Instructions for taxpayers

TaxPack 2011
To help you complete your tax return 1 July 2010 30 June 2011

Lodge online with e-tax its free.

Secure and user friendly Most refunds in 14 days or less n Built-in checks and calculators to help you n Pre-filling service download your personal tax information from the ATO
n n

You may also need the separate publication TaxPack 2011 supplement see page 2.

Lodge your tax return by 31 October 2011.

Go to www.ato.gov.au

NAT 09766.2011

Commissioners foreword
TaxPack 2011 is a guide to help you correctly complete your 2011 tax return. We have tried to make it easy to use, and for most people it will provide all you need to know to fill in your tax return. Be assured that if you do your best to fill in your tax return correctly, you will not be subject to any penalties if you get these things wrong. Nevertheless, please take care in ensuring that the information you provide to us is as complete and accurate as you can make it. If you have access to the internet, you can prepare and lodge your tax return online using e-tax. Its fast, free and easy, and most refunds are issued within 14 days. It also provides more extensive information than contained in this guide and allows you to automatically include on your tax return some information that we already know about you. We also have a range of services that can assist you when completing your tax return. The inside back cover provides details about how you can access these services and how you can contact us.

Michael DAscenzo Commissioner of Taxation

AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA, 2011 You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

Taxpayers may copy parts of TaxPack 2011 and TaxPack 2011 supplement for their personal records. Published by the Australian Taxation Office, Canberra, May 2011. Printed by Independent Print Media Group Pty Ltd (IPMG). Distribution coordinated by Independent Print Media Group Pty Ltd (IPMG) and effected by Australia Post and NDD Distribution Pty Ltd. Thanks to the ATO staff, tax professionals and members of the community who contributed to TaxPack 2011.

Contents

WillyouneedTaxPack 2011 supplement? Whatsnewthisyear? CompletingIndividualinformationonyourtaxreturn

2 3 4 5 7 8 9 11 12 13 15 17 18 19 20 22 25 26 27 28 29 33 34 36 39 41 44 45 46 47 48 49 49 50 54

INCOME 1 Salaryorwages 2 Allowances,earnings,tips,directorsfeesetc 3 Employerlumpsumpayments 4 Employmentterminationpayments(ETPs) 5 AustralianGovernmentallowances andpayments 6 AustralianGovernmentpensions andallowances 7 Australianannuitiesandsuperannuation incomestreams 8 Australiansuperannuationlumpsumpayments 9 Attributedpersonalservicesincome Total tax withheld 10 Grossinterest 11 Dividends 12 Employeeshareschemes Income that you show on the supplementary section of the tax return Total income or loss DEDUCTIONS Claiming deductions Car and travel expenses D1 Work-relatedcarexpenses D2 Work-relatedtravelexpenses D3 Work-relatedclothing,laundryand dry-cleaningexpenses D4 Self-educationexpenses D5 Otherwork-relatedexpenses D6 Low-valuepooldeduction D7 Interestdeductions D8 Dividenddeductions D9 Giftsordonations D10 Costofmanagingtaxaffairs Deductions that you show on the supplementary section of the tax return Total deductions  Subtotal LOSSES L1 Taxlossesofearlierincomeyears Taxable income or loss

TAX OFFSETS Adjusted taxable income (ATI) for you and your dependants T1 Spouse(withoutdependentchildorstudent), child-housekeeperorhousekeeper Rebate income  T2 SeniorAustralians(includesagepensioners, servicepensionersandself-fundedretirees) T3 Pensioner T4 Australiansuperannuationincomestream T5 Privatehealthinsurance T6 Educationtaxrefund Tax offsets that you show on the supplementary section of the tax return Total tax offsets Adjustments that you show on the supplementary section of the tax return PRIVATE HEALTH INSURANCE POLICY DETAILS MEDICARE LEVY M1 Medicarelevyreductionorexemption M2 Medicarelevysurcharge ADJUSTMENTS A1 Under18 A2 Part-yeartax-freethreshold A3 Superco-contribution INCOME TESTS IT1 Totalreportablefringebenefitamounts IT2 Reportableemployersuperannuation contributions IT3 Tax-freegovernmentpensions IT4 Targetforeignincome IT5 Netfinancialinvestmentloss IT6 Netrentalpropertyloss IT7 Childsupportyoupaid INFORMATION Checklist  Howweworkoutyourtax Amountsthatyoudonotpaytaxon Doyouneedtolodgeataxreturn? Non-lodgment advice 2011 Specialcircumstancesandglossary Importantinformation Moreinformation

55 58 67 68 71 72 73 74 80 81 81 82 83 89 95 96 97 101 101 102 102 103 103 105 106

SPOUSE DETAILS MARRIED OR DE FACTO 107

110 110 111 114 116 117 126 insidebackcover

TAXPACK 2011

Will you need TaxPack 2011 supplement?

YoumightneedTaxPack 2011 supplement whichcontainsquestionsthatarenotincludedin TaxPack 2011.Checkthelistbelowofquestions coveredinTaxPack 2011 supplementtoseewhether youneedittocompleteyourtaxreturn.

INCOME 13 Incomefrompartnershipsandtrusts 14 Personalservicesincome(PSI)* 15 Netincomeorlossfrombusiness* 16 Deferrednon-commercialbusinesslosses* 17 Netfarmmanagementdepositsorwithdrawals 18 Capitalgains*(fromallsourcesincludingshares, realestateandotherproperty) 19 Foreignentities 20 Foreignsourceincomeandforeignassets orproperty,includingforeignsourcepension orannuity 21 Rent 22 Bonusesfromlifeinsurancecompaniesand friendlysocieties 23 Forestrymanagedinvestmentschemeincome 24 Otherincomethatis,incomenotlisted elsewhere DEDUCTIONS D11 Deductibleamountofundeductedpurchase priceofaforeignpensionorannuity D12 Personalsuperannuationcontributions(generally fortheself-employed) D13 Deductionforprojectpool D14 Forestrymanagedinvestmentschemededuction D15 Otherdeductionsthatis,deductionsnot claimableatitemsD1toD14orelsewhere onyourtaxreturn

TAX OFFSETS T7 Superannuationcontributionsonbehalfof yourspouse T8 Zoneoroverseasforces T9 20%taxoffsetonnetmedicalexpensesover thethresholdamount(thethresholdfor2011 is$2,000) T10 Parent,spousesparentorinvalidrelative T11 Landcareandwaterfacility T12 Netincomefromworkingsupplementary section T13 Entrepreneurstaxoffset T14 Othertaxoffsets ADJUSTMENT A4 Amountonwhichfamilytrustdistributiontax hasbeenpaid CREDIT FOR INTEREST ON TAX PAID C1 Creditforinterestonearlytaxpayments
IfyouneedTaxPack 2011 supplement,youcan getacopyfrommostnewsagentsfrom1Julyto 31October2011.Copiesarealsoavailableallyear fromourPublicationsDistributionService(seethe insidebackcover)andshopfronts. Questionsmarked*havearelatedpublicationwhich youmustreadbeforeyoucancompletetheitemon yourtaxreturn.

2

TAXPACK 2011

Whats new this year?

STUDY EXPENSE DEDUCTIONS FOR YOUTH ALLOWANCE, AUSTUDY AND ABSTUDY RECIPIENTS AsaconsequenceofarecentHighCourtdecision, youcanclaimadeductionforstudyexpensesthis yearifyoureceivedYouthallowance,Austudyor ABSTUDY.SeequestionD4formoreinformationand ourwebsitewww.ato.gov.au/studyexpensechanges
Inthe2011Budget,theGovernmentannounced itsintentiontochangethelawtopreventdeductions beingclaimedagainstallgovernmentassistance paymentsfrom1July2011.Thisincludesclaims forstudyexpensesbythosewhoreceiveYouth allowance,AustudyandABSTUDY. Theannouncementdoesnotaffectyourentitlement toclaimdeductionsfor2011. Gotowww.ato.gov.au/studyexpensechangesfor informationabouttheprogressofthislegislation.

Inthe2011Budget,theGovernmentannouncedits intentiontochangethelawtopreventdeductionsbeing claimedagainstallgovernmentassistancepayments from1July2011.Thisincludesclaimsforexpensesby NewstartrecipientsandYouthallowancejobseekers. Theannouncementdoesnotaffectyourentitlement toclaimdeductionsfor2011. Gotowww.ato.gov.auforinformationaboutthe progressofthislegislation.

NATURAL DISASTER DONATION RECEIPTS Ifyoumadeoneormoredonationsof$2ormore tobucketcollectionsconductedbyanapproved organisationfornaturaldisasterssuchasthefloodsin Queensland,NewSouthWalesandVictoria,bushfires inWesternAustralia,CycloneYasiinQueensland,and theearthquakesinChristchurchandnorth-eastern Japan,youcanclaimataxdeductionofupto$10for thetotalofthosecontributionswithouthavingareceipt.
Ifyouusedtheweborphonetomakeadonation over$2,yourwebreceiptorcreditcardstatement issufficient.Ifyoudonatedthroughthirdparties, suchasbanksandretailoutlets,thereceiptthey gaveyouisalsosufficient.Ifyoucontributedthrough workplace-givingyourpaymentsummaryshows theamountyoudonated.QuestionD9dealswith donations.

NEWSTART AND YOUTH ALLOWANCE RECIPIENTS WHO WERE ACTIVELY SEEKING PAID WORK AsaconsequenceofarecentHighCourtdecision, thisyearyoucanclaimdeductionsforexpensesyou incurredinactivelyseekingpaidworkifyoureceived NewstartallowanceorwereaYouthallowance jobseeker.Thisincludesexpensesyouincurred inmeetingtherequirementsofyourEmployment PathwayPlan.Youcannotclaimexpensesthat areofaprivateordomesticnature.Youmust haverecordstosupportyourclaim.
UseitemD15onpages43inTaxPack 2011 supplementtomakeyourclaim. Youcanclaim: n short-termtravelcosts,suchastraveltojob interviews n trainingcourses,includingself-employmenttraining andassistance,andtextbooks n phonecallsyoumadeseekingpaidwork n rsumpreparation. Youcannotclaimexpenses: n thatrelatetoseekingemploymentinonlyageneral way(forexample,conventionalclothing) n thatareofaprivateordomesticnature(for example,conventionalclothing,grooming andmeals) n paidforbyyourJobServicesAustraliaprovider.

TAX EXEMPTION FOR CERTAIN PAYMENTS TheGovernmenthasintroducedlegislationtogrant taxexemptionforcertainpaymentsmadefollowing recentnaturaldisasters.Thefollowingpaymentswill beexemptfromtax: n disasterincomerecoverysubsidypaidforCyclone Yasiandthefloodingeventswhichstartedon 29November2010 n ex-gratiapaymentsfromtheCommonwealthpaid toNewZealandnon-protectedspecial-category visaholdersfollowinganAustraliannaturaldisaster inthe201011incomeyear n clean-upandrecoverygrantspaidtosmall businessandprimaryproducers(undercategoryC oftheNaturalDisasterReliefandRecovery Arrangements)for: floodingwhichstartedon29November2010,and CycloneYasi.
Atthetimeofprinting,thislegislationhadnot yetbecomelaw.Formoreinformationgoto www.ato.gov.au

TAXPACK 2011

Completing Individual information on your tax return

ItisimportantthatyoucompletetheIndividual informationonpages1and2ofyourtaxreturn accuratelytoavoiddelayingyournoticeof assessment.Wehaveprovidedexplanations belowforthetax-relateditemssothatyoucan completethesesectionscorrectly. Ifyouarenotsurewhetheryouhavetolodge ataxreturnseepage114formoreinformation.

YOUR TAX FILE NUMBER Yourtaxfilenumber(TFN)isshownonyourpayment summary,aswellasonyourlastnoticeofassessment. YoudonothavetoquoteyourTFNonyourtaxreturn, butyourassessmentmaybedelayedifyoudonot.If youarenewtothetaxsystemanddonthaveaTFN, phone13 28 61. ARE YOU AN AUSTRALIAN RESIDENT? YoumustprintXintheYESboxifyouwere anAustralianresidentfortaxpurposesforallof 201011.IfyouwerenotanAustralianresidentfor taxpurposesforallof201011printXintheNObox.
Generally,weconsideryoutobeanAustralian residentfortaxpurposesif: nyouhavealwayslivedinAustraliaoryouhave cometoAustraliaandliveherepermanently nyouhavebeeninAustraliacontinuouslyforsix monthsormore,andformostofthattimeyou workedintheonejobandlivedatthesameplace nyouhavebeeninAustraliaformorethansixmonths during201011,unlessyourusualhomeis overseasandyoudonotintendtoliveinAustralia nyougooverseastemporarilyandyoudonotset upapermanenthomeinanothercountry,or nyouareanoverseasstudentwhohascometo Australiatostudyandareenrolledinacourse thatismorethansixmonthslong. Ifyouneedhelpindecidingwhetherornotyou areanAustralianresidentfortaxpurposes,goto www.ato.gov.auandenterAre you a resident? intheSearchforboxatthetopofthepageor phone13 28 61.

WILL YOU NEED TO LODGE AN AUSTRALIAN TAX RETURN IN THE FUTURE? Thismaybeyourlasttaxreturnif: nyourannualtaxableincomeinthefuturewillbe belowthetax-freethreshold($6,000for201112) nyouronlysourceofincomeinthefuturewillbean AustralianGovernmentpension nyouwillbecomeeligiblefortheseniorAustralians taxoffsetin201112,andyourtaxableincomeis belowthethresholdforlodgingataxreturnthisyear (forthresholdlevelsandeligibilityfor201011,see pages6870) nyouaremovingoverseaspermanently,or nyouare60yearsoldorolderandyouronlysource ofincomeisfromsuperannuationbenefits(both lumpsumandincomestreams)thathavealready beensubjecttotaxinthesuperannuationfund.
Dependingonyoursituation,printXintheYES,NO orDONT KNOWbox.

ELECTRONIC FUNDS TRANSFER (EFT) Direct Refund Itsfasterandsimplertohaveyourrefundpaid directlytoyourfinancialinstitutionaccount.Complete youraccountdetailsevenifyouhaveprovidedthem previously.Jointaccountsareacceptable.Ifyoudo notprovidetherequiredinformation,yourrefund chequewillbemailedtoyou.
Completethefollowing: nPrintthebankstatebranch(BSB)number.This six-digitnumberidentifiesthefinancialinstitution.Do notincludespaces,dashesorhyphensinthenumber. nPrinttheaccountnumber.Youcannotusean accountnumberwithmorethanninecharacters. Donotincludespacesintheaccountnumber. nPrinttheaccountname,asshownonyouraccount records.Donotprinttheaccounttype(forexample savings,chequeormortgageoffset).Include spacesbetweeneachwordandbetweeninitials intheaccountname.Theaccountnamemustnot exceed32characters.

Has your residency status changed? Ifyourresidencystatusfortaxpurposeschanged during201011,thatis,youwereanAustralian residentforpartof201011,youmustprintXin theYESboxforthisquestionandcompleteitemA2 onpage7ofyourtaxreturn.Weneedthisinformation toworkoutyourtax-freethreshold.
4

DECEASED ESTATE PrintDECEASEDESTATEonthetopofpage1of thetaxreturnandatthequestionWill you need to lodge an Australian tax return in the future?printX intheNObox.Theexecutororadministratorofthe estatemustsignthetaxreturnonbehalfofthe deceasedpersonandsendittous.
TAXPACK 2011

Salary or wages

Income 1

Thisquestionisaboutincomefromsalaryorwages fromwhichtaxwaswithheld.Incomefromsalaryor wagesincludes: nsalaryandwages ncommissions nbonuses nincomefrompart-timeorcasualwork nparentalleavepay namountsforlostsalaryorwagespaidunder anincomeprotectionpolicy asicknessoraccidentinsurancepolicy,or aworkerscompensationscheme. From1July2009,therehavebeenchangesto theexemptionrulesforforeignemploymentincome. ShowthegrossincomefromyourPAYG payment summary foreign employment atthisitem.

Did you earn income from salary or wages shown on a PAYG payment summary individual non-business or PAYG payment summary foreign employment?
NO YES

 Gotoquestion2.  Readbelow.

IfyourPAYG payment summary individual non-businessshowsanyallowances,includethem atitem2 Allowances, earnings, tips, directors fees etc.

ANSWERING THIS QUESTION YouwillneedyourPAYG payment summary individual non-business, PAYG payment summary foreign employment,oracomparablestatementsuch asaletterorsignedstatementfromeachemployeror payer,showingthefollowingdetails: ngrossincome(shownasGrosspaymentson yourpaymentsummary) ntotaltaxwithheld nforeigntaxpaid,ifapplicable,and ntheemployersorpayersAustralianbusiness number(ABN)orwithholdingpayernumber(WPN).
Ifyoudonothaveallyourpaymentsummaries orcomparablestatements,contactyouremployer orpayer.Ifyouareunsuccessfulinobtaining anyofthese,moreinformationaboutmaking astatutorydeclarationisavailableonourwebsite atwww.ato.gov.au

Step 1 Printtheoccupationfromwhichyouearnedmostof yourincomefromsalaryorwagesunderYour main salary and wage occupationatitem1. Beasspecificaspossiblewhenyoudescribehow youearnedyoursalaryandwages,forexample, insuranceclerkratherthanclerk,facilities managerratherthanmanager,barattendant ratherthanstudent.Forpublicservants,provide worktype,forexample,callcentreoperator. Ifyouhavemorethanfivepaymentsummaries, gotostep5. Step 2 WritetheemployersorpayersABNorWPNfrom eachpaymentsummaryunderPayers Australian business numberatitem1. Step 3 ForeachPAYG payment summary individual non-business,writethetotaltaxwithheldshown onitunderTax withheld attheleftofCtoGitem1. ForeachPAYG payment summary foreign employment,writetheTotalAustraliantaxwithheld shownonitunderTax withheldattheleftofCtoG item1.

COMPLETING YOUR TAX RETURN Forthepurposesofsteps1to5paymentsummary includescomparablestatementsandstatutory declarations.Donotcombineamountsfromdifferent paymentsummaries(unlessinstructedatsteps5 and6).

TAXPACK 2011

1 Salaryorwages

Step 4 Writethegrosspaymentamountsshownoneach paymentsummaryunderIncomeatCtoGitem1. Youhavenowfinishedthisquestion;gotoquestion2. Step 5 IfyouhaveanyPAYG payment summaries foreign employment,gotostep6. Otherwise,followsteps2to4foryourfirstfourPAYG payment summaries individual non-business.Then, foryourremainingpaymentsummaries,addupthe totaltaxwithheldandwritethetotalattheleftofG item1.Addupthegrosspaymentamountsandwrite thetotalatGitem1.LeavethePayers Australian business numberforGblank. Youhavenowfinishedthisquestion;gotoquestion2. Step 6 SortyourPAYG payment summaries foreign employmentfromyourPAYG payment summaries individual non-business. AddupthetotalAustraliantaxwithheldshownonall yourPAYG payment summaries foreign employment andwritethetotalattheleftofCitem1.Addup thegrosspaymentamountsandwritethetotalat Citem1.LeavethePayers Australian business numberforCblank.

Addupthetotaltaxwithheldshownonallyour PAYG payment summaries individual non-business andwritethetotalattheleftofDitem1.Addup thegrosspaymentamountsandwritethetotalat Ditem1.LeavethePayers Australian business numberforDblank. Youmaybeentitledtoaforeignincometaxoffset, refertoquestion20inTaxPack 2011 supplementfor furtherinformation. Youhavenowfinishedthisquestion;gotoquestion2. HELPFUL HINTS Donotattachyourpaymentsummariesand comparablestatementstoyourtaxreturn. Makesureyoukeepallyourrecordsforfiveyears. Ashorterrecord-keepingperiodmayapplyin somesituations.Moreinformationonrecord keepingandwrittenevidenceisavailableon ourwebsiteatwww.ato.gov.au

6

TAXPACK 2011

Allowances, earnings, tips, directors fees etc

Income 2

Thisquestionisaboutpaymentsofincomefrom working.Thesemayinclude: nallowances npaymentsfromwhichtaxwasnot withheld, includingsalary,wages,commissions,bonuses, incomeearnedfrompart-timeandcasualjobs, andincomefromincomeprotection,sicknessand accidentinsurancepolicies ntips,gratuitiesandpaymentsforyourservices nconsultationfeesandhonoraria(paymentsfor voluntaryservices). Allowancesinclude: ncar,travelandtransportallowances,including reimbursementsofcarexpensescalculatedby referencetothedistancetravelledbythecar,such ascents-per-kilometreallowances nawardtransportpayments(paidunderanindustrial laworawardthatwasinforceon29October1986) ntool,clothingandlaundryallowances ndirt,height,site,firstaidandriskallowances nmealandentertainmentallowances.

Ifyoureceivedatravelallowanceoranovertime mealallowancepaidunderanindustriallaw,award oragreementyoudonothavetoincludeitonyour taxreturnif: nitwasnotshownonyourpaymentsummary nitdoesnotexceedtheCommissionersreasonable allowanceamount,and nyouspentthewholeamountondeductible expenses. Ifyouchoosenottoincludeityoucannotclaim adeductionforexpensesincurredinrelationto thatallowance.Formoreinformation,seeTaxation Determination TD 2010/19 Income tax: what are the reasonable travel and overtime meal allowance expense amounts for 201011 income year?.

Did you receive any of the above payments?

NO YES

 Gotoquestion3.  Readbelow.

ANSWERING THIS QUESTION Youwillneedyourpaymentsummariesor comparablestatements(ordetailsofthepayments thatyoureceivediftheyarenotshownonapayment summaryorcomparablestatement).

Ifyoudonothaveallyourpaymentsummaries orcomparablestatements,contactyouremployer orpayer.Ifyouareunsuccessfulinobtaining anyofthese,moreinformationaboutmaking astatutorydeclarationisavailableatwww.ato.gov.au

COMPLETING YOUR TAX RETURN Step 1 Addupanytaxwithheldfromthesepayments.

Donotincludeanyamountsoftaxwithheldyou haveshownatotheritems,suchasitem1. WritetheamountunderTax withheldattheleft ofKitem2. Step 2 Addupallofthesepayments. Donotincludeanyamountsofincomeyouhave shownatotheritems,suchasitem1. WritetheamountunderIncomeatKitem2.

TAXPACK 2011

3 Income

Employer lump sum payments

Thisquestionisaboutanylumpsumpaymentsyou receivedfromyouremployerforunusedannualleave orunusedlongserviceleave.

Did you receive any of these payments?

NO YES

 Gotoquestion4.  Readbelow.

Donotincludeanyemployerlumpsumpayments inarrearsornon-superannuationannuitypayments inarrearsshownatLumpsumEonyourpayment summary.Theseamountsaredealtwithatquestion24 Other incomeinTaxPack 2011 supplement.Similarly, lumpsumpaymentsinarrearsshownonyourPAYG payment summary superannuation income stream aredealtwithatitem7 Australian annuities and superannuation income streams. Donotincludepaymentsforearlyretirementor genuineredundancyshownatLumpsumDonyour PAYG payment summary individual non-business anywhereonyourtaxreturn,astheyarenottaxed.

ANSWERING THIS QUESTION YouwillneedyourPAYG payment summary individual non-business, PAYG payment summary foreign employment oracomparablestatementfrom yourpayershowinganamountatLumpsumAor LumpsumBwhererelevant. Ifyoudonothaveallyourpaymentsummariesor comparablestatements,orifanyofyourcomparable statementsdonotshowanamountyoureceived duringtheyearthatiseitheraLumpsumAor aLumpsumBcontactyouremployerorpayer.If youareunsuccessfulinobtaininganyofthese,more informationaboutmakingastatutorydeclarationis availableatwww.ato.gov.au IfyouhavereceivedaPAYG payment summary foreign employment showinganamountatLump sumAonwhichforeigntaxhasbeenpaidyouwill alsoneedtoincludetheamountatUinitem20. COMPLETING YOUR TAX RETURN IfyoudonothaveanyamountsshownatLump sumAonyourpaymentsummaries,gotostep4. Amounts shown at Lump sum A on your payment summary Step 1 AddupthetotaltaxwithheldfromlumpsumA amountsshownonyourpaymentsummaries.Donot includeanyamountsoftaxwithheldyouhaveincluded atanyotheritem,suchasitem1or2. WritetheanswerunderTax withheldattheleft ofRitem3.
Step 2 AddupalllumpsumAamountsonyourpayment summaries. WritetheansweratRitem3.
8

Step 3 PrintintheTYPEboxattherightofR: Riftheamountrelatedtoagenuineredundancy payment,anearlyretirementschemepayment, ortheinvaliditysegmentofanemployment terminationpaymentorsuperannuationbenefit T forallothersituations. Checkwithyourpayerifyouarenotsure. IfyoudonothaveanyamountsshownatLump sumBonyourpaymentsummaries,youhave finishedthisquestion.Gotoquestion4.

Amounts shown at Lump sum B on your payment summary Step 4 AddupthetotaltaxwithheldfromlumpsumBamounts shownonyourpaymentsummaries.Donotincludeany amountsoftaxwithheldyouhaveincludedatstep1 aboveoratanyotheritem,suchasitem1or2. WritetheanswerunderTax withheldattheleftofH item3.
Step 5 AddupalllumpsumBamountsonyourpayment summaries. Dividethetotalby20toworkout5%oftheamounts. Only5%oftheseamountsistaxable. WritetheansweratHitem3.

MORE INFORMATION Formoreinformation,gotowww.ato.gov.auand enterLumpsumpaymentsintheSearchforboxat thetopofthepage.

TAXPACK 2011

Employment termination payments (ETPs)

Income 4

Thisquestionisaboutemploymenttermination payments(ETPs),whichyoureceivedasaresult oftheterminationofyouremployment. ThesepaymentsareshownonaPAYG payment summary employment termination payment (NAT70868). Thisitemalsoincludes: ndeathbenefitETPs;thesearecertainpayments madeasaconsequenceofthecessationofa personsemploymentthatyoureceivedduetothat personsdeath(seepage124formoreinformation) nforeignETPs;thesearecertainETPsreceived fromoverseasemploymentwhichwereexempt fromincometaxunderthatcountryslaw(see page117formoreinformation) nlateterminationpayments;thesearecertain ETPsyoureceivedmorethan12monthsafter youretiredorceasedemployment(seepage124 formoreinformation) ntransitionalterminationpayments;theseare certainETPsyouwereentitledtoon9May2006 (seepage124formoreinformation).

Donotshowthefollowingpaymentsanywhere onyourtaxreturn: nforeignterminationpayments;thesearecertain terminationpaymentsthatwerenotexemptfrom incometaxoftheforeigncountry(seepage123 formoreinformation) ndirectedterminationpayments;theseare transitionalterminationpaymentsthatcan, atyourrequest,bepaidbyyouremployerto acomplyingsuperannuationfundortopurchase asuperannuationannuity nETPsyoureceivedasthetrusteeofadeceased estate;thesepaymentsmustbeshownonthe trusttaxreturnofthedeceasedestate.

Did you receive an ETP?

NO YES

 Gotoquestion5.  Readbelow.

ANSWERING THIS QUESTION YouwillneedyourPAYG payment summary employment termination payment.

Ifyoudonothaveallyourpaymentsummaries, contactyouremployerorpayer.Ifyouare unsuccessfulinobtaininganyofthese,more informationaboutmakingastatutorydeclaration isavailableatwww.ato.gov.au IfyouhavereceivedaforeignETP,yourforeign employermaynothaveissuedyouwithaPAYG payment summary employment termination payment.Seepage117forfurtherinstructions. Forinformationaboutlate termination payments, transitional termination payments, foreign termination payments,directed termination paymentsanddeath benefits dependants, seepages1235.

COMPLETING YOUR TAX RETURN IfyoureceivedtwoormoreETPs,gotostep5. Otherwise,readon.

Step 1 Writeintheleftcolumnatitem4thedateofpayment andyourpayersAustralianbusinessnumber(ABN), asshownonyourPAYG payment summary employment termination payment. Step 2 Writethetotalamountoftaxwithheldfromyour ETP,asshownonyourPAYG payment summary employment termination payment,underTax withheld attheleftofIitem4.

TAXPACK 2011

4 Employmentterminationpayments(ETPs)

Step 3 WritethetaxablecomponentofyourETP,asshown onyourPAYG payment summary employment termination payment,atIitem4. Step 4 Printtheappropriatecodeletterforthepayment typeintheTYPEboxattherightofIonyourtax return.Ifnoneofthefollowingapplytoyou,leave theboxblank. Tifyoureceivedatransitionalterminationpayment S ifyoureceivedanETPin201011thatwasnot atransitionalterminationpaymentoradeath benefitETPandyouhadreceivedanothersuch ETPinanearlierincomeyearfor the same termination of employment DifyoureceivedadeathbenefitETPandyouwere adeath benefits dependant BifyoureceivedadeathbenefitETPin201011 andyouwerenotadeathbenefitsdependantand youhadreceivedanotherdeathbenefitETPin anearlierincomeyearfor the same termination of employment NifyoureceivedadeathbenefitETPandyouwere notadeathbenefitsdependant,andcodeBdoes notapply. Youhavenowfinishedthisquestion,gotoquestion5.

Step 5 IfyoureceivedtwoormoreETPs,youneedto completeanEmployment termination payment schedule(NAT71744)usingtheinformationshown onyourpaymentsummaries.Togetacopyofthe schedulegotowww.ato.gov.auorphone13 28 61. Step 6 Whenyouhavecompletedtheschedule,transfer thetotalsyouhavewrittenonittoitem4onyour taxreturn.Writethetotaltaxwithheldunder Tax withheldattheleftofI,writethetotaltaxable componentatI,andprintthecodeletterMinthe TYPEbox. DonotwriteanydateofpaymentorpayersABN onyourtaxreturn. Step 7 Attachyourscheduletopage3ofyourtaxreturn andprintXintheYesboxatTaxpayers declaration question2aonpage12ofyourtaxreturn.

MORE INFORMATION Formoreinformationaboutemploymenttermination payments(ETPs),gotowww.ato.gov.auandenter employmentterminationpaymentsintheSearch forboxatthetopofthepage.

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TAXPACK 2011

Australian Government allowances and payments

Income 5

ThisquestionisaboutthefollowingAustralian Governmentpayments: nparentingpayment(partnered) nNewstartallowance nYouthallowance npartnerallowance nsicknessallowance nspecialbenefit nwidowallowance nAustudypayment nexceptionalcircumstancesreliefpayment ninterimincomesupportpayment naneducationpaymentofanyofthefollowingwhen youwere16yearsoldorolder ABSTUDYlivingallowance paymentundertheVeteransChildren EducationScheme paymentundertheMilitaryRehabilitationand CompensationActEducationandTraining Scheme2004,shownasMRCAEducation AllowanceonyourPAYG payment summary individual non-business

nothertaxableCommonwealtheducationor

trainingpayments

nanincomesupportcomponentfromaCommunity

DevelopmentEmploymentProject(CDEP),shown asCommunityDevelopmentEmploymentProjects (CDEP)paymentsonyourPAYG payment summary individual non-business naCDEPschemeparticipantsupplement. DonotincludeanyAustralianGovernment allowancesandpaymentsthatarenottaxable, showtheseatitemIT3 Tax-free government pensions;seeAmounts that you do not pay tax ononpages11113. Donotincludeanyparentalleavepayments;show theseatitem1 Salary and wages.

Did you receive any of these payments?

NO YES

 Gotoquestion6.  Readbelow.

ANSWERING THIS QUESTION Youwillneed: nyourPAYG payment summary individual non-business,or naletterfromtheagencythatpaidyourallowance orpaymentstatingtheamountyoureceived.
Ifyouhavenotreceivedthisinformationoryouhave lostit,contacttheagencythatpaidyou.

TAX TIPS IfyoureceivedNewstartallowanceorwerea Youthallowancejobseeker,youmaybeableto claimsomeofyourexpensesasadeductionat itemD15inTaxPack 2011 supplement.Formore informationseeWhats new this year?onpage3 ofTaxPack 2011. HELPFUL HINTS Ifyouprepareyourtaxreturnonlineusinge-tax, youcanusethepre-fillingservicetodownload thesepaymentsdirectlytoyourtaxreturn.

COMPLETING YOUR TAX RETURN Step 1 Addupthetaxwithheldshownoneachofyour paymentsummariesandletters.

WritethetotalunderTax withheldattheleftof Aitem5. Step 2 Adduptheincomeshownoneachofyourpayment summariesandletters. WritethetotalatAitem5.

TAXPACK 2011

11

6 Income

Australian Government pensions and allowances

ThisquestionisaboutthefollowingAustralian Governmentpayments: nagepension nbereavementallowance ncarerpayment ndisabilitysupportpension,ifyouhavereached age-pensionage neducationentrypayment nparentingpayment(single) nwidowBpension nwifepension,ifeitheryouoryourpartnerwas ofage-pensionage nageservicepension nincomesupportsupplement nDefenceForceincomesupportallowance(DFISA) wherethepension,paymentorallowancetowhich itrelatesistaxable

nDFISA-likepaymentfromtheDepartmentof

VeteransAffairs(DVA) age-pensionage

ninvalidityservicepension,ifyouhavereached npartnerservicepension.

DonotincludeanyAustralianGovernmentpensions orallowancesthatarenottaxable,theseshouldbe shownatitemIT3 Tax-free government pensions; seeAmounts that you do not pay tax onon pages11113.

Did you receive any of these payments?

NO YES

 Gotoquestion7.  Readbelow.

ANSWERING THIS QUESTION Youwillneed: nyourPAYG payment summary individual non-business,or naletterfromtheagencythatpaidyourpension, allowanceorpaymentstatingtheamountthat youreceived.
Ifyouhavenotreceivedthisinformation,oryou havelostit,contacttheagencythatpaidyou. 

TAX TIPS Youmaybeentitledtoataxoffsetonthisincome. MakesureyouworkthroughquestionsT2 Senior AustraliansandT3 Pensionertoseewhether youareentitledtoataxoffset.

HELPFUL HINTS Ifyouprepareyourtaxreturnonlineusinge-tax, youcanusethepre-fillingservicetodownload thesepaymentsdirectlytoyourtaxreturn.

COMPLETING YOUR TAX RETURN Step 1 Addupthetaxwithheldshownoneachofyour paymentsummariesandletters.

WritethetotalunderTax withheldattheleftofB item6. Step 2 Adduptheincomeshownoneachofyourpayment summariesandletters. WritethetotalatBitem6.

12

TAXPACK 2011

Australian annuities and superannuation income streams

Income 7

Thisquestionisaboutincomeyoureceivedfrom annuitiesandsuperannuationincome streams. Annuities(alsoknownasnon-superannuation annuities)maybepaidtoyoubylifeinsurance companiesandfriendlysocieties.Youmayhave receivedaPAYG payment summary individuals non-businessshowingsuchamounts. Superannuation income streams(includinglump suminarrearsamounts)arepaidtoyoubyAustralian superannuationfunds,retirementsavingsaccount (RSA)providersandlifeinsurancecompanies.You mayhavereceivedaPAYG payment summary superannuation income streamshowingsuch amounts. IfyoureceivedataxableAustraliansuperannuation lumpsumpayment,includeitatitem8.

Donotshowthefollowingamountsanywhereon yourtaxreturn: nthetaxedelementofasuperannuationincome streamyoureceivedafteryouturned60yearsold (theseamountsaretaxfreeandnotincludedin yourtaxableincome) nthetaxedelementofasuperannuationincome streampaidtoyouastheresultofthedeathof anotherpersonwhodiedat60yearsoldorolder (theseamountsaretaxfreeandnotincludedin yourtaxableincome).

Did you receive any of these payments?

NO YES

 Gotoquestion8.  Readbelow.

ANSWERING THIS QUESTION Youwillneed: nyourPAYG payment summary individual non-businessshowingthegrosspayment ofanyannuities nyourPAYG payment summary superannuation income stream;superannuationincomestream benefitshavetwocomponentswhichmaybe shownonyourpaymentsummary ataxablecomponentwhichincludes ataxedelement,and anuntaxedelement atax-freecomponent(donotshowyourtax-free componentanywhereonyourtaxreturn).
Youmayalsoneedastatementfromyourpayer showingthedeductibleamountoftheundeducted purchaseprice(UPP)oftheannuitysoyoucanwork outtheamounttoincludeasincomeatthisitem.If youhavenotreceivedthisinformationoryouhave lostit,contactyourpayertoobtainacopy. YoumaynothavereceivedaPAYG payment summary superannuation income streambecause yourentiresuperannuationincomestreamwas tax-free.Forexample,youmaynothavereceiveda paymentsummaryifin201011yoursuperannuation incomestreamcontainedonlytaxedelements receivedonorafteryouturned60yearsold.

COMPLETING YOUR TAX RETURN Step 1: Tax withheld Addupthetaxwithheldamountsonyourpayment summariesforyoursuperannuationincomestreams andannuities.
WritethetotalintheleftcolumnunderTax withheld atitem 7onyourtaxreturn. Step 2: Taxed element of taxable component Addupthetaxed elementamountsthatappear undertheheadingTaxablecomponentonyour superannuationincomestreampaymentsummaries. Donotincludeanygrosspaymentsfromannuities shownonaPAYG payment summary individual non-businessatthisstep.Thesearedealtwithat step4. WritethetotalatJitem7. Step 3: Untaxed element of taxable component Addupanyuntaxed elementamountsthatappear undertheheadingTaxablecomponentonyour superannuationincomestreampaymentsummaries, andwritethetotalat(a)inworksheet 1onthenext page.Ifyoudidnotreceiveany,write0.

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13

7 Australianannuitiesandsuperannuationincomestreams

Step 4: Annuities IfyoudidnotreceiveanyAustralianannuities,write0 at(b)inworksheet 1belowandgotostep5. Ifyoureceivedanannuity,yourpayermay haveprovidedyouwithastatementshowingthe deductible amountoftheUPPofyourannuity.Ifyou donothavedetailsofthedeductibleamount,contact yourpayerforassistance.Ifyourpayercannottell you,phone13 10 20. Subtractthedeductibleamountfromthegross amountoftheannuityshownonyourPAYG payment summary individual non-business.
nIftheanswerisanegativeamountthentheamount

Step 6: Taxed element of lump sums in arrears Addupallthetaxed elementamountsthatappear undertheheadingLumpsuminarrearstaxable componentonyoursuperannuationincomestream paymentsummaries. WritethetotalatYitem7. Step 7: Untaxed element of lump sums in arrears Addupalltheuntaxed elementamountsthatappear undertheheadingLumpsuminarrearstaxable componentonyoursuperannuationincomestream paymentsummaries. WritethetotalatZitem7.

istreatedasifitwaszero. foreachone.

nIfyouhadmorethanoneannuity,repeatthisstep nAddtheseamountsandwriteyourtotalat(b)in

worksheet 1.

LUMP SUMS IN ARREARS TAX OFFSET Youmaybeentitledtoataxoffsetifyoureceiveda superannuationincomestreamlumpsuminarrears. However,youneedtoprovideadditionalinformation.

nOnaseparatesheetofpaper:

Step 5: Total untaxed element Add(a)and(b)inworksheet 1. WORKSHEET 1 Working out the total of untaxed elements and annuity amounts Totaluntaxed element amountsfromsuperannuation incomestreams(fromstep3) Totalamountsfrom annuities(fromstep4) Add(a)and(b).

$ $ $

(a) (b) (c)

printSCHEDULEOFADDITIONALINFORMATION ITEM7 printyourname,addressandtaxfilenumber writetheamountofthepaymentinarrearsfor eachincomeyearinvolved.Forexample,ifyou received$900in201011asalumpsumin arrears,$600ofthatlumpsumcouldbedue toyoufor200809and$300for200910.You wouldwrite200809 $600and200910 $300. Ifyoudonothavethatinformation,contactthe payerofyoursuperannuationincomestream. nAttachyourscheduletopage3ofyourtaxreturn. nPrintXintheYesboxatTaxpayers declaration question2aonpage12ofyourtaxreturn. TAX TIPS Youmaybeentitledtothe: nseniorAustralianstaxoffset;readquestionT2 onpages6870formoreinformation nsuperannuationincomestreamtaxoffset;read questionT4onpage72formoreinformation.

Transfertheamountat(c)toNitem7. Ifyoudidnotreceiveanysuperannuationincome streamlumpsumsinarrears,gotoquestion8.

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TAXPACK 2011

Australian superannuation lump sum payments

Income 8

ThisquestionisaboutAustraliansuperannuation lumpsumpaymentsorsuperannuationdeathbenefit paymentsyoureceived,includingthosepaidby: nsuperannuationfunds napproveddepositfunds nretirementsavingsaccountproviders nlifeinsurancecompanies. Itisalsoaboutany: namountswepaidtoyouinrespectofthe superannuationguaranteechargeorthe superannuationholdingaccountsspecialaccount npaymentsyoureceivedfromtheunclaimed moneyregisters. Donotshowonyourtaxreturnany: ntax-freecomponent(includinganysuper co-contributionpaymentfromus) nlumpsumpaymentsyoureceivedasadeath benefits dependant(seethedefinitionon page124) ntaxedelementofsuperannuationlumpsum paymentyoureceivedonorafteryour60thbirthday unlessitisadeathbenefitsuperannuationlump sumpaymentpaidtoyouasanon-dependant

nsuperannuationlumpsumpaymentreceivedas

thetrusteeofadeceasedestate(thispayment mustbeshownonthetrusttaxreturnofthe deceasedestate) namountsreleasedunderareleaseauthority issuedtoyoubecauseofanexcesscontributions taxassessment namountspaidtoyoubecauseyouhaveaterminal medical condition(seethedefinitiononpage125) astheseamountsaretaxfree. Youneedtocompletethisitemifyoureceived aPAYG payment summary superannuation lump sum(NAT70947)thatshowsataxedor untaxedelement. Showlumpsumsyoureceivedfromforeign superannuationfundsatitem20onyourtax return(supplementarysection).

