record length (=850) 850 7.115 Record identifier DFMDACCT 7.116 Sequence number of DFMDACCT record 00000002 7.117 Sequence number of multiple DFMDACCT records 01 7.55 Investment reference number 457568879242 7.56 Account reference number AA71 7.57 BSB number 232128 7.58 Branch location Blank fill 7.59 Account name CONG NGUYEN 7.118 Personal identification number (PIN) 9771 7.119 ANZSIC code 0160 7.62 Date of payment (DDMMCCYY) 00000000 7.63 Type of investment Blank fill 7.64 Type of payment Blank fill 7.71 Interest (cents) 000000000000 7.66 TFN withholding tax deducted (cents) 000000000000 7.67 TFN withholding tax refunded (cents) 000000000000 7.120 Amount of deductible deposit (cents) 000000000000 7.121 Date of deductible deposit (DDMMCCYY) 00000000 7.122 Date of original deductible deposit (DDMMCCYY) 01062013 7.123 Amount of repayment (first) (cents) 000000000000 7.124 Date of repayment (first) (DDMMCCYY) 00000000 7.123 Amount of repayment (second) (cents) 000000000000 7.124 Date of repayment (second) (DDMMCCYY) 00000000 7.123 Amount of repayment (third) (cents) 000000000000 7.124 Date of repayment (third) (DDMMCCYY) 00000000 7.123 Amount of repayment (fourth) (cents) 000000000000 7.124 Date of repayment (fourth) (DDMMCCYY) 00000000 7.125 Amount of transfer in (cents) 000010000000 7.126 Date of transfer in (DDMMCCYY) 01062014 7.127 Transferor BSB number 278808 7.128 Amount of transfer out (first) (cents) 000000000000 7.129 Date of transfer out (first) (DDMMCCYY) 00000000

Character Field name Content position 7.130 Transferee BSB number (first) 000000 7.128 Amount of transfer out (second) (cents) 000000000000 7.129 Date of transfer out (second) (DDMMCCYY) 00000000 7.130 Transferee BSB number (second) 000000 7.128 Amount of transfer out (third) (cents) 000000000000 7.129 Date of transfer out (third) (DDMMCCYY) 00000000 7.130 Transferee BSB number (third) 000000 7.128 Amount of transfer out (fourth) (cents) 000000000000 7.129 Date of transfer out (fourth) (DDMMCCYY) 00000000 7.130 Transferee BSB number (fourth) 000000 TFN withholding tax deducted from repayments in the financial 7.131 000000000000 year (cents) 7.132 Amount of closing balance (cents) 000010000000 7.133 Unclaimed moneys (cents) 000000000000 7.11 Filler Blank fill An Investor data record is required Sequence number of DFMDACCT record 02.

12 AMENDMENTS PROCESSING

Suppliers should report amendments when incorrect records have been found following the lodgment of an original or previously supplied AIIR.

There are two ways to report amended information:

. Replacement AIIR – a new AIIR that completely replaces the previously supplied AIIR and includes the amended investment information as well as the previously supplied correct investment information. . Corrected AIIR – this AIIR contains only those records that were in the original or previously supplied AIIR that required amending.

To ensure a replacement AIIR is correctly linked to the original or previously supplied AIIR the following fields must be supplied:

Field names Replacement AIIR Corrected AIIR Supplier file reference of the Supplier file reference of the Supplier file reference (7.17) current file current file Supplier file reference of file Supplier file reference of the Supplier file reference of the being replaced or containing previously supplied file previously supplied file records to be corrected (7.18) Sequence number of IDENTITY Sequence number of the Sequence number of the record (7.32) previously supplied file previously supplied file Sequence number of Sequence number of the Sequence number of the DACCOUNT record (7.54) previously supplied file previously supplied file Sequence number of Sequence number of the Sequence number of the DACCSUPP record (7.104) previously supplied file previously supplied file Sequence number of Sequence number of the Sequence number of the DFMDACCT record (7.116) previously supplied file previously supplied file Sequence number of Sequence number of the Sequence number of the DINVESTOR record (7.135) previously supplied file previously supplied file

REPLACEMENT AIIR

When errors have been identified in the information, it is recommended that a replacement AIIR, with the errors corrected, be submitted rather than a corrected AIIR. This will ensure that no record will be omitted as all records originally or previously reported without errors, and all records that had errors and are now amended, will be reported.

A replacement AIIR can contain more or less account or investor records than the AIIR it replaces because when a replacement AIIR is received, the AIIR being replaced will be rejected and the replacement AIIR will be treated as the current report.

Example 12.1 – Replacing an AIIR

Fast Track Credit Union lodged an AIIR for 21,000 investors on 15 July 2014.

After lodgment, it was identified that the interest amount for 11,000 investors was understated and data for 1,000 term deposit investor records was omitted. Fast Track Credit Union supplies a replacement AIIR amending the 11,000 investor records and adding the data records for the omitted term deposits.

Fast Track Credit Union supplied a replacement AIIR containing:

. 21,000 investors reported in the original AIIR with amendments to 11,000 investors . Investment account data records and Investor data records of the 1,000 term deposits.

