10M – TFN Credit: If you don’t provide your Tax File number (TFN) to a financial institution (or in this case to Raiz to provide to the bank on your behalf) then the financial institution will withhold an amount of tax on any interest earned.
10L – Gross Interest: This is interest that is paid or credited to you from a financial institution in Australia. This is usually from a bank account or term deposit. Raiz will invest some money in a bank account or term deposit and hence you receive a portion of this.
11V – TFN Credit: Similar to 10M, If you don’t provide your Tax File number (TFN) to the investment body (or in this case to Raiz to provide to the investment body on your behalf) then the investment body will withhold an amount of tax on any unfranked dividend payed.
11S – Unfranked Dividend: A Dividend is basically a sum paid by a company invested in out of its profits. A franking credit is how companies pass of the tax paid at a company level to its shareholders. When you are paid an unfranked dividend this does not have any franked credits attached to it.
11T – Franked Dividend: This is a dividend which includes a tax credit of 30% which represents the tax that has already been paid by the company.
11U – Franking Credit: This is the amount of tax that has already been paid on the income at the company level, from this the ATO passes on the shareholders a personal tax credit.
13C – Franked Distributions from trusts: This amount includes the share of franked dividends that have been earned through the trust and passed on to the individual.
13U – Share of net income from trusts, less capital gains, foreign income and franked distributions: This is where amounts received from unfranked dividends, interest and other income is earned through the trust and passed on to the individual. This does not include capital gains, foreign income and franked dividends as they are included at another label in the tax return.
13Q – Share of franking credits from franked distributions: This is where your share of the franking credits on the income reported at 13C is included on your tax return.
13R – Share of TFN withholding amounts: Similar to the TFN credits and 10M & 11V, this is where the trust has earned income interest or dividend income without the TFN being provided. Hence an amount of tax has been withheld and will be credited against tax payable on income from the investments.
13A – Share of credit for tax withheld from foreign resident withholding: This is where amounts withheld due to the operation of the foreign resident withholding regime. Basically if you are foreign resident and earn Australian income the investment body will withhold an amount to cover any tax liability you would have as a foreign resident.
18H – Total Current Year Capital Gains: This is the total amount of capital gains before any CGT discount is applied. Capital gains applies where assets are sold and a gain is made on that sale. For example where shares are sold for an amount greater than purchased.
Less CGT Discount (CGT Concession Amount): Where a capital asset is sold after been held for longer than 12 months, the ATO allows for a 50% CGT discount to be applied on that capital gain.
18A – Net Capital Gain: This will be the net capital gain after the trust has applied the CGT discount. This essentially will be the sum of the total current year capital gains less any discounted capital gains that can be applied.
Foreign Source Income:
20E – Assessable Foreign Source Income: If investment is made overseas, any income derived from this investment is included here. Income can comprise of foreign dividends, interest or any other assessable foreign income.
20M – Other Net Foreign Source Income: Here is where you would report any assessable foreign source income less any foreign deductable expenses that have been incurred in earning foreign sourced income. If there are no foreign income deductions then this will be the same as 20E.
20O – Foreign Income Tax Offsets: This represents tax that has been withheld from the Foreign source income received. The amount of assessable foreign source income is grossed include the foreign tax offset amount, you will then show the foreign income tax offset here.
Other Non-Assessable Income amounts – ‘Tax Free’ & ‘Tax Deferred’ amounts are both non-assessable amounts and therefore do not appear of your tax return. Tax Deferred amounts will reduce the cost base for CGT purposes when selling units. The Tax Free amount will also reduce your cost base when you make a capital loss for CGT purposes.
D8 – Dividend Deductions: This is where relevant deductions for expenses incurred to earn your investment income will be included. The Raiz Grow Fund Management Fee is included here as it is a relevant deduction.