Did you receive any of these payments?

NO YES

 Gotoquestion9.  Readbelow.

ANSWERING THIS QUESTION YouwillneedyourPAYG payment summary superannuation lump sum.

Ifyouhavenotreceivedit,havelostitorthinkthe details(suchasthedependencystatus)onitare wrong,contactyourpayer.Ifyoustillcannotobtainit orcannotagreeonthedetails,gotowww.ato.gov.au formoreinformationaboutmakingastatutory declarationandenterstatutorydeclarationin theSearchforboxatthetopofthepage.

Step 2 Writethetotalamountoftaxwithheld,asshownonyour paymentsummary,underTax withheldatitem8. Step 3 Did you receive a death benefit lump sum payment when you were not a death benefits dependant of the deceased?
NO YES

 Gotostep4.  PrintNintheTYPEboxatitem8 onyourtaxreturn.Readbelow.

COMPLETING YOUR TAX RETURN Ifyoureceivedmorethanonesuperannuationlump sumduringtheyear,gotostep5.Otherwise,readon.

Step 1 Writeintheleftcolumnatitem8thedateofpayment andyourpayersAustralianbusinessnumber(ABN), asshownonyourPAYG payment summary superannuation lump sum.

Step 4 Thetaxedelementanduntaxedelementofyour superannuationlumpsumareonyourpayment summary. WritethetaxedelementamountatQitem8. WritetheuntaxedelementamountatPitem8. Youhavenowfinishedthisquestion.Gotoquestion9.

TAXPACK 2011

15

8 Australiansuperannuationlumpsumpayments

Step 5 Ifyoureceivedtwoormoresuperannuationlump sums,youneedtocompleteaSuperannuation lump sum schedule(NAT71743)usingtheinformation shownonyourpaymentsummaries.Youcanobtain acopyoftheschedulefromourwebsiteorbyphoning 13 28 61. Step 6 Whenyouhavecompletedtheschedule,addup thetotaltaxwithheld,taxedelementsanduntaxed elementsfromeachsuperannuationlumpsumyou received,andtransfertheseamountstoitem8on yourtaxreturn. WritethetotaltaxwithheldintheTax withheld column. WritethetotaltaxedelementsatQandthetotal untaxedelementsatP.PrintthecodeletterMin theTYPEbox. DonotwriteanydateofpaymentorpayersABN onyourtaxreturn.

Step 7 Attachyourscheduletopage3ofyourtaxreturn andprintXintheYESboxatTaxpayers declaration question2aonpage12ofyourtaxreturn.

MORE INFORMATION FormoreinformationaboutAustraliansuperannuation lumpsums,gotowww.ato.gov.auandenterKey factorsthataffecthowyoursuperpayoutistaxed or Understandingadeathbenefitpaidfromasuper fundintheSearchforboxatthetopofthepage.

16

TAXPACK 2011

Attributed personal services income

Income 9

Youmustcompletethisitemifyouprovidedpersonal servicesandyou: nreceivedaPAYG payment summary business and personal services incomeshowinganXagainst Personalservicesattributedincome,or nhadpersonalservicesincomeattributedtoyou. Ifyouprovidedpersonalservicesandpaymentwas madetoyouasasoletrader,donotcompletethis item.Youmustanswerquestion14inTaxPack 2011 supplement andcompleteitemP1intheBusiness and professional items schedule for individuals 2011 (NAT2816). Personalservicesincomeisincomethatismainly arewardforyourpersonaleffortsorskillsandis generallypaideithertoyouortoapersonalservices entity(acompany,partnershiportrust).

Ifyourpersonalservicesincomeispaidtoapersonal servicesentity,theincome(lesscertaindeductions relatingtogainingorproducingthatincome)maybe attributedtoyouunless: nthepersonalservicesentitygainedtheincome inthecourseofconductingapersonalservices business,or ntheincomewaspromptlypaidtoyoubytheentity assalary.

Did you receive any attributed personal services income?

NO YES

 Gotoquestion10.  Readbelow.

ANSWERING THIS QUESTION Youwillneed: nyourPAYG payment summary business and personal services incomeshowingtheamountof personalservicesincomeattributedtoyouandthe totalamountoftaxpaidorwithheld ndetailsofanyotherpersonalservicesincome attributedtoyou.
Ifyoudonothaveallofyourdocuments,contact thepersonwhopaidyou.

TAX TIPS Ifthepersonalservicesentityhasanetloss relatingtoyourpersonalservicesincome,no amountisattributedtoyou.However,youshould readquestionD15inTaxPack 2011 supplement toclaimadeductionfortheloss.

COMPLETING YOUR TAX RETURN Step 1 Writethetotalamountoftaxwithheldfromthe personalservicesincomeattributedtoyouunder Tax withheldattheleftofOitem9.

Step 2 Writethetotalamountofpersonalservicesincome attributedtoyouatOitem9.

MORE INFORMATION Youcanfindanexplanationoftherulesrelatingto theattributionofpersonalservicesincomeinTaxation Ruling TR 2003/6: Income tax attribution of personal services income.

TAXPACK 2011

17

Total tax withheld

COMPLETING YOUR TAX RETURN Step 1 AddupalltheamountsintheTax withheldcolumn atitems1to9onpage2ofyourtaxreturn.

Step 2 WritethetotalamountatTOTAL TAX WITHHELD.

HELPFUL HINTS Tax offsets and tax withheld Ifyourtaxoffsetshavechangedsinceyoulast filledinaWithholding declaration(NAT3093), youneedtocompleteanewdeclaration. Other amounts withheld Ifyouhavetolodgeactivitystatements: n makesureyoulodgeallyouractivitystatements beforeyoulodgeyourtaxreturn n donotshowpayasyougo(PAYG)instalments anywhereonyourtaxreturn.Theseare automaticallycreditedtoyouinyourassessment.

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TAXPACK 2011

Gross interest

Income 10

Thisquestionisaboutinterestpaidorcreditedto youfromanysourceinAustralia,includingaccounts andtermdepositsheldwithfinancialinstitutionsin Australia.Thisincludes: ninterestwepaidorcreditedtoyou ninterestfromchildrensaccountsyouopenedor operatedwithfundsthatbelongedtoyouorfunds thatyouusedasiftheybelongedtoyou.Formore informationaboutchildrensaccounts,seeTaxation Ruling IT 2486 Income tax: childrens savings accountsonourwebsite.

RefertoTaxPack 2011 supplementifyouhaveany ofthetypesofinterestlistedbelow: ndistributionsofinterestyoureceived,orwere entitledtoreceive,fromapartnershiportrust (includingacashmanagementtrust,propertytrust, unittrustorothersimilartrustinvestmentproduct); seequestion13 ninterestfromaforeignsource;seequestion20 ninterestfromthelandtransportfacilitiestaxoffset schemeorinfrastructureborrowingsscheme; seequestion24.

Was any interest paid or credited to you from any source in Australia?
NO YES

 Gotoquestion11.  Readbelow.

ANSWERING THIS QUESTION Youwillneed: nyourstatements,passbooksandother documentationfromyourfinancialinstitutionsand othersourcesthatshow201011interestincome nanynoticeofassessmentoramendedassessment youreceivedfromusduring201011thatshows interestonearlypaymentsorintereston overpayments.
Taxfilenumber(TFN)amountsareamountsoftax withheldbyfinancialinstitutionsbecauseyoudid notprovideyourTFNorAustralianbusinessnumber (ABN)tothem.TFNamountsareshownonyour statementordocumentasCommonwealthtax orTFNwithholdingtax.Theseamountsmustbe includedasgrossinterestonyourtaxreturn. Donotincludeanyinterestcreditedtoafirsthome saveraccount,orincludedaspartofapaymentto youfromsuchanaccount,atthisitemoranywhere elseonyourtaxreturn. Ifyouwereanon-residentwhenyoureceivedor werecreditedwiththeinterest,donotincludeithere; seepage117forinformationaboutnon-resident withholdingtaxontheseamounts.

Ifyouhadanyjointaccounts,showonlyyourshare oftheinterest.Thiswillbehalfifyouheldtheaccount equallywithoneotherperson.Keeparecordofhow youworkedoutyourproportionifyouandtheother accountholdersdidnotsharetheamountsof interestequally.

COMPLETING YOUR TAX RETURN Step 1 Adduptheamountsofgrossinterestyoureceived in201011.

Step 2 Writethetotalamountofyourgrossinterestat Litem10.Donotshowcents.Ifthetotalwasless than$1,donotwriteanything. Step 3 AddupallyourTFNamountsbutdonotincludeany whichhavealreadybeenrefundedtoyou,asshown onyourstatements.WritethetotalatMitem10. Showcents.

TAXPACK 2011

19

11 Income

Dividends

Thisquestionisaboutdividendsanddistributionsthat werepaidorcreditedtoyoubyAustraliancompanies thatyouhadsharesin.Theseinclude: ndividendsappliedunderadividendreinvestment plan ndividendsthatweredealtwithonyourbehalf nbonussharesthatqualifyasdividends. Yourdividendstatementswillshowtheamounts andshouldshowthepaymentdates. Dividendsinclude: ndistributionsbyacorporatelimitedpartnership ndividendspaidbyacorporateunittrust ndividendspaidbyapublictradingtrust ndividendspaidbyalistedinvestmentcompany. Thefollowingmayalsobeincludedasdividends: nearningsyoureceived,orwerecreditedwith,on anon-shareequityinterest namountsyoureceivedfrom,orwerecredited by,aprivatecompanyasashareholderoran associateofashareholderintheformofpayments, loansordebtsforgiven(thesearegenerally unfrankeddividends)

namountsyoureceivedfrom,orwerecredited

by,thetrusteeofatrustestateintheformof payments,loansordebtsforgivenwhereaprivate companyinwhichyouwereashareholder,or anassociateofashareholder,hadanunpaid presententitlement(orwasgoingtohavesuch anentitlementbyacertaintime)fromthetrust (thesearegenerallyunfrankeddividends).

Donotincludedividendspaidunderademerger unlessthecompanyadvisedyoutoincludethem. Ifyoureceived,orwerecreditedwith,adividend whenyouwerenotanAustralianresident,see page117.

Were you paid or credited with any dividends by Australian companies?

NO YES

 Gotoquestion12.  Readbelow.

ANSWERING THIS QUESTION YouwillneedyourstatementsfromeachAustralian company,corporatelimitedpartnership,corporate unittrust,publictradingtrustandlistedinvestment companythatpaidyoudividendsormadedistributions toyoubetween1July2010and30June2011.

Statementsmayshow: namountsoffrankedandunfrankeddividends namountsoffrankingcredits ntaxfilenumber(TFN)amountswithheldfrom unfrankeddividends. Frankingcreditsareamountsoftaxpaidbythe companythatareallocatedtoyourdividendor distribution.Youincludeasassessableincomeboth theamountofyourdividendordistributionandthe amountofthefrankingcreditsallocatedtoyou.You alsoreceiveataxcreditonyourtaxassessmentfor anamountequaltothefrankingcredits.

Ifwithin45daysofbuyingtheshares(90daysfor certainpreferenceshares),youeithersoldthemor enteredintoanarrangementtoreducetheriskof makingalossonthem,youmaynotbeentitledto claimthefrankingcredits.Additionally,ifyouwere underanobligationtomake,orwerelikelytomake, arelatedpayment,youmaynotbeentitledtoclaim thefrankingcredits.SeeHolding period rule and Related payments ruleonpages11819formore information. TFNamountsareamountsoftaxwithheldfrom dividendsandsomedistributionsbyinvestment bodiesbecauseyoudidnotprovideyourTFNor ABNtothem.TFNamountsareshownonyour dividendstatement.Theseamountsmustbe includedintheamountofunfrankeddividends youwriteonyourtaxreturn.

20

TAXPACK 2011

Dividends 11

Ifyouhadanysharesinjointnames,showonlyyour proportionofthedividends.Thiswouldbehalfifyou heldthesharesequallywithoneotherperson.Keep arecordofhowyouworkedoutyourproportionif youandtheotherjointownersdidnotownthe sharesequally.

TAX TIPS RefertoTaxPack 2011 supplementifanyofthe followingapplytoyou: nyoureceivedadistributionfromapartnership ortrust,seequestion13 nyoucarriedonabusinessoftradinginshares, seequestion15 nyousold,redeemed,cancelledorotherwise disposedofsharesduringtheyear(butdid notcarryonabusinessoftradinginshares), seequestion18 nyoureceiveddividendsfromaforeigncompany, seequestion20 naNewZealandcompanypaidyouadividend withAustralianfrankingcreditsattached,see question20 nyoureceiveddividendsoradistributionon whichfamilytrustdistributiontaxhadbeenpaid, seequestionA4.

COMPLETING YOUR TAX RETURN Ifanyofyourstatementsdonotshowfrankedand unfrankedportionsofthedividend,includethetotal dividendamountatTitem11whenyoucomplete step2.

Step 1 Addupalltheunfrankeddividendamounts fromyourstatements,includinganyTFNamounts withheld.Alsoincludeanyotheramountsthatare treatedasdividends. WritethetotalamountatSitem11. Step 2 Addupallthefrankeddividendamountsfromyour statements,andanyotherfrankeddividendspaid orcreditedtoyou. WritethetotalamountatTitem11. Step 3 Addupthefrankingcreditamountsthatyouare entitledtoclaimshownonyourstatements.Do notincludethemiftheholding period ruleor related payments rulepreventsyoufromclaiming them.Seepages11819formoreinformation. WritethetotalamountatUitem11. Step 4 AddupanyTFNamountswithheldthathavenot beenrefundedtoyou. WritethetotalamountatVitem11.Showcents. Keepyourdividendstatements.Moreinformation onrecordkeepingisavailableonourwebsite atwww.ato.gov.au

MORE INFORMATION Formoreinformationaboutshares,dividendsand amountstreatedasdividends,seeYou and your shares 2011(NAT2632).

Forinformationaboutcapitalgainstax,seeGuide to capital gains tax 2011(NAT4151).

TAXPACK 2011

21

12 Income

Employee share schemes

Thisquestionisaboutdiscountsonemployeeshare schemeinterests(ESSinterests)thatyoureceived underanemployeesharescheme.ESSinterestsare: nshares nstapledsecurities(providedatleastoneofthe stapledinterestsisashareinacompany) nrightstoacquiresharesandstapledsecurities. Thediscountisthedifferencebetweenthemarket valueoftheESSinterestsandtheamountyouorone ofyourassociatespaidtoacquirethem. TheESSinterestscanbe: nfromanAustraliancompanyoraforeigncompany nrelatedtoyouremploymentinsideoroutside Australia. Youwillbetaxedonthediscountintheyearinwhich youacquiredtheinterestinthescheme.Suchschemes areknownastaxed-upfrontschemes.However,ifyou andtheschememeetcertainconditionsthetaxing pointisdeferreduntilalatertime.Theseschemesare knownastax-deferredschemes. Formoreinformation,seeESS guide for employees availableatwww.ato.gov.au

NO

 Ifyouanswerednotoallthreequestions, gotoIncome that you show on the supplementary section of the tax return.  Ifyouansweredyestoanyquestion, readon.

YES

Youcannolongerchoosewhentobetaxedon thediscountyoureceiveonESSinterests.The conditionsoftheschemeinwhichyouparticipate andyourpersonalcircumstancesdeterminewhen youpaytaxonthediscountyoureceive. Insomecircumstances,youmaybeentitledto reducetheamountofthediscountsreceivedunder taxed-upfrontschemesbyupto$1,000.Youmay qualifyforthereductionifthefollowingamountsadd upto$180,000orless: nyourtaxableincomefortheyear(calculatedas thoughyouarenotentitledtothe$1,000reduction) nyourtotalreportablefringebenefitsamounts (WitemIT1) nyourreportableemployersuperannuation contributions(TitemIT2) nyournetfinancialinvestmentloss(XitemIT5) nyournetrentalpropertyloss(YitemIT6) nyourdeductiblepersonalsuperannuation contributions(HitemD12). Formoreinformation,seeESS guide for employees availableatwww.ato.gov.au Therulesoftheschemeoraletterfromyour employershouldadviseyouwhetheryouhave acquiredESSinterestsunderataxed-upfrontor tax-deferralscheme.Youremployermustprovide youwithanemployeeshareschemestatement whichshowsyouthevalueofanydiscountsyou havereceivedonyourESSinterestsin201011. Youwillneedthisstatementtocompletethisitem.

Did you receive a discount on ESS interests you acquired under a taxed upfront scheme? Did a deferred taxing point occur in respect of ESS interests you acquired at a discount under a tax-deferred scheme? Did a cessation time occur during 201011 in relation to shares, stapled securities or rights you acquired before 1 July 2009 under an employee share scheme and you had not elected to be taxed upfront on the discount on those shares etc? Formoreinformationaboutcessationtime, shares,stapledsecuritiesorrightsacquiredbefore 1July2009,seeEmployee share schemes answers to frequently asked questions by employeesavailable atwww.ato.gov.au

ANSWERING THIS QUESTION YouwillneedyourEmployee share scheme statement fromeachemployerwithwhomyouparticipatedinan employeesharescheme.Eachstatementshowsthe amountofyourdiscountandwhetheryourdiscount wasfrom:
22

nataxed-upfrontschemeeligibleforreduction nataxed-upfrontschemenoteligibleforreduction ntax-deferredschemes,or napre-1July2009schemeandacessationtime

occurredduringtheincomeyear.

TAXPACK 2011

Employeeshareschemes 12

Statementsmayalsoshowtaxfilenumber(TFN) amountswithheldwhereapplicable.TFNamounts withheldareamountsoftaxwithheldwhenyoudo notprovideyourTFNorABNtoyouremployer. IfyoureceivedESSinterestsfromaforeignemployer, youmightnotreceiveanESSstatement.Youwill needtocontactyouremployerfordetailsofthe employeeshareschemeinwhichyouparticipated toenableyoutocompleteyourtaxreturn. Ifyoudonothaveallyouremployeesharescheme statementsorcomparablestatements,contactyour employer.Ifyouareunsuccessfulinobtaininganyof these,gotowww.ato.gov.au formoreinformation aboutmakingastatutorydeclaration. IfanassociatehasacquiredanESSinterestas aresultofyouremployment,youmustinclude thediscountinyourassessableincome.Your associateswillnotneedtoincludethediscount ontheirtaxreturn. Ifyouqualifyasatemporaryresidentfortax purposes,specialrulesmayapplyifyouacquired ESSinterestsunderpre-1July2009employee shareschemerulesorESSinterestsunderan employeesharescheme.SeeForeign income exemption for Australian residents and temporary residents employee share schemesavailableat www.ato.gov.au IfyoudisposedofyourESSinterestsbecauseof acorporaterestructureortakeoverandreceived replacementshares,stapledsecuritiesorrights, specialprovisionsmayapply.Seetheelectronic publicationESS rollover relief availableat www.ato.gov.au

WritethetotalamountatDitem11. Step 2 Addupallthediscountamountsyoureceivedfrom taxed-upfrontschemesnoteligibleforreduction includingamountsshownonyouremployeeshare schemestatementsandanyforeignsourcediscounts youreceived. WritethetotalamountatEitem12. Step 3 Addupallthediscountamountsyoureceivedfrom tax-deferredschemeswhereadeferredtaxing pointoccurredduring201011includingamounts shownonyouremployeeshareschemestatements andanyforeignsourcediscountsyoureceived. WritethetotalamountatFitem12. Step 4 Addupallthediscountamountsfromemployeeshare schemeinterestsyouacquiredbefore1July2009where: nyoudidnotmakeanelectiontobetaxedupfront atthetimeyoureceivedthem,and nacessationtimeoccurredduring201011. WritethetotalamountatGitem12. Ifthediscountamountisnotonthestatement, contactyouremployerorseeESS guide for employeesavailableatwww.ato.gov.au Step 5 IfyoudidnotwriteanamountatD,gotostep6. IfyouwroteanamountatD,youmaybeentitled toareductionofupto$1,000ontheamountthat youareassessedon.Todetermineyoureligibility youwillfirstneedtoworkoutwhetheryousatisfy theincometest. Calculateyourtaxableincome(asifyouwerenot entitledtothisreduction).Ifyouhadataxableloss, treatitaszeroforthepurposesofthiscalculation. Addyourtaxableincometothefollowingamounts (whichyoumustcompleteatIncome tests on page8ofyourtaxreturn;seepages1016in TaxPack 2011): nyourtotalreportablefringebenefitsamounts (WitemIT1) nyourreportableemployersuperannuation contributions(TitemIT2) nyournetfinancialinvestmentloss(XitemIT5) nyournetrentalpropertyloss(YitemIT6) nyourdeductiblepersonalsuperannuation contributions(HitemD12).
23

COMPLETING YOUR TAX RETURN Forthepurposesofsteps1to3,employeeshare schemestatementincludescomparablestatements andstatutorydeclarations.

Ifadiscountyouhavereceivedisfromaforeign sourceanditrelatestoaperiodwhenyouwerea foreignresidentforincometaxpurposes,thenyou donotincludethediscountatthisitemoranywhere elseonyourtaxreturn. Step 1 Addupallthediscountamountsyoureceived fromtaxed-upfrontschemeseligibleforreduction includingamountsshownonyouremployeeshare schemestatementsandanyforeignsourcediscounts youreceived.
TAXPACK 2011

12 Employeeshareschemes

Iftheamountthatyoucalculatedwasgreaterthan $180,000,youdonotsatisfytheincometestandare notentitledtoareduction.Adduptheamountsthat youwroteatD,E,FandG.WritethetotalatB. Iftheamountthatyoucalculatedwaslessthanor equalto$180,000,yousatisfytheincometestand areeligibleforthereductionofupto$1,000: niftheamountatDislessthanorequalto$1,000, adduptheamountsthatyouwroteatE,FandG andwritethetotalatB,or niftheamountatDisgreaterthan$1,000,addup theamountsatD,E,FandGthentake$1,000 awayfromthetotal.WritetheresultingamountatB. Gotostep7. Step 6 AdduptheamountsthatyouwroteatE,FandG. WritethetotalatB. Step 7 AddupalltheTFNamountswithheldfromdiscounts fromyouremployeeshareschemestatementsand writethesumatC. Step 8 Ifyoudidnotpayforeignincometaxinrespectof anydiscountsyoureceivedonESSinterestsyouhave finishedthisquestion;gotoIncome that you show on the supplementary section of the tax return. Otherwise,readon. Youmaybeentitledtoclaimaforeignincometax offsetfordiscountsifyouhavepaidforeignincome taxinrespectofthediscounts. Youwillnotbeentitledtoclaimaforeignincometax offsetforanydiscountsthatrelatetoaperiodwhen youwereaforeignresidentforincometaxpurposes.

WriteatA,thetotalamountofyourdiscountsfrom ESSinterestsforwhichyouareclaimingaforeign incometaxoffset. Toclaimaforeignincometaxoffset,youmust completeOitem20onyourtaxreturn(supplementary section).Forinformationonhowtocalculatea foreignincometaxoffsetyouwillneedtoread Guide to foreign income tax offset rules 201011 availableatwww.ato.gov.au Ifyouhavepaidforeigntaxinrespectofdiscounts onESSinterestsincludedinyourassessableincome inapriorfinancialyear,youmaybeentitledtoforeign incometaxoffsetforthatyear.Toclaimthistax offset,youneedtorequestanamendmenttoyour taxreturnforthatfinancialyear.Seepage127onhow torequestanamendmentforaprioryeartaxreturn.

MORE INFORMATION Formoreinformationaboutemployeeshare schemes,seeESS guide for employees available atwww.ato.gov.au

HELPFUL HINTS Donotattachyouremployeesharescheme statementstoyourtaxreturn.Makesureyou keepyourstatementsforatleastfiveyearsafter youareassessedonyourdiscounts.

24

TAXPACK 2011

Income that you show on the supplementary section of the tax return

Income I

YouneedtouseTaxPack 2011 supplementifyouhad anyofthefollowingtypesofincomeorlosses.

nOtherincomenotshownatitems1

to 12

TYPES OF INCOME nPartnershipandtrustdistributions nPersonalservicesincome(otherthansalaryand wageincome)* nIncomefromabusiness(includingonewhere youwereself-employed) nIncomeunderapayasyougo(PAYG)voluntary agreement nIncomefromwhichanamountwaswithheldbecause youdidnotquoteyourAustralianbusinessnumber nIncomereceivedasanindependentcontractor underalabourhirearrangement nIncomeyouearnedasanon-employeetaxidriver, forexample,adriveroperatingunderastandard bailmentagreementwithanowner-operator nIncomefromwhichanamountwaswithhelddueto theoperationofforeignresidentwithholding nIncomeyoudepositedintoafarmmanagement account nIncomeyouwithdrewfromafarmmanagement account nAcapitalgain,forexample,ondisposalofacapital gainstax(CGT)asset nAdistributionfromaforeignentity nIncomeattributedtoyoufromacontrolledforeign company,foreigninvestmentfund,foreignlifepolicy oratransferortrust(foreignincome) nIncomeshownonaforeignemploymentpayment summary nAnyotherforeignemploymentincome nIncomereceivedfromaforeignsource,including foreignpensionsandforeigndividends,forexample, NewZealanddividendswithAustralianfranking credits** nRent nBonusesfromlifeinsurancecompaniesandfriendly societies nForestrymanagedinvestmentschemeincome n Gainsfromfinancialarrangementscalculatedunder thetaxationoffinancialarrangements(TOFA)rules
*Personalservicesincomeincludesthefollowingpayments specifiedbyregulation(specifiedpayments):  incomeasaperformingartistinapromotionalactivity  paymentfortutorialservicesprovidedfortheIndigenous TutorialAssistanceSchemeoftheDepartmentofEducation, EmploymentandWorkplaceRelations  paymentfortranslationandinterpretationservicesforthe TranslatingandInterpretingServiceoftheDepartmentof ImmigrationandCitizenship.

Otherincomeincludes: nanamountreleasedbyoneormoreofyour superannuationfundsgreaterthantheexcess contributionstaxliabilitystatedontherelease authority.Thereleaseauthorityissenttoyouwiththe noticeofassessmentforexcesscontributionstax nlumpsumpaymentsinarrears(exceptthoserelating tosuperannuation;youshowtheseatitem7) njuryattendancefees nforeignexchangegains nroyalties nbonusamountsdistributedfromfriendlysociety incomebonds ntaxablescholarships,bursaries,grantsandother educationalawards nbenefitsandprizesfrominvestment-related lotteriesandsomegame-showwinnings nincomefromyouractivitiesasaspecialprofessional, suchasauthorofaliterary,dramatic,musicalor artisticwork;aninventor;aperformingartist;a productionassociateoranactivesportsperson nreimbursementsoftax-relatedexpensesorelection expenseswhichyouhaveclaimedasadeduction nanassessablebalancingadjustmentfromthe disposal,lossordestructionofanydepreciating asset,includingyourcar,forwhichyouhave claimedadeductionfordeclineinvalue npaymentsfromsicknessandaccidentinsurance policiesotherthanthoseshownonyourpayment summary ninterestfromthelandtransportfacilitiestaxoffset schemeorinfrastructureborrowings ngainsfromthedisposalorredemptionoftraditional securities nallowancesorpaymentsyoureceivedasamember ofalocalgovernmentcouncilthatyouhavenot alreadyshownatitem1or2 nothertaxableallowancesorpaymentsyoureceived fromCentrelinkthatarenotshownatitem5or6 nwork-in-progressamountsyoureceivedandhave notshownatitem15.
**Youmustalsocompletethesupplementarysectionofthe taxreturnif:  youownforeignassets(includinganinterestinaforeign lifepolicyorforeigncompanyortrust,orshares)  youhaveeverdirectlyorindirectlycausedthetransferof property(includingmoney)orservicestoanon-resident trustestate.

TAXPACK 2011

25

I Incomethatyoushowonthesupplementarysectionofthetaxreturn

Types of losses nAbusinessloss(includingonewhenyouwere self-employed) nAdeferrednon-commercialbusinessloss nAcapitalloss,forexample,ondisposalofaCGTasset nNon-capitallossfromthedisposalorredemptionof traditionalsecurities

Did you have any of these types of income or losses?

NO YES

 GotoTotal income or loss.  Readbelow.

ANSWERING THIS QUESTION YoucanfindtheTax return for individuals (supplementary section) 2011atthebackof TaxPack 2011 supplement.Ifyoudonthavea copyofthissupplement,youcangetonefrommost newsagentsduringthelodgmentperiod(1Julyto 31October2011).Copiesarealsoavailableallyear fromourPublicationsDistributionService(seethe insidebackcover)andshopfronts.
Ifyouhadabusinessorpersonalservicesincome, ordeferrednon-commerciallosses,youwillneedto readthepublicationBusiness and professional items 2011(NAT2543)thencompletetheBusiness and professional items schedule for individuals 2011 (NAT2816)andattachittopage3ofyourtaxreturn.

COMPLETING YOUR TAX RETURN Aftercompletingalldetailsthatarerelevanttoyour circumstancesontheTax return for individuals (supplementary section) 2011,transferthe TOTAL SUPPLEMENT INCOME OR LOSSamounton page8toitemIonpage3ofyourTax return for individuals 2011.Ifitisaloss,printLintheLOSS boxbesideit.
HELPFUL HINTS Ifyouwere55yearsoldorolderon30June2011, youmaybeentitledtothematureageworker taxoffset.Certainincomefromthesupplementary sectionwillbeusedtocalculateyournetincome fromworking.SeequestionT12 Net income from working supplementary sectionin TaxPack 2011 supplementforfurtherinformation.

Income

Total income or loss

COMPLETING YOUR TAX RETURN GotoTOTAL INCOME OR LOSSonpage3of yourtaxreturn.

Step 1 Checkthatyouhaveshownallyourincome. Step 2 Addupalltheamountsintheright-handcolumn ofitems1to12onpages23ofyourtaxreturn.
26

Step 3 Ifbelowitem12onyourtaxreturnyouhaveno amountatIgotostep4,otherwisereadon.Ifthe amountatIisalossyoutakeitawayfromyourtotal fromstep2,otherwiseaddtheamountatItoyour totalfromstep2. Step 4 WriteyouransweratTOTAL INCOME OR LOSS. Ifyouranswerisaloss,printLintheLOSSboxat therightofTOTAL INCOME OR LOSS.
TAXPACK 2011

Claiming deductions

Youmaybeabletoclaimdeductionsforwork-related expensesyouincurredwhileperformingyourjobas anemployee.Youincuranexpenseinanincome yearwhen: nyoureceiveabillorinvoiceforanexpensethatyou areliableforandmustpay(evenifyoudontpayit untilaftertheendoftheincomeyear),or nyoudonotreceiveabillorinvoicebutyouare chargedandyoupayfortheexpense. Theseexpensesinclude: ncarexpenses,includingfuelcostsandmaintenance ntravelcosts nclothingexpenses neducationexpenses nunionfees nhomecomputerandphoneexpenses ntoolsandequipmentexpenses njournalsandtrademagazines. Youmayalsobeabletoclaimsomedeductions whicharenot work related.Theyare: ninterestanddividenddeductionsforinvestments ndeductionsforgiftsanddonations nadeductionforthecostofmanagingyourtaxaffairs. Formoreinformationandexamplesexplainingthe meaningofincurred,refertoTaxation Ruling TR 97/7 Income tax: section 8-1 meaning of incurred timing of deductions.Thispublicationisavailableon ourwebsite.Seetheinsidebackcovertofindout howtoobtainaprintedcopy.

BASIC RULES Youmusthaveincurredtheexpensein201011. Theexpensemustnotbeprivate,domesticorcapital innature.Forexample,thecostsofnormaltravelto andfromwork,andbuyingluncheachdayareprivate expenses.Ifyouincurredanexpensethatwasboth work-relatedandprivateordomesticinnature,you canclaimadeductiononlyforthework-related portionoftheexpense. Ifyouincurredanexpensethatwascapitalinnatureyou maybeabletoclaimadeductionforthedeclineinvalue ofthedepreciatingassetsyouacquired.SeeDecline in value of a depreciating assetonthenextpage. Ifyouincurredanexpenseforservicespaidinadvance, readAdvance expenditurebelowtodecidewhatpart oftheexpenseisdeductiblein201011. Youcannotclaimadeductionforanexpensetothe extentthat: nsomeoneelsepaidtheexpense,oryouwere,or willbe,reimbursedfortheexpense,and nthepaymentorreimbursementisafringebenefit (includinganexemptbenefit). RECORD KEEPING FOR WORK-RELATED EXPENSES Youmustbeabletosubstantiateyourclaimsfor deductionswithwrittenevidenceifthetotalamount ofdeductionsyouareclaimingisgreaterthan$300. Therecordsyoukeepmustprovethetotalamount, notjusttheamountover$300. Ifthetotalamountyouareclaimingis$300orless, youneedtobeabletoshowhowyouworkedout yourclaims,butyoudonotneedwrittenevidence. Moreinformationonwrittenevidenceisavailableat www.ato.gov.au ADVANCE EXPENDITURE Ifyouhaveprepaidanamountforaservicecosting $1,000ormore,andtheserviceextendsforaperiodof morethan12monthsorbeyond30June2012(suchas asubscriptiontoajournalrelatingtoyourprofession), youcanclaimonlytheportionthatrelatestothe201011 incomeyear.Youcanalsoclaimtheproportionofyour pre-paidexpensesfromapreviousyearthatrelateto the201011incomeyear.Formoreinformation,see Deductions for prepaid expenses 2011(NAT4170). ALLOWANCES Ifyoureceivedanallowancethatyoushowed atitem2onyourtaxreturn,youmaybeable toclaimadeductionforyourexpensescovered bytheallowancebutonlytotheextentthatyou
27

GOODS AND SERVICES TAX Ifyourexpenseincludesanamountofgoods andservicestax(GST),theGSTispartofthetotal expenseandisthereforepartofanydeduction.For example,ifyouincurredunionfeesof$440which included$40GST,youclaimadeductionfor$440. FOREIGN EMPLOYMENT PAYMENT SUMMARY IfyoureceivedaPAYG payment summary foreign employmentthenanydeductionsthatyouareentitled toclaiminrespectoftheincomeshownonthat paymentsummarymustbeclaimedatitemsD1 toD6,whererelevant. Allforeigndeductionsmustbetranslated(converted) toAustraliandollarsbeforeyoucompletethisitem. Moreinformationonhowtotranslateyourforeign deductionsisavailableonourwebsiteoryoucan phone13 28 61togetinformationaboutthe exchangerates.

TAXPACK 2011

Claimingdeductions

actuallyincurredthoseexpensesinproducingyour employmentincomeandthebasicrulesdiscussed onthepreviouspagearesatisfied.Forexample,if youreceivedatoolsallowanceof$500andyourtool expenseswere$300,youincludethewholeamount oftheallowanceatitem2onyourtaxreturnand claimadeductionof$300atitemD5.

nbetweentwoseparateplacesofemployment

(forexample,whenyouhaveasecondjob)

nfromyournormalworkplacetoanalternative

DECLINE IN VALUE OF A DEPRECIATING ASSET Youmaybeabletoclaimadeductionforthedecline invalueofadepreciatingassetwhichyouheldduring the201011yeartotheextentthatyouuseditto produceincomethatyoushowonyourtaxreturn. Adepreciatingassetisanassetthathasalimited effectivelifeandcanreasonablybeexpectedto declineinvalueoverthetimeitisused.Depreciating assetsincludeitemssuchastools,referencebooks, computersandofficefurniture. Thedeclineinvalueofadepreciatingassetisworked outonthebasisofitseffectivelife.Youmayeither makeyourownestimatesofitseffectivelifeoruse theCommissionerseffectivelifedeterminations(see Taxation Ruling TR 2010/2 Income tax: effective life of depreciating assetsforassistancewithboth). Youmaybeabletoclaimanimmediatededuction forthefullcostofdepreciatingassetscosting$300 orlessprovidedcertainconditionsaremet.Formore information,seetheGuide to depreciating assets 2011. Thispublicationisavailableonourwebsite.Seetheinside backcovertofindouthowtoobtainaprintedcopy. CAR AND TRAVEL EXPENSES Work-relatedcarexpensesandwork-relatedtravel expensesareexpensesyouincurinthecourseof performingyourjobasanemployee.Youclaim deductionsforthematitemsD1andD2. Thedeductionsincludethecostoftripsbetween yourhomeandyourworkplaceif: nyouusedyourcarbecauseyouhadtocarrybulky toolsorequipmentthatyouusedforworkand couldnotleaveatyourworkplace(forexample, anextensionladderorcello) nyourhomewasabaseofemployment(thatis, youstartedyourworkathomeandtravelled toaworkplacetocontinueyourworkforthe sameemployer) nyouhadshiftingplacesofemployment(thatis,you regularlyworkedatmorethanonesiteeachday beforereturninghome).
Work-relatedcarandtravelexpensesalsoinclude thecostoftrips:

workplacewhileyouarestillondutyandback toyournormalworkplaceordirectlyhome nfromyourhometoanalternativeworkplaceand thentoyournormalworkplaceordirectlyhome (forexample,ifyoutraveltoaclientspremises toworktherefortheday). Ifthetravelwaspartlyprivate,youcanclaimonly thework-relatedpart. Youcannotclaimnormaltripsbetweenyourhome andyourworkplace,evenif: nyoudidminorwork-relatedtasksathomeor betweenhomeandyourworkplace nyoutravelledbetweenyourhomeandworkplace morethanonceaday nyouwereoncall ntherewasnopublictransportnearwork nyouworkedoutsidenormalbusinesshours nyourhomewasaplacewhereyouranyourown businessandyoutravelleddirectlytoaplaceof employmentwhereyouworkedforsomebodyelse. CompleteitemD1forwork-relatedexpensesfora caryouowned,leasedorhiredunderahirepurchase agreement(andtheexpenseisnotatravelexpense whichyoushowatitemD2). CompleteitemD2forthefollowingwork-relatedcar andtravelexpenses: nexpensesforvehicleswithacarryingcapacityof onetonneormore,ornineormorepassengers (forexample,utilitytrucksandpanelvans) nexpensesformotorcycles nshort-termcarhire npublictransportfares nbridgeandroadtolls nparkingfees ntaxifares npetrol,oilandrepaircostsrelatingtowork-related travelyoudidinacarownedorleasedby someoneelse nmeal,accommodationandincidentalexpenses youincurredwhileawayovernightforwork.

Award transport payments Ifyoureceivedanawardtransportpayment thatwaspaidunderanindustriallaworaward inforceon29October1986,gotowww.ato.gov.au andenterClaimingadeductionforcarexpenses awardtransportpaymentsintheSearchforboxat thetopofthepageforinformationonhowtoclaimit.

TAXPACK 2011

28

Work-related car expenses

Deductions D1

Forinformationaboutwhatexpensesyouclaimas carexpenses(itemD1)andwhatexpensesyouclaim astravelexpenses(itemD2),andsomeexamplesof tripsyoucanandcannotclaim,seeCar and travel expensesonthepreviouspage. Thisquestionisaboutwork-relatedexpensesyou incurredasanemployeeforacaryou: nowned(evenifitisnotregisteredinyourname) nleased(evenifitisnotregisteredinyourname),or nhiredunderahire-purchaseagreement.

Did you have any of these work-related car expenses?

NO YES

 GotoquestionD2.  Readbelow.

ANSWERING THIS QUESTION Youmayneed: nwrittenevidenceforyourcarexpenses(receipts, invoicesordiaryentries) nyourcarlogbookandodometerrecords.

Youcanchooseoneoffourmethodstoworkout yourcarexpenses.Ifyouqualifytousemorethan onemethod,youcanusewhichevergivesyouthe largestdeductionorismostconvenient.These methodsare: ncentsperkilometre n12%oforiginalvalue none-thirdofactualexpenses nlogbook. Theyaresummarisedonthefollowingpages. Youmusthavethenecessaryevidenceforthe methodyouchoose. Eachmethodrequiresyoutoknoworestimateyour businesskilometres.Businesskilometresarethe kilometresyoutravelledinthecarinthecourseof earningassessableincome(includeswork-related activities).Forsomeexamplesoftripsyoucanand cannotclaim,seeCar and travel expensesonthe previouspage. Wealsohaveonlinecalculatorstoassistyou. Gotowww.ato.gov.au/calculatorsandselect thework-relatedexpensesoption. Ifyoureceivedassessableincomefromyourwork asanemployeeoutsideAustralia,includingany assessableforeignemploymentincomeshownon yourPAYG payment summary foreign employment, youcanclaimanywork-relatedcarexpensesyou incurredinearningthatincomeatthisitem.
TAXPACK 2011

Deductions for decline in value (depreciation) Youcanclaimadeductionforthedeclineinvalue ofthecaronlyifyouowneditorhireditundera hire-purchaseagreementandyoumustuseeitherthe one-thirdofactualexpensesorthelogbookmethod.

Ifyouleasedaluxurycar,seeSpecial circumstances and glossaryonpage119formoreinformation. Remember:
nThecarstartstodeclineinvaluefromthedayyou

firstuseit,evenifyoudontbeginusingitforwork untilalatertime. nYoucanclaimadeductiononlyforayearinwhich youusedthecarforwork. nIfyouusedthelogbookmethodandownedyour carforonlypartoftheyear,youwillneedto apportionyourdeductionaccordingly. Ifyouareclaimingadeductionforthedeclineinvalue ofacar,youshouldrefertothepublicationGuide to depreciating assets 2011(NAT1996).Tofindouthow togetacopy,seetheinsidebackcover.

