⚠️ Tax Disclaimer
This article explains how Navexa displays income classifications for reporting purposes. It is not financial or tax advice. Always confirm your final classifications with your accountant or tax agent.
Across Navexa — from the Income page to your Taxable Income Summary — you’ll see income grouped as either Trust or Non-Trust.
This isn’t something unique to Navexa. It reflects how the Australian Tax Office (ATO) requires different types of investment income to be reported. The distinction helps Navexa (and your accountant) accurately handle the various tax components associated with each payment.
The key thing to remember:
👉 It’s based on what type of investment is paying the income, not who owns it.
So even if your portfolio belongs to an SMSF (which is itself a trust), that doesn’t automatically make all your income “Trust Income.”
📈 Non-Trust Income (Dividends)
This is income paid directly by companies listed on the ASX.
Examples: BHP, Wesfarmers, Commonwealth Bank
You are: A shareholder
The payment is called: A dividend
Typical tax components:
Franked amount
Unfranked amount
Franking credits
Dividends are relatively straightforward — the company pays you directly from its profits.
📊 Trust Income (Distributions)
This is income paid by unit trusts, such as ETFs, REITs, and managed funds.
Examples: VAS, VGS, CLW, DBI
You are: A unitholder
The payment is called: A distribution
Typical tax components:
Franked and unfranked dividends
Capital gains (discounted and non-discounted)
Foreign source income
AMIT (Attribution Managed Investment Trust) adjustments
Other income passed through from the underlying investments
Distributions can include multiple tax elements in one payment, which is why Navexa separates them from standard company dividends.
🧩 Common Questions
“My SMSF is a trust — shouldn’t all my income be ‘Trust Income’?”
Not necessarily. While your SMSF is a trust, it can hold both company shares and trust-based assets. The classification depends on the asset’s legal structure, not the owner’s.
“What about stapled securities?”
Some investments — like certain listed property groups — are “stapled securities,” meaning a company and a unit trust are joined together. Their payments can include both dividend (Non-Trust) and distribution (Trust) components. At this stage, Navexa can’t automatically split these; you’ll need to enter the components manually to match your annual tax statement. (See How to Handle Stapled Securities in Navexa).
⚠️ Tax Disclaimer
This article explains how Navexa displays income classifications for reporting purposes. It is not financial or tax advice. Always confirm your final classifications with your accountant or tax agent.