AIIR CONTAINING CORRECTED RECORDS

If adjustments to any amount of more than ± $20.00 for an individual investor or ± $100.00 for a non-individual investor need to be made to the investment income amounts need to be made, after the AIIR has been submitted, corrected Investment account data records and all associated Investor data records must be provided.

When supplying corrected records, it is important that:

. The corrected Investment account data record and all of the Investor data records associated with the account data record must be provided. . Only records that have been previously supplied can be corrected. . The amount reported should not be the difference between the amount previously reported and the correct amount. It should be the correct amount for the account for the year or for the date of payment. . When the account, investor details and TFN or ABN supplied in a previous AIIR are correct and valid, corrected records cannot be submitted for incorrect TFNs or ABNs. . A replacement file must be provided if records are to be added to or removed from an AIIR.

Example 12.2 – Correcting a previously lodged AIIR

On 15 July 2014, Endurance Bank lodged their 2014 AIIR containing interest and term deposit income for 5,296 accounts belonging to 8,207 investors.

The following information was supplied in the file together with other required information:

Reference Field name Content Explanation number 7.7 Type of report A A=Original 7.17 Supplier file reference 6787638754 Mandatory field Supplier file reference of file being 7.18 replaced or containing records being Blank fill corrected This is the sequence number of the Sequence number of IDENTITY 7.32 01 Investment body identity data record in record the current file.

In August 2014, Endurance Bank identified they had reported the incorrect amount of interest paid for 567 accounts in the 2013-14 financial year. This results in an adjustment to the interest amount paid to these investors reported in the 2014 AIIR lodged on 15 July 2014.

On 24 August 2014, the following information was provided:

Reference Field name Content Explanation number 7.7 Type of report C C=Corrected This is the Supplier file reference for the 7.17 Supplier file reference 4578367876 current file. This field contains the information Supplier file reference of file being supplied at the Supplier file reference of 7.18 replaced or containing records being 6787638754 file being replaced or containing records corrected being corrected field of the original file. This is the sequence number of the Sequence number of IDENTITY 7.32 01 Investment body identity data record in record the current file. This field contains the Sequence number of DACCOUNT record reported in the original file.

There were 5,296 Investment account Sequence number of DACCOUNT data records reported in the original file 7.54 00002468 record and the sequence number of this DACCOUNT record in the original file was 2,468. This number will be unique for each of the 567 corrected DACCOUNT records and reported exactly as reported in the original supplied file. This field contains the Sequence number Sequence number of DINVESTOR 7.135 01 of DINVESTOR record reported exactly record as reported in the original supplied file.

OTHER CORRECTED RECORD EXAMPLES

Example 12.3 - Incorrect amount of interest for individual investor

On 1 September 2014, Peter receives a letter from his bank advising the interest amount of $330.00 reported on his statement should have been $230.00.

The bank will send one corrected Investment account data record showing the correct amount of Interest (7.71) of $230.00 and one Investor data record.

Example 12.4 - Incorrect amount of interest for joint account

On 22 August 2014, Henri and Hilary receive a letter from their credit union advising the interest amount of $1,739.00 reported on their statement should have been $1,263.00.

The bank will send one corrected Investment account data record showing the correct amount of Interest (7.71) of $1,263.00, one Investor data record for Henri and one Investor data record for Hilary.

Example 12.5 - Incorrect amount of interest for non-individual investor

On 31 August 2014, Primary Printing Ltd receive a letter from their bank advising the interest amount of $3,712.00 reported on their statement should have been $3,612.00.

The bank will send one corrected Investment account data record showing the correct amount of Interest (7.71) of $3,612.00 and one Investor data record.

LODGING BY PAPER

A replacement or corrected AIIR can be lodged using the Annual investment income report (AIIR) – Paper Lodgment form. This form can be downloaded from the ATO website.

13 CORRECTED TFN AND ABN RETURN FILES

If an investment body supplies an invalid investor TFN or ABN in an AIIR, we will attempt to match the investor to a client on the ATO client register. If the reported TFN contains seven, eight or nine digits and is a slightly corrupted rendition of the investor’s TFN and the correct TFN can be determined, we will return the original TFN and the corrected TFN to the investment body. If the correct investor TFN cannot be found, the corrected TFN returned will contain zeros.

If the investor supplies a valid ABN, the original ABN and corrected ABNs returned will be the same. If the investor supplies an invalid ABN, the corrected ABN returned will contain zeros.

When this situation occurs the investor is deemed not to have quoted.

Updating of TFN or ABN fields by investment bodies

When investment bodies receive the corrected TFN and/or ABN information from us, they are required to update the TFN and/or ABN fields in the corresponding investor records in their database. The original TFN and/or ABN for the investor, the Investment reference number (7.55), Customer reference number (7.136) and investor name fields (7.141, 7.142, 7.143 and 7.146) fields provided by the investment body in the original AIIR should be used to ensure that the appropriate investor record is being updated.

Once the investment body has made sure it has matched to the correct investor record in their database, then the TFN and/or ABN for that investor should be replaced by the number in the corrected investor TFN or corrected investor ABN fields.

The exception to this rule is if an investor has requoted their TFN and/or ABN to the investment body before receiving the corrected TFN and/or ABN information from us. When this occurs, the TFN and/or ABN will not match the original investor TFN and/or original investor ABN contained in this file. The details of the investor and the new requoted TFN and/or ABN should be included in the next Quarterly tax file number and Australian business number report sent to us.