Was your car sold, disposed of, stolen or destroyed? Ifyouhavebeenclaimingdeductionsforyourcar and,duringtheincomeyear,yousoldordisposed ofit,oritwasstolenordestroyed,youmayneed tomakeabalancingadjustment.Youdonotneed tomakeabalancingadjustmentifyouusedonly thecentsperkilometreor12%oforiginalvalue methodforcalculatingexpensesforyourcar.

29

D1 Work-relatedcarexpenses

ThepublicationGuide to depreciating assets 2011 explainshowtoworkouttheamountofthebalancing adjustment. Ifyouhadalossaftermakingtheadjustment,include yourdeductionforitatitemD5.Ifyouhadaprofit aftermakingyouradjustment,includeitatitem24 onyourtaxreturn(supplementarysection). Youalsomakeabalancingadjustmentifyou: nswitchedbetweentheone-thirdofactual expensesmethodandthelogbookmethod,or nswitchedbetweentheone-thirdofactual expensesorlogbookmethodandthecents perkilometreor12%oforiginalvaluemethod. Toworkouttheamountofthebalancingadjustment inthesesituations,contactusoryourrecognised taxadviser.

Step 1 Multiplythetotalbusinesskilometrestravelled (maximumof5,000kmpercar)bythenumber ofcentsallowedforyourcarsenginecapacity (seebelow). RATES PER BUSINESS KILOMETRE Engine capacity Ordinary engine Rotary engine Cents per kilometre

1.6litre(1,600cc) 0.8litre(800cc) 63cents orless orless 1.6012.6litre (1,6012,600cc) 2.601litre (2,601cc) andover 0.8011.3litre (8011,300cc) 1.301litre (1,301cc) andover 74cents 75cents

COMPLETING YOUR TAX RETURN Ifyouhavemorethanonecarandyouareclaiming expensesunderdifferentmethods,addtheamounts youworkoutundereachmethodandwritethetotal atitemD1onyourtaxreturn.Printthecodeletterfor themethodthatgaveyouthelargestamountinthe CLAIM TYPEboxbesidetheamount. Method 1: Cents per kilometre nYourclaimisbasedonasetrateforeach businesskilometre. nYoucanclaimamaximumof5,000business kilometrespercar,peryear. nYoudonotneedwrittenevidence,butyouneedto beabletoshowhowyouworkedoutyourbusiness kilometres.Moreinformationonrecordkeeping andwrittenevidenceisavailableatwww.ato.gov.au

Step 2 Divideyouranswerby100toworkoutthedollar amountyoucanclaim. Step 3 Ifyouareclaimingformorethanonecarusingthis method,repeatthestepsaboveandaddupallthe amounts. Step 4 WritethetotalatAitemD1.PrintthecodeletterS intheCLAIM TYPEboxbesidetheamount.

Example Joannehada2-litreordinaryenginecarwhichshe usedtotravel300kminperformingherjobduring 201011.Sheclaimsadeductionof$222.

300km74cents 100 =$222

30

TAXPACK 2011

Work-relatedcarexpenses D1

Method 2: 12% of original value nForyoutousethismethod,yourcarmusthave travelledmorethan5,000businesskilometresin theincomeyear(or,ifyouusedthecarforonly partoftheyearitwouldhavetravelledmorethan 5,000businesskilometreshadyouuseditforthe wholeyear,seestep1below). nYourclaimisbasedon12%oftheoriginalcost ofyourcar,or12%ofitsmarketvalueatthetime youfirstleasedit. nThemaximumdeductionyoucanclaimis12% oftheluxurycarlimitfortheyearyoufirstused orleasedthecar;seepage119forluxurycarlimits forthelast10years. nYoudonotneedwrittenevidence,butyouneed tokeeparecordofhowyouworkedoutyour kilometres.
Step 1 Ifyouownedorleasedyourcarforthewholeyear, gotostep2. Ifyouownedorleasedthecarforpartoftheyear, youwillneedtoworkoutwhetheryoucanusethis method.Firstly,workoutthenumberofbusiness kilometrestravelledandmultiplythatnumberby365. Thendividethisamountbythenumberofdaysyou hadthecarduringtheyear.Ifyouranswerismore than5,000kmyoucanusethismethod. Step 2 Multiplythecostofthecarorluxurycarlimit, whicheverisless,by0.12. Step 3 Gotostep5ifyouownedorleasedthecarfor thewholeyear. Step 4 Ifyouhadthecarforpartoftheyear,multiplythe amountyouworkedoutatstep2bythenumber ofdaysyouhadthecar.Thendivideby365. Step 5 WritethetotalatAitemD1.PrintthecodeletterT intheCLAIM TYPEboxbesidetheamount.

Method 3: One-third of actual expenses nYourcarmusthavetravelledmorethan5,000 businesskilometresintheincomeyear(or,ifyou usedthecarforonlypartoftheyearitwouldhave travelledmorethan5,000businesskilometreshad youuseditforthewholeyear,seestep1below). nYouclaimone-thirdofallyourcarexpenses, includingprivatecosts(butexcludingcapitalcosts, suchasthepurchaseprice,theprincipalonany moneyborrowedtobuyyourcarandthecostof anyimprovements). nForfuelandoilcosts,youcankeepreceiptsto workouttheamountsoryoucanestimatethem basedonodometerrecordsthatshowreadings fromthestartandtheendoftheperiodyouhad thecarduringtheyear. nYouneedwrittenevidenceforalltheother expensesforthecaraswellasrecordsthat showthecarsenginecapacity,make,model andregistrationnumber.
Youmayneedtoshowhowyouworkedoutyour businesskilometresandanyestimatesyoumade. Step 1 Ifyouownedorleasedyourcarforthewholeyear, gotostep2. Ifyouownedorleasedthecarforpartoftheyear, youwillneedtoworkoutwhetheryoucanusethis method.Firstly,workoutthenumberofkilometres travelledandmultiplythatnumberby365.Then dividethisamountbythenumberofdaysyouhad thecarduringtheyear.Ifyouranswerismorethan 5,000kmyoucanusethismethod. Step 2 Addupyourtotalexpensesforfuelandoil, registration,insurance,loaninterest,repairsand maintenance,thedeclineinvalueorleasepayments andanyothercostsofrunningyourcar.Seepage29 toworkouttheamounttoshowherefordecline invalue. Step 3 Dividethetotalexpensesby3. Step 4 WritetheamountatAitemD1.PrintthecodeletterO intheCLAIM TYPEboxbesidetheamount.

TAXPACK 2011

31

D1 Work-relatedcarexpenses

Method 4: Logbook nYourclaimisbasedonthebusinessusepercentage oftheexpensesforthecar. nExpensesincluderunningcostsanddeclineinvalue butnotcapitalcosts,suchasthepurchasepriceof yourcar,theprincipalonanymoneyborrowedtobuy itandanyimprovementcosts.Ifyouneedtowork outthedeclineinvalueofyourcar,seepage29. nToworkoutyourbusinessusepercentage,you needalogbookandtheodometerreadingsfor thelogbookperiod(seebelow). nYoucanclaimfuelandoilcostsbasedoneither youractualreceiptsoryoucanestimatethe expensesbasedonodometerrecordsthatshow readingsfromthestartandtheendoftheperiod youhadthecarduringtheyear. nYouneedwrittenevidenceforallotherexpenses forthecar.
Yourbusinessusepercentageisthepercentageof kilometresyoutravelledinthecarforworkduringthe yeardividedbythetotalkilometrestravelledbythe carduringtheyear. Ifthepatternofyourcarusechangedduringthe year,makeareasonableestimateofyourbusiness usepercentageforthewholeof201011,takinginto accountyourlogbook,odometerandotherrecords, anyvariationsinthepatternofuseofyourcarand anychangesinthenumberofcarsyouusedinthe courseofearningyourincome.

nthenumberofkilometrestravelledforworkduring

thelogbookperiodbasedonthejourneysrecorded fortheperiod nthebusinessusepercentagefortheperiod. Entriesinthelogbookforeachbusinesstripmust bemadeattheendofthejourney(orassoonas possibleafterwards)andshowthe: ndatethejourneybeganandended nodometerreadingsatthestartandendof thejourney nkilometrestravelledonthejourney nreasonforthejourney. Yourrecordsmustalsoshowthemake,model, enginecapacityandregistrationnumberofthecar. Step 1 Workoutthetotalkilometrestravelledduring thelogbookperiodandhowmanyofthesewere businesskilometres.Dividethebusinesskilometres bythetotalkilometrestravelled.Thisisyourbusiness usepercentage. Step 2 Addupyourtotalexpenses.(Seepage29towork outtheamounttoincludefordeclineinvalue.) Step 3 Multiplytheamountatstep2byyourbusinessuse percentagefromstep1(orifthepatternofuseofthe carhaschangedthenusethereasonableestimate youmade). Step 4 WritetheamountatAitemD1.PrintthecodeletterB intheCLAIM TYPEboxbesidetheamount.

Logbook period Yourlogbookisvalidforfiveyears.Ifthisisthefirst yearyouareusingthismethod,youmusthavekept alogbookduring201011.Itmustcoveratleast 12continuousweeks.Ifyoustartedusingyourcarfor work-relatedpurposeslessthan12weeksbeforethe endoftheyear,youcanextendthe12-weekperiod into201112.(Ifyouareusingthelogbookmethod fortwoormorecars,thelogbookforeachcarmust coverthesameperiod.)
Ifyouestablishedyourbusinessusepercentageusing alogbookfromanearlieryear,youneedtokeepthat logbookandmaintainodometerrecords.Youalsoneed tokeepalogbookifwetoldyouinwritingtokeepone. Yourlogbookmustshow:
nwhenthelogbookperiodstartsandends,andthe

odometerreadingsatthesetimes duringthelogbookperiod

nthetotalnumberofkilometresthecartravelled

MORE INFORMATION Formoreinformation,see: nTaxation Ruling TR 95/34 Income tax: employees carrying out itinerant work deductions, allowances and reimbursements for transport expenses nDeduction for transport between workplaces the Payne amendmentsatwww.ato.gov.au nGuide to depreciating assets 2011(NAT1996)for declineinvalueofacar nLaw Administration Practice Statement PS LA 1999/2 Calculating car expense deductions where the car is jointly owned, jointly leased or jointly hired under a hire purchase agreement (but is not owned, leased or hired by a partnership).

32

TAXPACK 2011

Work-related travel expenses

Deductions D2

Forinformationaboutwhatexpensesyouclaimas carexpenses(itemD1)andwhatexpensesyouclaim astravelexpenses(itemD2),andsomeexamplesof tripsyoucanandcannotclaim,seeCar and travel expensesonpage28. Thisquestionisabouttravelexpensesyouincur thataredirectlyrelatedtoyourworkasanemployee. Theyinclude: npublictransport,includingairtravelandtaxifares nbridgeandroadtolls,parkingfeesandshort-term carhire nmeal,accommodationandincidentalexpenses youincurwhileawayovernightforwork nexpensesformotorcyclesandvehicleswith acarryingcapacityofonetonneormore,ornine ormorepassengers,suchasutilitytrucksand panelvans nactualexpenses(suchasanypetrol,oilandrepair costs)youincurtotravelinacarthatisownedor leasedbysomeoneelse.

Ifyouremployerprovidedacarforyouoryourrelatives exclusiveuseandyouoryourrelativeswereentitledto useitfornon-workpurposes,youcannotclaima deductionforwork-relatedexpensesforitsdirect operation,suchaspetrol,oilandrepairs.Thisisthe caseeveniftheexpensesrelatedirectlytoyourwork. However,youcanclaimexpensessuchasparkingand bridgeandroadtollsforwork-relateduseofthecar.

Reasonable allowance amounts Ifyourtravelallowancewasnotshownon yourpaymentsummaryandwasequaltoorless thanthereasonableallowanceamountforyour circumstances,youdonothavetoincludethe allowanceatitem2providedthatyouhavefully spentitondeductiblework-relatedtravelexpenses andyoudonotclaimadeductionfortheseexpenses. Did you have any work-related travel expenses?
NO YES

 GotoquestionD3.  Readbelow.

ANSWERING THIS QUESTION Youmusthavewrittenevidenceforthewholeof yourclaim.

Ifyouwishtoclaimmeal,accommodationand incidentalexpensesyouincurredwhileawayovernight forwork,usethetableonpage119todeterminewhat evidenceyouneed.Formoreinformationaboutwritten evidence,gotoww.ato.gov.auandenterwritten evidenceintheSearchforboxatthetopofthepage. Ifyoureceivedassessableincomefromyourwork asanemployeeoutsideofAustralia,includingany assessableforeignemploymentincomeshownon yourPAYGpaymentsummaryforeignemployment income,youcanclaimanywork-relatedtravel expensesyouincurredinearningthatincome atthisitem.

TAX TIPS Makesureyoukeepaccuraterecordsoftravelto makefutureclaims.

COMPLETING YOUR TAX RETURN Step 1 Addupallyourdeductibletravelexpenses.

Step 2 WritethetotalamountatBitemD2.

MORE INFORMATION Forinformationon: nshiftingplacesofemployment,seeTaxation Ruling TR 95/34 Income tax: employees carrying out itinerant work deductions, allowances and reimbursements for transport expensesonour website,orseetheinsidebackcovertofindout howtoobtainaprintedcopy nreasonableallowanceamounts,seeTaxation Determination TD 2010/19 Income tax: what are the reasonable travel and overtime meal allowance expense amounts for 201011 income year?. ReadthisdeterminationtogetherwithTaxation Ruling TR 2004/6 Income tax: substantiation exception for reasonable travel and overtime meal allowance expenses.

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33

D3 Deductions

Work-related clothing, laundry and dry-cleaning expenses

Thisquestionisaboutexpensesyouincurredasan employeeforwork-related: nprotectiveclothing nuniforms noccupation-specificclothing,and nlaunderinganddry-cleaningofclothinglistedabove. Youcanclaimthecostofaworkuniformthatis distinctive(suchasonethathasyouremployerslogo permanentlyattachedtoit)anditmustbeeither: nanon-compulsory uniformthatyouremployer hasregisteredwithAusIndustry(checkwithyour employerifyouarenotsure),or nacompulsory uniformthatcanbeasetofclothing orasingleitemthatidentifiesyouasanemployee ofanorganisation.Theremustbeastrictlyenforced policymakingitcompulsorytowearthatclothingat work.Itemsmayincludeshoes,stockings,socks andjumperswheretheyareanessentialpartofa distinctivecompulsoryuniformandthecolour,style andtypearespecifiedinyouremployerspolicy.

Youcanalsoclaimthecostof: noccupation-specific clothingwhichallowspeople toeasilyrecognisethatoccupation(suchasthe checkedpantsachefwearswhenworking)and whicharenotforeverydayuse nprotective clothing and footweartoprotect youfromtheriskofillnessorinjury,ortoprevent damagetoyourordinaryclothes,causedbyyour workorworkenvironment.Itemsmayinclude fire-resistantclothing,sunprotectionclothing, safety-colouredvests,non-slipnursesshoes, steel-cappedboots,gloves,overalls,aprons, andheavydutyshirtsandtrousers(butnotjeans). Youcanclaimthecostofprotectiveequipment, suchashardhatsandsafetyglassesatitemD5. Youcanclaimthecostofrenting,repairingand cleaninganyoftheabovework-relatedclothing. Youcannotclaimthecostofpurchasingorcleaning plainuniformsorclothes,suchasblacktrousers, whiteshirts,suitsandstockings,evenifyour employerrequiresyoutowearthem.

Did you have any work-related clothing, laundry or dry-cleaning expenses?

NO YES

 GotoquestionD4.  Readbelow.

ANSWERING THIS QUESTION Youwillneed: nreceipts,invoicesorotherwrittenevidence,and nanydiaryrecordsofyourlaundrycostsifyou needwrittenevidence.Formoreinformationabout writtenevidencegotowww.ato.gov.auandenter writtenevidenceintheSearchforboxatthetop ofthepage.
Youmusthavewrittenevidenceforyourlaundryand dry-cleaningexpensesif: ninthecaseoflaundryexpenses,theamountofyour claimisgreaterthan$150,and nyourtotalclaimforwork-relatedexpensesexceeds $300.The$300doesnotincludecarandmeal

allowance,awardtransportpaymentsallowance andtravelallowanceexpenses. Ifyoudidwashing,dryingorironingyourself,you canuseareasonablebasistocalculatetheamount, suchas$1perloadforwork-relatedclothing,or 50centsperloadifotherlaundryitemswere included. Ifyoureceivedassessableincomefromyourwork asanemployeeoutsideofAustralia,includingany assessableforeignemploymentincomeshownon yourPAYG payment summary foreign employment, youcanclaimanydeductiblework-relatedclothing, laundryordry-cleaningexpensesyouincurredin earningthatincomeatthisitem.

34

TAXPACK 2011

Work-relatedclothing,laundryanddry-cleaningexpenses D3

COMPLETING YOUR TAX RETURN Step 1 Addupallyourdeductiblework-relatedclothing, laundryanddry-cleaningexpenses.

Youcanalsousethework-relateduniformexpenses calculatoratwww.ato.gov.au/calculatorstoaddup yourclaimandthengotostep2. Step 2 WritethetotalatCitemD3. Step 3 Selectthecodeletterthatdescribesthemaintype ofclothingyouareclaimingfor: Nnon-compulsoryworkuniform Ccompulsoryworkuniform S occupation-specificclothing P protectiveclothing PrinttheletterintheCLAIM TYPEboxattheright ofCitemD3.

MORE INFORMATION Formoreinformationonwork-relatedclothing, laundryanddry-cleaningexpenses,see: nTaxation Ruling TR 98/5 Income tax: calculating and claiming a deduction for laundry expenses n Taxation Ruling TR 97/12 Income tax and fringe benefits tax: work-related expenses: deductibility of expenses on clothing, uniform and footwear n Taxation Ruling TR 2003/16 Income tax: deductibility of protective items n Taxation Ruling TR 94/22 Income tax: implications of the Edwards case for the deductibility of expenditure on conventional clothing by employees n Taxation Determination TD 1999/62 Income tax: what are the criteria to be considered in deciding whether clothing items constitute a compulsory corporate uniform/wardrobe for the purposes of paragraph 30 of Taxation Ruling TR 97/12?

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35

D4 Deductions

Self-education expenses

Thisquestionisaboutself-educationexpensesthat arerelatedto: nyourworkasanemployee,or nyourreceiptofAustudy,ABSTUDYorYouth allowancetostudy. Self-educationexpensesareexpensesthatyouincur whenyoudoacoursetogetaformalqualification fromaschool,college,universityorotherplaceof education. Toclaimadeductionforwork relatedself-education expenses,youmusthavemetoneofthefollowing conditionswhenyouincurredtheexpense: nthecoursemaintainedorimprovedaskillor specificknowledgerequiredforyourthencurrent workactivities nyoucouldshowthatthecoursewasleadingto, orwaslikelytoleadto,increasedincomefrom yourthencurrentworkactivities,or nothercircumstancesexistedwhichestablished adirectconnectionbetweenthecourseandyour thencurrentworkactivities. Youcannotclaimadeductionforwork-related self-educationforacoursethat: nrelatesonlyinageneralwaytoyourcurrent employmentorprofession,or nwillenableyoutogetnewemployment.

If,whenyouincurredyourexpensesyousatisfied theconditionsnecessarytoclaimadeduction,you canclaimthefollowing: nyourtuitionfeespayableunderFEE-HELP (FEE-HELPprovidesassistancetoeligible fee-payingstudents,whoarenotsupported bytheCommonwealth,topaytuitionfees) nyourtuitionfeespayableunderVETFEE-HELP [VETFEE-HELPprovidesassistancetoeligible full-feepayingstudentsdoingvocationaleducation andtraining(VET)accreditedcourseswithan approvedVETprovider] nself-educationexpensesyoupaidwithyour OS-HELPloan(OS-HELPisaloantocover expensesforeligibleCommonwealthsupported studentswhowishtostudyoverseastowardstheir Australianhighereducationaward) nthecostofyourmealsduringtemporaryovernight absencesfromhometoparticipateinself-education nyourotherexpensessuchastextbooks,stationery, studentunionandcoursefees,andthedeclinein valueofyourcomputer(apportioneddepending onprivateuseanduseforself-education) nforwork relatedself-education,expensesforyour travelineitherdirectionbetween: yourhomeandyourplaceofeducation yourworkplaceandplaceofeducation.  Onlythefirstlegofthetripisdeductibleifyouwent fromhometoyourplaceofeducationandthento work,ortheotherwayaround. IfyoureceiveAustudy,ABSTUDYorYouth allowance tostudyfull-time,youcannotclaimadeductionfortravel betweenyourhomeandyournormalplaceofeducation. Youcannotclaimcontributionsyou,orthe AustralianGovernment,makeunderHECS-HELP orrepaymentsyoumakeundertheHigherEducation LoanProgram(HELP)ortheStudentFinancial SupplementScheme(SFSS). Donotincludeatthisitemdeductionsforthecostof: nformaleducationcoursesprovidedbyprofessional associations nseminars,educationworkshopsorconferences connectedtowork. Includethematitem D5 Other work-related expenses.

Example Louisisacomputersciencestudent.Hedoesnot receiveAustudy,ABSTUDYorYouth allowance. Hisstudiesarefocusedonsystemanalysis,software designandprogramming.Louisalsoworksat theuniversitylaboratoryinstallingcomputers.His courseandjobareonlyverygenerallyrelated.Thework onlyrequiresalowlevelofcomputerknowledgewhich Louisalreadyhadbeforestartinghisemployment.
Thehigh-levelprofessionalskillsLouisacquiresfrom thecoursearewellbeyondtheskillsrequiredforhis currentemployment.ConsequentlyLouiscannotclaim adeductionforhiscoursebecauseit: ndoesnotmaintainorimprovehisspecific knowledgeorskillsinhiscurrentjob nrelatesinonlyageneralwaytohiscurrent employment,and nwillenablehimtogetnewemployment. Youcanalsoclaimadeductionforself-education expensesif,indoingthecourse,youaresatisfying studyrequirementstoreceiveAustudy,ABSTUDY orYouth allowancetostudy.

Did you have any of these expenses?

NO YES

 GotoquestionD5.  Readon.

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TAXPACK 2011

Self-educationexpenses D4

ANSWERING THIS QUESTION Tocompletethisitemyouwillneedwrittenevidence. Formoreinformationonwhatiswrittenevidence gotowww.ato.gov.au andenterKeepingyourtax recordsintheSearchforboxatthetopofthepage.

Youcanusetheself-educationexpensescalculatorat www.ato.gov.au/calculatorstoworkoutyourclaim, thengotostep4underCompleting your tax return onpage38.Otherwise,followtheinstructionsonthe nextpage. Toworkoutthedeductionyoucanclaimatthis itemforcarandtravelexpenses,seequestionD1 Work-related car expensesonpages2932and questionD2 Work-related travel expenseson page33. WORKSHEET Category A

Ifyoureceivedassessableincomefromyourwork asanemployeeoutsideofAustralia,includingany assessableforeignemploymentincomeshownon yourPAYG payment summaryforeign employment, youcanclaimanywork-relatedself-education expensesyouincurredinearningthatincomeat thisitem.

COMPLETING YOUR TAX RETURN Tocompletethisitem,youmustaddupyour self-educationexpensesunderthefollowing categoriesbecause,inworkingoutwhatyou canclaim,certaincostsarereducedby$250.

Your amount Generalexpensesthataredeductible,includingtextbooks,stationery,student unionfees,coursefeesandpublictransportfares. Alsoincludecarexpenses(otherthanthedeclineinvalueofacar)worked outunderthelogbookorone-thirdofactualexpensesmethod.Formore information,seequestionD1 Work-related car expensesonpages2932. $

Deductionsforthedeclineinvalueofdepreciatingassetsusedfor self-education,includingcomputersandcarsforwhichyouareclaiming deductionsunderthelogbookorone-thirdofactualexpensesmethod. Expensesforrepairstoitemsofequipmentusedforself-education. Carexpensesrelatedtoyourself-educationforwhichyouareclaiming deductionsunderthecentsperkilometreor12%oforiginalvaluemethod. (Ifyouhaveincludeddeductionsforthedeclineinvalueoforrepairstoyourcar undercategoryBorC,youcannotclaimcarexpensesunderthiscategory.) Self-educationexpensesthatarenotdeductible,whichare:

n privatecosts,includingnon-deductibletravelandchildcarecosts,and n capitalcosts,likethepurchasepriceofadeskorcomputer.

$ $

C D

DonotincludecontributionsyoumadeunderHECS-HELPorrepayments underHELPorSFSS.

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37

D4 Self-educationexpenses

Usetheamountsyouhavewritteninthe worksheetonthepreviouspagetocomplete thestepsthatfollow. Step 1 IfyouhadanycategoryAexpenses,gotostep2. Otherwise,readon. AddB,CandD. $ (f)

Transfertheamountat(f)toDitemD4.Gotostep4. Step 2 AddC,DandE. $ (g)

Iftheamountat(g)islessthan$250,gotostep3. Otherwise,readon. AddA,B,CandD. $ (h)

Step 4 Selectfromthelistbelowthecodeletterthatbest describesyourself-education. KAtthetimeyouincurredtheexpensethe studymaintainedorimprovedaskillorspecific knowledgerequiredforthoseworkactivities. I Atthetimeyouincurredtheexpenseyoucould showthatthestudywasleadingto,orwaslikely toleadto,increasedincomefromthosework activities. OAtthetimeyouincurredtheexpense,other circumstancesexistedwhichestablishedadirect connectionbetweenyourself-educationandyour workactivitiesasanemployee. X Youincurredtheexpenseindoingacourseof studyforwhichyoureceivedAustudy,ABSTUDY orYouthallowancetostudy. Step 5 Printyourcodeletter(K,I,OorX)fromstep4inthe CLAIM TYPEboxattherightofDitemD4.

Transfertheamountat(h)toDitemD4.Gotostep4. Step 3 Taketheamountat(g) awayfrom$250. Taketheamountat(i)away fromyourcategoryAamount. Iftheresultiszeroorless, write0at(j). AddB,CandD. Add(k)and(j). $ (i)

MORE INFORMATION Formoreinformation,see: nGuide to depreciating assets 2011(NAT1996) aboutdeductionsfordeclineinvalue,balancing adjustmentsandimmediatedeductionsforcertain depreciatingassets nTaxation Ruling TR 98/9 Income tax: deductibility of self-education expenses.
TAX TIPS Tomakeworkingoutyourdeductionseasier nextyear,startkeepingyourrecordsnow. Formoreinformationaboutrecordkeeping gotowww.ato.gov.au andenterKeeping yourtaxrecordsintheSearchforboxatthe topofthepage.

(j)

$ $

(k) (l)

Transfertheamountat(l)toDitemD4.

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TAXPACK 2011

Other work-related expenses

Deductions D5

Thisquestionisaboutanyotherwork-related expensesyouincurredasanemployeeandhave notalreadyclaimed,including: nunionfeesandsubscriptionstotrade,business orprofessionalassociations novertimemealexpenses,providedthat theamountforovertimemealshasnotbeen includedaspartofyournormalsalaryorwages, forexample,underaworkplaceagreement youreceivedagenuineovertimemealallowance fromyouremployerthatwaspaidunderan industriallaw,awardoragreement(seeMore informationonthenextpage) youhaveincludedtheamountofthemeal allowanceasincomeatitem2,and ifyourclaimwasmorethan$25.80permeal, youhavewrittenevidence,suchasreceiptsor diaryentries,thatshowsthecostofthemeals nprofessionalseminars,courses,conferencesand workshops nreferencebooks,technicaljournalsandtrade magazines ntoolsandequipmentandprofessionallibraries;you maybeabletoclaimanimmediatedeductionforan itemthatcost$300orless,otherwise,youclaima deductionforthedeclineinvalueofanitemoverits effectivelife;seeGuide to depreciating assets 2011 (NAT1996)formoreinformation nitemsthatprotectyoufromtheriskofinjury orillnessposedbyyourworkoryourwork environment,suchashardhats,safetyglasses andsunscreens(butnotprotectiveclothingand footwear,whichyouclaimatitemD3) nthework-relatedproportionofthefollowingcosts interestonmoneyborrowedtobuyacomputer repaircostsforthecomputer thedeclineinvalueofthecomputer(youmayneed tomakeabalancingadjustmentifyounolongerown orusethecomputerandyoupreviouslyclaimed adeductionforitsdeclineinvalue;seeGuide to depreciating assets 2011formoreinformation)

internetaccesscharges phonecalls phonerentalifyoucanshowyouwereoncallor wereregularlyrequiredtophoneyouremployer orclientswhileawayfromyourworkplace thedeclineinvalueofyourhomeofficefurniture andfittings homeofficeheating,cooling,lightingand cleaningcosts. Foryourhomeofficeexpenses,youcan: nkeepadiaryofthedetailsofyouractualcostsand yourwork-relateduseoftheoffice,or nuseafixedrateof34centsperhourforheating, cooling,lightingandthedeclineinvalueoffurniture inyourhomeoffice. Youcanusethehomeofficeexpensescalculator atato.gov.au/calculatorstoworkoutyourclaim. Generally,youcannotclaimadeductionfor occupancyexpensessuchasrent,rates,mortgage interestandinsurance. Youcannotclaimanydeductionforthedeclinein valueoflaptops,portableprinters,personaldigital assistants,calculators,mobilephones,computer software,protectiveclothing,briefcasesandtoolsof tradeprimarilyforuseinyouremploymentiftheitem wasprovidedtoyoubyyouremployer,orsomeor allofthecostoftheitemwaspaidorreimbursed byyouremployer,andthebenefitwasexemptfrom fringebenefitstax.

Did you have any other work-related expenses?

NO YES

 GotoquestionD6.  Readbelow.

ANSWERING THIS QUESTION Youwillneedsomeofthefollowing: nyourPAYG payment summary individual non-business nstatementsfromyourbank,buildingsociety orcreditunion

nreceipts,invoicesorwrittenevidencefromyour

supplierorassociation

notherwrittenevidence.

Ifyourtotalclaimforallwork-relatedexpenses exceeds$300,youmusthavewrittenevidence. Moreinformationonwhatiswrittenevidenceis availableatwww.ato.gov.au

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TAXPACK 2011

D5 Otherwork-relatedexpenses

Ifyoureceivedassessableincomefromyour workasanemployeeoutsideAustralia,including anyassessableforeignemploymentincome shownonyourPAYG payment summary foreign employment,youcanclaimanywork-related expensesyouincurredinearningthatincomeat thisitemprovidedyouhavenotalreadyclaimed theexpenseatanotheritem.

COMPLETING YOUR TAX RETURN Step 1 Addupalltheexpensesthatyoucanclaimat thisitem.

Toworkouttheamountyoucanclaimfor depreciatingassets,seeGuide to depreciating assets 2011. Step 2 WritethetotalamountatEitemD5.

MORE INFORMATION Formoreinformation,see: n Guide to depreciating assets 2011(NAT1996) forinformationondeclineinvalueandbalancing adjustments n Taxation Ruling TR 93/30 Income tax: deductions for home office expenses n Taxation Ruling TR 2004/6 Income tax: substantiation exception for reasonable travel and overtime meal allowance expenses n Law Administration Practice Statement PS LA 2001/6 Home office expenses: diaries of use and calculation of home office expenses n Law Administration Practice Statement PS LA 2005/7 Substantiation of deductions claimed by individual taxpayers for work and car expenses incurred in the course of earning non-business and non-investment income.
Thesepublicationsareavailableonourwebsite,or seetheinsidebackcovertofindouthowtoobtain aprintedcopy.

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TAXPACK 2011

Low-value pool deduction

Deductions D6

Thisquestionisaboutclaimingadeductionforthe declineinvalueoflow-costandlow-value assets youusedinthecourseofproducingincomeyou showonyourtaxreturn,byallocatingthemto whatiscalledalow-value pool.(Claimsfordeduction forthedeclineinvalueofassetsaredealtwithat otherquestions.) Low-cost assetsaredepreciatingassetsthatcost lessthan$1,000. Low-value assetsaredepreciatingassetsthat arenotlow-costassetsbutwhich,on1July2010, hadbeenwrittenofftolessthan$1,000underthe diminishingvaluemethod. Youcanhaveonlyonelow-valuepool.Onceyou choosetoallocatealow-costassettoalow-value pool,youmustallocatetothepoolallotherlow-cost assetsyouholdinthatyearandinfutureyears. Assetsyoucanallocatetoalow-valuepoolinclude assetsyouuse: ninyourworkasanemployee(seequestionsD1 toD5),or ntogainrentalincome(seequestion21in TaxPack 2011 supplement). However,ifyouclaimthedeductionatthisitem, donotclaimitatitemsD1toD5and21.

Thefollowingcannotbeincludedinalow-valuepool: nassetsyouhavepreviouslyclaimeddeductions forusingtheprimecostmethod nassetsthatcost$300orlessforwhichyoucan claimanimmediatededuction nassetsforwhichyoudeductamountsunderthe simplifieddepreciationrulesforsmallbusiness entities;formoreinformation,seeBusiness and professional items 2011(NAT2543) nhorticulturalplants naportableelectronicdevice(suchasa mobilephone,personaldigitalassistantorlaptop computer),computersoftware,protectiveclothing, abriefcaseoratooloftrade,whichisprimarilyfor useinyouremployment,ifyouremployerprovided it,paidforitorreimbursedyouforanyofitscost, andthebenefitwasexemptfromfringebenefitstax. Ifyourlow-valuepoolcontainsonlyassetsusedin business,donotincludeyourdeductionhere,but includeitinsteadatitemP8ontheBusiness and professional items schedule for individuals 2011 (NAT2816).

Did you allocate assets to a low-value pool in 201011 or in a previous year?

NO YES

 GotoquestionD7.  Readbelow.

ANSWERING THIS QUESTION Whenyouallocateanassettoalow-valuepool,you mustmakeareasonableestimateofthepercentage youwillusetheassettoproduceyourassessable incomeoveritseffectivelife(foralow-costasset)or remainingeffectivelife(foralow-valueasset).This estimateiscalledyour taxable use percentagefor theasset.
Youworkoutyourlow-valuepooldeductionusing adiminishingvaluerate.Arateof37.5%isgenerally appliedtothepoolbalance.However,arateof 18.75%,orhalfthenormalpoolrate,isapplied tothetaxable use percentageof: nthecostofeachlow-costassetyouallocateto thepoolthisincomeyear

nanyadditionalcapitalcosts(suchasimprovements)

youincurthisincomeyearforassetsyouallocatedto thepoolinanearlierincomeyearandforlow-value assetsyouallocatetothepoolthisincomeyear.

Readexample 1,thenuseworksheet 1toworkout yourdeduction.

Example 1 Edwardboughtaprinterfor$600in201011.His employerdidnotpayorreimburseanyofthecost oftheprinter.Hedecidedtoallocateittoalow-value pool.Heestimatedthatoveritseffectivelifethe printerwouldbeused40%ofthetimetoproduce hisassessableincomeasanemployee.

$60040%is$240.Therefore,Edwardwillwrite $240at(e)inworksheet 1. ThisisthefirstyearofEdwardslow-valuepool.

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41

D6 Low-valuepooldeduction

Edwardpreviouslyclaimeddeductionsunderthe diminishingvaluemethodforalaptopcomputerhehad purchasedfor$1,500.Hisemployerdidnotpayor reimburseanyofthecostofthecomputer.Thelaptops openingadjustablevalueon1July2010was$900. WORKSHEET 1 Low-value pool deduction

Edwardestimatesthathewilluseitsolelytoproduce hisassessableincomeforitsremainingeffectivelife. Edwardallocatesthelaptoptothepoolin201011 asitisnowalow-valueasset.

Edward Theclosingbalanceofthepoolfor200910.Ifyoudidnothave alow-valuepoolin200910,write0at(a). Foreachlow-value assetallocatedtothepoolin201011,multiply itsopeningadjustablevalue(on1July2010)byyourtaxableuse percentagefortheasset.Adduptheamountsandwritethetotalat(b). Add(a)and(b). Multiply(c)by0.375. Foreachlow-cost assetallocatedtothepoolin201011,multiply itscost(includingadditionalcapitalcostsincurredin201011,such asimprovements)byyourtaxableusepercentagefortheasset. Adduptheamountsandwritethetotalat(e). Foreach nassetallocatedtothepoolinapriorincomeyear,and nlow-valueassetallocatedtothepoolin201011 forwhichyouincurredadditionalcapitalcosts(suchasimprovements) in201011,multiplythecostsbyyourtaxableusepercentageforthe asset.Adduptheamountsandwritethetotalat(f). Add(e)and(f). Multiply(g)by0.1875. Add(d)and(h). $0

You $ (a)

$900 $900 $337

$ $ $

(b) (c) (d)

$240

(e)

$0 $240 $45 $382

$ $ $ $

(f) (g) (h) (i)

Theamountat(i)isthetotallow-valuepooldeduction.Edwardwillshow$382atKitemD6 onhistaxreturn.

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TAXPACK 2011

Low-valuepooldeduction D6

COMPLETING YOUR TAX RETURN Step 1 Usingworksheet 1,workoutyourtotallow-value pooldeduction.Transfertheamountyouworkedout at(i)toKitemD6.

Step 2 Youwillneedtheclosingpoolbalancefor201011to calculateyourlow-valuepooldeductionfornextyear. Useworksheet 2toworkouttheclosingbalance. Somecommonevents,suchasthesaleordisposal ofanassetinthelow-valuepool,ortheassetslossor destructionresultinabalancingadjustmentevent. Iftherehasbeenabalancingadjustmenteventforan assetinthepool,youmustreducetheclosingpool balance.Todothis,youmultiplytheassetstermination value(generallyanyproceeds,includinganyinsurance payout,fromtheevent)byyourtaxableusepercentage WORKSHEET 2 Closing balance for 201011

fortheasset.Yourclosingpoolbalanceisreducedby theamountthatresultsfromthismultiplication.Thereis spaceforyoutoincludethisamountinworksheet 2. Ifthisamountismorethantheclosingpoolbalance, youreducetheclosingpoolbalancetonilandinclude theexcessamountinOther incomeatitem24on yourtaxreturn(supplementarysection). Keeparecordofyour201011closingpoolbalance fornextyearstaxreturn.

MORE INFORMATION Formoreinformation,seeGuide to depreciating assets 2011(NAT1996).Toseethispublication,go towww.ato.gov.auandenterGuidetodepreciating assetsintheSearchforboxatthetopofthepage. Seetheinsidebackcovertofindouthowtoobtain aprintedcopy.

Edward Transferamountfrom(a)inworksheet 1. Transferamountfrom(b)inworksheet 1. Transferamountfrom(e)inworksheet 1. Transferamountfrom(f)inworksheet 1. Add(j),(k),(l)and(m). Transferamountfrom(i)inworksheet 1. Take(o)awayfrom(n). $0 $900 $240 $0 $1140 $382 $758

You $ $ $ $ $ $ $ (j) (k) (l) (m) (n) (o) (p)

Foreachpoolassetsubjecttoabalancingadjustmenteventin201011, multiplyitsterminationvaluebyyourtaxableusepercentageforthe asset(seestep2above).Adduptheamountsandwritethetotalat(q). $0 Take(q)awayfrom(p).Thisisyourclosingpoolbalancefor201011. $758

$ $

(q) (r)

TAXPACK 2011

43

D7 Deductions

Interest deductions

Thisquestionisaboutexpensesyouincurredin earninganyinterestyoudeclaredatitem10. Yourexpensesmayinclude: nbankorotherfinancialinstitutionaccount-keeping feesforaccountsheldforinvestmentpurposes nmanagementfeesandfeesforinvestmentadvice relatingtochangesinthemixofyourinvestments. Showanyexpensesincurredinearningtrustand partnershipdistributionsatXandYitem13onyour taxreturn(supplementarysection).

Donotshowexpensesincurredinearningforeign sourceinterestatthisitem.Theyaretaken intoaccountatitem20orD15onyourtaxreturn (supplementarysection).

Did you have any interest deductions?

NO YES

 GotoquestionD8.  Readbelow.

ANSWERING THIS QUESTION Youwillneed: nyourbankorfinancialinstitutionstatementsor passbooks.

Youcannotclaimaccount-keepingfeesonafirst homesaveraccount. Ifyouhadanyjointaccountsorotherinterest-earning investments,showonlyyourshareofthejoint expenses.Thiswillbehalfifyouheldtheaccount orinvestmentequallywithoneotherperson.Keep arecordofhowyouworkedoutyourproportionif youandtheotherinvestorsoraccountholdersdid notsharetheexpensesequally. Ifyouborrowedmoneytopurchaseassetsforyour privateuseandincome-producinginvestments,you canclaimonlytheportionoftheinterestexpenses relatingtotheincome-producinginvestments. Youcanalsoclaimaproportionofthedeclineinvalue ofyourcomputerbasedonthepercentageofyour totalcomputerusethatrelatedtomanagingyour investments.Ifyouusedyourcomputertomanage yourinvestmentinbothinterest-earninginvestments andinvestmentsinsharesorsimilarsecuritiesthen youcanclaimonlytheproportionofthedeclinein valuerelatedtomanagingthoseinvestmentsonce. Youclaimtheamountateitheritem D7orD8.

Youcannotclaimexpensesyouwerechargedfor drawingupaninvestmentplanunlessyouwere carryingonaninvestmentbusiness,inwhichcase youwouldclaimanyexpensesatitem P8onthe Business and professional items schedule for individuals 2011(NAT2816). Ifyouincurredparticulartypesofexpenses,such asinterestonborrowedmoney,relatingtocertain overseasinvestments(orinvestmentsinAustralia ifyouwereaforeignresident)yourclaimsmaybe affectedbythincapitalisationrules.Theserulesmay applyifthetotalofyourdebtdeductionsandthoseof yourassociatesismorethan$250,000for201011. Formoreinformation,gotowww.ato.gov.auand enterThincapitalisationintheSearchforboxat thetopofthepage.

