On 12 April 2024, the Australian Taxation Office (ATO) issued a guide detailing the upcoming modifications to the annual tax return form for trust income reporting, effective from 1 July 2024. ATO also announced updating its application forms for sovereign entities and superannuation funds for foreign residents (SFFFRs).
Modifications to annual tax return forms
The ATO has revealed the amendments to annual tax return forms will impact trust tax return filings for the 2023–2024 income year and beyond. The changes on the forms are as follows:
- Changing the labeling on the statement of distribution in the trust tax return. This will improve the beneficiary information reporting;
- The introduction of a new schedule or the ‘trust income schedule,’ which must be included in the tax filing returns. This is mandatory for every trust beneficiary receiving income. It is aimed to ensure accurate reporting and standardizing reporting practices for all types of beneficiaries;
- The implementation of additional data validation in the trust tax return form on the practitioner filing service. This will improve the integrity of reported data.
Modifications to SFFFRs private rulings application forms
The ATO revised the forms to streamline the private ruling process for applicants, especially by specifying the information required to assess eligibility for exemptions. The forms are for private rulings that relate to:
- the tax exemption for sovereign entities under Division 880 of the Income Tax Assessment Act 1997 (referred to as sovereign immunity);
- the withholding tax exemption for SFFFRs under paragraph 128B(3)(jb) of the Income Tax Assessment Act 1936.