Investors deemed not to have quoted a TFN or ABN

If the investor is ‘deemed not to have quoted’, the investment body is required to withhold from future payments of investment income subject to withholding arrangements, tax at the highest marginal rate plus the Medicare levy, until the investor either quotes a new TFN and/or ABN in connection with the investment, or claims an exemption from quoting.

Non-resident tax identification numbers (TINS)

We do not send corrected TINS.

14 FREQUENTLY ASKED QUESTIONS

If your question is not answered in this section refer to ato.gov.au or contact us on 1800 072 681.

GENERAL

Do I need to upgrade to a new reporting specification for the 2014 financial year? Investment bodies that are FMD providers and unit trusts that lodge electronically will need to upgrade to the AIIR version 10.0.0 ERS from 1 July 2013.

Investment bodies that lodge electronically and are not FMD providers or unit trusts can continue to report using AIIR v8.0 (version 2), v9.0 and v9.0.1 ERS for the 2014 reporting period.

AIIR spreadsheet users will need to upgrade to the AIIR PC spreadsheet format v4.0.0 reporting specification as there has been several changes to the reporting fields for the 2014 financial year.

When do I need to supply an AIIR? An AIIR is required when any of the following occur:

. The total amount of income paid or credited to the investment is $1.00 or more and the total number of investments accepted by the investment body during the year is 10 or more. . Any investment has had an amount withheld from because a TFN, ABN or exemption was not quoted. . Non-resident withholding has occurred. . The investment is an FMD.

Is a report required if there is nothing to report? Yes. Although there is no legislative requirement to do so, if there is no investment income to report for a financial year, we encourage investment bodies to lodge a nil report. This way, we can record a report has been received and this avoids unnecessary contact.

The lodgment method may be either the AIIR v10.0.0 ERS or the Annual investment income report (AIIR) paper form.

Does a cooperative company need to report an AIIR? Yes. A cooperative company is a public company and, therefore, the same rules as any other type of public company apply.

Does an Australian Stock Exchange - listed foreign company with Australian investments need to lodge an AIIR? The company is deducting foreign tax from the Australian shareholders. Yes. The ASX-listed foreign company is required to lodge an AIIR as it is dealing with Australian investments. Australian resident investors are assessed on their FSI even when tax has been withheld from that income. If tax has been withheld and paid to a foreign tax jurisdiction, Australian resident investors may be entitled to a foreign income tax offset.

What investments are reported in the AIIR? Investments reported in the AIIR can include:

. interest bearing deposits and accounts with financial institutions . a loan of money to a body corporate or government body . a deposit of money with a solicitor for the purpose of being invested by the solicitor or lent under an agreement to be arranged by or on behalf of the solicitor . units in a unit trust . shares in a public company . an investment related to betting or chance.

Investment income derived from these types of investments can include income from:

. savings accounts . interest bearing cheque accounts . term deposits or fixed deposits . dividends derived by means that may include – interim dividends – final dividends – off market share buy-backs – capital restructures and de-mergers . bonds . debentures . deferred interest securities . capital gains on a unit trust distribution . stapled securities.

What is not reported in the AIIR? Do not report:

. interest related to consumer finance such as interest paid by a company to a bank on a business loan from the bank . first home saver account (FHSA) details.

Which item number for the 'Type of investment' field do I use for a private company? A private company should report item 3 as the Type of investment (7.63). A loan of money to a body corporate is an investment covered by the TFN rules. This kind of investment is covered in Item 3 in the table at subsection 202D (1) of the ITAA 1936.

The most usual way for an entity to be incorporated is by registering as a company with the Australian Securities & Investment Commission (ASIC) under the Corporations Act 2001. Registration of the company with ASIC can be as a:

. proprietary company (also commonly called a private company) . a public company, that may or may not be listed on the ASX (it is an unlisted company if not listed).

It is often the case that small private companies have a relatively small number of investors. Loans made to these companies (other than those related to consumer finance) are still an investment covered by the TFN rules.

If there were less than 10 investments in the company during the year, and no withholding from any investments, the company does not need to lodge an AIIR but may need to lodge a Dividend and interest schedule (NAT 8030) that forms part of the company tax return.

What Date of payment (7.62) should be recorded when reporting reinvested dividends? If a dividend is reinvested, the income is taken to have been paid on the date of reinvestment.

LODGMENT

What is the due date for lodgment of the AIIR? Investment bodies must lodge an AIIR with us within four months after the end of the financial year to which it relates – that is by 31 October.

This date, however, may be different for investment bodies reporting under a substituted accounting period.

TFN WITHHOLDING TAX

When is withholding required to be withheld from investment income payments? Withholding is required to be held from investment income for which the investor:

. has not quoted a TFN or an ABN before the payment became payable, and . has not informed the investment body that he or she is exempt from quoting.

The amount to be withheld from income is 46.5%. This amount reflects the highest marginal rate of tax plus the Medicare levy. The rate applies to all investors, including non-individual investors.

If a managed fund does not quote their TFN or ABN when investing on behalf of their investors, how is the withholding amount reported? The receiving investment body will withhold tax at the top marginal rate plus Medicare levy from the investment earnings. The managed fund is able to pass on the credit amount withheld to their investors.