COMPLETING YOUR TAX RETURN Step 1 Addupallyourdeductionsforthisitem.

Step 2 WritethetotalamountatIitemD7.

MORE INFORMATION Formoreinformation,see: nGuide to depreciating assets 2011(NAT1996) ifyouareclaimingadeductionforthedeclinein valueofyourcomputer.

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TAXPACK 2011

Dividend deductions

Deductions D8

Thisquestionisaboutexpensesyouincurredin earninganydividendandsimilarinvestmentincome youdeclaredatitem11. Youmustalsocompletethisitemifyouhadalisted investmentcompany(LIC)capitalgainamountin yourdividends. Yourexpensesmayinclude: nmanagementfees,andfeesforinvestmentadvice relatingtochangesinthemixofyourinvestments ninterestchargedonmoneyborrowedtopurchase sharesorsimilarinvestments ncostsrelatingtomanagingyourinvestments,such astravelandbuyingspecialistinvestmentjournals orsubscriptions.

Showanyexpensesincurredinearningtrustand partnershipdistributionsatXandYitem13onyour taxreturn(supplementarysection). Donotshowexpensesincurredinearningforeign sourcedividendsatthisitem.Theyaretakeninto accountatitem20orD15onyourtaxreturn (supplementarysection).

Did you have any dividend deductions?

NO YES

 GotoquestionD9.  Readbelow.

ANSWERING THIS QUESTION Youwillneedyourdividendstatementsshowingany LICcapitalgainamount.(Showdividendsreceived fromaLICatitem11.)

Ifyouhadanyjointshareinvestmentsorsimilar investments,showonlyyourshareofjointexpenses. Thiswillbehalfifyouheldtheinvestmentequallywith oneotherperson.Keeparecordofhowyouworked outyourproportionifyouandtheotherinvestorsdid notsharetheexpensesequally. Ifyouborrowedmoneytopurchaseassetsforyour privateuseandincome-producinginvestments,you canclaimonlytheportionoftheinterestexpenses relatingtotheincome-producinginvestments. Interestoninvestmentsunderacapitalprotected borrowingmaynotbefullydeductible.Formore informationgotowww.ato.gov.au andenter Aboutcapitalprotectedproductsandborrowings intheSearchforbox. Youcanalsoclaimaproportionofthedeclineinvalue ofyourcomputerbasedonthepercentageofyour totalcomputerusethatrelatedtomanagingyour investments.Ifyouusedyourcomputertomanage yourinvestmentinbothinterest-earninginvestments andinvestmentsinsharesorsimilarsecuritiesthen youcanclaimonlytheproportionofthedeclinein valuerelatedtomanagingthoseinvestmentsonce. YoucanclaimtheamountatitemD7orD8. Youcannotclaimexpensesyouwerechargedfor drawingupaninvestmentplanunlessyouwere carryingonaninvestmentbusiness,inwhich

caseyouwouldclaimanyexpensesatitemP8on theBusiness and professional items schedule for individuals 2011(NAT2816). IfyouwereanAustralianresidentwhenaLICpaid youadividendandthedividendincludedaLICcapital gainamount,youcanclaimadeductionof50%of theLICcapitalgainamount.TheLICcapitalgain amountwillbeshownseparatelyonyourdividend statement. Ifyouincurredparticulartypesofexpenses,such asinterestonborrowedmoney,relatingtocertain overseasinvestments(orinvestmentsinAustraliaifyou wereaforeignresident)yourclaimsmaybeaffectedby thethincapitalisationrules.Theserulesmayapplyif thetotalofyourdebtdeductionsandthoseofyour associatesismorethan$250,000for201011.For moreinformationgotowww.ato.gov.au andenter ThincapitalisationintheSearchforboxatthetop ofthepage.

COMPLETING YOUR TAX RETURN Step 1 Addupallyourdeductionsforthisitem.

Step 2 WritethetotalamountatHitemD8.

MORE INFORMATION Formoreinformation,see: nYou and your shares 2011 (NAT2632) nGuide to depreciating assets 2011(NAT1996) ifyouareclaimingadeductionforthedeclinein valueofyourcomputer.
45

TAXPACK 2011

D9 Deductions

Gifts or donations

Thisquestionisaboutgiftsordonationsyoumade. Youcanclaimadeductionfor: nvoluntarygiftsof$2ormoremadetoanapproved organisation nanetcontributionofmorethan$150toan approvedorganisationforafund-raisingevent (seepage120forfurtherconditions) ncontributionsof$2ormoreto aregisteredpoliticalparty anindependentcandidateinanelectionfor parliament anindividualwhowasanindependentmember ofparliamentorinlimitedcircumstanceswasan independentmember. Approvedorganisationsinclude: ncertainfunds,organisationsorcharitieswhich providehelpinAustralia nsomeoverseasaidfunds nschoolbuildingfunds nsomeenvironmentalorculturalorganisations. Youcanalsoclaimadeductionfor: nadonationtoanapprovedorganisationofshares listedonanapprovedstockexchangevalued at$5,000orless

nmakinganapprovedculturalbequest nadonationtoaprivateancillaryfund nenteringintoaconservationcovenant.

Yourreceiptwillusuallyindicatewhetherornotyoucan claimadeductionforthegift.Ifyouarenotsure,you cancheckwiththeorganisation.Ifyouarestillnotsure, gotowww.abn.business.gov.au orphoneustofind outiftheorganisationisanapprovedorganisation. Employeeswhomakedonationsundersalary sacrificearrangementsarenotentitledtoclaiman incometaxdeductionforthedonationontheirown taxreturn. Youcannotclaimadeductionforagiftordonation ifyoureceivedsomethinginreturn(forexample, raffleticketsordinner)exceptincertainfund-raising events;seepage120.

Did you make a gift or donation?

NO YES

 GotoquestionD10.  Readbelow.

NATURAL DISASTER DONATIONS Ifyoumadeoneormoredonationsof$2ormore tobucketcollectionsconductedbyanapproved organisationfornaturaldisastervictims,youcan claimataxdeductionofupto$10forthetotalof thosecontributionswithoutareceipt.Formore informationseeWhats new this yearonpage3. ANSWERING THIS QUESTION Ifyoumadedonationsduringtheyeartoan approvedorganisationthroughyouremployers payrollsystem(knownasworkplace-giving),you stillneedtorecordthetotalamountofyourdonations atthisitem.Yourpaymentsummaryorotherwritten statementfromyouremployershowingthedonated amountissufficientevidencetosupportyourclaim. Youdonotneedtohaveareceipt. Ifyoumadedonationsinajointname,includeonly yourshare. Seepage120formoreinformationabouttherules fordeductionsfor: ngiftsofproperty,suchaslandandartworks ncontributionstofund-raisingevents ngiftsofsharesvaluedat$5,000orless ncontributionsandgiftstoregisteredpoliticalparties andindependentcandidatesandmembers.
46

Formoreinformationabouttherulesandwhat recordstokeep,gotowww.ato.gov.auandenter MakingtaxdeductibledonationsintheSearchfor boxatthetopofthepage: nforcultural,environmentalandheritagepropertygifts nforculturalbequests nwhenenteringintoconservationcovenants nifyouchoosetospreadoverfiveyearsyour deductionforcertaintypesofgifts.

COMPLETING YOUR TAX RETURN Step 1 Adduptheamountsofallgiftsanddonationsyou areentitledtoclaim.

Step 2 WritethetotalatJitemD9.

MORE INFORMATION Formoreinformation,see: nTaxation Ruling TR 2005/13 Income tax: tax deductible gifts what is a gift nLaw Administration Practice Statement PS LA 2002/15 Evidence for making of a gift by a taxpayer who participates in a workplace-giving program.
TAXPACK 2011

Cost of managing tax affairs

Deductions D10

Thisquestionisabout: nexpensesyouincurred*inmanagingyourtaxaffairs, includingfeespaidtoarecognisedtaxadviserfor doingyourtaxreturn naninterestchargeweimposedonyou namountswechargedtoyouforunderestimatinga variedgoodsandservicestax(GST)instalmentorpay asyougo(PAYG)instalment nexpensesforcomplyingwithyourlegalobligations relatingtoanotherpersonstaxaffairs.
*You incuranexpenseintheincomeyearwhen:  youreceiveabillorinvoiceforanexpensethatyouareliablefor andmustpay(evenifyoudontpayituntilaftertheendoftheyear)  youdonotreceiveabillorinvoicebutyouarechargedand youpayfortheexpense.

Did you incur any expenses relating to managing your tax affairs?
NO

 GotoDeductions that you show on the supplementary section of the tax return.  Readbelow.

YES

ANSWERING THIS QUESTION Thecostofmanagingyourtaxaffairscaninclude: nthepreparationandlodgmentofyourtaxreturn andactivitystatements ntraveltoobtaintaxadvicefromarecognised taxadviser nappealsmadetotheAdministrativeAppeals Tribunalorcourtsinrelationtoyourtaxaffairs nobtainingavaluationneededforadeductible donationofpropertyorforadeductionforentering intoaconservationcovenant;seeGifts of property onpage120formoreinformation.
Expensesrelatingtothepreparationandlodgment ofyourtaxreturnandactivitystatementsinclude costsassociatedwith: nbuyingtaxreferencematerial nlodgingyourtaxreturnthrougharegistered taxagent nobtainingtaxadvicefromarecognisedtaxadviser ndealingwithusaboutyourtaxaffairs. Feespaidtoarecognisedtaxadviserare deductibleintheyearyouincurthem.Arecognised taxadviserisaregisteredtaxagent,barristeror solicitor.Alistofregisteredtaxagentscanbefound atwww.tpb.gov.auoryoucancheckwiththe TaxPractitionersBoardon1300 362 829. Youcannotclaimforthecostoftaxadvicegiven byapersonwhoisnotarecognisedtaxadviser.

Youcanclaimadeductionforaninterestcharge thatweimposedon: nthelatepaymentoftaxesandpenalties ntheamountofanyincreaseinyourtaxliabilityas aresultofanamendmenttoyourassessment ntheamountofanyincreaseinothertaxliabilities, suchasGSTorPAYGamounts. Theexpenseisdeductibleintheyearyouincur theinterestcharge. However,youcannotclaimtaxshortfallandother penaltiesforfailingtomeetyourobligations. Youcanclaimamountsthatweimposedonyoufor underestimatingavariedGSTorPAYGinstalment. Youcanclaimanycostsyouincurredincomplying withyourlegalobligationsrelatingtoanotherpersons taxaffairs.Thisincludes: ncomplyingwiththePAYGwithholdingobligations,for example,whereyouwithheldtaxfromapaymentto asupplierbecausethesupplierdidnotquotean Australianbusinessnumber nprovidinginformationthatwerequestedabout anothertaxpayer.

COMPLETING YOUR TAX RETURN Step 1 Addupthecostsofmanagingyourtaxaffairs.

Step 2 WritethetotalatMitemD10.

TAXPACK 2011

47

D Deductions

Deductions that you show on the supplementary section of the tax return
namountsdeductibleunderthefive-yearwrite-off

YouneedtouseTaxPack 2011 supplementifyou hadanyofthefollowingtypesofdeductions: nthedeductibleamountoftheundeductedpurchase priceofaforeignpensionorannuity npersonalsuperannuationcontributions ncertaincapitalexpendituredirectlyconnectedwith aproject nforestrymanagedinvestmentschemedeductions nelectionexpensesforlocal,territory,stateorfederal candidates ncertaindeductiblecapitalexpenditureyouhad notclaimedinfullbeforeceasingaprimary productionbusiness nnon-capitallossesincurredonthedisposalor redemptionofatraditionalsecurity ninsurancepremiumspaidforincomeprotection, sicknessandaccidentcover ndeductibleforeignexchangelosses ninterestyouincurredonmoneyborrowedtoinvest underthelandtransportfacilitiestaxoffsetscheme orinfrastructureborrowingsscheme ndebtdeductionsyouhavenotclaimedelsewhere thatyouincurredinearningassessableincome orinearningcertainforeignnon-assessable non-exemptincome

forcertainbusiness-relatedcapitalexpenditure undersection40-880oftheIncome Tax Assessment Act 1997(sometimesknown astheblackholeexpenditurerule) nsmallbusinesspooldeductionsfordepreciating assetsthatyouallocatedtoapoolunderthe formersimplifiedtaxsystem(STS)provisions, andyounolongercarryonanybusiness nadeductionforthenetpersonalservicesincome lossofapersonalservicesentitythatrelatedto yourpersonalservicesincome nUnitedMedicalProtectionLimited(UMP)support payments nexpensesyouincurredinactivelyseekingpaid workifyoureceivedNewstartallowanceorwere aYouthallowancejobseeker.

Did you have any of the above deductions?

NO YES

 GotoTotal deductions.  Readbelow.

ANSWERING THIS QUESTION Youcanfindthe Tax return for individuals (supplementary section) 2011atthebackof TaxPack 2011 supplement.Ifyoudonthavea copyofthissupplement,youcangetonefrommost newsagentsduringthelodgmentperiod(1Julyto 31October2011).Copiesarealsoavailableallyear fromourPublicationsDistributionService(seethe insidebackcover)andshopfronts.

COMPLETING YOUR TAX RETURN Step 1 Completethedetailsatthetopofpage13onyour Tax return for individuals (supplementary section) 2011.UseTaxPack 2011 supplementtocomplete theDEDUCTIONSsectiononpage15ofyour taxreturn(supplementarysection).
Step 2 TransfertheamountyouwroteatTOTAL SUPPLEMENT DEDUCTIONSonpage15of yourtaxreturn(supplementarysection)toDon page3ofyourtaxreturn.

48

TAXPACK 2011

Total deductions

Deductions

COMPLETING YOUR TAX RETURN GotoTOTAL DEDUCTIONSonpage4ofyour taxreturn.

Step 1 Checkthatyouhaveshownallyourdeductions.

Step 2 AddupthedeductionsyouclaimedatitemsD1toD10 andDonpage4ofyourtaxreturn.Ifyoudidnotuse theTax return for individuals (supplementary section) 2011youwillnothaveanamountatD. Step 3 WritetheansweratTOTAL DEDUCTIONSonyour taxreturn.

Subtotal

COMPLETING YOUR TAX RETURN IfyoushowincomeatTOTAL INCOME OR LOSS onpage3ofyourtaxreturn: ntakeawaytheamountatTOTAL DEDUCTIONS fromtheamountatTOTAL INCOME OR LOSS; writetheresultatSUBTOTAL niftheamountatSUBTOTALislessthanzero,print LintheLOSSboxattherightoftheamount.

IfyoushowalossatTOTAL INCOME OR LOSS onpage3ofyourtaxreturn: naddtheamountatTOTAL DEDUCTIONStothe amountatTOTAL INCOME OR LOSS nwritetheresultatSUBTOTAL,andprintLinthe LOSSboxattherightoftheamount.

TAXPACK 2011

49

L1 Losses

Tax losses of earlier income years

Thisquestionisabouttaxlossesfromearlierincome yearsforwhichyoumaybeabletoclaimadeduction in201011.

Donotshowatthisitemcapitallosses,expenses andlossesinrelationtoearningforeignsource income,anddeferrednon-commercialbusiness lossesfromaprioryear. RefertoTaxPack 2011 supplementifyouhaveany ofthefollowing: ncapitallossesseequestion18 nexpensesandlossesinrelationtoearningforeign sourceincomeseequestion 20 ndeferrednon-commercialbusinesslossesfrom aprioryear forpartnershipactivitiesseequestion13 forsoletraderactivitiesseequestionP8in Business and professional items 2011(NAT2543).

Did you have any of these losses?

NO YES

 GotoTAXABLE INCOME OR LOSS.  Readon.

ANSWERING THIS QUESTION Completethisitemifeitherofthefollowingapply: nyouhaveataxlossfromanearlierincomeyear whichyouhavenotclaimedasadeduction nyouhadforeignlossesinthe199899to200708 incomeyearswhichyouhavenotclaimedasa deduction.

Ineithercase,youmayhaveataxlossatitemL1this yearwhichyoumaybeabletoclaimasadeduction. Youhavetocompletethisitemwhetherornotyou areabletoclaimadeductionforthelossthisyear. Youwillneedtogotowww.ato.gov.auortoe-taxto workouttheamountofyourtaxlossestocomplete itemL1ifanyofthefollowingapply: nyouhadforeignlossesinthe199899to200708 incomeyearswhichyouhavenotclaimedasa deductioninapreviousincomeyear nyoushowedalossatTAXABLE INCOME OR LOSSonyour2010taxreturnandyouareaforeign residentandhaveexemptincomefromAustralian sourcesorexemptfilmincome. Ifyoubecamebankruptbefore1July2010,orwere releasedfromdebtsunderanarrangemententered intounderthebankruptcylawsbefore1July2010, yougenerallycannotclaimadeductionfortaxlosses incurredbeforeyoubecamebankruptorwere releasedfromthedebts. Ifyouhavetaxlossesfrommorethanoneearlier incomeyearyoushouldgenerallydeducttheearliest lossesfirst.

Tocompletethisitemonyourtaxreturnyouwillneed recordsofyourtaxlossesfromearlierincomeyears.

COMPLETING YOUR TAX RETURN Theamountoftaxlossesfromearlieryearsthat youwriteatQandRitemL1istheamountof taxlossesyoucarriedforwardfrom200910less theamountofyournetexemptincomefor201011.

Youneedtoseparateyourlossesintoprimary productionlossesandnon-primaryproduction losses.Primaryproductionactivitiesaredescribed inInformation for primary producers 2011(NAT1712) whichisavailableatwww.ato.gov.au

Part A Losses carried forward from earlier income years Useworksheet 1toworkoutwhattowriteatQ andRitemL1.
Step 1 Writeat(a)inworksheet 1thetotalamountoftax lossesyouhaveavailablefromearlieryears.Donot includenon-primaryproductionlossesfrom198889 orearlieryears. Separatetheamountat(a)intoyourlossesfrom primaryproductionandfromnon-primaryproduction. Writetheamountsat(b)and(c)respectively.

50

TAXPACK 2011

Taxlossesofearlierincomeyears L1

Step 2 Writeat(d)thetotalofyourexemptincomefor 201011,ifany(seepages1113tofindoutwhat amountsareexemptincome). Step 3 Writeat(e)thetotalexpenses(otherthancapital expenses)incurredinearningyourexemptincome. Thisamountshouldalsoincludeanyforeigntax payableonyourexemptincome. Step 4 Take(e)awayfrom(d)andwritetheanswerat(f). If(e)ismorethan(d),write0at(f).

Step 5 If(f)ismorethan(a),youdonothaveanylossesyou canclaimatthisitem.LeaveitemL1blankandgoto TAXABLE INCOME OR LOSSonpage54.Otherwise, take(f)awayfrom(a)andwritetheanswerat(g).

nIfyouhaveanamountat(b)butnotat(c),take(f)

Step 6

awayfrom(b)andwritetheanswerat(h). awayfrom(c)andwritetheanswerat(i).

nIfyouhaveanamountat(c)butnotat(b),take(f) nIfyouhaveamountsatboth(b)and(c),youchoose

howmuchof(f)totakefromeachof(b)and(c).

Youcannothaveanegativeamountat(h)or(i),and thetotalof(h)and(i)mustequal(g).

WORKSHEET 1 Total losses Primary production losses  $  $ $ $    Non-primary production losses (a) (b) (c) (d) (e) (f)

Totaltaxlossesfromearlieryears Primaryproductionlossesfrom earlieryears Non-primaryproductionlosses fromearlieryears Exemptincomefor201011 Expensesrelatingtoyour exemptincome Netexemptincomeforthisyear Take(e)awayfrom(d). Totalprioryearlossesavailablefor usethisyear Take(f)awayfrom(a). Take(f)awayfrom(b)(primary productionlossesavailableforuse). Take(f)awayfrom(c)(non-primary productionlossesavailableforuse).

 $  $ 

(g) (h) (i)

Youcannothaveanegativeamountat(h)or(i).Thetotalof(h)and(i)mustequal(g).

TAXPACK 2011

51

L1 Taxlossesofearlierincomeyears

Step 7 Transfertheamountat(h)toQitemL1. Step 8 Transfertheamountat(i)toRitemL1. Step 9 IftheamountatSUBTOTALonpage4ofyourtax returnisaloss,gotostep19inthenextcolumn. Otherwise,readon.

Step 15 TaketheamountatFitemL1awayfromtheamount atSUBTOTAL.WritetheansweratZitemL1. Step 16 TaketheamountatZitemL1awayfromtheamount atRitemL1. Theansweristheamountofnon-primaryproduction lossesyoucarryforwardto201112.Keeparecord ofitfornextyear. Youhavenoprimaryproductionlossestocarry forwardto201112. Youhavefinishedthisquestion.GotoTAXABLE INCOME OR LOSSonpage54. Step 17 TransfertheamountyouwroteatQitemL1toF itemL1. Step 18 TransfertheamountyouwroteatRitemL1toZ itemL1. Youhavenoprimaryproductionlossesor non-primaryproductionlossestocarryforwardto 201112.Youhavefinishedthisquestion.Goto TAXABLE INCOME OR LOSSonpage54.

Part B Losses claimed in this income year Thefollowingstepswillhelpyouworkoutwhat towriteatFandZatitemL1iftheamountat SUBTOTALisnotaloss.

Step 10 IftheamountatSUBTOTALismorethanorequal totheamountat(g)inworksheet 1,gotostep17. Otherwise,readon. Step 11 IftheamountatSUBTOTALismorethanorequal totheamountatQitemL1,gotostep14. Otherwise,transfertheamountatSUBTOTALtoF itemL1. Step 12 TaketheamountatFawayfromtheamountatQ itemL1. Theansweristheamountofprimaryproduction lossesyoucarryforwardto201112.Keeparecord ofitfornextyear. Step 13 TheamountatRitemL1istheamountof non-primaryproductionlossesyoucarryforward to201112.Keeparecordofitfornextyear. Youhavenowfinishedthisquestion.GotoTAXABLE INCOME OR LOSSonpage54. Step 14 TransfertheamountatQitemL1toFitemL1.

Part C If the amount at SUBTOTAL is a loss Step 19 IftheamountyouwroteatSUBTOTALisalossleave FandZatitemL1blank.

Step 20 Useworksheet 2toworkouttheprimary productionlossesyoucarryforwardto201112and thenon-primaryproductionlossesyoucarryforward to201112. Makesureyoushowanylossesasnegativeamounts inworksheet 2.Amountsyouwriteat(t),(u),(v)and (w)maybelosses.Ifso,showthemasnegative amounts.

52

TAXPACK 2011

Taxlossesofearlierincomeyears L1

WORKSHEET 2 AmountfromSUBTOTAL Thisamountisaloss,show itasanegativeamount. AmountfromitemD9 onpage4ofyourtaxreturn AmountfromitemD14 onpage15ofyourtaxreturn (supplementarysection) Add(q)and(r). Add(s)whichiseitherzero orpositiveto(p)whichis negative. If(t)ispositive,gotostep23. AmountfromNet primary production distribution item13onpage13ofyour taxreturn(supplementary section) AmountfromBitem15on page14ofyourtaxreturn (supplementarysection) Add(u)and(v). If(w)isalossandisthesame oragreaterlossthan(t),write theamountfrom(t)at(x). If(w)isalossandisasmaller lossthan(t),writetheamount from(w)at(x). Otherwise,write0at(x). If(w)isalossandisthesame oragreaterlossthan(t)write0 at(y). If(w)isalossandisasmaller lossthan(t),take(w)awayfrom (t)andwritetheanswerat(y). If(w)isnotaloss,writethe amountfrom(t)at(y). $ (y)

$ $

(p) (q)

Step 21 Iftheamountat(x)iszero,thentheamountat QitemL1istheamountofprimaryproductionlosses youcarryforwardto201112.Keeparecordofitfor nextyear. Iftheamountat(x)isnotzero,thenaddtheamount at(x)totheamountatQitemL1.Whenadding thesetwoamountsignorethefactthattheyare bothnegativeamounts.Theansweristheamount ofprimaryproductionlossesyoucarryforward to201112.Keeparecordofitfornextyear. Step 22 Iftheamountat(y)iszero,thentheamountat RitemL1istheamountofnon-primaryproduction lossesyoucarryforwardto201112.Keeparecord ofitfornextyear. Iftheamountat(y)isnotzero,thenaddtheamount at(y)totheamountatRitemL1.Whenadding thesetwoamountsignorethefactthattheyare bothnegativeamounts.Theansweristheamount ofnon-primaryproductionlossesyoucarryforward to201112.Keeparecordofitfornextyear. Youhavefinishedthisquestion.GotoTAXABLE INCOME OR LOSSonthenextpage. Step 23 TheamountatQisyourprimaryproductionlosses youcarryforwardto201112. TheamountatRisyournon-primaryproduction lossesyoucarryforwardto201112. Keeparecordofthemfornextyear.

$ $

(r) (s)

(t)

(u)

$ $

(v) (w)

(x)

TAXPACK 2011

53

Income

Taxable income or loss

Thisquestionisaboutyourtotaltaxableincomeor loss.Howyoucompleteitwilldependonwhether youcompletedForZatitemL1 Tax losses of earlier income yearsonpage4ofyourtaxreturn.

Have you completed F or Z at item L1?

NO YES

 GotoNo prior year lossesbelow.  GotoDeducting your prior year lossesbelow.

COMPLETING YOUR TAX RETURN No prior year losses TransfertheamountyouhaveshownatSUBTOTAL onpage4ofyourtaxreturnto$ TAXABLE INCOME OR LOSS.
Iftheamountat$TAXABLE INCOME OR LOSS islessthanzero,printL intheLOSS box.Keep arecordofthisamounttoworkoutyourtaxlosses ofearlierincomeyearsfornextyear. Youhavenowcompletedthissection.Goto Adjusted taxable income (ATI) for you and your dependants onthenextpage.

TAX TIPS IftheamountatTAXABLE INCOME OR LOSS onyourtaxreturnisalossthatis,youhave printedLintheLOSSboxthismaynotbe theamountyoushowaslossescarriedforward fromearlierincomeyearsatitemL1onnext yearstaxreturn.Adjustmentswillhavetobe madetotakeintoaccountanyexemptincome, deductionsforgiftsordonations(itemD9)or personalsuperannuationcontributions(itemD12 onthesupplementarysectionofyourtaxreturn). Phone13 28 61formoreinformation.

Deducting your prior year losses AdduptheamountsatFandZatitemL1 andtake thetotalawayfromtheamountyouhavewritten atSUBTOTAL.Writetheanswerat$ TAXABLE INCOME OR LOSS onyourtaxreturn.
Youcannothavealossat $ TAXABLE INCOME OR LOSS ifyouhadamountsatForZ.Thisis becauseFandZarelossesofearlierincomeyears thatyouareabletodeductfromyour201011 netincome.

54

TAXPACK 2011

Adjusted taxable income (ATI) for you and your dependants

WHO IS A DEPENDANT? Adependantcanbe: n yourspouse(seethedefinitionofspouseon page123) n yourparentoryourspousesparent n achildwhoisunder21yearsold(seethefull definitionofchildonpage123)whoisnotastudent n astudentunder25yearsoldwhoisstudyingfull timeatschool,collegeoruniversity n achild-housekeeper(yourchildofanyagewho kepthouseforyoufulltime) n aninvalidrelative(yourchild,brotherorsister) 16yearsoldorolderwho: receivesadisabilitysupportpensionoraspecial needsdisabilitysupportpensionundertheSocial Security Act 1991 receivesarehabilitationallowanceunderthe Social Security Act 1991 andimmediatelybefore theywereeligibletoreceivethatallowancethey wereeligibleforaninvalidpensionunderthatAct, or hasacertificatefromaCommonwealth-approved doctorcertifyingacontinuinginabilitytowork.
AdependantneedstobeanAustralianresidentfor taxpurposes(seepage4). Ifyouwanttoclaimataxoffsetforyourdependants youneedtoworkoutyourandyourdependants adjustedtaxableincome(ATI)fortherelevantperiod todetermine: n whetheryouareeligibleforataxoffset,and n theamountofthetaxoffsetyouareentitledto. Therelevantperiodisidentifiedinthequestions dealingwiththeparticulartaxoffsetyouwishto claim.Thismaybeallofthe201011incomeyear oraperiodduring201011.

Ifyouhadaspouseforthewholeof201011and yourspouseworkedatanytimeduringtheyear,we stillconsideryoutohavemaintainedyourspouseas adependantforthewholeincomeyear. Weconsideryoutohavemaintainedadependant evenifthetwoofyouweretemporarilyseparated, forexample,duetoholidaysoroverseastravel. Ifyoumaintainedadependantforonlypartofthe year,youmayneedtoadjustyourclaimaccordingly.

WHAT IS MAINTAINING A DEPENDANT? Youmaintainedadependantifanyofthefollowing applied: n youandyourdependantlivedinthesamehouse n yougaveyourdependantfood,clothingand lodging n youhelpedthemtopayfortheirliving,medical andeducationalcosts.

WHAT IS ATI? Thefollowingamountsareusedtocalculatea personsATI: n thepersonstaxableincome n thepersonsreportableemployersuperannuation contributions(seepage102foramoredetailed explanationofwhatareportableemployer superannuationcontributionis) n thepersonsdeductiblepersonalsuperannuation contributions(seepages401inTaxPack 2011 supplementforamoredetailedexplanationof whatadeductiblesuperannuationcontributionis) n thepersonsadjustedfringebenefits(total reportablefringebenefitamountsmultiplied by0.535) n certaintax-freegovernmentpensionsorbenefits receivedbytheperson(thisdoesnotincludeall governmentpensionsandbenefitsthatareexempt fromincometax;seepage102foranexplanation ofwhatpensionsandbenefitsareincluded) n thepersonstargetforeignincome(income andcertainotheramountsfromsourcesoutside Australianotincludedinyourtaxableincomeor receivedasafringebenefit;seepage103for amoredetailedexplanationofwhattargetforeign incomeis) n thepersonsnetfinancialinvestmentloss (theamountbywhichthepersonsdeductions attributabletofinancialinvestmentexceededtheir totalfinancialinvestmentincome;seepages1035 foramoredetailedexplanation)

TAXPACK 2011

55

Adjustedtaxableincome(ATI)foryouandyourdependants

n thepersonsnetrentalpropertyloss(theamountby

whichthepersonsdeductionsattributabletorental propertyexceededtheirrentalpropertyincome;see pages1056foramoredetailedexplanation) n anychildsupportpaymentsthepersonprovidedto anotherperson(seepage106foranexplanation ofwhatchildsupportpaymentsare).

HOW TO WORK OUT ATI Youcanuseeitherourincometestcalculatoronour websiteorworksheet 1onthenextpage.

IfyouareworkingouttheATIofapersonforthe wholeyear,youcangettheamountsforworksheet 1 fromthepersonstaxreturn.Table 1showsyou wheretherelevantamountsareonthetaxreturn. TABLE 1 Working out ATI For worksheet 1: (a) (b) (c) (d) (e) (f) (g) (h) (j) The amount comes from: TAXABLE INCOME OR LOSSonpage4ofthetaxreturn T itemIT2onpage8ofthetaxreturn HitemD12onpage15ofthesupplementarysectionof thetaxreturn UitemIT3onpage8ofthetaxreturn VitemIT4onpage8ofthetaxreturn Xitem IT5onpage8ofthetaxreturn Y itemIT6onpage8ofthetaxreturn WitemIT1 onpage8ofthetaxreturn,multipliedby0.535 androundeddowntothenearestdollar ZitemIT7onpage8ofthetaxreturn.

IfyouareworkingoutadependantsATIforpartof theyear,youcannotusethefiguresfromtheirtax return.Instead,youmustworkouttheamountsfor therelevantperiodandcompletetheworksheetusing thesefigures. Ifyouarecompletingataxreturnforadeceased person,oryourspousediedduringtheyearandyou needtoknowtheirATIforthewholeof201011,see theinstructionsbelowworksheet 1.

56

TAXPACK 2011

Adjustedtaxableincome(ATI)foryouandyourdependants

WORKSHEET 1 Working out a persons ATI for the relevant period You Theperiodforwhichyouneed toworkoutthepersonsATI Thepersonstaxableincome fortheperiod.Iftaxableincome isaloss,write0at(a). from: 1/7/2010 to: (a) 30/6/2011 $ $ $ $ Dependant 1 Dependant 2 Dependant 3

Thepersonsreportableemployer superannuationcontributionsfor (b) theperiod Thepersonsdeductiblepersonal superannuationcontributionsfor (c) theperiod Thepersonstax-free governmentpensionsor benefitsfortheperiod Thepersonstargetforeign incomefortheperiod Thepersonsnetfinancial investmentlossfortheperiod Thepersonsnetrentalproperty lossfortheperiod Thepersonsadjustedfringe benefitsfortheperiod Addalltheamountsfrom (a)to(h). Childmaintenancetheperson providedtoathirdpartyfor theperiod Take(j)awayfrom(i).Thisisthe personsATIfortheperiod*. (d)

(e) (f) (g) (h) (i)

$ $ $ $ $

$ $ $ $ $

$ $ $ $ $

$ $ $ $ $

(j)

(k)

*Ifyouarecompletingataxreturnforadeceasedperson,or yourspousediedduringtheyearandyouneedtoknowtheir ATIforthewholeof201011,theirATIistheamountat(k):  dividedbythenumberofdaysthepersonwasalivein 201011,and  multipliedby365.  TheansweristhedeceasedpersonsATIforthewholeof 201011.

TAXPACK 2011 57

T1 Tax offsets

Spouse (without dependent child or student), child-housekeeper or housekeeper

Did you have a dependent spouse, child-housekeeper or housekeeper for any part of the year?
NO YES

Thefollowingdefinitionswillhelpyoudetermine whetheryouareeligibleforthistaxoffset. Yourspouseincludesanotherperson(whetherof thesamesexoroppositesex)who: nyouwereinarelationshipwiththatwasregistered underaprescribedstateorterritorylaw, nalthoughnotlegallymarriedtoyou,livedwithyou onagenuinedomesticbasisinarelationshipas acouple. Ahousekeeper issomeonewhokepthouseforyou fulltimeandalsocaredforyourdependentchildren, studentsorinvalidrelatives,oryourdependent spousewhoreceivedadisabilitysupportpension. Achild-housekeeperisyourchildwhokepthouse foryoufulltime.Yourchildincludesyouradopted child,stepchild,ex-nuptialchildorchildofyour spouse.Howeverachildwhoisafull-timestudentor afull-timeemployeeisnotconsideredtokeephouse fulltime.(Seethefulldefinitionofchildonpage123). Keeping house meansmorethansimplychild-minding orperformingdomesticduties.Itincludeshavingsome responsibilityforthegeneralrunningofthehousehold. Adjusted taxable income (ATI)isexplainedon pages557.

 GotoquestionT2.  Readbelow.

Shared care Youhadsharedcareifyou,andyourspouseifyou hadone,caredforyourchildforsomeoftheincome year,andsomeoneelse,suchasaformerspouse, caredforthechildfortherestoftheincomeyear.

IfyoureceivedfamilytaxbenefitPartBaspart ofashared-carearrangement,youwillneed toknowyourFTB shared-care percentage tocalculateyourspouseoffset.YourFTB shared-carepercentageisusuallynotthesame asyourSharedcarepercentagewhichappears oncorrespondenceyouhavereceivedfromthe FamilyAssistanceOffice(FAO). IfyoudonotknowyourFTB shared-care percentage,contacttheFAO(seetheinside backcover).

ANSWERING THIS QUESTION Ifyouhadadependentspouse,readon.Ifyou hadachild-housekeeper,gotopartB.Ifyouhad ahousekeeper,gotopartC.Ifyouareclaiming acombinationofthesetaxoffsets,workthrough therelevantpartsinorder. Part A Dependent spouse Youcannotclaimthistaxoffsetif: nyouradjusted taxable income (ATI)for201011 wasmorethan$150,000,or nyourspousesATIfor201011was$9,426 ormore.
ToworkoutyourATIgotopages557orgoto www.ato.gov.au/calculatorstousetheonline incometestcalculator.

Youcanclaimadependentspousetaxoffsetforany periodin201011thatyouhadaspouseandyou metalltheseconditions: nyoumaintainedyourspouse;seeWhat is maintaining a dependant? onpage55 nyourspousewasaresident;ifyouarenotsure, readAre you an Australian resident? onpage4 nyouwerearesidentatanytimeduring201011 nneitheryounoryourspouse(duringanyperiod theywereyourspouse)waseligibleforfamily taxbenefit(FTB)PartBorifoneofyouwaseligible forit,youwereeligibleattheshared-carerateonly. nneitheryounoryourspouse(duringanyperiod theywereyourspouse)receivedparentalleavepay. ToworkoutyourspousesATI for the period you can claimusetheworksheetonpage57. Themaximumspousetaxoffsetyoucanclaim is$2,286.

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TAXPACK 2011

Spouse(withoutdependentchildorstudent),child-housekeeperorhousekeeper T1

Ifyouareentitledtoclaimadependentspousetax offset,gotopartAofCompleting your tax return onthenextpage.

Themaximumchild-housekeepertaxoffsetyoucan claimis$1,863,or$2,232ifyouhadanother dependentchildorstudent. Ifyouareentitledtoclaimachild-housekeepertax offset,gotopartBofCompleting your tax return onpage62.

Part B Child-housekeeper Youcannotclaimthistaxoffsetif: nyouradjusted taxable income (ATI)for201011 wasmorethan$150,000,or nyouhadaspouseforallof201011andthe combinedATIofyouandyourspousewasmore than$150,000,or nyouhadaspouseforonlypartoftheyearandthe sumofthefollowingismorethan$150,000 yourATI yourspousesATIfor201011multiplied bythe numberofdaystheywereyourspousedivided by 365,or nyouhadachild-housekeeperforthewholeyear andtheirATIfor201011was$7,734ormore,or $9,210ormoreifyouhadanotherdependentchild orstudent.
ToworkouttheATIforyouandyourspousegoto pages557orgotowww.ato.gov.au/calculators tousetheonline incometestcalculator. Youcanclaimachild-housekeepertaxoffsetforany periodin201011thatyouhadachild-housekeeper andyoumetall theseconditions: nyoumaintainedyourchild-housekeeper;see What is maintaining a dependant? onpage55 nyourchild-housekeeperwasaresident;ifyouare notsure,readAre you an Australian resident? onpage4 nyouwerearesidentatanytimein201011 nyouwerenoteligibleforadependentspouse taxoffsetunderpartA nyouwerenoteligibleforFTBPartBorwereeligible foritonlyattheshared-carerate nyouwerenotreceivingparentalleavepay. Toworkoutyourchild-housekeepersATI for the period you can claimgotopages567anduse worksheet 1.

Part C Housekeeper Youcannotclaimthistaxoffsetif: nyouradjusted taxable income (ATI)for201011 wasmorethan$150,000,or nyouhadaspouseforallof201011andthe combinedATIofyouandyourspousewasmore than$150,000,or nyouhadaspouseforonlypartoftheyearandthe sumofthefollowingismorethan$150,000 yourATI yourspousesATIfor201011multiplied bythe numberofdaystheywereyourspousedivided by 365.
ToworkouttheATIforyouandyourspousegoto pages557orgotowww.ato.gov.au/calculators tousetheonline incometestcalculator. Ahousekeeperisapersonwhoworkedfull time keepinghouseforyouandcaredfor: nachildofyoursunder21yearsold,irrespective ofthechildsATI nanyotherchildunder21yearsoldwhowas yourdependantandwhoseATIfortheperiodyou maintainedthemwaslessthanthetotalof$282 plus$28.92foreachweekyoumaintainedthem (toworkoutyourchildsATI for the period you can claimgotopages567anduseworksheet 1) nyourinvalidrelativewhowasyourdependant(see page55)andforwhomyoucanclaimadependant taxoffset(ifyouarenotsure,youwillneedtoread questionT10inTaxPack 2011 supplement),or nyourspousewhoreceivedadisabilitysupport pension. Keepinghousemeansmorethansimplychild-minding orperformingdomesticduties.Itincludeshavingsome responsibilityforthegeneralrunningofthehousehold.

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59

T1 Spouse(withoutdependentchildorstudent),child-housekeeperorhousekeeper

Youareeligibleforthehousekeepertaxoffsetfor anyperiodduringwhichyouhadahousekeeper (whokepthouseforyouwhollyinAustralia),provided youwereanAustralianresidentatanytimeduring 201011andyou: ndidnothaveaspouseandwerenot entitledtoclaimachild-housekeepertaxoffset underpartB eligibleforFTBPartBorwereeligibleforitonly attheshared-carerate,and receivingparentalleavepay or nhadaspousewhoreceivedadisabilitysupport pensionandyouwerenot entitledtoclaima child-housekeepertaxoffsetunderpartB or nhadaspousewhodidnotreceiveadisability supportpension,and youwerenotentitledtoclaimadependent spousetaxoffsetunderpartAora child-housekeepertaxoffsetunderpartB neitheryounoryourspousewereeligiblefor FTBPartBorwereeligibleforitonlyatthe shared-carerate neitheryounoryourspousereceivedparental leavepay,and specialcircumstancesapplied,forexample   ourspousedesertedyouandyourchildren, y andyoudidnotenterintoarelationshipthat resultedinyouhavinganewspouse   ouhadachildwithaseverementaldisability y whorequiredconstantattention   ourspousesufferedfromanextendedmental y illnessandwasmedicallycertifiedasbeing unabletotakepartinthecareofyourchildren.

