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About TOFA

The TOFA rules modernise the tax treatment of gains and losses on financial arrangements. The key provisions of the TOFA rules are found in Division 230 of the ITAA 1997, which generally provides for:

  • methods of calculating gains and losses from financial arrangements, being

  • accruals, realisation, fair value, re-translation, hedging and reliance on

  • financial reports, and

  • the time when the gains and losses from financial arrangements will be brought to account.

See Taxation of financial arrangements (TOFA) on the ATO website.

TOFA worksheet

A basic worksheet for dissection purposes is provided for the Partnership and Trust returns and a slightly different dissection worksheet has been created for the Fund and the SMSF returns.

Integration

Amounts entered at the fields in the worksheet will integrate to the following labels:

  • T, U and S in the Company return

  • M and N in the Partnerships and Trusts returns.

  • H and I in the Fund and SMSF returns.

CCH References

23-000 Taxation of financial arrangements - TOFA

23-020 Overview of Div 230

23-030 Financial arrangements

23-035 Gains and losses from financial arrangements

23-040 Recognition of gains and losses