AU Tax - Trust tax returns | Foreign income should flow through to ITR and CTRs
Currently, only some distribution amounts flow automatically from a Trust tax return to the Individual and Company beneficiary returns, and others have to be manually entered. There is also no clear area to enter these items into the individual and company returns.
This leaves room for error and causes efficiency and quality issues.
Our previous system handled this very well. It had a specific schedule for this type of distribution income.
All distributed amounts, including capital gains and foreign income should be auto transferred to the correct labels into the beneficiary tax returns.
Hi team, as Hannah mentioned Capital Gains Tax (CGT) portion of this idea was delivered end of last year. So for 2023 tax forms - CGT events from a Trust Tax Return will distribute into an Individual Tax Return. Read our previous update for more of the detail on this.
In relation to the idea for foreign income to flow through to the Individual Tax Return - this is something our team are working on at present. We've slightly updated the title of this idea now for foreign income and will return to share when there's progress on this.
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Michael Axton commented
Another Xero issue, how many times are we going to miss this flowing through to the individual, come on Xero pick up your game
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Frank Ma commented
The two labels don't help fixing the issue described above. I am coming across this problem, the distribution from family trust to two individuals. In the first beneficiary's return, I deleted relationship and added back , only non-CGT income pops up, manually typed in CGT schedule for capital gain distribution, the same in second beneficiary's return.
and the two new labels are little confusing. when I typed in 100% Capital gain in Capital Gain label and typed discounted net capital gain in the new label Discounted capital gains (Net). the secondary beneficiary's available capital gain becomes nil. I had to type discounted gain in both Capital Gain and Discounted capital gains (Net) label. I don't think distribution work sheet picked up correct label from Capital Gain Schedule & Capital Gain Worksheet ( I also tried this, did not work)