Whereyouconsiderthatspecialcircumstances applied,youwillneedtocompletethisitemand provideadditionalinformation.PrintSCHEDULE OFADDITIONALINFORMATIONITEMT1PARTC onthetopofaseparatesheetofpaper,printyour name,addressandtaxfilenumberandexplain yoursituation.Attachyourscheduletopage3of yourtaxreturn.PrintXintheYes boxatTaxpayers declaration question2a onpage12ofyourtaxreturn. Ifwedonotconsiderspecialcircumstancesapplied, wewilladviseyou. Themaximumhousekeepertaxoffsetyoucan claimis$1,863,or$2,232ifyouhadmorethan onedependentchildorstudent. Ifyouareentitledtoclaimahousekeepertaxoffset, gotopartCofCompleting your tax returnon page65.

COMPLETING YOUR TAX RETURN Part A Dependent spouse Ifyouareeligibletoclaimthedependentspouse taxoffset,useworksheet 1toworkouttheamount.
Step 1 Complete worksheet 1. Ifyouhadmorethanonedependentspouseduring theyearyouwillneedtogothroughtheworksheet foreachspouse.

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Spouse(withoutdependentchildorstudent),child-housekeeperorhousekeeper T1

WORKSHEET 1 Working out your dependent spouse tax offset IfyouhadadependentspouseforthewholeyearandneitherofyouwereeligibleforFTBPartBor receivedparentalleavepayatanytimeduringtheyear,write$2,286at(d),thencontinuefromthere. Ifyouhadadependentspouseforonlypartoftheyearandneither ofyouwereeligibleforFTBPartBduringthatperiod,workoutthe numberofdaysyouhadaspouseandmultiplythisnumberby$6.26. Writetheamountat(a). IfyouoryourspousewereeligibleforFTBPartBorparentalleavepay atanytimeduringtheyear,fortheperiodyouhadadependentspouse, workoutthenumberofdaysthatneitherofyouwereeligibleforFTB PartBorreceivedparentalleavepay.Multiplythisnumberby$6.26. Writetheamountat(b). IfyouoryourspousewereeligibleforFTBPartBatashared-care rateatanytimeduringtheyear,workthrough(p)to(s)belowfor theperiodyouhadadependentspouse.(IfyourFTBshared-care percentagechangedduringtheyear,workthrough(p)to(s)foreach perioditwasdifferent.) nWorkoutthenumberofdaysthatyouoryourspousewaseligible forFTBPartBatthesharedcarerateandwritetheanswerat(p). nMultiplythenumberofdaysfrom(p)by$6.26andwrite theanswerat(q). nTakeyourFTBshared-carepercentageawayfrom100% andwritetheanswerat(r). nMultiplytheamountfrom(q)bythepercentagefrom(r) andwritetheanswerat(s). Writetheamountfrom(s)at(c).IfyourFTBshared-carepercentage changedduringtheyear,adduptheamountsfrom(s)andwritethe totalat(c). Add(a),(b)and(c).Writetheanswerat(d). Theamountat(d)isyourmaximumdependentspousetaxoffset. Itcannotbemorethan$2,286. TocalculateyourspousesATI,youcanusetheworksheets onpages567ortheonlineincometestcalculatorat www.ato.gov.au/calculators IfyourspousesATIfortheperiodyouareclaimingthespousetax offsetwaslessthan$286,theamountat(d)isyourspousetaxoffset. Writethisamountat(f)andgotostep3. IfyourspousesATIwas$286ormorefortheperiodyouare claimingaspousetaxoffset,deduct$282fromtheirATIanddivide theremainingamountby4.Roundthisdowntothenearestdollar. Writetheanswerat(e). Take(e)awayfrom(d).Writetheanswerat(f). $ (d)

(a)

(b)

(p) $ (q) % (r)  $ (s) $ (c)

$ $

(e) (f)
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TAXPACK 2011

T1 Spouse(withoutdependentchildorstudent),child-housekeeperorhousekeeper

Step 2 Ifyoualsowanttoclaim: nachild-housekeepertaxoffset,gotopartB ofAnswering this questiononpage59,or nahousekeepertaxoffset,gotopartCof Answering this questiononpages5960. Otherwisereadon. Step 3 Theamountat(f)isyourdependentspousetax offset.WritethisamountatPitemT1onpage5 ofyourtaxreturn. Step 4 PrintSintheCLAIM TYPEboxattherightofP itemT1. Step 5 CompletetheincometestitemsIT1toIT7onpage8 ofyourtaxreturn. Step 6 CompleteSpouse details married or de facto onpages911ofyourtaxreturn.Youneedto complete O,S,Q,A,B,C,DandEonpage10.

Part B Child-housekeeper Ifyouareeligibletoclaimachild-housekeepertax offset,useworksheet 2toworkoutyourtaxoffset amount.

Step 1 Toclaimthechild-housekeepertaxoffset,youmust firstdeterminewhichcolumntouseinworksheet 2. Ifyouhadachild(otherthanthechild-housekeeper) under21yearsold,orastudentunder25yearsold, whoseATIfortheperiodyoumaintainedthemwas equaltoormorethanthetotalof$282plus$28.92 foreachweekyoumaintainedthem,donot countthemasadependantwhencompleting thisworksheet. Ifyourchild-housekeepersATIwaslessthan$9,210 andyouhad: nanotherdependentchildunder21yearsoldor nastudentunder25yearsold,and ntheirATIfortheperiodyoumaintainedthemwas lessthanthetotalof$282plus$28.92foreach weekyoumaintainedthem,usecolumn 2. Ifthedependentchildorstudent(whoisnotyour child-housekeeper)wasyourdependantforonly partof201011,andtheirATIwaslessthanthetotal of$282plus$28.92foreachweekyoumaintained them,usethecolumn 2dailyrate.Otherwise,use thecolumn 1dailyrate. Ifyoudidnothaveanotherdependentchildunder 21yearsoldorstudentunder25yearsold,andyour child-housekeepersATIwas nlessthan$7,734,usecolumn 1 n$7,734ormore,youdontqualifyforthetaxoffset.

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TAXPACK 2011

Spouse(withoutdependentchildorstudent),child-housekeeperorhousekeeper T1

WORKSHEET 2 Working out your child-housekeeper tax offset Column1 Column2

No other With another dependent child dependent child or student or student Dailyrate $5.10 $6.12

Ifyouhadachild-housekeeperforthewholeyearandyouwerenoteligiblefor FTBPartBanddidnotreceiveparentalleavepayatanytimeduringtheyear,write: n$1,863at(d)ifyouusecolumn 1,or n$2,232at(d)ifyouusecolumn 2. Thencontinuefromthere. Ifyouhadachild-housekeeperforonlypartoftheyearandyou were noteligibleforFTBPartBanddidnotreceiveparentalleave payatanytimeduringthatperiod: nworkouthowmanydaysduringtheyearyouhad achild-housekeeper nmultiplythisnumberbytheappropriatedailyrate nwritetheanswerat(a)intheappropriatecolumn. IfyouwereeligibleforFTBPartBorreceivedparentalleave payatanytimeduringtheyear: nworkouthowmanydaysduringtheyearyouhad achild-housekeeperandyouwerenoteligiblefor FTBPartBordidnotreceiveparentalleavepay nmultiplythisnumberbytheappropriatedailyrate nwritetheanswerat(b)intheappropriatecolumn. IfyouwereeligibleforFTBPartBatthe shared-carerateatanytimeduringtheyear,work through(p)to(s)below.(IfyourFTBshared-care percentagechangedduringtheyear,workthrough (p)to(s)foreachperioditwasdifferent.) nWorkoutthenumberofdaysyouhadachildhousekeeperandyouwereeligibleforFTBPartB attheshared-carerate.Writetheanswerat(p). nMultiplythenumberofdaysfrom(p)bythe appropriatedailyrate.Writetheanswerat(q). nTakeyourFTBshared-carepercentageaway from100%andwritetheanswerat(r). nMultiplytheamountfrom(q)bythepercentage from(r)andwritetheanswerat(s). Writetheamountfrom(s)at(c)intheappropriate column.IfyourFTBshared-carepercentage changedduringtheyear,adduptheamounts from(s)andwritethetotalat(c).
TAXPACK 2011

(a)

(a)

(b)

(b)

(p) $ (q) % (r)  $ (s)

(c)

(c)
63

T1 Spouse(withoutdependentchildorstudent),child-housekeeperorhousekeeper

Working out your child-housekeeper tax offset (continued) Column1 Column2

No other With another dependent child dependent child or student or student Add(a),(b)and(c).Writetheanswerat(d). Theamountat(d)isyourmaximum child-housekeepertaxoffset.Itcannotbe morethan$1,863ifitisincolumn 1or$2,232 ifitisincolumn 2. Writeyourchild-housekeepersATIfortheperiodyouareclaiming achild-housekeepertaxoffsetatVitemT1onpage5ofyourtax return.Donotshowcents.Ifyourchild-housekeeperdidnothave anyATI,write0. Ifyourchild-housekeepersATIwaslessthan$286,theamountat(d) isyourchild-housekeepertaxoffset.WritethisamountatPitemT1 onpage5ofyourtaxreturn,thengotostep4. Ifyourchild-housekeepersATIwas$286ormorefortheperiodyou maintainedthemthendeduct$282fromtheirATIfortheperiodyou areclaimingachild-housekeeperstaxoffsetanddividetheamount remainingby4. Writetheanswerintheappropriatecolumnat(e). Take(e)awayfrom(d).Writetheanswerinthe appropriatecolumnat(f). Step 2 Ifyoualsowanttoclaimahousekeepertaxoffsetgo topartCofAnswering this questiononpage59. Otherwiseaddtheamountat(f)fromworksheet 2 totheamountat(f)fromworksheet 1ifyouusedit. Step 3 Writeyourtotalfromstep2atPitemT1onpage5 ofyourtaxreturn. Step 4 PrintoneofthefollowingcodelettersintheCLAIM TYPEboxattherightofPitemT1: Wifyouareclaimingachild-housekeepertaxoffset andyouhad nodependentchildorstudent(you usedcolumn1)

(d)

(d)

$ $

(e) (f)

$ $

(e) (f)

Hifyouareclaimingachild-housekeepertaxoffset andyouhadadependentchildorstudent(you usedcolumn2) Cifyouareclaimingaspousetaxoffsetforpartof theyearandachild-housekeepertaxoffsetfor anotherpartoftheyear. Step 5 CompletetheincometestitemsIT1toIT7onpage8 ofyourtaxreturn.Ifyouhadaspouse,youmust alsocompleteSpouse details married or de facto onpages911ofyourtaxreturn.Youneedto completeO,S,Q,A,B,C,DandE onpage10.

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Spouse(withoutdependentchildorstudent),child-housekeeperorhousekeeper T1

Part C Housekeeper Ifyouareeligibletoclaimahousekeepertaxoffset, useworksheet 3toworkoutyourtaxoffsetamount.

Step 1 Complete worksheet 3. Toclaimthehousekeepertaxoffset,youmustfirst determinewhichcolumntouseinworksheet 3.

WORKSHEET 3 Working out your housekeeper tax offset Column1 No dependent child or student Dailyrate Ifyouareeligibleforahousekeepertaxoffsetforthewholeyearand: nneitheryounoryourspouse(duringanyperiodtheywereyour spouse)wereeligibleforFTBPartBorreceivedparentalleavepay atanytimeduringtheyear, or nyourspousereceivedadisabilitysupportpensionforthewholeyear thenwrite$1,863at(d)ifyouusecolumn 1or$2,232ifyouuse column 2. Thencontinuefromthere. Ifyouareeligibleforahousekeepertaxoffsetforthewholeyear butdonotmeettheaboverules: nworkoutthetotalnumberofdaysduringtheyearthat neitheryounoryourspouse(duringanyperiodtheywereyour spouse)waseligibleforFTBPartBorreceivedparentalleavepay, or either youoryourspouse(duringanyperiodtheywereyour spouse)waseligibleforFTBPartBorreceivedparentalleavepay, butyourspousewasreceivingadisabilitysupportpension nmultiplythenumberofdaysbytheappropriatedailyrate nwritetheanswerat(a)intheappropriatecolumn. Ifyouareeligibleforahousekeepertaxoffsetforonlypartoftheyear:
nworkoutthenumberofdaysduringthatpartoftheyearthat:

Column2 With a dependent child or student $6.12

$5.10

(a)

(a)

neitheryounoryourspouse(duringanyperiodtheywere yourspouse)waseligibleforFTBPartB,or neitheryounoryourspouse(duringanyperiodtheywereyour spouse)receivedparentalleavepay,or eitheryouoryourspouse(duringanyperiodtheywereyour spouse)waseligibleforFTBPartBorreceivedparentalleavepay, butyourspousewasreceivingadisabilitysupportpension nmultiplythenumberofdaysbytheappropriatedailyrate nwritetheanswerat(b)intheappropriatecolumn.

(b)

(b)

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65

T1 Spouse(withoutdependentchildorstudent),child-housekeeperorhousekeeper

Working out your housekeeper tax offset (continued) Column1 No dependent child or student Dailyrate If,foranyperiodduringtheyear,youdidnothave aspousereceivingadisabilitysupportpensionand youareeligibleforahousekeepertaxoffset,work through(p)to(s)below.(IfyourFTBshared-care percentagechangedduringtheyear,workthrough (p)to(s)foreachperioditwasdifferent). nWorkoutthenumberofdaysduringthatperiod thatyouoryourspouse(duringanyperiodthey wereyourspouse)waseligibleforFTBPartB atashared-carerate.Writetheanswerat(p). nMultiplythenumberofdaysfrom(p)bythe appropriatedailyrate.Writetheanswerat(q). nTakeyourFTBshared-carepercentageaway from100%andwritetheanswerat(r). nMultiplytheamountfrom(q)bythepercentage from(r)andwritetheanswerat(s). Writetheamountfrom(s)at(c)intheappropriate column.IfyourFTBshared-carepercentage changedduringtheyear,adduptheamounts from(s)andwritethetotalat(c). Add(a),(b)and(c).Writetheanswerat(d). Theamountat(d)isyourhousekeepertaxoffset. Itcannotbemorethan$1,863incolumn 1or $2,232incolumn 2. Step 2 Addtheamountat(d)fromworksheet 3tothe amountsat(f)fromworksheets 1and2ifyou usedthem. WriteyourtotalatPitemT1onpage5ofyour taxreturn. Step 3 PrintoneofthefollowingcodelettersintheCLAIM TYPEboxattherightofPitemT1: Wifyouareclaimingahousekeepertaxoffsetand youhadnodependentchildorstudent Hifyouareclaimingahousekeepertaxoffsetand youhadadependentchildorstudent $ (d) $ (d) $5.10 Column2 With a dependent child or student $6.12

(p)

(q) % (r) 

(s)

(c)

(c)

Cifyouareclaimingadependentspousetaxoffset forpartoftheyearandachild-housekeepertax offsetforanotherpartoftheyearoraspouse taxoffsetandahousekeepertaxoffsetforthe sameperiod. Step 4 CompletetheincometestitemsIT1toIT7onpage8 ofyourtaxreturn.Ifyouhadaspouse,youmust alsocompleteSpouse details married or de facto onpages911ofyourtaxreturn.Youneedto completeO,S,Q,A,B,C,DandEonpage10.

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TAXPACK 2011

Rebate income

Weworkoutwhatwecallrebateincometo determinewhetheryouareeligibleforeitherthe seniorAustralianstaxoffsetatT2orpensionertax offsetatT3. Yourrebateincomeisthetotalamountofyour taxableincomeplusthefollowingamountsifthey applytoyou: nadjustedfringebenefitsamount(totalreportable fringebenefitamountsmultipliedby0.535) nreportableemployersuperannuationcontributions ndeductiblepersonalsuperannuationcontributions nyournetfinancialinvestmentloss(theamountby whichyourdeductionsattributabletofinancial investmentsexceededyourtotalfinancial investmentincome) nyournetrentalpropertyloss(theamountbywhich yourdeductionsattributabletorentalproperty exceededyourrentalpropertyincome). Toworkoutyourrebateincome,usethefollowing worksheetorgotowww.ato.gov.auanduseour onlinecalculator.

WORKSHEET 1 Working out your rebate income Yourtaxableincome(from TAXABLE INCOME OR LOSS onpage4ofyourtaxreturn) Ifyourtaxableincome isaloss,write0at(a). Yourreportableemployer superannuationcontributions (fromT itemIT2onpage8 ofyourtaxreturn) Yourdeductiblepersonal superannuationcontributions (fromH itemD12 onpage15 ofyourtaxreturn) Yournetfinancialinvestment loss(fromXitemIT5 on page8ofyourtaxreturn) Yournetrentalpropertyloss (fromYitemIT6onpage8 ofyourtaxreturn) Youradjusted fringebenefitsamount MultiplytheamountfromW itemIT1onpage8ofyour taxreturnby0.535.Round downtothenearestdollar. Addupalltheamounts from(a)to(f).Thisisyour rebateincome. $ (a)

(b)

(c)

(d)

(e)

(f)

(g)

TAXPACK 2011

67

T2 Tax offsets

Senior Australians (includes age pensioners, service pensioners and self-funded retirees)
Ifyouhaveaspouseyoualsoneedtoworkout whethertheywereeligible.Seethedefinitionof spouseonpage123. Youcannotclaimthistaxoffsetifyouwereinjail forthewholeof201011. YoumaynotgettheseniorAustralianstaxoffset evenifyoumeetalltheeligibilityconditionsasthe amountofthetaxoffsetisbasedonyourindividual rebateincome,notyourcombinedrebateincome ifyouhaveaspouse. Workoutyourrebateincomeatrebate income onthepreviouspage.

YoucanclaimtheseniorAustralianstaxoffsetonly ifyoumeetallthefollowingconditionsrelatingto: nage nincome neligibilityforAustralianGovernmentpensions.

ANSWERING THIS QUESTION Condition 1 Age Youmeetthisconditionif,on30June2011,youwere: namale aged65yearsoldorolder,or veteranorwarwidoweraged60yearsoldor olderwhomettheveteranpensionagetest or nafemale aged64yearsoldorolder,or veteranorwarwidowaged59yearsoldor olderwhomettheveteranpensionagetest.
Tofindoutwhetheryoumeettheveteranpension agetest,gotoMore informationonpage70. Doyoumeetcondition 1?
YES NO

Condition 2 Income Youmeetthisconditionifanyofthefollowing appliedtoyouin201011. nYoudidnothaveaspouse,andyourrebate incomewaslessthan$48,525. nYouhadaspouse,andthecombinedrebate income*ofyouandyourspousewaslessthan $78,992. nAtanytimeduringtheyearyouandyourspouse hadtoliveapartduetoillnessorbecauseone ofyouwasinanursinghome,andthecombined rebateincome*ofyouandyourspousewasless than$91,840.
*Combined rebate incomeincludesyourspousesshareof anynetincomeofatrustwhichthetrusteewasliabletopay taxonbecauseyourspousewasunderalegaldisability (suchasunder18yearsoldon30June2011),wasabankrupt orwasapersonwhowasdeclaredlegallyincapablebecause ofamentalcondition.

 Readcondition 2.  Youarenoteligibleforthistaxoffset. GotoquestionT3.

Doyoumeetcondition 2?
YES NO

 Readcondition 3.  Youarenoteligibleforthistaxoffset. GotoquestionT3.

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TAXPACK 2011

SeniorAustralians(includesagepensioners,servicepensionersandself-fundedretirees) T2

Condition 3 Eligibility for Australian Government pensions and similar payments Youmeetthisconditionifanyofthefollowingthree criteriaappliedtoyouin201011.
A YoureceivedanAustralianGovernmentage pensionfromCentrelink,orapension,allowance orbenefitfromtheDepartmentofVeteransAffairs (DVA)atanytimeduring201011. IfAappliedtoyou,youmeetthiscondition.Goto Completing your tax return.Otherwise,readon. BYouwereeligibleforanAustralianGovernment agepensionduring201011butdidnotreceiveit becauseyoudidnotmakeaclaimorbecauseof theapplicationoftheincometestortheassets test,andyousatisfyoneofthefollowing: youhavebeenanAustralianresidentfor age-pensionpurposesforeither10continuous yearsorformorethan10yearsofwhichfive yearswerecontinuous youhaveaqualifyingresidenceexemption (becauseyouarrivedinAustraliaasarefugee orunderaspecialhumanitarianprogram) youareawomanwhowaswidowedinAustralia (atatimewhenbothyouandyourlatepartner wereAustralianresidents),youhavemade aclaimfortheagepensionandyouhadtwo yearsresidenceimmediatelybeforeyourclaim youreceivedawidowBpension,widowallowance, matureageallowanceorpartnerallowance immediatelybeforeturningage-pensionage youwouldqualifyunderaninternationalsocial securityagreement. IfBappliedtoyou,youmeetthiscondition.Goto Completing your tax return.Otherwise,readon. Ifyouneedassistanceindeterminingyoureligibility forasocialsecurityorCentrelinkpensiononly,phone Centrelinkon13 23 00.Forallotherenquiriesabout theseniorAustralianstaxoffset,phone13 28 61. CYouwereeligibleforapension,allowanceorbenefit fromVeteransAffairsduring201011butdidnot receiveitbecauseyoudidnotmakeaclaimor becauseoftheapplicationoftheincometestorthe assetstest,andyousatisfyeitherofthefollowing: youareaveteranwitheligiblewarservice,or youareaCommonwealthveteran,alliedveteran oralliedmarinerwithqualifyingservice.

Ifyouarenotsurewhetheryouwereeligiblefor apayment,youcangetfurtherinformationfrom theDVAwebsiteorbyphoningVeteransAffairs. IfCappliedtoyou,youmeetthiscondition. Doyoumeetcondition 3?

YES NO

 GotoCompleting your tax returnbelow.  Youarenoteligibleforthistaxoffset. GotoquestionT3.

COMPLETING YOUR TAX RETURN Step 1 Workoutwhichofthefollowingcodelettersapplied toyourcircumstances.

SENIOR AUSTRALIANS TAX OFFSET CODE LETTERS Ifatanytimeduring201011,youwere single,separatedorwidowed,use Ifyouandyourspouse nwerebotheligibleforthesenior Australianstaxoffset,and natanytimein201011hadtoliveapart duetoillnessorlivedapartbecause oneofyouwasinanursinghome,use Ifyourspousewasnoteligibleforthe seniorAustralianstaxoffset,andatany timein201011youandyourspouse livedapartduetoillnessorbecauseone ofyouwasinanursinghome,use Ifyouandyourspouselivedtogether andyouwerebotheligibleforthesenior Australianstaxoffset,use Ifyouandyourspouselivedtogether,but yourspousewasnoteligibleforthesenior Australianstaxoffset,use A

Hadtoliveapartduetoillnessreferstosituations whereyouandyourspousedidnotlivetogether becauseoneorbothofyouhaveanindefinitely continuingillnessorinfirmityand,asaresultyour combinedlivingexpenseswereincreased. Ifonlyonecodeletteraboveapplied,gotostep2.

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69

T2 SeniorAustralians(includesagepensioners,servicepensionersandself-fundedretirees)

Ifmore than onecodeletterapplied,usethefirst codeletterinthelistonthepreviouspagethatapplied toyou,exceptasshowninthefollowingtable. IfbothAandBapplied,andyourspouses rebateincomewaslessthan$18,334,use IfbothAandCapplied,andyourspouse receivedanAustralianGovernment paymentlistedatquestion6 Australian Government pensions and allowances, andyourspousesrebateincomewasless than$22,734,use IfbothAandDapplied,andyourspouses rebateincomewaslessthan$12,494,use IfbothAandEapplied,andyourspouse receivedanAustralianGovernment paymentlistedatquestion6 Australian Government pensions and allowances, andyourspousesrebateincomewasless than$15,167,use B

Step 4 Youmustreadpages1016and,whereapplicable, completeincometestsitemsIT1, IT2, IT5and IT6andfordeductiblepersonalsuperannuation contributionsitemD12ontheTax return for individuals (supplementary section) 2011. Step 5 IfyourseniorAustralianstaxoffsetcodeletter isAgotoquestionT4.IfyourseniorAustralians taxoffsetcodeletterisB,C,DorE,youmust completeSpouse details married or de facto onpages911ofyourtaxreturn.

Any unused portion of tax offset IfyouareeligiblefortheseniorAustralianstaxoffset andyourspouseiseligibleforeitherthesenior Australianstaxoffsetorpensionertaxoffset,and oneofyoudoesnotfullyuseyourtaxoffset,the unusedportionmaybeavailablefortransfertothe otherperson.Wewillworkthisoutautomatically andtransferanyentitlement. MORE INFORMATION Youmeettheveteran pension age testifoneof thefollowingappliedtoyouandyouwereeligiblefor apension,allowanceorbenefitundertheVeterans Entitlements Act 1986. nYouhaveeligiblewarservice,thatis,servicein WorldWarIIoroperationalserviceasamember oftheAustralianDefenceForce. nYouareaCommonwealthoralliedveteranwho servedinaconflictinwhichtheAustralianDefence Forcewasengagedduringaperiodofhostilities, thatis,WorldWarII,orinKorea,Malaya,Indonesia orVietnam. nYouareanAustralianoralliedmarinerwhoserved duringWorldWarII. nYouarethewarwidoworwidowerofaformer memberoftheAustralianDefenceForce.
Pension,allowanceorbenefitincludes: ndisabilitypension nservicepension,and nwhiteorgoldRepatriationhealthcardsfor treatmententitlements. Ifyouarenotsureifyoumeettheveteranpension agetest,visittheDVAwebsiteatwww.dva.gov.au orphoneVeteransAffairson13 32 54.

Step 2 PrintyourcodeletterintheTAX OFFSET CODEbox atNitemT2. Wewillworkouttheamountofyourtaxoffset. Ifyouwanttoworkitout,youcanusethesenior Australiansandpensionertaxoffsetcalculatorat www.ato.gov.au/calculators Step 3 Ifyouoryourspousewasaveteran,warwidow orwarwidower,readonandworkoutyourveteran code letter;otherwise,gotostep4. Selectthecodeletterthatappliestoyou. VETERAN CODE LETTERS Ifyouwereaveteran,warwidoworwar widower,use Ifyourspousewasaveteran,warwidow orwarwidower,use IfbothVandWapplytoyou,use V W X

Ifaveterancodeletterappliestoyou,printthecode letterintheVETERAN CODEboxatYitemT2. Otherwise,leaveitblank.

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TAXPACK 2011

Pensioner

Tax offsets T3

Did you show an Australian Government pension or allowance at item 6 on your tax return?
NO YES

 GotoquestionT4.  Readbelow.

IfyouhavealreadyclaimedataxoffsetatitemT2, gotoquestionT4,becauseyoucannotalsoclaim thistaxoffset.

COMPLETING YOUR TAX RETURN Step 1 Workoutwhichofthefollowingcodelettersapplied toyourcircumstances.Thecodelettertellsushowto workouttheamountofyourtaxoffset.

PENSIONER TAX OFFSET CODE LETTERS Ifatanytimeduring201011whileyouwere receivinganAustralianGovernmentpension orallowancelistedatquestion6from: Veterans Centrelink Affairs
nyouweresingle,widowedor

Wewillworkouttheamountofyourtaxoffset. Ifyouwanttoworkitout,youcanusethesenior Australiansandpensionertaxoffsetcalculatorat www.ato.gov.au/calculators Step 3 Ifyouoryourspousewereaveteran,warwidow orwarwidower,youneedtoworkoutyourveteran code.Selectthecodeletterthatappliestoyou. VETERAN CODE LETTERS Ifyouwereaveteran,warwidoworwar widower,use Ifyourspousewasaveteran,warwidowor warwidower,use IfbothVandWapplytoyou,use V W X

separated,use together,use

S P

L M

nyouandyourspouselived nyouandyourspousehadto

liveapartduetoillness*oryou livedapartbecauseoneofyou wasinanursinghome,use

Ifaveterancodeletterappliestoyou,printthe codeletterintheVETERAN CODEboxatTitemT3. Otherwise,leaveitblank. Step 4 IfyourpensionertaxoffsetcodeletterwasSorL, youmustreadpages1016andwhereapplicable, complete Income testsitemsIT1,IT2,IT5andIT6. ThengotoquestionT4.

Ifmorethanonecodeletterapplies:
n IfbothPandIapplytoyou,use n IfS,PandIallapplytoyou,use n IfbothSandIapplytoyou,use n IfbothSandPapplytoyou,use n IfbothMandAapplytoyou,use n IfL,MandAallapplytoyou,use n IfbothLandAapplytoyou,use n IfbothLandMapplytoyou,use

I J J Q A K K R

Step 5 IfyourpensionertaxoffsetcodeletterwasP,Q,I, J,M,R,AorK,youmustreadpages1016and, whereapplicable,completeIncome testsitems IT1,IT2,IT5andIT6.Thenreadpages1079and completeSpouse details married or de facto onpages911ofyourtaxreturn.

*Hadtoliveapartduetoillnessreferstosituationsinwhichyouwere
paidapensionatahigherratebecauseyouandyourspousedidnot livetogetherinyourhomeduetoillness.Ifyouarenotsure,check withCentrelinkortheDepartmentofVeteransAffairs.

Gotostep2. Step 2 Printyourpensionertaxoffsetcodeletterinthe TAX OFFSET CODEboxatOitemT3.

TAXPACK 2011

ANY UNUSED PORTION OF TAX OFFSET Ifyouareeligibleforthepensionertaxoffsetandyour spouseiseligibleforeithertheseniorAustralianstax offsetorpensionertaxoffset,andoneofyoudoesnot fullyuseyourtaxoffset,theunusedportionmaybe availablefortransfertotheotherperson.Wewillwork thisoutautomaticallyandtransferanyentitlement.
71

T4 Tax offsets

Australian superannuation income stream

IfyouhaveshownincomefromanAustralian superannuationincomestreamatitem7onyourtax return,youmaybeentitledtoataxoffsetequalto n15%ofthetaxedelement,or n10%oftheuntaxedelementofyoursuperannuation incomestreambenefit. ThetaxoffsetamountwillbeshownonyourPAYG payment summary superannuation income stream. Youarenotentitledtoataxoffsetforthetaxed elementofanysuperannuationincomestream youreceivedbeforeyouturned55yearsoldunless thesuperannuationincomestreamwaseither: nadisabilitysuperannuationbenefit,or nadeathbenefitincomestream.

Youarenotentitledtoataxoffsetfortheuntaxed elementofanysuperannuationincomestream receivedbeforeyouturned60yearsoldunlessthe superannuationincomestreamisadeathbenefit incomestreamandthedeceaseddiedafterthey turned60yearsold.

Did you receive an Australian superannuation income stream shown on a PAYG payment summary superannuation income stream?
NO YES

 GotoquestionT5.  Readbelow.

ANSWERING THIS QUESTION YouwillneedyourPAYG payment summary superannuation income streamwhichshouldshow theamountofthetaxoffset.
Contactyourpayerifyou: ndidnotreceiveapaymentsummaryoryoulost yourpaymentsummary nthinkyouqualifyforthistaxoffsetandthepayment summarydoesnotshowit ndisagreewiththeamountshownonyourpayment summary. Alternatively,gotowww.ato.gov.auforfurther instructionsifyouareentitledtoataxoffsetandyour PAYG payment summary superannuation income streamdoesnotshowataxoffsetamount.

COMPLETING YOUR TAX RETURN Step 1 Addupthetaxoffsetsthatareeithershownon asuperannuationincomestreampaymentsummary orworkedoutbyyou.

Step 2 WritethetotalatSitemT4.

MORE INFORMATION Formoreinformationonhowthistaxoffsetisworked out,seeSpecial circumstances and glossaryon page121.

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TAXPACK 2011

Private health insurance

Tax offsets T5

Youcanclaimaprivatehealthinsurancetaxoffset ifyoupaidapremiumforacomplyingprivatehealth insurancepolicyoryouremployerpaidthispremium onyourbehalf. Yourhealthinsurancepolicyiscomplyingif: nitisprovidedbyaregisteredhealthinsurer nitprovideshospitalorgeneral(alsoknownas extras)coverorcombinedhospitalandgeneral cover,and nitmeetsothercomplyingprivatehealthinsurance policyrequirements. Ifyouarenotsure,yourhealthinsurercantellyou whetheryourpolicymeetstheseconditions.The PrivateHealthInsuranceAdministrationCouncil websiteatwww.phiac.gov.aucantellyouwhether yourinsurerisaregisteredhealthinsurer.

Did you, or your employer on your behalf, pay a premium for a complying private health insurance policy?
NO YES

 GotoquestionT6.  Readbelow.

Checkthestatementsfromallofthehealthinsurers youpaidpremiumsto.IftheamountsatGonyour statementsare$0,youhavealreadyreceivedyour fullentitlementandyoudonotneedtocomplete thisitem.GotoquestionT6. Ifyouhaveanamountgreaterthan$0atG, readbelow.

ANSWERING THIS QUESTION Youwillneedastatementfromyourregistered healthinsurer.

Ifyoudidnotreceiveastatement,contactyour insurer.Ifyoudonothaveastatementbecause youremployerpaidthepremium,contactyour insureroremployer. Ifyoucannotgetastatementfromyourhealth insurer,orifyourstatementshowsatotalamount expectedtobepaidduringtheyearwhichisdifferent tothetotalamountactuallypaid(forexample,you didnotmakeoneoftheexpectedpayments),you willneedtocalculateyourtaxoffsetyourself.Go towww.ato.gov.auandenterT5privatehealth insurance,intheSearchforboxatthetopofthe page;thenclickthehyperlinkworksheetsonthat pagetouseoneofthetwoworksheetstohelp youworkoutwhatyoucanclaim. Youcannotclaimthistaxoffsetforpremiums paidifyouhavealreadyclaimedaprivatehealth insurancerebateforthem,eitherasreductions inyourpremiumsthroughthehealthinsureror ascashorchequerebatesfromMedicare.

COMPLETING YOUR TAX RETURN Step 1 AddupalltheamountsshownatG onyour statements.

Step 2 Deductanycashorchequerebatesyoureceived fromMedicareforyourprivatehealthinsurance premiums. Step 3 Iftheresultfromstep2is$0oranegativeamount, youhavealreadyreceivedyourfullentitlement. Iftheresultfromstep2isgreaterthan$0,that amountisyourtaxoffset.WritetheamountatG itemT5. Ifyouandanotherpersonmadepaymentsforthe samepolicy(forexample,fromajointbankaccount) youcaneachclaimtheproportionoftheamountyou workedoutatstep2thatreflectstheamountofthe premiumsthatyoupaid.

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73

T6 Tax offsets

Education tax refund

Youmaybeeligiblefortheeducationtaxrefund(ETR) ifyou,oryourpartner,incurredeligibleeducation expensesbetween1July2010and30June2011 fortheprimaryorsecondaryschoolstudies(atschool, homeorTAFE)of: nachild,or nyourself,ifyouwereanindependentstudent under25yearsoldundertakingprimaryor secondarystudies. Forthepurposeofthisquestion,yourpartneris apersonofthesameoroppositesex: nwithwhomyouarelegallymarriedorinamarriage-like relationship nfromwhomyouarenotpermanentlyseparated,and nwhoisnotblood-related,relatedbyadoptionor undertheageofconsent. Youincuranexpenseintheincomeyearwhen: nyoureceiveabillorinvoiceforanexpensethat youareliableforandmustpay(evenifyoudont payituntilaftertheendoftheyear),or nyoudonotreceiveabillorinvoicebutyouare chargedandyoupayfortheexpense.

Youcanclaimcarry-forwardexcesseligibleeducation expensesfromlastyearonlyifyouareeligibleforthe ETRinrespectofeligibleeducationexpensesincurred thisyear. ForyoutobeeligibletoclaimtheETRforan expenseforastudent,theexpensemustbean eligible education expense,andwhentheexpense wasincurred: nyoumusthavemetoneofthefourconditions below,and nthestudentmusthavemettheschooling requirement. See: npage75foralistofeligible education expenses npage75forschooling requirement nbelowforinformationonthefourconditions.

Do you want to claim the ETR?

NO YES

 GotoquestionT7.  Readbelow.

Youmustmeetoneofthefourfollowingconditions foreachstudentforwhomyouwanttoclaimtheETR.

CONDITION 1: RECEIVING FAMILY TAX BENEFIT (FTB) PART A On the day you or your partner incurred the expense in respect of the child, were you eligible to receive FTB Part A for that child?
TobeeligibletoreceiveFTBPartAforachildyou musthavelodgedaclaimforthechildandhadyour claimapproved.Ifyouarenotsurewhetheryou wereeligibletoreceiveFTBPartAforthatchild, contacttheFamilyAssistanceOffice(seetheinside backcover).
YES

CONDITION 2: RECEIVING PAYMENTS OTHER THAN FTB Youmetthisconditionif,onthedayyouoryour partnerincurredtheexpenseinrespectofthechild, thatchildwasnotyourFTB child(seethedefinition onpage79)onlybecauseoneofthesepayments waspaidforthechild1: nasocialsecuritypensionorbenefit naLabourMarketProgrampayment,or naprescribededucationalschemepayment.
Did you meet this condition?
YES

 GotoSchooling requirement onthenextpage.  ReadCondition 3: Child stops school.

 GotoSchooling requirement onthenextpage.  ReadCondition 2: Receiving payments other than FTB.

NO
1

NO

 Thesepaymentsinclude: YouthAllowance disabilitysupportpension ABSTUDYlivingallowance paymentsundertheVeteransChildrenEducationScheme paymentsundertheschemetoprovideeducationandtraining underthe Military Rehabilitation and Compensation Act 2004. Ifyouarenotsurewhetherapaymentforthechildisoneof thesetypesofpayment,contactthepayer.
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74

Educationtaxrefund T6

CONDITION 3: CHILD STOPS SCHOOL Youcanmeetthisconditionforthechildonlyif: nonthedayyouoryourpartnerincurredtheexpense inrespectofthechild,thechildwas16yearsor olderandmettheschoolingrequirement nthechildwasnotundertakingprimaryorsecondary schoolstudieson30June2011,and nyouwouldhavesatisfiedcondition1or2for thechildonthedaytheexpensewasincurred ifthechildhadearnednoincomeinthe201011 incomeyear.
IfallthesecriteriaaresatisfiedtheCommissioner willacceptthatyouhavemetcondition3when youoryourpartnerincurredtheexpense. Did you meet this condition?
YES

SCHOOLING REQUIREMENT Ifthestudentwasenrolledorregisteredinaprimary orsecondaryschoolcourse(atschool,homeor TAFE)andattendedthatcourse,orreceivedthe homeschooling,foratleastoneday: nbetween1July2010and31December2010,then theymettheschoolingrequirementforeverydayin thatperiod nbetween1January2011and30June2011,then theymettheschoolingrequirementforeveryday inthatperiod nineachofthosetwosix-monthperiods,thenthey mettheschoolingrequirementforthewholeyear. Primary or secondary school Ifyouareuncertainwhetheryourchildisregisteredin aprimaryorsecondarycourseyouneedtocontact yourstateorterritorydepartmentofeducation.
Did the student meet the schooling requirement?
NO

 GotoSchooling requirementinthe nextcolumn.  ReadCondition 4: Independent student.

NO

CONDITION 4: INDEPENDENT STUDENT Youmetthisconditionif,onthedayyouincurredthe expense,youwereunder25yearsoldand: nyouwerereceivingasocialsecuritypensionor benefit,aLabourMarketProgrampaymentor aprescribededucationalschemepayment* nyoumettheindependencerequirementsfor thepayment nyouwereanAustralianresident(undertheSocial Security Act 1991)oraspecialcategoryvisaholder (undertheMigration Act 1958) nyouwereresidinginAustralia,and nnooneelse,suchasyourparentoranapproved careorganisation,wasentitledtotheETRforyou.
Did you meet this condition?
YES

 Youarenoteligibleforthistaxoffset. GotoquestionT7.  Readbelow.

YES

 GotoSchooling requirementinthe nextcolumn.  Youarenoteligibleforthistaxoffset. Gotoquestion T7.

NO

* Thesepaymentsinclude: YouthAllowance disabilitysupportpension ABSTUDYlivingallowance paymentsundertheVeteransChildrenEducationScheme paymentsundertheschemetoprovideeducationandtraining underthe Military Rehabilitation and Compensation Act 2004. Ifyouarenotsurewhetherapaymentforthechildisoneof thesetypesofpayment,contactthepayer.
TAXPACK 2011

EDUCATION EXPENSES Thefollowingareeligible education expensesif theyrelatedirectlytotheeducationofthestudent forwhomyouareclaimingtheETR: nlaptops,homecomputers,repairandassociated runningcosts ncomputer-relatedequipment,suchasprinters,USB flashdrives,aswellasdisabilityaidstoassistinthe useofcomputerequipmentforstudentswith specialneeds,repairandassociatedrunningcosts nhomeinternetconnection,includingthecostsof establishingandmaintainingit ncomputersoftware,forexample,wordprocessing, spreadsheetandpresentationsoftware nschooltextbooksandotherpaper-basedschool learningmaterial,includingprescribedtextbooks, associatedlearningmaterials,studyguidesand stationery ntoolsoftrade,suchastoolsrequiredtocomplete aschool-basedapprenticeship.
Thefollowingarenot eligible expensesfortheETR: nschoolfees nschooluniformexpenses nstudentattendanceatschoolexcursionsandcamps ntutoringcosts
75

T6 Educationtaxrefund

nsportingequipment nmusicalinstruments nlibrarybookfees nbuildinglevies nschoolsubjectlevies nschoolphotos ndonations ntuckshopexpenses nwaitinglistfees ntransport nmembershipfees ncomputergamesandconsoles.

youhadawrittenagreementthatoneofyou wouldclaimtheETRforeverydayintheyear,or youdidnothaveawrittenagreementatall.

