Section I: Taxation of Financial arrangements (TOFA)

Complete Section I only if the taxation of financial arrangements (TOFA) rules apply to the SMSF.

The TOFA rules apply to an SMSF only where:

The value of the SMSF’s assets is $100 million or more, or
The SMSF has elected to have the TOFA rules apply to it.

For the purposes of this test, work out the value of the SMSF’s assets at 30 June of the current income year. If the SMSF came into existence during the current income year, work out the value of its assets at 30 June of the current income year.

Once the TOFA rules apply to an SMSF, they will continue to apply to that SMSF even if later, the value of its assets falls below $100 million.

Section I comprises these labels:

Label H - Total TOFA gains

Show at label H the SMSF's total assessable TOFA gains from financial arrangements.

Use the TOFA worksheet (tof) to enter the relevant values. Click Ctrl+Insert for additional rows.

Label I - Total TOFA Losses

Show at label I the SMSF's total deductible TOFA losses from financial arrangements.

Use the TOFA worksheet (tof) to enter the relevant values. Click Ctrl+Insert for additional rows.

Working out the SMSF's total TOFA gains and total TOFA losses:

Ensure you take into account at labels H, I and J any amount in relation to a TOFA financial arrangement that you have shown at labels such as:

Gross interest item 11 - Label C
Gross foreign income item 11 - Label D1
Gross distributions from Partnerships item 11 - Label I
Unfranked dividend amount item 11- Label K
Franked dividend amount item 11- Label K
Gross trust distributions item 11- Label M
Other income item 11 - Label S
Interest expenses within Australia item 12 - Label A1
Interest expenses overseas item 12 - Label B1
Other deductions item 12 - Label L1

CCH References

23-000 Taxation of financial arrangements - TOFA

23-020 Overview of Div 230

23-035 Interaction of Div 230 with other tax provisions