For example, Managed Fund A does not quote their ABN on a term deposit investment opened with Outback Bank. Income earned from the term deposit equals $10,000 and amount withheld equals $4,800. This income is part of unit trust distributions to 10 unit holders, each unit holder owning one unit.

Outback Bank’s AIIR will include the following income for Managed Fund A:

Reference Field name Content Explanation number 7.66 TFN withholding tax deducted (cents) 000000480000 $4,800 7.71 Interest 000001000000 $10,000

In Managed Fund A’s AIIR they will report the interest and withholding for each unit holder in their AIIR as follows:

Reference Field name Content Explanation number 7.66 TFN withholding tax deducted (cents) 000000480000 $480 7.71 Interest 000001000000 $1,000 $1,000 plus the other components of 7.77 Non-primary production income 000000001000 the Non-primary production income calculation

The unit holders are not disadvantaged as they are able to claim the credit at label 13R Share of credit for tax file number amounts withheld from interest, dividends and unit trust distributions in their income tax return.

When is an amount reported at the Share of credit for amounts withheld from foreign resident withholding (7.94) field? An amount is reported at the Share of credit for amounts withheld from foreign resident withholding (7.94) field when an amount of tax is withheld and paid to us from UTD income because of the operation of foreign resident withholding for particular types of activities listed in regulations to the TAA 1953. These activities are:

. promoting or organising casino gaming junket arrangements . entertainment and sports activities . under contracts for the construction, installation and upgrading of buildings, plant and fixtures and for associated activities.

For further information about foreign resident withholding refer to Foreign Resident Withholding (FRW) - who it affects on the ATO website.

INCOME

What is a primary production business? Primary production business is defined in subsection 995-1(1) of the ITAA 1997.

You carry on a primary production business if you carry on a business of:

. cultivating or propagating plants, fungi or their products or parts (including seeds, spores, bulbs and similar things), in any physical environment . maintaining animals for the purpose of selling them or their bodily produce (including natural increase) . manufacturing dairy produce from raw material that you produced . conducting operations relating directly to taking or catching fish, turtles, dugong, bêche-de-mer, crustaceans or aquatic molluscs . conducting operations relating directly to taking or culturing pearls or pearl shell . planting or tending trees in a plantation or forest that are intended to be felled . felling trees in a plantation or forest . transporting trees, or parts of trees, that you felled in a plantation or forest to the place where they are first to be milled or processed.

Income derived from primary producing activities is reported at the Primary production income (7.106) field.

What is a fund payment? A fund payment is a component of a payment made by the trustee of a managed investment trust that, in effect, represents a distribution of the net income of the trust. From the actual payment made by a trustee, the following exclusions apply:

. dividend, interest or royalty income (as defined in Division 11A of the ITAA 1936 subject to (or exempted from)) a requirement to withhold under Subdivision 12-F of Schedule 1 of the TAA 1953 . capital gains and losses from a CGT asset that is not taxable Australian property . amounts that are not from an Australian source . deductions relating to any of the above amounts.

A payment is a fund payment in relation to an income year only if it is made:

. during the income year

. within three months after the income year . within a longer period if agreed to by the Commissioner but not exceeding six months from the end of the income year.

How is investment income that is treated as dividends for income tax purposes reported in the AIIR? Corporate unit trusts and public trading trusts whose distributions to unit holders are treated as dividends for income tax purposes must report the payments as DIV, not a UTD, at the Type of payment (7.64) field.

Do I report dividends based on their ex date or their payment date? The date of payment is the date that the income was derived by the client.

For example, if a dividend goes ex in June 2013 and payment occurs in July 2013, the dividend is included in the 2013-14 financial year.

FOREIGN SOURCE INCOME

What is Assessable foreign source income (7.86)? This is the gross amount of assessable income derived from foreign sources. This income includes:

. income received from foreign employment that was not shown on a PAYG payment summary such as foreign employment . foreign pension or annuity, without an undeducted purchase price . foreign pension or annuity with an undeducted purchase price . foreign rental income . other foreign source income and this includes foreign tax withheld.

It excludes income subject to capital gains tax, less deductible expenses.

This amount may be the same as the amount reported at Other net foreign source income (7.87) except where the fund has either:

. expenses that have to be applied against the Assessable foreign source income (7.86) . Net foreign rent (7.112).

What is Other net foreign source income (7.87)? This is the sum of all other assessable foreign income that has not been included at the Assessable foreign source income (7.86) field. This amount:

. includes foreign tax withheld on that income

. excludes income subject to CGT . is less deductible expenses.

What non-resident income is not reported on the AIIR? Non-resident income other than investment income (for example, royalties) should be reported in the PAYG withholding from interest, dividends and royalties paid to non-residents - annual report.

Where do I report foreign tax credits that are associated with an Assessable foreign source income (7.86)? A foreign tax credit is the amount of tax paid on foreign source income to overseas tax authorities and is reported at the Foreign income tax offset (7.88) field.

These credits can be paid as a result of a UTD or directly – that is not part of a UTD.