Completing worksheet 1 Completeworksheet 1toworkoutthemaximum ETRyoucanclaim(yourETRlimit).

Ifyouwereanindependentstudent,useanycolumn intheworksheetanddisregardanyinstructionthat relatestoachild. Ifyouhavemorethanfivechildrenforwhomyouwant toclaimtheETR,useaseparatepieceofpaperto continueyourcalculations. Step 1 Forastudentwhoattendedsecondaryschoolona dayduring201011,write$794at(a).Forastudent whoattendedonlyprimaryschoolduring201011, write$397at(a). Step 2 Writeat(b),foreachstudent,thenumberofeligible days,thatis,dayswhen: nyoumetanyofthefourconditionsonpages745 withrespecttothestudentand nthestudentmettheschoolingrequirement. Ifbothoftheabovedotpointsaresatisfiedforthe wholeincomeyear,write365at(b). Step 3 nIfyoumetcondition4,write1at(c). nIfyoumetcondition1andhadanFTBagreed percentage,writethispercentageat(c)asadecimal (forexample,write0.65not65%). nIfbothyouandyourpartnermetcondition2or3, andyoudonothaveawrittenagreementwithyour partner,youragreedpercentageis50%.Write0.5 at(c). nOtherwise,youragreedpercentageis100%. Write1at(c). Step 4 nIfyoumetcondition4,write1at(d). nIfyouandyourpartnerdid not share the careof thechildwithsomeoneelse,write1at(d). nIfyoumetcondition1,writeyourFTBshared-care percentageforthechildat(d)asadecimal. nIfyoumetcondition2or3,workoutthenumber ofdaysthatthechildwaswithyouandyourpartner during201011thatwerealsoeligibledays(see step2).Dividethatnumberbythenumberof eligibledaysat(b)andwritetheanswerat(d).
TAXPACK 2011

Youcannotclaimforanexpense,orthatpartof anexpense: nthatistaxdeductible nthatissubjecttoanothertaxoffset,or nforwhichyoureceivedorareentitledtoreceive areimbursementorpaymentundera Commonwealthbenefit,grantorsubsidy. Were the expenses you want to claim eligible education expenses?
YES NO

 GotoAnswering this questionbelow.  Youarenoteligibleforthistaxoffset. GotoquestionT7.

ANSWERING THIS QUESTION Usethefollowingstepsandworksheetstocalculate yourETR,orgotowww.ato.gov.auandusetheETR calculatorthere.

IfyouareanindependentstudentgotoCompleting worksheet 1. Beforeyoucanworkouthowmuchyoucanclaim, youneedtoknowwhetheryouhadanFTBagreed percentageoranFTBshared-carepercentagefor thechild. Ifbothyouandyourpartnermetcondition2or3, youcanmakeawrittenagreementwithyourpartner statingwhichofyouwillclaimtheETR.Otherwise, youwilleachhavetoclaimhalftheETR. YouhavetousetheETRcalculatoratwww.ato.gov.auif: nyouhadanFTBshared-careorFTBagreed percentagethatchangedduringtheyear nyoumetcondition1forachildduringpartofthe incomeyearandyoumetcondition2or3forthe samechildduringanotherpartoftheincomeyear, or nyouandyourpartnermetcondition2or3unless
76

Educationtaxrefund T6

WORKSHEET 1 Working out your ETR limit Child1 Amountfromstep1 Numberofeligibledays Agreedpercentage Shared-carepercentage Multiply(b),(c)and(d). Divide(e)by365(round totwodecimalplaces). Multiply(a)by(f). $ $        $ Child2 $        $ Child3 $        $ Child4 $        $ $ Child5 $         (a) (b) (c) (d) (e) (f) (g) (h)

Addupalltheamountsat(g)androunduptothenextdollar.

Theamountat(h)isyourETRlimit.

Otherwise,readon. Step 6 Addupalltheeligibleexpensesthatyouand yourpartnerincurredwhenyoumetcondition1. Writethetotalat(j)inworksheet 2. Writeat(k)inworksheet 2yourFTBagreed percentagefrom(c)inworksheet 1. Addupandwriteat(m)inworksheet 2alltheeligible expensesthatyouandyourpartnerincurredwhen: nyoubothmetcondition2or3,and nyoudidnothaveawrittenagreementwithyour partneridentifyingwhowouldclaimETR. Addupandwriteat(o)inworksheet 2alltheeligible expensesthatyouandyourpartnerincurredwhen: nyoubothmetcondition2or3,and nyouhadawrittenagreementwithyourpartner thatyouwouldclaimtheETR.

Work out the total eligible expenses you can claim ETR for Eligibleexpensesareeligibleeducationexpenses youincurredatatimewhen: nyoumetcondition1,2,3or4,and nthestudentmettheschoolingrequirement.
Step 5 Ifyouwereanindependentstudent,addupall youreligibleexpensesandwritethetotalat(p)in worksheet 2.Ignorerows(j)to(o).Writeanyexcess eligibleexpensescarriedforwardfrom200910at(q) andcomplete(r)and(s).Gotostep7. Ifyouweresingleforthewholeincomeyearand youdidnotsharethecareofthechild,addupall theeligibleexpensesthatyouincurredwhenyou metcondition1,2or3.Writethetotalat(p)in worksheet 2.Ignorerows(j)to(o).Writeanyexcess eligibleexpensescarriedforwardfrom200910at(q) andcomplete(r)and(s).Gotostep7.

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77

T6 Educationtaxrefund

WORKSHEET 2 Working out the total expenses you can claim ETR for Yourexpensesunder condition1 YourFTBagreedpercentage Multiply(j)by(k). Yourexpensesunder condition2or3without awrittenagreement Divide(m)by2. Yourexpensesunder condition2or3with awrittenagreement Add(l),(n)and(o). Yourexcesseligibleexpenses carriedforwardfrom200910 Add(p)and(q). Divide(r)by2androundupto thenextdollar. $ $ (j) (k) (l)

Work out the excess eligible expenses you can carry forward to 201112 Step 8
WORKSHEET 3 Working out the excess eligible expenses Transfer(s)fromworksheet 2. Transfer(h)fromworksheet 1. Take(h)awayfrom(s). $ $ $ $ (s) (h) (t) (u)

$ $

(m) (n)

Multiply(t)by2.

(o) (p) (q) (r) (s)

Iftheamountat(u)inworksheet 3islessthanthe amountat(p)inworksheet 2,thentheamountat(u) istheamountyoucarryforwardandincludeinyour totaleligibleeducationexpenseswhenworkingout yourETRfor201112,providedyouarestilleligible toclaimETRinthatyear.Keeparecordofthe amountat(u). Iftheamountat(u)inworksheet 3isgreaterthanthe amountat(p)inworksheet 2,thentheamountat(p) istheamountyoucarryforwardandincludeinyour totaleligibleeducationexpenseswhenworkingout yourETRfor201112,providedyouarestilleligible toclaimETRinthatyear.Keeparecordofthe amountat(p).

Theamountat(s)isthemaximumamountofeligible educationexpensesyoumayclaim.

Work out the amount of your ETR Step 7 Transfertheamountfrom(h)inworksheet 1or(s)in worksheet 2,whicheverisless,toLitemT6.
Ifyoutransferredtheamountfrom(s)inworksheet 2 toLitemT6,gotostep9.Otherwise,readon.

Number of students Step 9 Addupthenumberofprimaryschoolstudents youareclaimingETRforandwritetheanswerat WitemT6.

Step 10 Addupthenumberofsecondaryschoolstudents youareclaimingETRforandwritetheanswerat XitemT6.

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TAXPACK 2011

Educationtaxrefund T6

DEFINITION OF FTB CHILD AchildwillbeyourFTBchildwhen: nthefollowingcriteriaaremet,and nthechildisnotpreventedfrombeingyourFTB childbythenegativetest(seethenextcolumn).

Theremaybeothersituationsinwhichachildwill beyourFTBchild.Ifindoubt,contacttheFAO.

Ifthechild is 5 years old or older and under 16 years old,andtheyarenotstudyingfulltime orengagedinacourseofprimaryeducation, theiradjustedtaxableincome(ATI)mustbeless than$13,010. Ifthechild is 16 years old or older and under 21 years old: n theirATImustbelessthan$13,010 n thechild,orsomeoneontheirbehalf,must notreceiveanypaymentsunderaprescribed educationalschemeforthechild,and n forthepurposesoftheeducationtaxrefund,the childmustalsofrom1January2011: havecompletedthefinalyearofsecondaryschool oranequivalentqualification,or beundertakingfull-timestudyinanapproved coursethat,intheopinionoftheFAO,willassist orallowthechildtocompletethefinalyearof schooloranequivalentqualification. Ifthechild is 21 years old or older and under 25 years old: n thechildmustbeundertakingfulltimestudy n theirATImustbelessthan$13,010,and n thechild,orsomeoneontheirbehalf,must notreceiveanypaymentsunderaprescribed educationalschemeforthechild. ForanexplanationofATIanditscomponents, gototheFamilyassistanceguideat http://www.fahcsia.gov.au/guides_acts/fag/ faguide-3/faguide-3.2.html

Basic criteria n Thechildmustbeinyourcare(seenegativetest).

Thechildmustbe: anAustralianresident,or aspecialcategoryvisaholderresiding inAustralia,or livingwithyouandyoumustbeanAustralian residentoraspecialcategoryvisaholder.
n Thechild,orsomeoneontheirbehalf,mustnot

receiveanysocialsecuritypensionorbenefit orLabourMarketProgrampaymentforthechild. n Thechildmustbeunder25yearsold. Thechildeither: n mustnotbeyourpartner,or n ifthechildisunder16yearsold,thechildwould notbeyourpartnereveniftheywereovertheage ofconsentinyourstateorterritory. ContacttheFAOaboutthefollowingsituationswhen achildmightstillbeyourFTBchild: n Thechildistakenoutofyourcarewithout yourconsent. n YouorthechildisnotinAustralia. n Thechildisunder18yearsoldandfromanother relationshipofyourpartner.

Age-based criteria Ifthechild is under 18 years old,oneofthe followingcriteriamustbemet: n Youarelegallyresponsible(orjointlylegally responsiblewithanotherperson)fortheday-to-day care,welfareanddevelopmentofthechild. n Youareapersonwithwhomthechildissupposed toliveorspendtimeunderafamilylaworder, registeredparentingplanorparentingplanthat isinforceforthechild. n Thechildisnotinthecareofanyonelegally responsiblefortheirday-to-daycare,welfare anddevelopment.

The negative test Ifyousatisfythecriteriaaboveforachildonaday, thatchildisyourFTBchildonthatdayunlessall ofthefollowingconditionsapplyonthatday: n thechildisalsoanFTBchildofoneormoreother personwithwhomyousharethecareofthechild n youmadeaclaimforFTBinrespectofthechild forallorpartoftheincomeyear n youarenotthepartnerofsomeoneinrespect ofwhomthechildisanFTBchild,and n theFAOhasdeterminedthatyoucareforthechild forlessthan35%ofthetime.
Ifalltheconditionsaboveapply,thechildisnotyour FTBchild.

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79

T Tax offsets

Tax offsets that you show on the supplementary section of the tax return

YouneedtouseTaxPack 2011 supplementifyou wereentitledtoanyofthefollowingtaxoffsets: ntaxoffsetforsuperannuationcontributionson behalfofyourspouse ntaxoffsetforlivinginaremoteorisolatedarea ofAustralia ntaxoffsetforservingoverseasasamemberof theAustralianDefenceForceoraUnitedNations armedforce ntaxoffsetfornetmedicalexpensesoverthe thresholdamount ntaxoffsetformaintenanceofyourparent, spousesparentorinvalidrelative nlandcareandwaterfacilitytaxoffsetbrought forwardfromanearlieryear

nmatureageworkertaxoffset nentrepreneurstaxoffset ntaxoffsetforinterestfromthelandtransport

facilitiestaxoffsetschemeorinfrastructure borrowingsscheme ntaxoffsetforperformingworkorservicesin theJointPetroleumDevelopmentArea(JPDA) nforeignincometaxoffset,whichyouclaimed atitem20.

Were you entitled to any of the above tax offsets?

NO YES

 GotoTotal tax offsets.  Readbelow.

ANSWERING THIS QUESTION YoucanfindtheTax return for individuals (supplementary section) 2011atthebackof TaxPack 2011 supplement.Ifyoudonthavea copyofthissupplement,youcangetonefrommost newsagentsduringthelodgmentperiod(1Julyto 31October2011).Copiesarealsoavailableallyear fromourPublicationsDistributionService(seethe insidebackcover)andshopfronts.

COMPLETING YOUR TAX RETURN Step 1 Completethedetailsatthetopofpage13onyour Tax return for individuals (supplementary section) 2011.UseTaxPack 2011 supplementtocomplete theTAX OFFSETSsectiononpage16ofyourtax return(supplementarysection).
Step 2 TransfertheamountyouwroteatTOTAL SUPPLEMENT TAX OFFSETSonpage16of yourtaxreturn(supplementarysection)toTon page5ofyourtaxreturn.

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TAXPACK 2011

Total tax offsets

Tax offsets

COMPLETING YOUR TAX RETURN Step 1 Checkthatyouhaveclaimedallthetaxoffsets youareeligiblefor.

Step 2 Addupallthetaxoffsetamountsyouclaimed atitemsT1,T4,T5,T6andTonyourtaxreturn. (WeworkouttheamountsatitemsT2andT3 automatically.) Step 3 WritethetotalamountatU TOTAL TAX OFFSETS onpage5ofyourtaxreturn.

Mature age worker tax offset IfyouwereanAustralianresident55yearsoldor olderon30June2011andyouhavereceivedcertain incomefromworking,youmaybeeligibleforthe matureageworkertaxoffset.

Ifyouhavenetincomefromworkingasaresultof amountsthatyoushowatitemsinthesupplementary sectionofthetaxreturn,youwillneedtocomplete itemT12 Net income from working supplementary sectionsowecanworkoutyourmatureageworker taxoffsetentitlement.

Adjustments that you show on the supplementary section of the tax return

COMPLETING YOUR TAX RETURN Didyoureceiveadistributionduring201011on whichfamilytrustdistributiontaxhasbeenpaid?

YES

Didyoumakeapaymenttousmorethan14days beforetheduedateforpayment?
YES

 ReadquestionA4onpages66in TaxPack 2011 supplement.Youmay beentitledtoanadjustment.  Readon.

 ReadquestionC1onpages67inTaxPack 2011 supplement.Youmaybeabletoclaim creditforinterestonearlypayments.  GotoPrivate health insurance policy detailsonthenextpage.

NO

NO

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Private health insurance policy details

Youneedtocompletethisitemifyouclaimedatax offsetatitemT5 Private health insuranceoryou weredirectedtoprovidethisinformationatquestion M2 Medicare levy surcharge.

Did you have private health insurance at any time from 1 July 2010 to 30 June 2011?
NO YES

 GotoquestionM1.  Readbelow.

YoumustcompleteitemM2 Medicare levy surcharge,itiscompulsory.

ANSWERING THIS QUESTION Youwillneedyourstatementsfromyourregistered healthinsurers.

Ifyoudidnotreceiveastatement,contactyour insurer.Ifyoudonothaveastatementbecause youremployerpaidthepremium,contactyour insureroremployer. Youmayhavebeencoveredbyafamilypolicy eventhoughyouoryouremployerdidnotpaythe premium.Youcanshowthetypeofcoveryouhad underthatpolicyatthisitem. HELPFUL HINTS Youcandownloadyourprivatehealthinsurance detailsonlineanytimeusingthepre-fillingservice ine-tax.Gotowww.ato.gov.au/etaxprefilling

TYPE OF COVER Generalcover(alsoknown asextras) Hospitalcover Combinedhospitaland generalcover

CODE LETTER A H C

Ifyouchangedthecoverunderapolicyduringthe year,printthecodeletterforthehighestlevelofcover. Youhavefinishedthisquestion.GotoquestionM1. Step 4 Ifyouhadmorethanthreepoliciesduringthe year,completesteps1to3forthefirstthreepolicies. Then,onaseparatesheetofpaper,printSCHEDULE OFADDITIONALINFORMATIONPRIVATEHEALTH INSURANCEPOLICYDETAILS.Printyourname, addressandtaxfilenumber,andlistthehealth insurersIDcode,yourmembershipnumberandthe typeofcoverforeachoftheotherpoliciesyouheld. Attachyourscheduletopage3ofyourtaxreturn. PrintXintheYESboxatTaxpayers declaration question2aonpage12ofyourtaxreturn. TAX TIPS Tocheckifyourhealthinsurerisaregistered privatehealthinsurer,visitthePrivateHealth InsuranceAdministrationCouncilwebsiteat www.phiac.gov.au

COMPLETING YOUR TAX RETURN Usetheinformationshownonyourstatementsto completeyourtaxreturn.

Ifyouhadmorethanthreepolicies,gotostep4. Step 1 Printtheidentificationcodeofeachofyourhealth insurersatB Health insurer IDonpage6ofyour taxreturn. Step 2 Writeeachofyourprivatehealthinsurance membershipnumbersatC Membership number. Step 3 IntheType of coverbox,printthecodeletter fromeachofyourstatements.Ifyoudonthave astatement,printthecodeletterfromthetable inthenextcolumnthatbestdescribesthetype ofhealthinsurancecoveryouhad.

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TAXPACK 2011

Medicare levy reduction or exemption

Medicare levy M1

Thisquestionisaboutwhetheryouqualifyfora Medicarelevyreductionorexemption.Australian residentsaresubjecttoaMedicarelevyof1.5% oftheirtaxableincomeunlesstheyqualifyfor areductionorexemption. IfyouarenotanAustralianresident,youare exemptfromtheMedicarelevy.

AMedicarelevyreductionisbasedonyourtaxable income.AMedicarelevyexemptionisbasedon specificcategories.Youneedtoconsideryour eligibilityforareductionoranexemptionseparately. ThefirstpartofthisquestiondealswithMedicare levyreduction.Ifyouarenoteligibleforareduction, youwillbedirectedtoreadtheexemptionsection toseeifyouqualifyforaMedicarelevyexemption.

PartAMedicarelevyreduction
ANSWERING THIS QUESTION YoureligibilityforareductionofyourMedicarelevyis basedonyourandyourspousestaxableincomeand yourcircumstances.
Forthedefinitionofspouse,seepage123. TABLE 1 Medicare levy thresholds for an individual Category Ifyouwereeligible forthesenior Australianstaxoffset (seequestionT2) Ifyouwereeligible forthepensionertax offset(seequestionT3) Allothertaxpayers Lower threshold $30,685 Upper threshold $36,100

WHERE DO YOU FIT? Your circumstance Yourtaxableincome isequaltoorlessthan yourlowerthreshold amount. Yourtaxableincomeis greaterthanyourlower thresholdamountand lessthanorequaltoyour upperthresholdamount. Yourtaxableincome isoveryourupper thresholdamount,and youaresinglewithno dependants. Yourtaxableincomeis overyourupperthreshold amountbutyou: nhadaspouse (marriedordefacto) nhadaspousethat diedduringtheyear, andyoudidnothave anotherspousebefore theendoftheyear nareentitledtoa child-housekeeper orhousekeepertax offsetatitemT1,or nwereasoleparent atanytimeduring 201011andyou hadsole care(see definitiononnext page)ofoneormore dependentchildren. What to do Youdonothavetopay theMedicarelevy.Donot writeanythingatitem M1onyourtaxreturn. GotoquestionM2. Youpayonlypartofthe Medicarelevy.Wewill workitout.GotopartB toseeifyouqualifyfor anexemption. Youdonotqualifyfor areduction. GotopartBtoseeif youqualifyforan exemption. Youmaybeeligiblefora Medicarelevyreduction basedonfamilytaxable income. nFirstworkoutyour Family taxable incomeusing worksheet 1on thenextpage. nThenuseworksheet 2 onpage85towork outyourfamily taxable income limit.

$30,439*

$35,810*

$18,839*

$22,163*

*AtthetimeofprintingTaxPack 2011thisamounthadnot becomelaw.

Evenifyoumeetalltheeligiblityconditionsforthe seniorAustralianstaxoffsetyoumaynotgetitasthe amountofthetaxoffsetisbasedonyourindividual taxableincome,notyourcombinedtaxableincomeif youhadaspouse.Ifyoudonotgetit,youwillnotget aMedicarelevyreduction. Forthisquestion,yourtaxableincomeexcludes thetaxedelementofcertainsuperannuationlump sumsyoureceivedduring201011whileyouwere between55and59yearsold(seeReduced taxable income to take account of certain superannuation lump sumsonpage88).
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M1 Medicarelevyreductionorexemption

Definition of sole care Solecaremeansthatyoualonehadfull responsibility,onaday-to-daybasis,forthe upbringing,welfareandmaintenanceofachildor student.Youarenotconsideredtohavesolecare ifyouarelivingwithaspouse(marriedordefacto) unlessspecialcircumstancesexist.Generally,for specialcircumstancestoexist,youmustbefinancially responsibleforthedependentchildorstudentand havesolecarewithoutthesupportthataspouse normallyprovides.
Situationswherespecialcircumstancesmay ariseinclude: nYouweremarriedatanytimeduring201011 butduringtheyearyouseparatedfrom,orwere desertedby,yourspouseandforthatperiodyou werenotinadefactorelationship. nYourspousewasinprisonforasentenceofat least12months. nYourspouseismedicallycertifiedasbeing permanentlymentallyincapableoftakingpart incaringforthechildorstudent. Ifyouarenotsurewhetherspecialcircumstances apply,phone13 28 61.

Ifyouweresingleorseparatedon30June2011, countonlythenumberofdependentchildrenforwhom youreceivedthefamilytaxbenefit(FTB)duringallor partof201011.Countthemevenifyoureceivedonly therentalassistancecomponentofFTBPartAand yousharedthecareofthedependentchild. Writethenumberofdependentchildrenyouhad during201011at(g)inworksheet 2onthe nextpage.

Family taxable income Familytaxableincomeisthecombinedtaxable incomesofyouandyourspouse(includingaspouse whodiedduringtheyear),oryourtaxableincomeif youwereasoleparent.

WORKSHEET 1 Family taxable income Yourtaxableincomefrom TAXABLE INCOME OR LOSS onpage3ofyourtaxreturn Yourspousestaxableincome fromTAXABLE INCOME OR LOSSonpage3oftheirtax return(ifapplicable) Add(a)and(b). Anyrelevantamounts ofsuperannuation lumpsumsthatyouoryour spousereceived(seethe fourthparagraphunder Answering this question onthepreviouspage) Take(d)awayfrom(c). Thisisyour family taxable income.

(a)

Working out your number of dependent children Adependentchildisanychildwhowasan Australianresidentwhomyoumaintainedin201011, andwas: nunder21yearsold,or n21to24yearsold,whowasreceivingfull-time educationataschool,collegeoruniversity andwhoseadjustedtaxableincome(ATI,see pages557)waslessthan$282plus$28.92 foreachweekyoumaintainedthem.
Ifyouhadaspouseon30June2011oryourspouse diedduring201011andyoudidnothaveanother spousebeforetheendoftheyear,countallyour dependentchildren.

$ $

(b) (c)

(d)

(e)

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TAXPACK 2011

Medicarelevyreductionorexemption M1

Working out your family taxable income limit YourMedicarelevyisreducedifyourfamilytaxable incomeisequaltoorlessthanthefollowinglimits.

WORKSHEET 2 Family taxable income limit Basicfamilytaxableincome limit(printXintheapplicable boxbelow) Ifyouwereeligibleforthe seniorAustralianstaxoffset Allothertaxpayers Numberofdependent children(ifapplicable) Multiply(g)by$3,434.* Family taxable income limit Addtheappropriateamount from(f)totheamountat(h). $  $52,352  $37,398*(f) (g) (h) (i)

Weworkoutthereductionforyou,basedonyour spousedetailsandnumberofdependentchildren. ReadontoseeifaMedicarelevyexemptionapplies toyouforallorpartof201011.

PartBMedicarelevyexemption
ANSWERING THIS QUESTION Youmayqualifyforanexemptionfrompayingthe Medicarelevyifyouwereinanyofthefollowing threeexemptioncategoriesatanytimein201011. Thesecategoriesare: nmedical nforeignresidentsandresidentsofNorfolkIsland nnotentitledtoMedicarebenefits.
Ifyoudonotfitintooneoftheexemptioncategories, leaveVandWitemM1blankandgotoquestionM2. FortheMedicarelevyexemption(butnotthe reduction),dependant meansanAustralianresident youmaintainedwhowas: nyourspouse nyourchildunder21yearsold,or nyourchild,21to24yearsold,whowasreceiving full-timeeducationataschool,collegeoruniversity andwhoseadjustedtaxableincome(ATI,see pages557)fortheperiodyoumaintainedthechild waslessthanthetotalof$282plus$28.92foreach weekyoumaintainedthem. SeeWhat is maintaining a dependant? and What is adjusted taxable income? onpages557. Iftheparentsofachildlivedseparatelyorapart forallorpartoftheincomeyearandthechildwas adependantofeachofthem,thechildistreatedas anequaldependantofeachparent(irrespectiveofthe numberofdaysthechildwasineachparentscare). However,whereaparentreceivesFTBPartAforthe child,includingreceivingonlytherentalassistance component,thechildisadependantofthatparent forthenumberofdaysthechildwasintheircare.

*AtthetimeofprintingTaxPack 2011thisamounthadnot becomelaw.

Is your family taxable income at (e) in worksheet 1 equal to or less than your family taxable income limit at (i) in worksheet 2?
YES

 Youareentitledtoareduction. Gotostep1below.  Youdonotqualifyforareduction.Goto partBinthenextcolumntoseeifyou qualifyforanexemption.

NO

COMPLETING YOUR TAX RETURN MEDICARE LEVY REDUCTION Step 1 Ifyouhadaspouseon30June2011,oryourspouse diedduringtheyearandyoudidnothaveanother spousebeforetheendoftheyear,writeyourspouses taxableincomeatO Spouses 201011 taxable income,inSPOUSE DETAILSonpage9ofyourtax return.Ifyourspousehadnotaxableincome,write0.
Step 2 Writethenumberofyourdependentchildren[from(g) inworksheet 2]atYitemM1onpage6ofyourtax return.Ifyouhadnone,write0.
TAXPACK 2011

Category 1: Medical Youareinthisexemptioncategoryandcanclaim afullorhalfexemptionif: noneofthefollowingappliedduringallorpartof 201011: youwereablind pensioner youreceivedsickness allowance fromCentrelink
85

M1 Medicarelevyreductionorexemption

youwereentitledtofullfreemedicaltreatmentfor allconditions underdefence forcearrangements orVeterans AffairsRepatriationHealthCard (GoldCard)orrepatriationarrangements, and nduringtheperiodyoumetthatcondition,youalso metoneofthefollowingconditions. Condition Youhadno dependants. Eachofyourdependants (includingyourspouseifyouhad one)either: nwasinoneoftheexemption categories,or nhadtopaytheMedicarelevy. Youhaddependentchildrenwho werenotinanexemption categorybutwhowerealso dependantsofyourspouse,and yourspouseeither: nhadtopaytheMedicarelevy,or nmetatleastoneofthe category 1medicalconditions andyouhavecompleteda family agreement(seethe nextcolumn)statingthatyour spousewillpaythehalflevyfor yourjointdependants. Youhadatleastonedependant (forexample,aspouse)who: nwasnotinanexemption category,and ndidnothavetopaythe Medicarelevy(forexample, becausetheirtaxableincome wasbelowthelowerMedicare levythreshold,(seetable 1). Exemption that applies Full Full

Condition Youweresingleorseparated andyou: nhadadependentchildwho wasnotinaMedicarelevy exemptioncategory,and nwereentitledtoFTBPartAor therentalassistance componentofFTBPartAfor thatchild,and nwereinashared-care arrangement. Thenexemptionfromthe Medicarelevyisonthe followingbasis: nForthedaysthatyouhad careofyourdependentchild nForthedaysthatyou did not have careofyour dependentchild Youhadaspousewhomet atleastoneofthecategory 1 medicalconditionsandyou hadadependentchildwho: nwasnotinanexemption category,and nwasdependentonbothofyou. Inthiscase,eitheryouor yourspousecanclaimafull exemption andtheothercan claimahalfexemptionby completingafamily agreement (seebelow).

Exemption that applies

Half Full

Full

FullorHalf

Half

If you were in this exemption category, go to step 1 on the next page.

Family agreements Youcompleteafamily agreementonlyifbothyou andyourspousewouldhavetopaytheMedicarelevy wereitnotforyourexemptioncategorystatus.You donotneedtosendthisagreementtous.Keepit withyourrecords.

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TAXPACK 2011

Medicarelevyreductionorexemption M1

FAMILY AGREEMENT We agree that the Medicare levy exemption in respect of our dependants for the 201011 year will be claimed as follows. Nameofpersonclaimingthefullexemption  Nameofpersonclaimingthehalfexemption  Your signature Your spouses signature

AletterfromMedicareisnotsufficient.Formore informationonhowtoapplyforanexemption certificateasatemporaryresident,contactMedicare Australiaon1300 300 271 orvisittheirwebsiteat www.medicareaustralia.gov.au Youalsoqualifyforafullexemptionunderthis categoryif: nyouwereamemberofadiplomatic missionor consularpostinAustralia(oramemberofsuch apersonsfamilyandyouwerelivingwiththem),and nyouwerenotanAustraliancitizen,and nyoudonotordinarilyliveinAustralia,andeither youdidnothaveanydependantsforthatperiod, or allyourdependantswereinanexemption categoryforthatperiod. If you were in this exemption category,go to step 1 below.

Category 2: Foreign residents and residents of Norfolk Island IfyouwereaforeignresidentoraresidentofNorfolk Islandforthefullyear,youcanclaimafullexemption fortheyear(365days).
IfyouwereaforeignresidentoraresidentofNorfolk Islandforonlypartoftheyear,youcanclaimafull exemptionforthatperiodif: nyoudidnothaveanydependantsforthatperiod,or nallyourdependantswereinanexemptioncategory forthatperiod. If you were in this exemption category, go to step 1 in the next column.

If you were not in any of the above exemption categories LeaveVandWitemM1blank.Youhavefinished thisquestion.GotoquestionM2. COMPLETING YOUR TAX RETURN MEDICARE LEVY EXEMPTION Step 1 Usetheinformationinthecategoriesabovetowork outwhetheryouqualifyforafullexemptionorahalf exemptionandtodeterminehowmanydependent childrenyouhadduringtheyear.
Step 2 Workoutthenumberofdaysforwhichyoucan claimafull exemptionandthenumberofdaysfor whichyoucanclaimahalf exemption. Themaximumtotalnumberofdaysyoucanclaim is365.Ifyouhaveoverlappingqualifyingperiods, countthedaysinthoseoverlappingperiodsonly once.Ifafullexemptionperiodoverlapsapart exemptionperiod,counttheoverlappingdays asafullexemptionperiod.

Category 3: Not entitled to Medicare benefits Youcanclaimafull exemptionforanyperiodfor whichyouhaveacertificate fromtheMedicareLevy ExemptionCertificationUnitofMedicareAustralia showingyouwerenotentitledtoMedicarebenefits becauseyouwereatemporaryresidentforMedicare purposesandeither: nyoudidnothaveanydependantsforthatperiod,or nallyourdependantswereinanexemptioncategory forthatperiod.

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M1 Medicarelevyreductionorexemption

Step 3 Write thenumberofdaysyouwerecoveredforafull exemptionatVitemM1. Writethenumberofdaysyouwerecoveredforahalf exemptionatWitemM1. IfyouwereatemporaryresidentforMedicare purposesandhaveacertificatefromtheMedicare LevyExemptionCertificationUnitofMedicare Australia(seecategory3)printCintheCLAIM TYPE box.Ifyoudonotfallwithinthiscategoryleavethe CLAIM TYPEboxblank. Wewillworkoutyourexemptionentitlement. Step 4 Ifyouhadaspouseatanytimein201011,youmust completeSpouse details married or de facto on pages911ofyourtaxreturn. TAX TIPS Ifyouwouldliketoworkouttheamount ofMedicarelevyyouhavetopay,goto www.ato.gov.au/calculatorsandusethe Medicarelevycalculator(underMedical).

Reduced taxable income to take account of certain superannuation lump sums ForMedicarelevypurposes,yourtaxableincome excludesthetaxedelementofasuperannuationlump sum,otherthanadeathbenefit,thatyoureceived whenyouwere55to59yearsoldthatdoesnot exceedyourlow-ratecapfor201011.For201011, thelow-ratecapis$160,000,butitcouldbelessif youreceivedsuperannuationlumpsumsinprevious years(seetable 1onpage118andthedefinitionof low-ratecaponpage125formoreinformation). Example Billreceivedsuperannuationlumpsumsof$100,000 in200910and$80,000in201011bothofwhich consistedentirelyofataxedelement.Hewas between55to59yearsoldwhenhereceived bothpayments.
Hislow-ratecapisnowonly$60,000,whichis $160,000lessthe$100,000hereceivedin200910. Billsubtractsthe$60,000ofhislow-ratecapfrom his201011taxableincome. Bills201011taxableincomeforMedicarelevy purposesincludes$20,000,beingtheamount bywhichthesuperannuationlumpsumhe receivedexceededhislow-ratecap(thatis, $80,000less$60,000).

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TAXPACK 2011

Medicare levy surcharge

 THIS QUESTION IS COMPULSORY.

Medicare levy M2

TheMedicarelevysurcharge(MLS)isinadditionto theMedicarelevy.TheMLSrateis1%of: n yourtaxableincome n yourtotalreportablefringebenefits,and n anyamountonwhichfamilytrustdistributiontax hasbeenpaid. YoumayhavetopaytheMLSifyouoryour dependants(includingyourspouse,evenifthey hadtheirownincome)didnothaveanappropriate level of private patient hospital cover forthewhole of201011andyourincome for MLS purposes wasaboveacertainamount.

n theamountonwhichfamilytrustdistributiontax

hasbeenpaid

n exemptforeignemploymentincome(ifyourtaxable

incomeis$1ormore).

Ifyouwere55to59yearsoldthisamountis thenreducedbythetaxedelementamountof superannuationlumpsums,otherthanadeath benefit,receivedduring201011thatdonotexceed yourlowratecap(seeSuperannuation lump sums and income for MLS purposesonpage94).

Appropriate level of private patient hospital cover Anappropriatelevelofprivatepatienthospital coveriscoverprovidedbyaregisteredhealthinsurerfor hospitaltreatmentinAustraliawhichhasanexcessof: n $500orless(forapolicycoveringonlyoneperson), or n $1,000orless(forallotherpolicies).
Excessistheamountyou paybeforeyourhealth insurerpaysforanyclaimyoumake. Generalcover(formerlycalledancillarycover) orextrasisnotprivatepatienthospitalcover becauseitcoversonlyitemssuchasoptical, dental,physiotherapyorchiropractictreatment. Ifyouhavehealthcoverbutarenotsurewhether itisattheappropriatelevel,yourregisteredhealth insurercantellyou. Ifyouhaveoverseasvisitorshealthcover,check withyourprovidertomakesurethatyourpolicyis onewhichhasanappropriatelevelofprivatepatient hospitalcoverforMLSpurposes.

Dependants Forthisquestion,adependant,regardlessoftheir income,includes: nyourspouse,eveniftheyworkedduring201011 orhadtheirownincome nyourchildrenunder21yearsold n yourchildrenwhoare21yearsoldorolderand under25yearsoldwhoarefull-timestudents.

DependentsmusthavebeenAustralianresidents andyoumusthavecontributedtotheirmaintenance. SeeWhat is maintaining a dependantatpage55. Yourspouseincludesanotherperson(whetherof thesamesexoroppositesex)who: n youwereinarelationshipwiththatwasregistered underaprescribedstateorterritorylaw n althoughnotlegallymarriedtoyou,livedwithyou onagenuinedomesticbasisinarelationshipas acouple. Thedefinitionofchildincludeschildrenofpeople whoareinsame-sexrelationships.Seethedefinition ofchildonpage123. Ifyouhadprivatepatienthospitalcoverduring 201011,youwillneedastatementfromyourhealth insurershowingthenumberofdaysyouandyour dependantswerecoveredbyanappropriatelevel ofhealthcover.Ifyoudonothavethisstatement, contactyourhealthinsurer.

Income for MLS purposes YourincomeforMLSpurposesisyourtaxable incomeplusthefollowingiftheyapplytoyou: n reportablefringebenefits(shownonyourpayment summary) n reportablesuperannuationcontributions(which isthesumofbothyourreportableemployer superannuationcontributionsandyourdeductible personalsuperannuationcontributions) n yournetinvestmentloss(whichistheamount bywhichyourfinancialinvestmentdeductions exceededyourfinancialinvestmentincome, plustheamountbywhichyourrentalproperty deductionsexceededyourrentalpropertyincome)

Were you and all your dependants, including your spouse, covered by an appropriate level of private patient hospital cover for the whole of 201011?
YES NO

 Gotostep 5onpage93.  Readon.

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M2 Medicarelevysurcharge

ANSWERING THIS QUESTION Ifyoudonothaveanappropriatelevelofprivate patienthospitalcover,youmaybeliableforMLS. WhetherornotyouareliabletopayMLSdependson: nyourincomeforMLSpurposesand nyourcombined income forMLS purposes,ifyou hadaspouseforthewholeof201011orifyour spousediedin201011.
Completeworksheet 1toworkoutyourandyour spousesincome(ifrelevant)forMLSpurposes Ifyouhadexemptforeignemploymentincome,andyour taxableincomeis$1ormore,addyourexemptforeign incometoyourtaxableincome,andwritethetotalat(a) inworksheet 1.Thesameappliesforyourspouse. Ifyouwere55to59yearsold,writeat(k)thetaxed elementamountofsuperannuationlumpsums,other thanadeathbenefit,youreceivedduring201011 thatdonotexceedyourlowratecap.Thesame appliesforyourspouse.(SeeSuperannuation lump sums and income for MLS purposesonpage94.) WORKSHEET 1 Working out income for MLS purposes

Ifyoudidnothaveaspouse,gotoMedicare levy surcharge exemptiononthenextpageafteryou havecompletedworksheet 1. Ifyourspousewasunderalegaldisability,writeat(h) inthespousecolumnyourspousesnetincomefrom atrustforwhichthetrusteewasliabletopaytax. Examplesofalegaldisabilityinclude:beinga bankrupt,beingdeclaredlegallyincapablebecause ofamentalconditionorbeingunder18yearsoldon 30June2011.Donotincludeanyamountthathas alreadybeenincludedinyourspousestaxable incomeat(a). Writeat(c)thetotalamountofdistributionstoyouor yourspouse: nonwhichfamilytrustdistributiontaxhasbeenpaid, and nwhichyouoryourspousewouldhavehadtoshow asassessableincomeifthetaxhadnotbeenpaid.

You Taxableincome(fromTAXABLE INCOME OR LOSS onpage4ofthetaxreturn) Totalreportablefringebenefitsamount(fromWitemIT1 onpage8ofthetaxreturn) Amountonwhichfamilytrustdistributiontaxhasbeenpaid (fromXitemA4onpage16ofthesupplementarysectionof youroryourspousestaxreturn) Netfinancialinvestmentloss(fromXitemIT5onpage8 ofthetaxreturn) Netrentalpropertyloss(fromYitemIT6onpage8ofthetaxreturn) Reportableemployersuperannuationcontributions (fromTitemIT2onpage8ofthetaxreturn) Deductiblepersonalsuperannuationcontributions(fromHitem D12onpage15ofthesupplementarysectionofthetaxreturn) Yourspousesshareofthenetincomeofatrust onwhichthetrusteemustpaytax(fromTSpouse detailson page10ofthereturn) $ $ (a) (b)

Spouse $ $ (a) (b)

$ $ $ $ $

(c) (d) (e) (f) (g)

$ $ $ $ $

(c) (d) (e) (f) (g)

(h)

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TAXPACK 2011

Medicarelevysurcharge M2

Addtheamountsfrom(a)to(h)ineachcolumn. Ifyouoryourspousewere55to59yearsold,writeherethetaxed elementamountofsuperannuationlumpsums,otherthanadeath benefit,receivedduring201011thatdonotexceedyouroryour spouseslowratecap(seeSuperannuation lump sums and income for MLS purposesonpage94). Take(k)awayfrom(j). ThisiseachindividualsincomeforMLSpurposes. Addtheamountfrom(l)inyourcolumntotheamount from(l)inyourspousescolumn.

(j)

(j)

(k) (l)

(k) (l) (n)

$ $

YourincomeforMLSpurposeswhenyouaresingleistheamountat(l)inyourcolumn. YourcombinedincomeforMLSpurposes,istheamountat(n).

Medicare levy surcharge exemption Ifyoufitinoneofthefollowingcategories,youare exemptfromMLSforthewholeof201011.

TABLE 1 Exemption categories YourincomeforMLSpurposeswas$77,000 or less,andforthewholeof201011,youwere singlewithoutadependentchild. YourincomeforMLSpurposeswas$154,000 or less,and: nforpartof201011youweresingle nyourspousedidnotdieduringtheyear,and nforthewholeoftheyearyoudidnothavea dependentchild. Youweresinglewithadependentchildandyour incomeforMLSpurposeswas$154,000 or less (plus$1,500foreachdependentchildafterthefirst). Youhadaspouse(withorwithoutdependent children),andyourcombinedincomeforMLS purposeswas$154,000 or less(plus$1,500 foreachdependentchildafterthefirst). Inworkingoutwhetheryourincomeexceedsan MLSincomethreshold,ifyourspousediedin 201011andyoudidnothaveanotherspouse beforetheendoftheyear,youaretreatedas havinghadaspouseforthewholeof201011.

