DIR Return Create A Forum - Home
       ---------------------------------------------------------
       Australian Voices
  HTML https://ausvoice.createaforum.com
       ---------------------------------------------------------
       *****************************************************
   DIR Return to: Native Land Title
       *****************************************************
       #Post#: 2--------------------------------------------------
       ATO Examples of Native Title Benefits
   DIR By: ausvoice
       Date: September 18, 2023, 6:10 pm
       ---------------------------------------------------------
       Example – Individual receiving a native title benefit
       Mae is an Aboriginal woman who lives in Western Australia. Every
       year, she receives a $100,000 native title benefit from a mining
       company. The mining company uses the land to mine for iron ore.
       Mae is not taxed on this $100,000 because it is a native title
       benefit, which is NANE income and is not taxable.
       Example – Individual receiving an assessable native title
       benefit
       ABC Enterprises Trust is paid a native title benefit of
       $500,000. This payment is part of the income of the trust. The
       trust is not an Indigenous holding entity because its
       beneficiaries are not limited to Aboriginal and Torres Strait
       Islander peoples.
       The trustee provides non-cash benefits including training and
       education to David, who is an Indigenous beneficiary of the
       trust. The non-cash benefit the trust provides for David is not
       NANE, which means it is assessable income for David. As a
       result, the benefit David has received is subject to tax.
       Example – Native title benefits and interest income
       ABC Enterprises Trust (ABC) and 123 Trust (123) are both
       Indigenous holding entities. 123 is a beneficiary of ABC.
       In August 2022, ABC receives a native title benefit of $1
       million from a mining company and decides to invest this money.
       The investment earns $50,000 in interest in the 2023 income
       year. The trustee of ABC distributes $540,000 of its income to
       123 on 30 June 2023. This amount is made up of:
       $500,000 from the native title benefit
       $40,000 of the interest from the investment.
       The remaining $10,000 interest and the balance of the native
       title benefit are retained by ABC. In its 2022–23 trust return,
       ABC included all of the $50,000 interest received as part of its
       assessable income. However, it excluded the native title benefit
       received from its assessable income, as it is NANE.
       ABC also completed the Statement of distribution item for its
       trust tax return reflecting the distribution of interest income
       to 123.
       ABC is not liable for tax on that $40,000 interest distributed
       to 123. In effect, ABC will only pay tax on the $10,000 interest
       income it did not distribute.123 must include the $40,000
       interest received as a beneficiary of the trust as assessable
       income in their 2022–23 tax return.
       The $500,000 123 received as a native title benefit from ABC is
       NANE income, which is not taxable.
       *****************************************************
       Page 1 of 1