CHANGES TO INVESTOR DETAILS

When the investor’s address changes after 30 June of the year being reported, but before lodgment of the AIIR which address is reported on the AIIR? The address details included in the AIIR are those as at the 30 June, regardless of changes that may occur immediately afterwards.

Can the TFN exemption code 333333333 be used on the AIIR if the child has turned 16 in the financial year being reported? If the investor was under 16 years of age on 1 January preceding the payment, and the investment income for the financial year was under $420.00, and the investor did not provide a TFN, then the TFN exemption code of 333333333 can be used.

CORRECTING OR AMENDING AN AIIR

What do I do if I have made an error in the AIIR or need to make an adjustment to the already lodged report? There are two options for reporting amended AIIR data – send a: . replacement AIIR . corrected AIIR.

See Section 12 Reporting Amendments for detailed information on correcting or amending an AIIR.

APPENDICES

APPENDIX A - ERS/PC SPREADSHEET FIELD NAME REFERENCE COMPARISON

The following table lists the AIIR field name and corresponding reference number for AIIR v10.0.0 and PC Spreadsheet v4.0.0.

AIIR version AIIR field name There are some minor differences in the field names between v10.0.0 and v4.0.0 ERS PC spreadsheet and these are identified using( ) in the list below v10.0.0 v4.0.0

Record length 7.1 na Record identifier 7.2 na Supplier Australian business number 7.3 na Run type 7.4 na Financial year end date 7.5 na Data type 7.6 na Type of report 7.7 7.22 Type of return media 7.8 na ATO reporting specification version number 7.9 na File format validation method 7.10 na Filler 7.11 na Record identifier 7.12 na Supplier name 7.13 na Supplier contact name 7.14 na Supplier contact telephone number 7.15 na Supplier facsimile number 7.16 na Supplier file reference 7.17 7.25 Supplier file reference of file being replaced or containing records to be corrected 7.18 7.26 Record identifier 7.19 na Supplier street address - line 1 7.20 na Supplier street address - line 2 7.20 na Supplier suburb, town or locality 7.21 na Supplier state or territory 7.22 na Supplier postcode 7.23 na Supplier country 7.24 na Supplier postal address - line 1 7.25 7.10 (Investment body postal address line 1) Supplier postal address - line 2 7.25 7.10 (Investment body postal address line 2) Supplier suburb, town or locality (Postal suburb, town or locality) 7.26 7.11 Supplier state or territory (Postal state or territory) 7.27 7.12 Supplier postcode (Postal postcode) 7.28 7.13 Supplier country (Postal country) 7.29 7.14 Supplier email address 7.30 na Record identifier 7.31 na

Sequence number of IDENTITY record 7.32 7.24 (Sequence number of the investment body identity record) Financial year 7.33 7.19 Investment body Australian business number (ABN) or withholding payer number 7.34 7.1 (WPN) Investment body branch number 7.35 7.2 Investment body registered name 7.36 7.3 Investment body trading name 7.37 7.4 Investment body address line 1 7.38 7.5 Investment body address line 2 7.38 7.5 Suburb, town or locality 7.39 7.6 State or territory 7.40 7.7 Postcode 7.41 7.8 Country 7.42 7.9 Investment body contact name 7.43 7.15 Investment body contact telephone number 7.44 7.16 Investment body contact facsimile number 7.45 7.17 Investment body contact email address 7.46 7.18 Reporting period indicator 7.47 7.20 SAP year end date 7.48 7.21 Future reporting obligation 7.49 7.23 Report format indicator 7.50 na Record identifier 7.51 na Software product type 7.52 na Record identifier 7.53 na Sequence number of DACCOUNT record 7.54 7.27 (Sequence number of the account record within the AIIR) Investment reference number 7.55 7.53 Account reference number 7.56 7.55 BSB number 7.57 7.56 Branch location 7.58 na Account name 7.59 7.57 Number of investors in the account 7.60 7.58 Number of investor records provided 7.61 7.59 Date of payment 7.62 7.60 Type of investment 7.63 7.61 Type of payment 7.64 7.62 Term of investment 7.65 7.63 TFN withholding tax deducted 7.66 7.64 TFN withholding tax refunded 7.67 7.65 Non-resident withholding amount deducted 7.68 7.66 Non-resident withholding amount refunded 7.69 7.67 Cash or non-cash value of an investment related betting chance prize 7.70 7.68