Youandallyourdependants(including yourspouse,ifany)wereinaMedicarelevy exemptioncategoryforthewholeof201011 (seequestionM1). Thecombinedincomeofyouandyourspousefor MLSpurposeswasabovethelimit,butyourown incomeforMLSpurposeswas$18,839 or less. Your spouse shows a foreign lump sum payment on the supplementary section of their tax return. IfyouareliableforMLSonlybecauseyour spousehasshownalumpsumpaymentinarrears atitem20 Foreign source income and foreign assets or propertyoritem24 Other incomeon thesupplementarysectionoftheirtaxreturn,youmay beentitledtoataxoffsetuptotheamountofMLS youhavetopay.Wewillcalculatethetaxoffsetforyou. Youwillneedtoprovideadditionalinformation. PrintSCHEDULEOFADDITIONALINFORMATION ITEMM2onthetopofaseparatepieceofpaper. Printyourname,address,taxfilenumberandthe nameandaddressofyourspouse.Explainthatyour spousereceivedalumpsumpaymentinarrears. Attachyourscheduletopage3ofyourtaxreturn. PrintX intheYES boxatTaxpayers declaration question2aonpage12ofyourtaxreturn.

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M2 Medicarelevysurcharge

What if your circumstances changed during the year? Ifyouhadanewspouseoryouseparatedfrom yourspouse,oryoubecameorceasedtobeasole parent,boththesingleandthefamilysurcharge thresholdsmayapplytoyoufordifferentperiods.
Youneedtoworkoutwhetheryouwereliablefor MLSforanyperiodduring201011thatyou: nweresingle(thatis,youhadnospouseor dependentchildren)soyoucanapplythesingle surchargethresholdof$77,000toyourincome forMLSpurposes nhadaspouseoranydependentchildren,so youcanapplythefamilysurchargethresholdof $154,000,plus$1,500foreachdependentchild afterthefirst,toyourincomeforMLSpurposes. Ifyourspousediedduring201011andyoudid nothaveanotherspousebeforetheendofthe year,youaretreatedasifyouhadaspousefor theremainderof201011andyouapplythefamily surchargethresholdof$154,000,plus$1,500for eachdependentchildafterthefirst. IfyourincomeforMLSpurposes(orifyouhavea spouse,yourcombinedincomeforMLSpurposes) wasabovetherelevantsurchargethresholdthat appliestoyou,andyouandallofyourdependents (includingyourspouse,ifany)didnothavean appropriatelevelofprivatepatienthospitalcover, orwerenotinaMedicareexemptioncategoryfor thewholeyear,thenyoumaybeliableforMLS. Tohelpyouworkoutwhetheryouwereliablefor MLSforthedifferentperiods,seetheexamplebelow.

MichaelandMichelleareconsideredtobeafamilyfor theperiod1Julyto12October2010(104days),so thefamilyMLSthresholdof$154,000appliestoeach of themforthatperiod.Thismeans: nMichelleisnotliableforMLSforthisperiodbecause her$90,000incomeforMLSpurposeswasless than$154,000 nMichaelisnotliableforMLSforthisperiodbecause his$69,000incomeforMLSpurposeswasless than$154,000. MichaelandMichelleweresinglefortheperiod 13October2010to30June2011,sothesingle personMLSthresholdof$77,000appliesfor thatperiod: n MichelleisliabletopayMLSforthisperiod becauseher$90,000incomeforMLSpurposes exceeded$77,000 n Michaelisnot liableforMLSforthisperiod becausehis$69,000incomeforMLSpurposes waslessthan$77,000. MichelleandMichaelcompletetheirtaxreturnsat AitemM2bywritingthenumberofdays that they were not liable for MLSin201011: nMichellewrites104,thenumberofdaysinthe firstperiodwhenshewasnotliableforMLS nMichaelwrites365becausehewasnotliablefor MLSin201011.

Single person covered for part of the year Ifyouweresingleandtookoutprivatepatienthospital coverduringtheyearusethefollowingexampleto helpyouworkouthowmanydaysyouareliableto payMLS. Example 2: Part-year private patient hospital cover In201011Jacintawasnotmarriedandhadno dependants.ShehadincomeforMLSpurposesof $86,000.ShewasnotinaMedicarelevyexemption categoryatanytimeduringtheyear.
Jacintatookoutprivatepatienthospitalcoveron 15January2011.BecauseJacintasincomeforMLS purposeswasabovethesinglepersonsurcharge thresholdof$77,000andshedidnothaveprivate patienthospitalcoverforthefullyearshewillhave topayMLSforthepartoftheyearthatshedidnot haveprivatepatienthospitalcover.

Example 1: Spouse for part of the year MichaelandMichellelivedtogetherasacoupleon agenuinedomesticbasisforsevenyears,buton 12October2010theyseparatedandeachstayed single.Theydidnothaveprivatepatienthospital coveratanytimeduring201011.
MichelleandMichaelhadnodependentchildren, buttheyweredependantsofeachotherforMLS purposesuntiltheyseparated. MichaelsincomeforMLSpurposeswas$69,000 andMichelleswas$90,000.Inpreviousyearsthey hadusedtheircombinedincometoassesstheir MLSliability.Theynowhavetousetheirindividual incomeforMLSpurposes.

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TAXPACK 2011

Medicarelevysurcharge M2

JacintawillnothavetopayMLSforthetimeshehad privatepatienthospitalcover,thatis,15January2011 to30June2011(167days). Jacintawillwritethenumberofdaysin201011that sheisnotliableforMLS(167)atAitemM2 onher taxreturnandcompletePrivate health insurance policy detailsonpage6ofhertaxreturn.

Ifyouwerenotinanexemptioncategory,printXin theNOboxtotheleftofYoumayhavetopaythe surcharge. WriteatAitemM2 thenumberofdays for which you do not have to pay MLS. IfyoudonothavetopayMLSforanydaysduring theperiod1July2010to30June2011,write365 atAitemM2. IfyouhavetopayMLSfor: nthewholeperiod1July2010to30June2011, write0atAitemM2 npartoftheperiod1July2010to30June2011, writeatAitemM2thenumberofdays for which you do not have to pay MLS. Writethenumberofdependentchildrenyouhad during201011atDitemM2. Step 3 IfyouprintedXintheNObox(becauseyouwere notcoveredbyprivatepatienthospitalcoverforthe fullyearandwerenotinanexemptioncategory),see pages1016andwhereapplicable,completeincome testitemsIT1,IT2,IT5andIT6. Step 4 Ifyouhadaspouseduring201011andyouorany ofyourdependants(includingyourspouse)werenot coveredbyprivatepatienthospitalcoverforthefull year,completeSpouse details married or de facto onpages911ofyourtaxreturn. IfyourspousesincomeforMLSpurposesincluded asuperannuationlumpsumthatwasshownat(k)in worksheet 1,writethatamountatFunderSpouse details married or de facto. Step 5 Ifyouhadprivatepatienthospitalcoverforany partoftheyear,youmustcompletePrivate health insurance policy details.Seepage82. Step 6 Ifyouandallyourdependants(includingyourspouse) hadanappropriatelevelofprivatepatienthospital coverforthewholeof201011,printX intheYES boxattherightofEitemM2.Makesureyoualso completeyourPrivate health insurance policy details;seepage82.Youhavenowfinishedthis question.GotoquestionA1.

Family covered for part of the year Ifsomemembersofyourfamilywerecoveredby privatepatienthospitalcoverforthewholeyearand othermembersofyourfamilyhadcoverforonlypart oftheyear,usethefollowingexampletohelpyou workouthowmanydaysyouareliabletopayMLS. Example 3: Part-year liability JillandKevinhavebeenmarriedforanumber ofyears.Theyhavethreedependentchildren. Jill,KevinandtheirchildrenwerenotinaMedicare levyexemptioncategoryatanytimeduringtheyear. Jillandthechildrenwerecoveredbyprivatepatient hospitalcoverforthefullincomeyear.Kevinhadhis nameaddedtothepolicyon10January2011.
JillandKevinhadacombinedincomeforMLS purposesof$161,000.Thefamilysurcharge thresholdforJillandKevinis$157,000(thatis, $154,000plustwice$1,500).Becausenoteveryone wascoveredfortheperiod1July2010to9January 2011andtheircombinedincomeforMLSpurposes exceedsthefamilysurchargethreshold,JillandKevin areboth liableforMLSforthisperiod(193days). JillandKevinwouldbothwritethenumberofdays thattheywerenotliableforMLS(172)atAitemM2 ontheirtaxreturnsandcompletePrivate health insurance policy details onpage6oftheir taxreturns.

COMPLETING YOUR TAX RETURN Step 1 Ifyouoranyofyourdependants(includingyour spouse)didnothaveprivatepatienthospitalcover oronlyhadcoverforpartoftheyear,printX inthe NO boxattherightofEitemM2.
Step 2 Ifyouwereinanexemptioncategory(seetable 1 onpage91)forthewholeof201011,printXinthe YESboxtotheleftofYoudonothavetopaythe surcharge,andwrite365atAitemM2.Youhave nowfinishedthisquestion.GotoquestionA1.
TAXPACK 2011

93

M2 Medicarelevysurcharge

TAX TIPS Ifyouwouldliketoworkouttheamountof Medicarelevysurchargeyouhavetopay,go towww.ato.gov.au/calculatorsandusethe Medicarelevycalculator(underMedical).

Superannuation lump sums and income for MLS purposes for worksheet 1 (step k) Yourincomeandyourcombinedincomefor MLSpurposesincomeexcludethetaxedelement ofasuperannuationlumpsum,otherthanadeath benefit,thatyoureceivedwhenyouwere55to59 yearsoldthatdoesnotexceedyourlow-ratecap amountfor201011.For201011thelow-ratecap amountis$160,000,butitcouldbelessforyouif youhadreceivedcertainsuperannuationlumpsums inpreviousyears(seetable 1onpage118andthe definitionoflow-rate caponpage125formore information).

Example Billreceivedasuperannuationlumpsumof $100,000in200910and$80,000in201011, bothofwhichconsistedentirelyofataxedelement. Hewasbetween55and59yearsoldwhenhe receivedbothpayments.BillswifeMaryreceiveda superannuationlumpsumof$50,000thatconsisted entirelyofataxedelementin201011whenshewas 56yearsold.

Billslowratecapfor201011is$60,000becausehis low-ratecapwasreducedby$100,000in200910. Therefore,theamounthereceivedinexcessofhis low-ratecap(thatis,$20,000)cannotbetakeninto accountatsteps(k)&(l)inworksheet 1.Towork outhisincomeforMLSpurposesusingworksheet 1, Billsubtracts$60,000fromtheamountworkedout atstep(j)inthatworksheet. ToworkouthiscombinedincomeforMLSpurposes (usingworksheet 1,spousecolumn),Billsubtracts Marys$50,000superannuationlumpsumfromthe amountworkedoutatstep(j)inthespousecolumn.

94

TAXPACK 2011

Under 18

Adjustments A1

Ifyouwereunder18yearsoldon30June2011, youmustcompletethisitemoryoumaybetaxed atahigherratethannecessary.

Were you under 18 years old on 30 June 2011?

NO YES

 GotoquestionA2.  Readbelow.

ANSWERING THIS QUESTION Tocompletethisitemonyourtaxreturnyoumust determinewhetheroneofthefollowingcategories appliedtoyouon30 June 2011. nYou: wereworkingfulltimeorhadworkedfulltime forthreemonthsormorein201011(ignoring full-timeworkthatwasfollowedbyfull-timestudy),  and intendedtoworkfulltimeformostorallof 201112andnotstudyfulltimein201112. nYouwereentitledtoadisabilitysupportpensionor arehabilitationallowance,orsomeonewasentitled toacarerallowancetocareforyou. nYouwerepermanentlyblind. nYouweredisabledandwerelikelytosufferfromthat disabilitypermanentlyorforanextendedperiod. nYouwereentitledtoadoubleorphanpension,and youreceivedlittleornofinancialsupportfromyour relatives. nYouwereunabletoworkfulltimebecauseof apermanentmentalorphysicaldisability,and youreceivedlittleornofinancialsupportfrom yourrelatives. COMPLETING YOUR TAX RETURN Step 1 Ifyouwereinanyoftheabovecategorieson 30June2011,allyourincomewillbetaxedat normalrates.Write0atJitemA1.Thenprintthe codeletterAintheTYPEboxattherightofJ.You havenowfinishedthisquestion.GotoquestionA2.
Otherwise,readon.

Step 2 Addupanyofthefollowingincomeamountswhich youhaveshownonyourtaxreturn: nemploymentincome ntaxablepensionsorpaymentsfromCentrelink ortheDepartmentofVeteransAffairs nacompensation,superannuationorpension fundbenefit nincomefromadeceasedpersonsestate nincomefrompropertytransferredtoyouasaresult ofanothersdeathorfamilybreakdown,ortosatisfy aclaimfordamagesforaninjuryyousuffered nincomefromyourownbusiness nincomefromapartnershipinwhichyouwerean activepartner nnetcapitalgainsfromthedisposalofanyofthe propertyorinvestmentsreferredtoabove nincomefrominvestmentofamountsreferred toabove. Step 3 Addupallyourdeductionsthatrelatetothe incomefromstep2(seetheDeductionssectionon pages2749).Takeawaythetotalofthosedeductions fromthetotalincomeyouworkedoutatstep2. Step 4 Writetheamountfromstep3atJitemA1.This amountistaxedatnormalrates.Ifyoudonothave anyoftheincomelistedatstep2ortheamountfrom step3isnil,write0atJitemA1. Step 5 PrintthecodeletterMintheTYPEboxattheright ofJitemA1. TAX TIPS Ifyoureceivedadistributionfromatrust, readquestion13 Partnerships and trustson pagess27inTaxPack 2011 supplement.

TAXPACK 2011

95

A2 Adjustments

Part-year tax-free threshold

IfyouwerenotanAustralianresidentforthewhole 201011year,weusetheinformationyoushowat thisitemonyourtaxreturntoworkoutyourtax-free threshold. IfyouarenotsurewhetheryouareanAustralian resident,readAre you an Australian resident? onpage4.

In 201011 did you: n become an Australian resident, or n stop being an Australian resident?
NO

 GotoA3 Super co-contributions onthenextpage.  Readbelow.

YES

COMPLETING YOUR TAX RETURN If you became an Australian resident in 201011 Step 1 WritethedateyoubecameanAustralianresident fortaxpurposesintheDateboxatitemA2. Step 2 Writethenumberofmonthsthatyouwerean Australianresidentin201011(countingthefirst monthduringwhichyoubecamearesident)atN itemA2.Forexample,ifyoubecamearesidentin November2010andremainedaresidentforthe restoftheincomeyear,youwouldwrite8.

If you stopped being an Australian resident in 201011 Step 1 WritethedateyoustoppedbeinganAustralian residentfortaxpurposesintheDateboxatitemA2. Step 2 Writethenumberofmonthsfrom1July2010 towhenyoustoppedbeinganAustralianresident (countingthemonthinwhichyoustoppedbeing aresident)atNitemA2.Forexample,ifyou stoppedbeingaresidentinSeptember2010, youwouldwrite3.

96

TAXPACK 2011

Super co-contribution

Adjustments A3

Youneedtoanswerthisquestionif: nyoumadeaneligiblepersonalsupercontribution (forwhichyouarenotclaimingadeduction)toa complyingsuperfundorretirementsavingsaccount nyouwereunder71yearsoldon30June2011,and nyourtaxableincomefor201011waslessthan$61,920.

Did all these apply to you?

NO

 Youarenotentitledtoasuper co-contribution.Gotoquestion Income testsonpage101.  Readbelow.

YES

ANSWERING THIS QUESTION Did you use the tax return (supplementary section) and show any of the following? n Depositsorwithdrawalsfromthefarmmanagement depositsschemeatitem17 n Foreignentityincomeatitem19 n Bonusesfromlifeinsurancecompaniesorfriendly societiesatitem22 n Forestrymanagedinvestmentschemeincomeat item23ordeductionsatitem D15 n Otherincomeatitem24
YES

rentalincomeyoushowedatPitem21onyour taxreturn(supplementarysection). n Youshowedacapitalgainfromtrustdistributions atHitem18onyourtaxreturn(supplementary section). n Youshowedincomefromapartnershipatitem13 onyourtaxreturn(supplementarysection).

NO

 GotoG Income from employment or business onpage99.  Workthroughsteps1,2and3.

YES

 YouneedtousetheSuper co-contributions workbook 2011(NAT73495)toanswer thisquestion.Youcangetacopyfrom ourwebsiteorbyphoning13 10 20.  Readbelow.

Step 1 Completeworksheet 1. WORKSHEET 1 Interest and dividend income AmountfromLitem10on page3ofyourtaxreturn AmountfromSitem11on page3ofyourtaxreturn AmountfromTitem11on page3ofyourtaxreturn AmountfromUitem11on page3ofyourtaxreturn Trust distributions AmountfromLitem13on page13ofyourtaxreturn (supplementarysection) AmountfromUitem13on page13ofyourtaxreturn (supplementarysection) $ (e) $ $ $ $ (a) (b) (c) (d)

NO

COMPLETING YOUR TAX RETURN Joint income group Youwereinajointincomegroupifyouowned income-producingassetswithanotherpersonor persons.Forexample: n youwereinonejointincomegroupifyouandyour parentshadajointbankaccount,and n youwereinanotherjointincomegroupifyouand yourspouseco-ownedrentalproperties. F Income from investment, partnership and other sources Do any of the following apply to you? n Youwereinajointincomegroupandyouhave deductionsforthefollowingjointincome interestyoushowedatitem10 dividendsyoushowedatitem11 distributionsfromtrustsyoushowedatLorU item13onyourtaxreturn(supplementarysection) foreignsourceincomeyoushowedatEorFitem 20onyourtaxreturn(supplementarysection)
TAXPACK 2011

(f)

97

A3 Superco-contribution

Foreign source income AmountfromEitem20on page14ofyourtaxreturn (supplementarysection) AmountfromFitem20on page14ofyourtaxreturn (supplementarysection) Rental income Amountfrom Pitem 21on page15ofyourtaxreturn (supplementarysection) Addallamounts above,from(a)to(j). $ (j) (k) $ (g)

Worksheet 2 Foreveryjointincomegroupyouwereinvolvedin: n writeyourshareofincomeincolumn(l) n writeyourshareofdeductionsincolumn(m) n writethelesseramountfromcolumns(l)and(m) incolumn(n).

Ifyoushowedpartnershipdistributionsatitem13, donotincludetheminworksheet 2.

(h)

Example 1 Sallyisintwojointincomegroups,onewithDavid andanotherwithDawn.

SallyandDavidjointlyownaninvestmentproperty andhaveajointbankaccount.Sallysshareof: n rentalincomeis$10,000 n rentaldeductionsis$15,000 n bankinterestis$100 n bankinterestdeductionsis$0asthereareno bankfees. SallyalsojointlyownsasharesportfoliowithDawn. Hershareof: n dividendincomeis$4,000 n deductionsis$0. Sallywrites$10,100at(n)forthejointincomegroup withDavidandshewrites$0at(n)forthejoint incomegroupwithDawn. Sallyaddsthetwoamountsincolumn(n)and transfersthetotalto(r)inworksheet 3.

Transfertheamountat(k)to(q)inworksheet 3. Step 2 Were you in a joint income group?

NO YES

 Gotostep3andwrite0at(r)inworksheet 3.  Completeworksheet 2andreadexample1 tohelpyou.Youneedtocompleteboth worksheets 2and3toworkoutwhatto writeatFitemA3.

WORKSHEET 2 Joint income group SallywithDavid SallywithDawn 1. 2. 3. 4. Addyourlesseramounts.

98

Income (l) $10,100 $4,000 $ $ $ $      

Deductions(m) $15,000 $0 $ $ $ $      

Lesser amount(n) $10,100 $0 $ $ $ $ $        (p)

TAXPACK 2011

Superco-contribution A3

Transfertheamountat(p)to(r)inworksheet 3. Step 3 Workthroughworksheet 3toworkoutwhattowrite at FitemA3. At(t)showthetotalofalldistributionsofincomefrom partnershipsthatyoutookintoaccountincalculating thetotalamountshownatN orOitem13onpage13 ofyourtaxreturn(supplementarysection).Donot includeyourshareofanypartnershiplossyoutook intoaccountatNorOitem13. WORKSHEET 3 Amountfrom(k)in worksheet 1 Amountfrom(p)in worksheet 2 Take(r)awayfrom(q). Distributionsofincome (asdefinedatstep3) Thatpartofatrustdistribution thatyouexcludefromLorU item13becauseitisacapital gain(supplementarysection). Add(s),(t)and(u). $ $ $ $ (q) (r) (s) (t)

Inansweringthisquestion,incomefromemployment includesincomeyouearnasacompanydirectoror underacontractwhollyorprincipallyforyourlabour. Formoreinformationaboutemploymentincome refertoCo-contributions super workbook 2011 (NAT73495).Youcanobtainacopyfromourwebsite orbyphoning13 10 20. Parentalleavepayyoureceivedduring201011is incomefromemploymentunlessyouremployment ceasedandyoucontinuedtoreceiveparentalleave pay.Ifthisappliestoyou,includeat(x)onthenext pageonlytheamountofparentalleavepaythatyou receivedafteryouremploymentceased. Do you show any 201011 employment income or business income on your tax return other than at any of the following items? n 1,2,3,4(otherthandeathbenefits),Batitem12, IT1orIT2ofyourtaxreturn n P1orP8onyourBusiness and professional items schedule for individuals 2011
YES NO

 Gotostep4.  Readbelow.

(u)

Did you receive a share of income from a partnership carrying on a business in which you were a partner? Ignore partnership losses and distributions from trusts that carry on a business.
YES

 Gotostep4.  Readbelow.

(v)

NO

Transfertheamountat(v)toFitemA3onpage7 ofyourtaxreturn.If(v)is0,printCintheCODE boxatF.

G Income from employment or business Oursystemsautomaticallytreatsomeamounts asemploymentincomeyouearnedin201011or businessincome.Ifthetotaloftheseamountsis notthesameasyouractual201011employment incomeorbusinessincome(forexample,because youshowanemployerlumpsumpaymentyou receivedforemploymentthatfinishedin200910), youneedtomakeanadjustmentbywritingan amountatG.

Did you have income that is not from your employment in 201011 or from a business you carried on, which you show at any of the following items? n 1,2,3,4(otherthandeathbenefits),Batitem12, IT1orIT2ofyourtaxreturn n P1orP8onyourBusiness and professional items schedule for individuals 2011
NO YES

 GotoH Deductions from business income.  Gotostep4.

Step 4 Workthroughworksheet 4onthenextpagetowork outwhattowriteatGitemA3.

TAXPACK 2011

99

A3 Superco-contribution

At(w)showthetotalemploymentincomefrom 201011orbusinessincomethatyoudonotshow: n atitems1,2,3,4(otherthandeathbenefits),Bat item12,IT1orIT2,or n asincomeonyourBusiness and professional items schedule for individuals 2011. Includeat(w)yourshareofdistributionsof businessincomefromallpartnershipsinwhich youareapartner.Donotincludeanypartnership lossesyoutookintoaccountatN orOitem13. Donotincludeat(w)distributionsfromtruststhat carryonabusiness. At(x)showthetotalincomethatwasnotfrom employmentin201011orfrombusiness,which youshow: n atitems1,2,3,4(otherthandeathbenefits),Bat item12,IT1orIT2,or n asincomeonyourBusiness and professional items schedule for individuals 2011. Includeat(x)incomefromemploymentthatceased before1July2010. WORKSHEET 4 Employmentincome(as definedaboveatstep4) Incomethatwasnotfrom employment(asdefined aboveatstep4) Take(x)awayfrom(w). $ (w)

H Deductions from business income Doyouhavebusinessdeductionsotherthanthose youincludedinthedeductionitemsatitemP8on theBusiness and professional items schedule for individuals 2011?
NO

 Write0at HitemA3onpage7ofyourtax returnandgotoquestionIT1.  Readbelow.

YES

Examplesofdeductionsthatyoumayinclude atHare: n thebusinessportionofadistributedpartnership lossincludedincalculatingtheamountatNorO atitem13(aslongasthepartnershipcarrieson abusiness) n deductionsatXorYatitem13whichrelateto thebusinessincomeportionofapartnership distribution n personalserviceincomedeductionsatitemP1 ontheBusiness and professional item schedule for individuals 2011whichrelatetocarryingon yourbusiness n deductionsyoushowatD10forcostsinvolvedin managingyourbusinesstaxaffairsasasoletrader orpartnershipbusiness. Step 5 WritethetotalamountofthesedeductionsatH itemA3onpage7ofyourtaxreturn.

$ $

(x) (y)

Transfertheamountat(y)toGitemA3onpage7of yourtaxreturn.Iftheamountat(y)isnegative,printL intheCODEboxatG.

100

TAXPACK 2011

Income tests

Income tests IT1IT7

CompleteitemsIT1toIT7ifanyofthefollowing applytoyou. nYouhaveapaymentsummaryshowingatotal reportablefringebenefitsamountorreportable employersuperannuationcontributions. nYoureceivedfamilypayments,childcarebenefits, oratax-freepensionfromCentrelinkorthe DepartmentofVeteransAffairs. nYourchildreceivedstudentpaymentsfrom Centrelinkbasedonparentalincome. nYouholdaCommonwealthseniorshealthcard. nYoupaidchildsupport. nYouhaveaHigherEducationLoanProgram (HELP)orStudentFinancialSupplementScheme (SFSS)debt. nYoucompletedanyofthefollowingitemsonyour: Tax return for individuals 2011 12 Employee share schemeswhereyouwrote anamountatD T1 Spouse (without dependent child or student), child-housekeeper or housekeepertaxoffset T2 Senior Australianstaxoffset T3 Pensionertaxoffset M2 Medicare levy surcharge whereyouprinted XintheNoboxatE Tax return for individuals (supplementary section) 2011 T7 Superannuation contributions on behalf of your spousetaxoffset T10 Parent, spouses parent or invalid relative taxoffset

T12 Net income from working supplementary section T13 Entrepreneurs tax offset Business and professional items schedule for individuals 2011 P9 Business loss activity details. Weuseincometeststoworkoutwhetheryou: ncanclaimcertaintaxoffsets ncanreceivesomegovernmentbenefitsor concessions nmustpayMedicarelevysurchargeorhave aHELPorSFSSrepaymentliability nmustpaytax. Weusetheinformationinthissectionto: napplytheincometestsandaccuratelyassess theamountoftaxyouareliabletopay ndetermineyourentitlementtocertaintaxoffsets, deductionsandconcessions. Wemayalsopassthisinformationtoother governmentagenciessuchasCentrelinkwhich willusetheinformationtoensureyouarereceiving yourfullentitlementtogovernmentbenefits.

Spouse details Ifyouhaveaspouse,youmustprovidesimilar informationaboutthematSpouse details married or de facto. More information Formoreinformationontheincometestsandhow theyaffectyou,gotowww.ato.gov.au/incometests

IT1 TOTALREPORTABLEFRINGE BENEFITSAMOUNTS

Thisquestionisaboutreportablefringebenefits amountsthatyoureceived.Donotshowanamount lessthan$3,738.

ANSWERING THIS QUESTION YouwillneedeveryPAYG payment summary individual non-businessandeveryPAYG payment summary foreign employmentyoureceivedthat showsreportablefringebenefitsamounts. COMPLETING YOUR TAX RETURN Step 1 Addupthereportablefringebenefitsamountsshown onyourpaymentsummaries.
Ifanamountshownonyourpaymentsummaryis lessthan$3,738,donotincludeit.Checkwithyour employerthattheamountiscorrect.
101

Did you receive any reportable fringe benefits amount?

NO YES

 GotoquestionIT2.  Readon.

TAXPACK 2011

IT1IT7 Incometests

Step 2 WritethetotalatWitemIT1.Ifyourtotalislessthan $3,738,leaveWblank.GotoquestionIT2.

Step 2 WritethetotalatTitemIT2.GotoquestionIT3.

IT2 REPORTABLEEMPLOYER SUPERANNUATIONCONTRIBUTIONS

Did your employer make reportable employer superannuation contributions on your behalf?
NO YES

IT3 TAX-FREEGOVERNMENT PENSIONSORBENEFITSFORTHE PURPOSESOFTHEINCOMETESTS

Thisquestionisaboutcertaintax-freegovernment pensionsorbenefitsthatyoureceivedin201011. SeetheSpecial circumstances and glossary sectionforalistoftherelevanttax-freegovernment pensionsandbenefits.

 GotoquestionIT3.  Readbelow.

ANSWERING THIS QUESTION YouwillneedeveryPAYG payment summary individual non-business,PAYG payment summary foreign employmentandPAYG payment summary business and personal services incomeyoureceived thatshowsanamountofreportableemployer superannuationcontributions.
Reportableemployersuperannuationcontributions areadditionaltothecompulsorycontributionsyour employermustmake.Anexampleofareportable employersuperannuationcontributionisa contributionmadeonyourbehalfunderasalary sacrificearrangement.Formoreinformationgoto www.ato.gov.auandenterGuideforemployees andselfemployedReportablesupercontributions intheSearchforboxatthetopofthepage. Ifyourpaymentsummaryshowsareportable employersuperannuationcontributionsamountand youdidnotgetyouremployertomakesuperannuation contributionsinadditiontotheircompulsory superannuationcontributions,youshouldcontact youremployerbeforelodgingyourreturntocheck thepaymentsummaryfigureiscorrect. Ifyouremployerhasincorrectlycalculatedthe reportableemployersuperannuationcontributions amountaskthemtoprovideyouwitharevised paymentsummaryshowingthecorrectamount.

Did you receive a tax-free government pension or benefit that is listed in the Special circumstances and glossary section?
Donotincludeatthisitem: nAustralianGovernmentallowancesandpayments thatyouhaveincludedatitem5 nAustralianGovernmentpensionsandallowances thatyouhaveincludedatitem6 nAustralianannuitiesandsuperannuationincome streamsthatyouhaveincludedatitem7. IfyouhavereadtheSpecial circumstances and glossarysectionandyouarestillunsurewhether yourpensionorbenefitistax-free,phone13 28 61, orcontacttheagencythatpaidyou.
NO YES

 GotoquestionIT4.  Readbelow.

ANSWERING THIS QUESTION Incometaxisnotpaidoncertaintax-freegovernment pensionsorbenefits,however,thosepensionsor benefitsaretakenintoaccountwhenworkingoutyour adjustedtaxableincome.Youradjustedtaxableincome isanincometestweusetoworkoutyoureligibilityfor certaintaxoffsetsandtheamountofthoseoffsets. COMPLETING YOUR TAX RETURN Step 1 Adduptheamountoftax-freepensionsorbenefits youreceivedduring201011.
Step 2 WritethetotalatUitemIT3.GotoquestionIT4.

COMPLETING YOUR TAX RETURN Step 1 Addupthereportableemployersuperannuation contributionsamountsshownonyourpayment summaries.

102

TAXPACK 2011

Incometests IT1IT7

IT4 TARGETFOREIGNINCOME
Thisquestionisabouttargetforeignincome. Target foreign incomeis: nanyincomeearned,derivedorreceivedfrom sourcesoutsideAustralia naperiodicalpaymentbywayofgiftsorallowances fromasourceoutsideAustralia naperiodicalbenefitbywayofgiftsorallowances fromasourceoutsideAustraliaprovidedthatthe amounthasnotbeen includedinyourtaxableincome,or receivedintheformofafringebenefit. Typesofforeignincomeyouneedtoshowatthis iteminclude: nregularreceiptsofmoneyandgiftsfrom relativeslivingoverseaswhichareexempt fromAustraliantax nincomefromforeignbusinessinterestsand investments,whichareexemptfromAustralian tax,includingincomereceivedbymigrantswith businessinterestsintheircountryoforigin nforeignsourceincomereceivedwhileyou wereatemporaryresidentthatisexemptfrom Australiantax ntheamountofexemptforeignemploymentincome youhaveshownatNitem20. Formoreinformationaboutincometestsandtarget foreignincome,gotowww.ato.gov.au andenter incometests:anoverviewintheSearchfor boxatthetopofthepage.Ifyouarestillnotsure whetheranyforeignincomeyouhavereceivedis targetforeignincome,phone13 28 61.

intheSearchforboxatthetopofthepage.For informationonhowtoconvertyourforeignincome, phone13 28 61. Step 1 Addupallthetargetforeignincomeyouearned, derivedorreceivedduring201011.Theamount youhaveshownatNitem20formspartofyour targetforeignincome. Step 2 WritetheresultatVitemIT4.

IT5 NETFINANCIAL INVESTMENTLOSS

During the 201011 income year, did you receive income from or claim deductions in relation to any of the following types of investments: n shares n an interest in a managed investment scheme n a forestry interest in a forestry managed investment scheme n rights or options in respect of any of your shares or interests in a managed investment scheme n distributions from a partnership that included income or losses from an investment listed above n interests in trusts that you provided consideration to acquire n any investment that is of a similar nature to those listed above?
NO YES

Did you receive any target foreign income?

NO YES

 GotoquestionIT6.  Readbelow.

 GotoquestionIT5.  Readbelow.

Thelossyoushowatthisitemistheamountbywhich yourdeductionsrelatingtoyourfinancialinvestments exceedyourincomefromthoseinvestments. Donotincludeanyofthefollowingwhencalculating yournetfinancialinvestmentloss: ninterestfromyoureverydaytransactionsaccounts ncapitalgains ncapitallosses. Yournetfinancialinvestmentlossdoesnotaffect thewayweworkoutyourtaxableincome.Youarestill abletoclaimallowabletaxdeductionsforexpenditure youmakeinrelationtoyourfinancialinvestments.

ANSWERING THIS QUESTION Youwillneeddetailsofanytargetforeignincome thatyoureceivedin201011plusthedetailsofany exemptforeignemploymentincomeyouincludedat Nitem20. COMPLETING YOUR TAX RETURN ShowallforeignincomeinAustraliandollars. Forinformationonforeignexchangeratesgoto www.ato.gov.auandenterforeignexchangerates
TAXPACK 2011

103

IT1IT7 Incometests

However,yournetfinancialinvestmentlosswillbe usedincertainincometeststoworkoutwhetheryou areentitledtoreceivearangeofgovernmentbenefits andcertaintaxoffsets. Ifyouarenotsurewhetheraninvestmentyouhold isafinancialinvestment,gotowww.ato.gov.au/ incometests.Ifyouarestillnotsure,phone13 28 61.

Forestry managed investment schemes Formoreinformationaboutforestrymanaged investmentschemes,seequestion23inTaxPack 2011 supplement. Rights and options Toworkoutyourfinancialinvestmentloss,youneedto includeincomeanddeductionsfromrightsandoptions youholdovershares,andinterestsinmanaged investmentschemes.Rightsandoptionsinclude: n warrants n futurescontracts. Deductions Allowabledeductionsyoucanclaimforaninvestment include,butarenotlimitedto,expensesyoupayto: n borrowmoneytopurchaseaninvestment n manageyourinvestments n obtainadviceaboutchangesinthemixofyour investments.
Theexpensesshouldbetakenintoaccountonlyto theextentthattheyareattributabletoyourfinancial investments.

ANSWERING THIS QUESTION Youwillneedaccountstatementsorother documentationfromyourfinancialinstitutionor othersourcesthatshowyourfinancialinvestment income.Youwillalsoneeddocumentationshowing theamountofdeductionsyoucanclaiminrespect ofyourfinancialinvestments(suchasinterest). Ifyouareapartnerinapartnershipyouwillneed astatementoradviceshowingtheamountofnet financialinvestmentincomeorloss. Weconsiderthatifafinancialinvestmentisheldby atrustthenforthepurposesoftheincometeststhe trusteewillgenerallybetheowneroftheinvestment. Managed investment schemes Theinvestmentmanagerwillbeabletotellyou whetheryourinvestmentisamanagedinvestment scheme(thatis,aschemeregisteredunderthe Corporations Act 2001). Managedschemesinclude: n cashmanagementtrusts n propertytrusts n Australianequity(share)trusts n internationalequitytrusts n agriculturalschemes(whichincludehorticultural, aquacultureandcommercialhorsebreedingschemes) n somefilmschemes n sometime-shareschemes n somemortgageschemes n activelymanagedstratatitleschemes.
Investmentsthatarenot managed investment schemesinclude: n regulatedsuperannuationfunds n approveddepositfunds n debenturesissuedbyabodycorporate n barterschemes n franchises n directpurchasesofsharesorotherequities n schemesoperatedbyanAustralianbankintheordinary courseofbankingbusiness(suchastermdeposits).
104

COMPLETING YOUR TAX RETURN Step 1 Completeitems11andD8onyourtaxreturnand items13,20,23,24,D14andD15onyourTax return for individuals (supplementary section) 2011ifthey applytoyou.
Step 2 Completetheworksheetbelow. WORKSHEET Working out your net financial investment loss Financial investment income DividendsfromAustralian sharesfromitem11: unfrankedamount frankedamount frankingcredit Managedinvestmentscheme incomefromUitem13 $ $ $ $ (a) (b) (c) (d)

TAXPACK 2011

Incometests IT1IT7

Dividendincomeormanaged investmentschemeincome fromforeigncompaniesfrom Mitem20 Forestrymanagedinvestment schemeincomefromAitem23 Anyotherincomefroma financialinvestment(thiswould includeanyincomefroma financialinvestmentthatyou includedatitem24) Addallamountsfrom(a)to(g).

Add(n)and(o). $ $ (e) (f)

(p)

Iftheamountat(p)isnegative,writethisamount atXitemIT5.OtherwiseleaveXblankandgoto questionIT6.

IT6 NETRENTALPROPERTYLOSS
(g) $ (h) Thisquestionisaboutthenetloss,ifany,fromany rentalpropertyyouowned. Thisquestionisnotaboutcapitalgainsorcapital lossesfromyourrentalproperties.

Financial investment deductions Dividenddeductionsfrom AustraliansharesfromitemD8 $ (i)

Did you earn rental income or claim rental deductions, or receive a partnership distribution that included rental income or losses?
NO YES

 GotoquestionIT7.  Readbelow.

Managedinvestmentscheme deductionsfromYitem13and $ HitemD8) Forestrymanagedinvestment schemedeductionsfromF itemD14 $

(j)

(k)

Thenetrentalpropertylossthatyouworkouthere doesnotaffectthewayweworkoutyourtaxable income.Youcanstillclaimallowabletaxdeductions forexpenditureonyourrentalproperties. However,yournetrentalpropertylosswillbeused incertainincometeststoworkoutwhetheryouare entitledtoreceivearangeofgovernmentbenefitsand certaintaxoffsets.

Anyotherdeductions attributabletoafinancial investment(thiswouldinclude anydeductionsfromafinancial investmentthatyouclaimed $ atJitemD15) Addallamountsfrom(i)to(l). Take(m)awayfrom(h). (Showalossasanegative.) Ifyouareapartnerinoneor morepartnerships,addup yourshareofallnetfinancial investmentincomeanddeduct yourshareofallnetlosses fromthepartnerships financialinvestments. Thestatementofdistribution fromeachpartnershipshould showtheseamounts.(Showan $ overalllossat(o)asanegative.)
TAXPACK 2011

(l) (m) (n)

$ $

ANSWERING THIS QUESTION YouneeddetailsandrecordsshowingyourAustralian rent,foreignrentandyourshareofanyrentthatyou receivedasapartnerinapartnership.Youwillalsoneed documentationshowingtheamountofanydeductions thatyouareentitledtoinrespectofthatrent.

Youneedyourstatementofpartnershipdistribution (thepartnershiptaxreturnstatementofdistribution) showingyourshareofthenetrentalincomeorloss fromyourpartnership. Weconsiderthatiftherentalpropertyisheldby atrustthenforthepurposesoftheincometeststhe trusteewillgenerallybetheowneroftheproperty.

(o)
105

IT1IT7 Incometests

COMPLETING YOUR TAX RETURN Step 1 CompleteitemD6onyourtaxreturnanditems13, 15,20and21onyourTax return for individuals (supplementary section) 2011asapplicable.
Step 2 Completeworksheet 1toworkoutyournetrental propertyloss. Whereyouhaveshownanamountasalosson yourtaxreturn,showitasanegativeamountin worksheet 1. WORKSHEET 1 Working out your net rental property loss Netforeignrent (fromRitem20) Netrent(fromitem21) Shareofnetrentalproperty incomeorlossfromthe partnershiptaxreturn statementofdistribution Netrentalpropertyincomeor lossfromcarryingonarental propertybusinesstakeninto accountinworkingoutthe amountatZ,itemP8ofthe Business and professional items schedule for individuals 2011 Add(a),(b),(c)and(d). Sumofthelow-valuepool deductionsrelatingtoyour rentalpropertiesthatyou claimedatitemD6on yourreturn Takeaway(f)from(e). $ $ (a) (b)

Step 3 Iftheamountat(g)inworksheet 1isnegative(thatis, aloss)writethatamountatYitemIT6.Otherwisego toquestionIT7.

IT7 CHILDSUPPORTYOUPAID
Thisquestionisaboutamountsyoupaidorbenefits youprovidedtoanotherpersonotherthanyour partnerforthemaintenanceofyournaturalor adoptedchild. Note:Donotincludeamountsyoupaidorprovided toapersontoacquiregoodsorservices.

Did you pay amounts or provide benefits to another person for the maintenance of your child?
NO

 GotoSpouse details married or de facto onthenextpage.  Readbelow.