Interest 7.71 7.69 Unfranked dividends not declared to be conduit foreign income 7.72 7.70 Unfranked dividends declared to be conduit foreign income 7.73 7.71 Franked dividends 7.74 7.72 Franking credit 7.75 7.73 Other taxable Australian income 7.76 7.74 Non-primary production income 7.77 7.75 Other deductions relating to distributions 7.78 7.76 Capital gains discounted method 7.79 7.77 Capital gains indexation method 7.80 7.78 Capital gains other method 7.81 7.79 CGT concession amount 7.82 7.80 Net capital gain 7.83 7.81 Total current year capital gains 7.84 7.82 Taxable foreign capital gains 7.85 7.83 Assessable foreign source income 7.86 7.84 Other net foreign source income 7.87 7.85 Foreign income tax offset 7.88 7.86 Australian franking credits from a New Zealand franking company 7.89 7.87 Tax-exempted amounts 7.90 7.88 Tax-free amounts 7.91 7.89 Tax-deferred amounts 7.92 7.90 Other allowable trust deductions 7.93 7.91 Share of credit for amounts withheld from foreign resident withholding 7.94 7.92 Share of credit for tax paid by trustee 7.95 7.93 Non-resident beneficiary ss98(3) assessable amount 7.96 7.94 Non-resident beneficiary ss98(4) assessable amount 7.97 7.95 Interposed entity name 7.98 7.96 Interposed entity TFN or ABN 7.99 7.97 Managed investment trust fund payments 7.100 7.98 Amounts withheld from managed investment trust fund payments 7.101 7.99 Record identifier 7.102 na Supplementary income payment type 7.103 na Sequence number of DACCSUPP record 7.104 na Share of National rental affordability scheme tax offset 7.105 7.100 Primary production income 7.106 7.101 Share of credit for tax withheld where ABN not quoted 7.107 7.102 Deductions relating to distribution of primary production income 7.108 7.103 Deductions relating to distribution of non-primary production income 7.109 7.104 Transferor trust income 7.110 7.105 CFC Income 7.111 7.106 Net foreign rent 7.112 7.107

Unfranked distributions from trusts 7.113 7.108 Franked distributions from trusts 7.114 7.109 Record identifier 7.115 na Sequence number of DFMDACCT record 7.116 na Sequence number of multiple DFMDACCT records 7.117 na Personal identification number 7.118 na ANSZIC code 7.119 na Amount of deductible deposit 7.120 na Date of deductible deposit 7.121 na Date of original deductible deposit 7.122 na Amount of repayment 7.123 na Date of repayment 7.124 na Amount of transfer in 7.125 na Date of transfer in 7.126 na Transferor BSB number 7.127 na Amount of transfer out 7.128 na Date of transfer out 7.129 na Transferee BSB number 7.130 na TFN withholding tax deducted from repayments in the financial year 7.131 na Amount of closing balance 7.132 na Unclaimed moneys 7.133 na Record identifier 7.134 na Sequence number of DINVESTOR record 7.135 7.28 Customer reference number 7.136 7.54 Investor entity type 7.137 7.29 Investor tax file number 7.138 7.30 Investor Australian business number 7.139 7.31 Non-resident investor tax identification number 7.140 7.32 Individual investor surname 7.141 7.33 Individual investor first given name 7.142 7.34 Individual investor second given name 7.143 7.35 Individual investor date of birth 7.144 7.36 Sex 7.145 7.37 Non-individual investor name 7.146 7.38 Australian address – line 1 7.147 7.39 Australian address – line 2 7.147 7.39 Australian suburb, town or locality 7.148 7.40 Australian state or territory 7.149 7.41 Australian postcode 7.150 7.42 Date of change of residency status from resident to non-resident 7.151 7.44 Overseas address – line 1 7.152 7.45 Overseas address – line 2 7.152 7.45

Overseas suburb, town or locality 7.153 7.46 Overseas state or province 7.154 7.47 Overseas postal code 7.155 7.48 Overseas country 7.156 7.49 Non-resident investor overseas country code 7.157 7.50 Non-resident investor country of residence for tax purposes 7.158 7.52 Date of change of residency status from non-resident to resident 7.159 7.51 Investor daytime contact telephone number 7.160 7.43 Record identifier 7.161 na Number of records 7.162 na Count of IDENTITY records in the file 7.163 na Count of DACCOUNT records in the file 7.164 na Count of DACCSUPP records in the file 7.165 na Count of DFMDACCT records in the file 7.166 na Count of DINVESTOR records in the file 7.167 na

APPENDIX B - AIIR/ITR/SDS COMPARISON

Pre-fill, in the following table, refers to the ITR and portals and is subject to certain conditions. This

table does not show all the information that is pre-filled, only those relating to the AIIR. For more information on pre-filling go to ato.gov.au

AIIR v10.0.0 2014 2013 ITR Pre- 2013 SDS Ref Payment fill Field name Label Item name Part Item name No type Investment Not 7.55 Not reported  Not reported reference number applicable Account reference Not 7.56 Not reported x Not reported number applicable Not 7.57 BSB number Not reported x Not reported applicable Not 7.58 Branch location Not reported x Not reported applicable Not 7.59 Account name Not reported  Not reported applicable Number of Not 7.60 investors in the Not reported  Not reported applicable account Number of investor Not 7.61 Not reported x Not reported records provided applicable Not 7.62 Date of payment Not reported x Not reported applicable Not 7.63 Type of investment Not reported x Not reported applicable 7.64 Type of payment All Not reported x Not reported Not 7.65 Term of investment Not reported x Not reported applicable INT, DIS, TFN amounts withheld 10M  Not reported TDP, FMD from gross interest TFN amounts withheld DIV 11V  Not reported from dividends Share of credit for TFN withholding 7.66 TFN amounts tax deducted Share of credit for TFN A withheld from interest, amounts withheld from UTD 13R  dividends and unit interest, dividends and trust distributions unit trust distributions TFN amounts C withheld INT, DIS, Share of credit for TFN TFN withholding TDP, amounts withheld from 7.67 13R  Not reported tax refunded FMD, DIV, interest, dividends and UTD unit trust distributions Share of credit for Share of credit for Non-resident amounts withheld from amounts withheld 7.68 withholding amount UTD 13A  A foreign resident from foreign resident deducted withholding withholding

AIIR v10.0.0 2014 2013 ITR Pre- 2013 SDS Ref Payment fill Field name Label Item name Part Item name No type Non-resident 7.69 withholding amount UTD Not reported x Not reported refunded Cash or non-cash Other income - value of an category one includes 7.70 investment related IRB 24Y benefits or prizes from x Not reported betting chance investment-related prize lotteries DIS, INT, 10L Gross interest  Not reported TDP, FMD 7.71 Interest Not directly reported UTD (included in 7.77 and x C Interest reported at 13U) DIV 11S Unfranked amount x Not reported Unfranked Not directly reported Share of non-primary dividends not A 7.72 declared to be (included in 7.113 or production income UTD 7.114 and reported at x conduit foreign Dividends: unfranked 13U or 13C C income amount respectively) DIV 11S Unfranked amount  Not reported Unfranked Included in share of Not directly reported dividends declared A non-primary 7.73 (may be Included in to be conduit UTD x production income 7.113 and reported at foreign income Dividends: unfranked 13U) C amount DIV 11T Franked amount  Not reported Included in share of non-primary production income Not directly reported A 7.74 Franked dividends OR included in UTD (included in 7.114 and x Franked distributions reported at 13C) from trusts Dividends: franked C amount DIV 11U Franking credit  Not reported Share of non-primary production income Franked distributions 13C x A OR included in 7.75 Franking credit from trusts UTD Franked distributions from trusts Share of franking credit 13Q x C Franking credits from franked dividends Included in Share of Not directly reported x A non-primary Other taxable 7.76 UTD (included in 7.77 and production income Australian income reported at 13U) x C Other income Non-primary Share of net income Included in Share of production income from trusts less capital  A non-primary 7.77 (includes fields UTD 13U gains, foreign income production income 7.71, 7.113, 7.76 and franked  C Other income and 7.93) distributions

AIIR v10.0.0 2014 2013 ITR Pre- 2013 SDS Ref Payment fill Field name Label Item name Part Item name No type Other deductions Other deductions Other deductions relating to non- 7.78 relating to UTD 13Y relating to amounts  A primary production distributions shown at O, U and C distributions Included in Total current year capital x A gains and Net capital Capital gains gain 7.79 UTD 18 Capital gains discounted method Capital gains: x B discounted method Discounted capital x C gain Included in Total current year capital x A gains and Net capital Capital gains gain 7.80 UTD 18 Capital gains indexation method Capital gains: x B discounted method Discounted capital x C gain Included in Total current year capital x A gains and Net capital Capital gains other gain 7.81 UTD 18 Capital gains method Capital gains: other x B method Capital gains: other x C method CGT concession Depends on individual x B CGT concession amount 7.82 UTD circumstances of amount CGT Concession beneficiary x C amount  A Net capital gains 7.83 Net capital gain UTD 18A Net capital gain  C Net capital gains Total current year  A Total current year Total current year capital gains 7.84 UTD 18H capital gains capital gains Total current year  B capital gains Taxable foreign 7.85 UTD 18 Capital gains x Not reported capital gains FSI x Not reported Assessable foreign Assessable foreign 7.86 20E Assessable foreign source income UTD source income  A source income FSI x Not reported Other net foreign Other net foreign 7.87 20M Other net foreign source income UTD source income  A source income FSI x Not reported Foreign income tax Foreign income tax Foreign income tax 7.88 20O A offset UTD offset  offset C Foreign income 7.89 FSI 20F x Not reported

AIIR v10.0.0 2014 2013 ITR Pre- 2013 SDS Ref Payment fill Field name Label Item name Part Item name No type Australian franking Australian franking Australian franking credits from a New credits from a New credits from a New UTD  A Zealand franking Zealand franking Zealand franking company company company Tax-exempted Tax-exempted 7.90 UTD x C amounts amounts Depends on individual 7.91 Tax-free amounts UTD circumstances of x C Tax-free amounts beneficiary. Depends on individual Tax-deferred B Tax-deferred amounts 7.92 UTD circumstances of amounts x beneficiary C Tax-deferred amounts Not directly reported Included in Share of Other allowable 7.93 UTD (included in 7.77 and x A non-primary trust deductions reported at 13U) production income Share of credit for Share of credit for Share of credit for amounts withheld amounts withheld from amounts withheld 7.94 from foreign UTD 13A  A Foreign resident from Foreign resident resident withholding withholding withholding Share of credit for Share of credit for tax Share of credit for tax 7.95 UTD 13S  A tax paid by trustee paid by trustee paid by trustee Non-resident Interest in the net 7.96 beneficiary ss98(3) UTD 13S income included in x Not reported assessable amount assessable income Non-resident Interest in the net 7.97 beneficiary ss98(4) UTD 13S income included in x Not reported assessable amount assessable income DIS, DIV, Interposed entity INT, 7.98 Not reported x Not reported name TDP, FSI, UTD DIS, DIV, Interposed entity INT, 7.99 Not reported x Not reported TFN or ABN TDP, FSI, UTD Managed 7.100 investment trust UTD Not reported x Not reported fund payments Amounts withheld from managed 7.101 UTD Not reported x Not reported investment trust fund payments Share of National Share of National Share of National 7.105 rental affordability UTD 13B rental affordability  A rental affordability scheme tax offset scheme tax offset scheme tax offset Primary production Share of net income Share of primary 7.106 UTD 13L x A income from trusts production income Share of credit for Share of credit for tax Share of credit for tax 7.107 tax withheld where UTD 13P withheld where ABN  A withheld where ABN ABN not quoted not quoted not quoted

AIIR v10.0.0 2014 2013 ITR Pre- 2013 SDS Ref Payment fill Field name Label Item name Part Item name No type Deductions relating Other deductions Other deductions to distribution of 7.108 UTD 13X relating to amounts x A relating to primary production shown at N and L distributions income Deductions relating Other deductions Other deductions to distribution of relating to non- 7.109 UTD 13Y relating to amounts x A non-primary primary production shown at O, U and C production income distributions Transferor trust 7.110 UTD 19B Transferor trust income x Not reported income 7.111 CFC income UTD 19K CFC income  A CFC income 7.112 Net foreign rent UTD 20R Net foreign rent x A Net foreign rent Not reported (will be Unfranked Not directly reported mapped to Share of 7.113 distributions from UTD (will be mapped to 13U x non-primary trusts from 2014) production income from 2014) Non-primary Franked Franked distributions production income - 7.114 distributions from UTD 13C from trusts (will be x A Franked distributions trusts mapped from 2014) from trusts (will be mapped from 2014) Personal 7.118 identification FMD Not reported x Not reported number (PIN) 7.119 ANZSIC code FMD Not reported x Not reported 17D Deductible deposits  Not reported Amount of 7.120 FMD Net farm management deductible deposit 17E deposits or  Not reported repayments Date of deductible 7.121 FMD Not reported  Not reported deposit Date of original 7.122 FMD Not reported x Not reported deductible deposit Early repayments 17C exceptional  Not reported circumstances Early repayments Amount of 17N  Not reported 7.123 FMD natural disaster repayment 17R Other repayments  Not reported Net farm management 17E deposits or  Not reported repayments 7.124 Date of repayment FMD Not reported x Not reported Amount of transfer 7.125 FMD Not reported  Not reported in 7.126 Date of transfer in FMD Not reported  Not reported Transferor BSB 7.127 FMD Not reported x Not reported number Amount of transfer 7.128 FMD Not reported  Not reported out

AIIR v10.0.0 2014 2013 ITR Pre- 2013 SDS Ref Payment fill Field name Label Item name Part Item name No type 7.129 Date of transfer out FMD Not reported  Not reported Transferee BSB 7.130 FMD Not reported x Not reported number TFN withholding tax deducted from 7.131 FMD Not reported x Not reported repayments in the financial year Amount of closing 7.132 FMD Not reported x Not reported balance 7.133 Unclaimed moneys FMD Not reported x Not reported

APPENDIX C - NEW UTD FIELD NAMES

Field definition NEW field name – v10.0.0 and v4.0.0 OLD field name v10.0.0 v4.0.0 Other taxable Australian income component Other taxable Australian income 7.76 7.74 of UTD Non-primary production income 7.77 7.75 Non-primary production income from UTD Other deductions relating to distributions Other deductions relating to distributions 7.78 7.76 from UTD Capital gains discounted method 7.79 7.77 Discounted capital gain component of UTD Capital gains indexation method 7.80 7.78 Indexed capital gain component of UTD Capital gains other method 7.81 7.79 Other capital gain component of UTD Net capital gain 7.83 7.81 Net capital gain component of UTD Total current year capital gains component Total current year capital gains 7.84 7.82 of UTD Taxable foreign capital gain component of Taxable foreign capital gains 7.85 7.83 UTD Assessable foreign source income (UTD Assessable foreign source income 7.86 7.84 component or other payment) Other net foreign source income component Other net foreign source income 7.87 7.85 of UTD Foreign tax credits on UTD or other Foreign income tax offset 7.88 7.86 payments Australian franking credits from a New Australian franking credits from a New Zealand company Zealand franking company 7.89 7.87 (UTD component or other payment) Tax-exempted amounts 7.90 7.88 Tax-exempted component of UTD Tax-free amounts 7.91 7.89 Tax free component of UTD Tax-deferred amounts 7.92 7.90 Tax deferred component of UTD Other allowable trust deductions 7.93 7.91 Trust deductions not included elsewhere Share of credit for amounts withheld from Credit for amounts withheld from UTD under foreign resident withholding 7.94 7.92 foreign resident withholding Share of credit for tax paid by trustee 7.95 7.93 Credit for tax paid by trustee on UTD Share of National rental affordability scheme National Rental Affordability Scheme tax tax offset 7.105 7.100 offset Share of credit for tax withheld where ABN Credit for Australian Business Number not quoted 7.107 7.102 amounts withheld Transferor trust income 7.110 7.105 Attributed income from Transferor trusts Attributed foreign income from Controlled CFC Income 7.1111 7.106 Foreign Company

1 In earlier versions 7.111 and 7.106 was Attributed foreign income from Foreign investment fund or Foreign life assurance policy that has been deleted from v10.0.0 and v4.0.0

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