YES

(c)

ANSWERING THIS QUESTION Youwillneedtoknow,orworkoutfromyourrecords, thetotalamountsyoupaidorbenefitsyouprovided forthemaintenanceofyourchildduring201011. COMPLETING YOUR TAX RETURN Step 1 Addupalltheamountsyoupaidandbenefitsyou providedforthemaintenanceofyourchildduring 201011.

$ $

(d) (e)

Step 2 WritethetotalatZitemIT7.GotoSpouse details married or de facto onthenextpage.

$ $

(f) (g)

MORE INFORMATION Forincometestpurposes,theamountsyoupaid andthebenefitsyouprovidedforthemaintenance ofyourchildwillbedeductedfromthetotalofthe othercomponentsthatmakeupyouradjusted taxableincome. Formoreinformation,gotowww.ato.gov.au and enterincometests:anoverviewintheSearchfor boxatthetopofthepage.

106

TAXPACK 2011

Spouse details married or de facto

Yourspouseincludesanotherperson(whetherofthe samesexoroppositesex)who: nyouwereinarelationshipthatwasregisteredunder aprescribedstateorterritorylaw, nalthoughnotlegallymarriedtoyou,livedwith youonagenuinedomesticbasisinarelationship asacouple. Youmustcompletethissectionifyouhadaspouse during201011and: nyouconsenttousepartorallofyour2011tax refundtorepayyourspousesFamilyAssistance Office(FAO)debt,or nyoucompletedanyofthefollowingitems: T1 Spouse(withoutdependentchildorstudent) taxoffset T2 SeniorAustralianstaxoffset T3 Pensionertaxoffset M1 Medicarelevyreductionorexemption M2 Medicarelevysurcharge,andyouprintedX intheNoboxatE

T7 Superannuationcontributionson behalfofyourspouse(onthetaxreturn, supplementarysection) T10Parent,spousesparentorinvalidrelativetax offset(onthetaxreturn,supplementary section) T13Entrepreneurstaxoffset(onthetaxreturn, supplementarysection)butonlyifyouare requiredtoorchoosetocompletesteps810 inT13(seepages61inTaxPack 2011 supplement).

In 201011, did you have a spouse and fit into any of the above categories?
NO YES

 GotoChecklistonpage110.  Readbelow.

Ifyourspousesincomeforanyofthelabelsbelow iszero,youmustwrite0atthoseitemsonyour taxreturn.

ANSWERING THIS QUESTION Youwillneed: nyourspousesPAYG payment summary individual non-business ntherelevantdistributionstatements,ifany,fortrust incomeandfamilytrustdistributiontax nifyourspousehaschildsupportobligations,the detailsoftheamountofchildsupporttheypaid (yourspousecangetthisinformationfromthe ChildSupportAgency) nifyourspousereceivedforeignincome,the detailsoftheamountofforeignincomereceived nifyourspousehadfinancialinvestmentlosses, thenetfinancialinvestmentlossamount nifyourspousehadrentalpropertylosses, thenetrentalpropertylossamount nifyourspousehasclaimedadeductionfor personalsuperannuationcontributions,the detailsoftheamountclaimed.
Ifyouhadmorethanonespouseduring201011, completethissectionwiththedetailsforyourspouse on30June2011,oryourlatestspouse.

COMPLETING YOUR TAX RETURN Step 1 Printyourspousesnameintheboxesprovided onpage9ofyourtaxreturn.

Step 2 WriteyourspousesdateofbirthatKandprintX intherelevantboxforyourspousessex.Weuse thesedetailstoworkoutwhetheryourspouseis belowtheage-pensionage. Step 3 Ifyouhadaspouseforthefullyear,1July2010to 30June2011,printXintheYesboxatL. Ifyoudidnothaveaspouseforthefullyear,printX intheNoboxatLandwritethedatesyouhada spousebetween1July2010and30June2011 atMandN.

TAXPACK 2011

107

Spousedetailsmarriedordefacto

Step 4 IfyoucompleteditemsT1, T2, T3, M1 orM2or itemsT7, T10 orT13 onthesupplementarysection ofyourtaxreturn,followtheinstructionsbelow. If you completed itemT1 itemT2 orT3 itemM1 (VorW) itemM1(Yonly) itemM2 andyou printedX intheNo boxatE itemT7 itemT10 itemT13 you need to complete (where applicable) O, S,Q,A,B, C, D and E O,T,S,P,Q, A and D O O and F,ifyouhada spouseon30June2011 O,T,U,S, A, D and F,if youhadaspouseforallof 201011oryourspouse diedduringtheyear O,SandA O,S,Q,A,B,C,DandE O,S,A,andD,ifyouhad aspouseon30June2011

Label U WriteatUdistributionstoyourspouseonwhich familytrustdistributiontaxhasbeenpaidwhichthey wouldhavehadtoshowasassessableincomeifthe taxhadnotbeenpaid.Ifthisamountiszero,write0. Checkthetrustdistributionstatements. Label S Addupthereportablefringebenefitsamountsshown onyourspousespaymentsummaries,andwritethe totalatS.Ifthisamountiszero,write0. Label P WriteatPtheamountofAustralianGovernment pensionsandallowancesthatyourspousereceived in201011(notincludingexemptpensionincome). Ifthisamountiszero,write0.AustralianGovernment pensionsandallowancesarelistedonpage12. Label Q WriteatQtheamountofanyexemptpensionincome thatyourspousereceivedin201011.Makesureyou includeonlyyourspousesexemptpensionincome. Ifthisamountiszero,write0.Exemptincomeislisted onpage111. Label A WriteatAyourspousesreportablesuperannuation contributions.Reportablesuperannuationcontributions arethesumofreportableemployersuperannuation contributionsandpersonaldeductiblesuperannuation contributions(seequestionD12onpagess379in TaxPack 2011 supplement). Ifthisamountiszero, write0.
Step 1 Addupthereportableemployersuperannuation contributionsamountsshownonyourspouses paymentsummaries. Step 2 Ifyourspouseclaimedadeductionforpersonal superannuationcontributionsatitemD12on theirtaxreturn(supplementarysection),addthe deductionamounttotheresultfromstep1. Step 3 Writeyourspousesreportablesuperannuation contributionsamountatA.

Label O WriteatOyourspouses201011taxableincome. Ifthisamountiszero,write0.Thisamountcanusually beobtainedfromyourspousestaxreturnornotice ofassessment.Ifyourspousedoesnothaveto lodgeataxreturn,provideanestimateoftheir taxableincome. Label T WriteatTanyamountofnetincomeofatrustthat thetrusteewasliabletopaytaxonbecauseyour spousewasunderalegaldisability,forexample,they wereabankrupt,wereapersonwhowasdeclared legallyincapablebecauseofamentalconditionor wereunder18yearsoldon30June2011.(Donot includeanyamountthathasalreadybeenincluded inyourspousestaxableincome,forexample,atO.) Ifthisamountiszero,write0.Checkthetrust distributionstatements.

108

TAXPACK 2011

Spousedetailsmarriedordefacto

Label B Ifyourspousereceivedanyofthefollowingtax-free governmentpensions,writethetotalamountthey receivedfortheincomeyearatB: n aspecialratedisabilitypensionunderPart6 ofChapter4oftheMilitary Rehabilitation and Compensation Act 2004 n apaymentofcompensationundersection68,71or 75oftheMilitary Rehabilitation and Compensation Act 2004 n apaymentofcompensationmentionedin paragraph234(1)(b)oftheMilitary Rehabilitation and Compensation Act 2004.
Ifthisamountiszero,write0.

Label E WriteatEthetotalamountofchildsupportyour spouseprovidedtoanotherperson.Theamountof childsupportprovidedisthetotalamountofany paymentsorbenefitsthatyourspousewasrequired topayorprovidetoanotherpersontomaintaintheir naturaloradoptedchild.However,youdonotcount anypaymentsorbenefitsmadeorprovidedtoyouby yourspouseunlessyouliveapartonapermanent orindefinitebasis.Ifthisamountiszero,write0. Label F Ifyourspousestaxableincomeincludeda superannuationlumpsumthatyouincludedat(k) inworksheet 1onpage90,writethatamountatF. Ifthisamountiszero,write0.SeequestionM2on pages8994formoreinformation.
Step 5 Ifyoudonotconsenttousepartorallofyour2011 taxrefundtorepayanyFamilyAssistanceOffice(FAO) debtofyourspouse,printXintheNobox.Youhave finishedthissection. Ifyoudoconsent,readbelow. Answeryestothisquestiononlyifallofthe followingapplytoyou. nYouwerethespouseofafamilytaxbenefit(FTB) claimantorthespouseofachildcarebenefit claimanton30June2011andyourincome wastakenintoaccountintheirclaim. nYourspousehasgivenyouauthoritytoquote theircustomerreferencenumber(CRN)onyour taxreturn(ifyourspousedoesnotknowtheirCRN, theycancontacttheFAO). nYourspousehasadebtduetotheFAOor expectstohaveanFAOdebtfor2011. nYouexpecttoreceiveataxrefundfor2011. nYouconsenttousepartorallofyourrefund torepayyourspousesFAOdebt. Ifyouconsent,printXintheYes box.Youmust completeyourspousesCRNatZ,andsignand datetheconsent.

Label C WriteatCthetargetforeignincomeyourspouse receivedduringtheincomeyear.Yourspousestarget foreignincomeis: n anyincomeamountearned,derivedorreceived fromsourcesoutsideAustraliaforyourspouses ownuseorbenefit,or n periodicalpaymentsorbenefitsbywayofgiftsor allowancesfromasourceoutsideAustraliathatis neitherincludedinyourspousestaxableincome norreceivedintheformofafringebenefit.
 Itincludesanyforeignincomethatisnottaxablein Australia.Youshouldincludeanyexemptforeign employmentincomeshownatNitem20onyour spousestaxreturn.Allforeignincomemustbe translated(converted)toAustraliandollarsbefore youcompletethislabel.Ifthisamountiszero, write0.

Label D WriteatDyourspousestotalnetinvestmentloss. Yourspousestotalnetinvestmentlossisthesum ofanynetfinancialinvestmentlossandanynet rentalpropertyloss.Ifthisamountiszero,write0. TheinformationandworksheetsatquestionsIT5and IT6willhelpyoutocompletethislabel.

TAXPACK 2011

109

Checklist
Toavoidanydelayintheprocessingofyourtaxreturn, usethepre-addressedenvelopeprovidedwithyour TaxPack 2011,orusethefollowingaddress: Australian Taxation Office GPO Box 9845 IN YOUR CAPITAL CITY DonotreplacethewordsINYOURCAPITALCITY withthenameofyourcapitalcityanditspostcode.

When can you expect your notice of assessment? Ourstandardprocessingtimefortaxreturnsposted tousissixweeks.Ifyoulodgedyourtaxreturnonline usinge-tax,ourstandardprocessingtimeistwoweeks.
Writethedateyoulodgedyourtaxreturnhere:

CHECK THAT YOU HAVE writtenyourtaxfilenumber filledinallyourpersonaldetails,includingyourdate ofbirth,correctly completedtheappropriatedetailsforelectronic fundstransfertohaveyourrefundpaiddirectly intoafinancialinstitutionaccount filledinthecodeboxes,ifyouwereaskedtodo so,atitems3,4,8,I,TOTAL INCOME OR LOSS, D1,D3,D4,SUBTOTAL,TAXABLE INCOME OR LOSS,T1,T2,T3,M1 andA1 completeditemM2whichiscompulsoryfor alltaxpayers completedincometestsitemsIT1toIT7ifrequired completedpages1316ofthetaxreturn (supplementarysection)ifrequired,andworkedthrough thechecklistonpages68inTaxPack 2011 supplement writtentotalsat:  TOTAL TAX WITHHELD TOTAL INCOME OR LOSS TOTAL DEDUCTIONS SUBTOTAL TAXABLE INCOME OR LOSS TOTAL TAX OFFSETS completedSpouse details married or de facto ifrequired completedyourspousesdetailsandprovidedyour signatureonpage11ofyourtaxreturnifyouhave consentedtooffsetpartorallofyourtaxrefund againstyourspousesFamilyAssistanceOfficedebt completeditemA1 ifyouwereunder18yearsold on30June2011;thisiscompulsoryandifitis notcompleted,youmaybetaxedatahigherrate thannecessary read,completed,signedanddatedtheTaxpayers declarationonpage12ofyourtaxreturn;failure todosowillresultinitbeingreturnedtoyouand penaltiesforlatelodgmentmaybeapplied attachedcopiesofalldocumentsorschedules whichTaxPack 2011tellsyoutoattach attachedpages1316ofyourtaxreturn (supplementarysection)topage12,ifyouhadto completethesepages keptcopiesofyourtaxreturn,allattachmentsand relevantpapersforyourownrecords.
110

Ifyoulodgedyourtaxreturnbypost,addsevenweeks toworkoutwhentoexpectyournoticeofassessment andwritethedatehere:

HOW WE WORK OUT YOUR TAX Ifyouwanttoworkoutyourtaxrefundordebtgoto www.ato.gov.au/calculators

INCOME
minus

ALLOWABLE DEDUCTIONS
equals

TAXABLE INCOME

TAX ON TAXABLE INCOME

minus

TAX OFFSETS
equals

NET TAX PAYABLE

plus

HELP AND SFSS REPAYMENTS

plus

MEDICARE LEVY AND SURCHARGE

minus

TAX CREDITS AND REFUNDABLE TAX OFFSETS

equals

REFUND OR AMOUNT OWING

TAXPACK 2011

Amounts that you do not pay tax on

Youmighthavereceivedamountsthatyoudonot needtoincludeasincomeonyourtaxreturn.We classifythemintothreedifferentcategories: nexempt income nnon-assessable non-exempt income nsomeother amountsthatarenottaxableand donotaffectanycalculationonyourtaxreturn. Themostcommontypesofexemptand non-assessablenon-exemptincomearelisted below.Ifyouarenotsurewhetherapaymentyouhave receivedisexemptincome,non-assessable non-exemptincomeorisanothertypeofamount thatisnottaxable,phone13 28 61.

EXEMPT INCOME Exempt Australian Government pensions, allowances and payments nCareradjustmentpayment(CAP) nCarerpaymentwhere: boththecarerandthecarereceiversareunder age-pensionage,or thecarerisunderage-pensionageandanyof thecarereceivershasdied nDefenceForceincomesupportallowance(DFISA) payabletoyouonadaywhenthewholeofyour socialsecuritypensionorbenefit,whichisalso payabletoyouonthatday,isexemptfromincome taxundersection52-10oftheIncome Tax Assessment Act 1997 nDisabilitysupportpensionpaidbyCentrelinkto apersonwhoisunderage-pensionage nDoubleorphanpension nInvalidityservicepensionwheretheveteranis underage-pensionage nPartnerservicepensionwhereeither: thepartner(excludingthenon-illnessseparated spouseofaveteran)andtheveteranareunder age-pensionageandtheveteranreceivesan invalidityservicepension,or thepartnerisunderage-pensionageandthe veteranhasdiedandwasreceivinganinvalidity servicepensionatthetimeofdeath nVeteransAffairsdisabilitypensionandallowances, warwidowsandwarwidowerspension nWifepensionwhereboththerecipientandtheir partnerareunderage-pensionage,ortherecipient isunderage-pensionageandtheirpartnerhasdied
Lumpsumbereavementpaymentsreceivedaspart ofanyoftheabovepaymentsareexemptonlyupto thetax-freeamount.Phone13 28 61tofindouthow muchofyourpaymentisexempt.

Exempt Australian Government education payments nAllowancesforstudentsunder16yearsold, includingtheAustudypaymentandthose allowancespaidunderABSTUDY,YouthAllowance, theAssistanceforIsolatedChildrenSchemeandthe VeteransChildrenEducationScheme nApprenticeshipwagetop-up nThefirst$1,000ofanapprenticeshipearly completionbonusprovidedunderaspecified stateorterritoryschemeforoccupationswith skillshortages nAustralianAmericanEducationalFoundationgrant nCommonwealthscholarshipsorbursariesprovided toforeignstudents nCommonwealthsecondaryeducationassistance nCommonwealthTradeLearningScholarship nLanguage,literacyandnumeracysupplement nEndeavourawardsresearchfellowshipsoran EndeavourExecutiveAward nPaymentsundertheMilitaryRehabilitationand CompensationActEducationandTrainingScheme 2004foreligibleyoungpersonswhoseeligibilitywas determinedunder: paragraph258(1)(a)oftheMilitary Rehabilitation and Compensation Act 2004andtheeligible youngpersonwasunder16yearsold,or paragraph258(1)(b)oftheMilitary Rehabilitation and Compensation Act 2004 nPensionereducationsupplementandfares allowancepaidbyCentrelink nRentassistancepaidtoAustudyrecipients nSomescholarshipsandbursariesreceivedby full-timestudents nSupplementaryallowancesforstudentspaidunder theAssistanceforIsolatedChildrenScheme Other exempt Australian Government payments nAustralianGovernmentdisasterrecoverypayments nBabybonuspaidbyCentrelink nCarerallowancepaidundertheSocial Security Act 1991 nChildcarebenefit nChildcarerebate nChilddisabilityassistanceunderPart2.19AAof theSocial Security Act 1991 nDFISAbonusandDFISAbonusbereavement paymentunderPartVIIABoftheVeterans Entitlements Act 1986 nFamilytaxbenefit nF-111deseal/resealex-gratialumpsumpayments

TAXPACK 2011

111

Amountsthatyoudonotpaytaxon

nLossofearningsallowancepaidunderthe

Veterans Entitlements Act 1986 nLumpsumpensionbonuspaidundertheSocial Security Act 1991ortheVeterans Entitlements Act 1986 nLumpsumpaymentmadeunderSection198Nof theVeterans Entitlements Act 1986 nMaternityimmunisationallowance nMobilityallowancepaidundertheSocial Security Act 1991 n Economicsecuritystrategypaymenttofamilies undertheA New Tax System (Family Assistance) (Administration) Act 1999orunderthescheme determinedunderSchedule4tothe Social Security and Other Legislation Amendment (Economic Security Strategy) Act 2008 n Economicsecuritystrategypaymentunder theSocial Security Act 1991 ortheVeterans Entitlements Act 1986orunderthescheme determinedunderSchedule4tothe Social Security and Other Legislation Amendment (Economic Security Strategy) Act 2008 nBacktoschoolbonusandsingleincomefamily bonuspaidundertheA New Tax System (Family Assistance) (Administration) Act 1999 nTrainingandlearningbonusundertheSocial Security Act 1991 nFarmershardshipbonusundertheSocial Security Act 1991 nEducationentrypaymentsupplementunderthe Social Security Act 1991 nPaymentsundertheschemedeterminedunder Schedule4totheHousehold Stimulus Package Act (No. 2) 2009 nTheex-gratiapaymentfromtheAustralian GovernmentknownasIncomerecoverysubsidy fortheVictorianbushfiresofJanuaryand February2009 nTheex-gratiapaymentfromtheAustralian GovernmentknownasIncomerecoverysubsidy fortheNorthQueenslandfloodsofJanuary andFebruary2009 nPaymentsfromtheAustralianGovernmentunder theincentivepaymentsschemerelatingtocertain privatehealthinsurancepolicies nPaymentstocarersundertheschemedetermined underSchedule4totheSocial Security and Veterans Affairs Legislation Amendment (One-off Payments and Other 2008 Budget Measures) Act 2008 nPensionbonusandpensionbonusbereavement paymentsunderPart2.2AoftheSocial Security Act 1991orPartIIIABoftheVeterans Entitlements Act 1986

nPharmaceuticalallowancespaidundertheSocial

Security Act 1991 nPharmaceuticalallowancespaidunderthe Veterans Entitlements Act 1986 thatwerepaid before20September2009 nPhoneallowancepaidundertheSocial Security Act 1991 nPhoneallowancepaidundertheVeterans Entitlements Act 1986 nQuarterlypensionsupplementpaidundertheSocial Security Act 1991ortheVeterans Entitlements Act 1986 nRemoteareaallowance nRentassistance nSeniorsconcessionallowancepaidunder theSocial Security Act 1991ortheVeterans Entitlements Act 1986 nSeniorssupplementpaidundertheSocial Security Act 1991ortheVeterans Entitlements Act 1986 nSugarindustryexitgrantwhereyoucompliedwith theconditionofthegrantnottoownoroperateany agriculturalbusinesswithinfiveyearsafterreceiving thegrant nTobaccoindustryexitgrantwhereyoucomplied withtheconditionofthegrantnottoownor operateanyagriculturalbusinesswithinfiveyears afterreceivingthegrant nUtilitiesallowancepaidundertheSocial Security Act 1991 nUtilitiesallowancepaidundertheVeterans Entitlements Act 1986 nVeteranssupplementpaidundertheVeterans Entitlements Act 1986 nOuterregionalandremote(OR&R)paymentmade undertheHelpingChildrenwithAutismpackage

Exempt Australian Defence Force and United Nations payments nCertainpayandallowancesforAustralianDefence Forcepersonnel(youremployerwilladviseyouifan amountisexempt) nCompensationpaymentsforimpairmentor incapacityresultingfromservicewithaUnited Nationsarmedforce nCompensationpaymentsmadeundertheMilitary Rehabilitation and Compensation Act 2004,except thosethatareincome-relatedpayments nPayandallowancesforpart-timeserviceinthe AustralianNaval,ArmyorAirForceReserve nSomeallowancespaidtoAustralianDefenceForce personnelwhoservedinprescribedoverseas areas(youremployerwilladviseyouifanallowance isexempt)
TAXPACK 2011

112

Amountsthatyoudonotpaytaxon

Other exempt payments nCertainannuitiesandlumpsumswhicharepaid toaninjuredpersonunderastructuredsettlement nCertaindistributionsfromanearlystageventure capitallimitedpartnership nCertaindistributionsfromapooleddevelopment fund nCertainpaymentsrelatingtopersecutionduring theSecondWorldWar nCertainprofitsorgainsfromdisposalofshares inapooleddevelopmentfund nJapaneseinternmentcompensationpaymentsmade undertheCompensation (Japanese Internment) Act 2001ortheVeterans Entitlements Act 1986 NON-ASSESSABLE NON-EXEMPT INCOME Themostcommontypesofnon-assessable non-exemptincomeare: nthetax-freecomponentofanemployment terminationpayment(ETP) nthatpartofthetaxablecomponentofadeath benefitETPpaidtoadependantbelowthe 201011capof$160,000 nthetax-freecomponentofasuperannuationbenefit nthetaxedelementofasuperannuationincome streamorlumpsumreceivedbyaperson60years oldorolder nthetaxedelementofadeathbenefitsuperannuation incomestreampaidtoadeathbenefitdependant where thedeceasedwas60yearsoldorolderatthe timeoftheirdeath,or therecipientwas60yearsoldorolderwhenthe benefitwasreceived natax-freesuperannuationlumpsumbenefit paidtoapersonwithaterminalmedicalcondition existingatthetimewhenthelumpsumwas receivedorwithin90daysafteritsreceipt nNationalRentalAffordabilitySchemepayments ornon-cashbenefitspaidbyastateorterritory governmentorarelevantbodyestablishedunder astateorterritorylaw nasuperannuationlumpsumdeathbenefitreceivedby adependant,or someonewhoisnotadependantbutreceived thebenefitbecauseofthedeathofamember oftheAustralianDefenceForceoranAustralian policeforce(includingAustralianProtective Services)whodiedinthelineofduty

ngenuineredundancypaymentsandearlyretirement

schemepaymentsshownasLumpsumD amountsonyourpaymentsummary namountsonwhichfamilytrustdistributiontaxhas beenpaid(seequestionA4onpages66in TaxPack 2011 supplement) ninterestorotherearningscreditedtoafirsthome saveraccountthatyouholdorapaymenttoyou fromsuchanaccount ngovernmentcontributionspaidundertheFirst Home Saver Account Act 2008 nsuperco-contributions nthetaxbonuspaidundertheTax Bonus for Working Australians Act 2009.

Tax-free income for temporary residents Ifyouareatemporaryresidentyourforeignincome isnon-assessablenon-exemptincome,except incomeyouearnfromyouremploymentoverseas forshortperiodswhileyouareatemporaryresident.

Youareatemporaryresidentif: nyouholdatemporaryvisagrantedunderthe Migration Act 1958 nyouarenotanAustralianresidentwithinthe meaningoftheSocial Security Act 1991,and nyourspouse(ifyouhaveone)isnotanAustralian residentwithinthemeaningoftheSocial Security Act 1991. If,atanytimeonorafter6April2006,youhave beenanAustralianresidentfortaxpurposesbutnot atemporaryresident,youwillnotbeentitledtothe temporaryresidentexemptionsfromthattime,even ifyoulaterheldatemporaryvisa. Forfurtherinformation,seetheelectronicpublication Foreign income exemption for temporary residents introduction.Itisavailableatwww.ato.gov.au

OTHER AMOUNTS THAT YOU DO NOT PAY TAX ON Youdonotpaytaxonmostchildsupportand spousemaintenancepayments.

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113

Do you need to lodge a tax return?

If any of the following applies to you then you must lodge a tax return. $29,456ifyouhadaspousebutoneofyoulivedina nursinghomeoryouhadtoliveapartduetoillness n $24,810ifyoulivedwithyourspouseforthefullyear.
n

REASON 1 During201011,youwereanAustralianresident andyou: npaidtaxunderthepayasyougo(PAYG) withholdingorinstalmentsystem,or nhadtaxwithheldfrompaymentsmadetoyou. REASON 2 YouwereeligiblefortheseniorAustralianstaxoffset (seepages6870)andyourrebateincome(not includingyourspouses)wasmorethan: n $30,685ifyouweresingle,widowedorseparated atanytimeduringtheyear n $29,600ifyouhadaspousebutoneofyoulived inanursinghomeoryouhadtoliveapartdueto illness(seethedefinitionofHad to live apart due to illnessonpage69),or n $26,680ifyoulivedwithyourspouseforthefullyear.
Seepage67toworkoutyourrebateincomeoruse thecalculatoratwww.ato.gov.au

Seepage67toworkoutyourrebateincomeoruse thecalculatoratwww.ato.gov.au

REASON 6 YouwerenoteligiblefortheseniorAustralianstax offsetandyoudidnotreceiveapaymentlistedat question5or6onpages11and12,butyourtaxable incomeexceeded: n $6,000 ifyouwereanAustralianresidentfortax purposesforthefullyear n $3,334 ifyouwereunder18yearsoldat30June 2011andyourincomewasnotsalaryorwages n $1ifyouwereanon-residentandyouhadincome taxableinAustraliawhichdidnothavenon-resident withholdingtaxwithheldfromit,or n your part-year tax-free threshold amountifyou becameorstoppedbeinganAustralianresidentfor taxpurposes.Gotowww.ato.gov.auandenter Part-yeartax-freethresholdamountintheSearch forboxatthetopofthepagetoworkoutyour thresholdamountorphone13 28 61. OthER REASONS Youmustlodgeataxreturnifanyofthefollowing appliedtoyou. nYouhadareportablefringebenefitsamountonyour PAYG payment summary individual non-business orPAYG payment summary foreign employment. nYouhadreportableemployersuperannuation contributionsonyourPAYG payment summary individual non-businessor PAYG payment summary foreign employment or PAYG payment summary business and personal services income. nYouwereentitledtotheprivatehealthinsurancetax offset;seequestionT5onpage73. nYoucarriedonabusiness. nYoumadealossoryoucanclaimalossyoumade inapreviousyear. nYouwere60yearsoldorolderandyoureceivedan Australiansuperannuationlumpsumthatincluded anuntaxedelement. nYouwereunder60yearsoldandyoureceivedan Australiansuperannuationlumpsumthatincluded ataxedelementoranuntaxedelement. nYouwereentitledtoadistributionfromatrustor youhadaninterestinapartnershipandthetrust orpartnershipcarriedonabusinessofprimary production. nYouwereanAustralianresidentfortaxpurposes andyouhadexemptforeignemploymentincome and$1ormoreofotherincome.(Pagess206in
TAXPACK 2011

REASON 3 YouwerenoteligiblefortheseniorAustralianstax offsetbutyoureceivedapaymentlistedatquestion5 onpage11andothertaxablepaymentswhichwhen addedtogethermadeyourtaxableincomemorethan $16,000. REASON 4 YouwerenoteligiblefortheseniorAustralianstax offsetbutyoureceivedfromCentrelinkanAustralian Governmentpension,allowanceorpaymentlisted atquestion6onpage12andyourrebateincome wasmorethan: n $29,670ifyouweresingle,widowedorseparated atanytimeduringtheyear n $28,636ifyouhadaspousebutoneofyoulivedin anursinghomeoryouhadtoliveapartduetoillness n $24,156 ifyoulivedwithyourspouseforthefullyear.
Seepage67toworkoutyourrebateincomeoruse thecalculatoratwww.ato.gov.au

REASON 5 YouwerenoteligiblefortheseniorAustralianstax offsetbutyoureceivedfromtheDepartment of Veterans AffairsanAustralianGovernmentpension, allowanceorpaymentlistedatquestion6onpage12, andyourrebateincomewasmorethan: n $30,439ifyouweresingle,widowedorseparated atanytimeduringtheyear

114

Doyouneedtolodgeataxreturn?

TaxPack 2011 supplementexplainwhatismeant byexemptforeignemploymentincome.Forthe 200910incomeyearandsubsequentyears,there arechangeslimitingtheexemptionforforeign employmentincome.) nYouareaspecialprofessionalcoveredbythe incomeaveragingprovisions.Theseprovisions applytoauthorsofliterary,dramatic,musicalor artisticworks,inventors,performingartists, productionassociatesandactivesportspeople. nYoureceivedincomefromdividendsordistributions exceeding$6,000(or$416ifyouwereunder 18yearsoldon30June2011)andyouhad: frankingcreditsattached,or amountswithheldbecauseyoudidnotquoteyour taxfilenumberorAustralianbusinessnumberto theinvestmentbody. nYoumadepersonalcontributionstoacomplying superannuationfundorretirementsavings accountandwillbeeligibletoreceiveasuper co-contributionforthesecontributions. nYouwereeitheraliableparentorarecipientparent underachildsupportassessmentunlessyou receivedAustralianGovernmentallowances, pensionsorpayments(whethertaxableorexempt)for thewholeoftheperiod1July2010to30June2011, andthetotalofallthefollowingpaymentswasless than$20,594: taxableincome exemptAustralianGovernmentallowances, pensionsandpayments targetforeignincome(seeIT4 Target foreign income) reportablefringebenefits netfinancialinvestmentloss(seeIT5 Net financial investment loss) netrentalpropertyloss(seeIT6 Net rental property loss)and reportablesuperannuationcontributions.

However,youcannotlodgeitbyphoneifyouarealso lodginganapplicationforeducation tax refund.In thatcaseyoumustsendallyourclaimstoustogether inoneenvelope,oryoucouldusee-tax.

Education tax refund Ifyoudontneedtolodgeataxreturnfor201011, youcanclaimyoureducationtaxrefundbycompleting theapplicationEducation tax refund for individuals 2011(NAT72621)andlodgingitbymailorphone 13 28 65. However,youcannotlodgeitbyphoneifyouare alsolodginganapplication for a refund of franking credits.Inthatcaseyoumustsendallyourclaimsto ustogetherinoneenvelope,oryoucouldusee-tax. First home saver account Ifyouhadafirsthomesaveraccountin201011and believeyouareentitledtoafirsthomesaveraccount governmentcontribution,youmustlodgeeither: nataxreturn,or nanotificationofeligibility(ifyouarenotrequired tolodgeataxreturn)andyouwereanAustralian residentforatleastpartof201011.Youcan findthisformonourwebsiteat www.firsthomesaver.gov.au
If you have read all the above information and know that you do not have to lodge a tax return, you should complete the non-lodgment advice on the next page and send it to us unless one of the following applies to you: nYouhavealreadysentusataxreturn,non-lodgment advice,formorlettertellingusthatyoudonotneed tolodgeataxreturnforallfutureyears. nYouarelodginganapplicationforarefundof frankingcreditsfor2011. nYouarelodginganapplicationforaneducation taxrefundfor2011. nYouronlyincomewasfromanallowanceor paymentlistedatquestion5onpage11oryou receivedapension,paymentoranallowancelisted atquestion6onpage12and yourrebateincomewaslessthantherelevant amountinreason 2(ifyouareeligibleforthe seniorAustralianstaxoffset),or yourtaxableincomewaslessthantherelevant amountinreason 3(theagenciesthatpaidyou haveprovidedinformationforustodeterminethat youdonotneedtolodgeataxreturn),or yourrebateincomewaslessthantherelevant amountinreason 4orreason 5(theagencies thatpaidyouhaveprovidedinformationforus todeterminethatyoudonotneedtolodgea taxreturn).
115

Deceased estate Ifyouarelookingaftertheestateofsomeonewho diedduring201011,consideralltheabovereasons ontheirbehalf,andifataxreturnisnotrequired completeNon-lodgment advice 2011onthenext pageandsendittous.Ifataxreturnisrequired, seepage4formoreinformation. Franking credits Ifyoudontneedtolodgeataxreturnfor201011, youcanclaimarefundoffrankingcreditsbyusing thepublicationRefund of franking credits instructions and application for individuals 2011(NAT4105)and lodgingyourclaimbymailorphone13 28 65.
TAXPACK 2011

Doyouneedtolodgeataxreturn?

Non-lodgment advice
1 July 2010 to 30 June 2011 Print neatly in BLOCK LETTERS with a black or blue ballpoint pen only. Do not use correction fluid or tape.

2011

Your tax file number

DAY MONTH YEAR

WeareauthorisedbytheTaxation Administration Act 1953 torequestyoutoquoteyourtaxfile number(TFN).Itisnotanoffencenottoquote yourTFN.However,yourTFNhelpsusto identifyyourtaxrecordscorrectly.

Your date of birth Your name

Title(forexample,  Mr,Mrs,Ms,Miss) Surnameorfamilyname Givennames

Your postal address

Suburbor town State Postcode Country
ifnot Australia

Have you changed your postal address since your last tax return?
NO YES Printtheaddressonyour lastnoticeofassessment ortheaddressyoulast toldusabout. Suburbor town State Postcode

Country
ifnot Australia

Your phone number during business hours if it is convenient

Areacode Phone number Iwillnothavetolodgeataxreturnfor201011because noneofthereasonslistedonpages11415apply.

Reason for not lodging a tax return

Iwillnothavetolodgeatax returnforfutureyearsbecause:

IdeclarethattheinformationIhavegivenonthisnon-lodgmentadviceistrueandcorrect.Seetheprivacynotesonpage128.
DAY MONTH YEAR

Signature

Date

The tax law imposes heavy penalties for giving false or misleading information. Use the pre-addressed envelope provided with TaxPack 2011 to send us your non-lodgment advice by 31 October 2011. If you are not using the pre-addressed envelope, see page 126 for more information and the address to use.

116

TAXPACK 2011

Special circumstances and glossary

Thissectionisapublicrulinginaccordance withDivision358ofSchedule1totheTaxation Administration Act 1953forindividualswhouseit reasonablyandingoodfaithtocompletetheir2011 personalincometaxreturn. Thismeansthatifwestatethelawincorrectlyinthis section,orouradviceontheapplicationofthelawin thissectionisincorrectandasaresultyoudonotpay enoughtax,wewillnotaskyoutopaytheextratax. Attachyourscheduletopage3ofyourtaxreturn. PrintX intheYES boxatTaxpayers declaration question2a onpage12ofyourtaxreturn. Wewillworkouttheamountofwithholdingtax youhavetopayonthedividends,andadviseyou oftheamount.

NON-RESIDENT WITHHOLDING TAX Gross interest Ifyouwereanon-residentincludeatitem10any interestthatyoureceivedin201011whileyouwere aresidentofAustralia.

Donotincludeatitem10 anyinterestpaidorcredited toyouwhenyouwereanon-residentifwithholding taxwasdeducted. Ifwithholdingtaxwasnotdeducted,onaseparate pieceofpaper: n printSCHEDULEOFADDITIONALINFORMATION ITEM10 n printyourname,addressandtaxfilenumber n providedetailsofamountsofinterestyoureceived whileyouwereanon-residentifwithholdingtaxwas notdeducted. Attachyourscheduletopage3ofyourtaxreturn. PrintXintheYES boxatTaxpayers declaration question2a onpage12ofyourtaxreturn. Wewilladviseyouoftheamountofwithholding taxyouhavetopayonthisinterest.

FOREIGN EMPLOYMENT TERMINATION PAYMENTS Anemploymentterminationpayment(ETP)that youreceivedduetoterminationofyouremployment overseasisaforeignemploymenttermination payment(foreignETP): n whereyouwereanAustralianresidentfortheperiod ofyouremployment n wherethepaymentwasexemptfromincome taxunderthatcountryslaws,and n whetherornotyourforeignemployerhasan Australianbusinessnumber(ABN)orhasgiven youaPAYG payment summary employment termination payment.
Note: AforeignETPisdifferentfromaforeign terminationpayment(FTP);seethedefinitionon page123.

Dividends Donotincludeatitem11anydividendincome paidorcreditedtoyouduringtheperiodyouwere anon-resident,if: n thedividendwasfullyfranked,or n thedividendwasnotfullyfranked,buteither thedividendstatementshowstheunfranked amounttobeconduitforeignincome,or withholdingtaxwas(orshouldhavebeen) withheldfromtheunfrankedamount.
Youneedtoprovidedetailsofanydividend: n thatwaspaidorcreditedtoyouduringanyperiod youwereanon-resident n thatwasnotfullyfrankedandwasnotdeclared tobeconduitforeignincome,and n onwhichyouhavenotpaidwithholdingtax. Onaseparatepieceofpaper: n printSCHEDULEOFADDITIONALINFORMATION ITEM11 n printyourname,addressandtaxfilenumber n providedetailsofthedividend.
TAXPACK 2011

Instructions for foreign ETPs YouneedtoconvertyourforeignETPsinto Australiandollarsbeforeyoucancompleteitem4. Forinformationaboutexchangeratesandhowto convertforeignpayments,gotowww.ato.gov.au orphone13 28 61. n Thenonaseparatepieceofpaper: printSCHEDULEOFADDITIONALINFORMATION ITEM4 printyourname,addressandtaxfilenumber foreachforeignETP,printthenameofthepayer andtheforeigncountryinwhichyouwere employed,andwritetheamountofthepayment foreachforeignETP,printtheappropriatecode letter(fromthoselistedatstep4inquestion4 Employment termination paymentsonpage10) orprintNO CODE LETTER APPLIES. n Attachyourscheduletopage3ofyourtaxreturn. n PrintXintheYES boxatTaxpayers declaration question2a onpage12ofyourtaxreturn.
Youwillneedtoincludethetotalamountofthese foreignETPsintheamountyoushowatIitem4 on yourtaxreturn. Gotostep1inquestion4 Employment termination payments onpage9.

117

Specialcircumstancesandglossary

DIVIDENDS AND FRANKING CREDITS Ifyouareclaimingfrankingcreditsatitem11,certain rulesapply.Readthefollowingtocheckthatyouare entitledtoclaimthecredits. Youmustbeaqualifiedpersontobeentitledto afrankingcreditinrespectofadividend.Tobea qualifiedpersonyoumustsatisfytheholdingperiod ruleandtherelatedpaymentsrule. Holding period rule Tobeabletoclaimthefrankingcreditstheholding period rule requiresyoutoholdsharesatriskfor atleast45days(90daysforcertainpreferenceshares).
Whenworkingoutthenumberofdaysyouheldthe sharesatrisk,donotcountthedayonwhichyou acquiredthesharesandthedayonwhichyoudisposed oftheshares(oryouenteredintoanarrangementto reducetheriskofmakingalossonthem). Thisruleappliesgenerallytosharesboughtonor after1July1997.

Evenifyoudonotholdthesharesatriskforthe requiredperiodyoumaystillbeentitledtoclaim thefrankingcreditsif: nyourtotaldirectandindirectfrankingcredit entitlementfortheincomeyear,includingany entitlementyoumayhavethroughatrustor partnership,isnotabove$5,000(thesmall shareholderexemption),and n herelated payments rule (seenextpage)does t notapplytoyou. Indeterminingwhethertheholdingperiodruleis satisfiedfortheprescribedminimumperiod,no accountistakenofanydaysonwhichyouentered intoanarrangementtomateriallyreducetheriskof makingalossonyourshares,suchasthrough derivatives,hedges,optionsandfutures. Ifyoudonotsatisfytheholdingperiodrule,include thefrankedamountofthedividendatT item11 butdonotincludeanyfrankingcreditamountat U item11 forthatdividend.

AUSTRALIAN SUPERANNUATION LUMP SUM PAYMENTS Table 1setsoutthetaxratesthatapplytosuperannuationlumpsumpayments. Youmayfindthisusefulincompletingitems8,M1andM2.

TABLE 1 Tax rates applicable to the taxable components of superannuation lump sums TheMedicarelevyisadditionalwhereapplicable. Your age at the time of payment Death benefitpaidto: dependant non-dependant Anyage Anyage Whole Whole Taxfree 15% Whole Whole Taxfree 30% Taxed element Amount Tax rate Untaxed element Amount Tax rate

Superannuation lump sum (otherthandeathbenefit) Under55yearsold 55to59yearsold Whole Upto $160,000* Over $160,000* 60yearsoldand older Whole 20% 0% 15% Upto$1,155,000 Over$1,155,000 Upto$160,000* Over$160,000* upto$1,155,000 Over$1,155,000 Taxfree Upto$1,155,000 Over$1,155,000 30% 45% 15% 30% 45% 15% 45%

* Thelow-ratecapcouldbelessthan$160,000if,beforeJuly2008,youreceivedaneligibleterminationpaymentafteryour55thbirthday oryoureceivedasuperannuationlumpsuminapriorincomeyearthatcountedtowardsyourentitlementtoasuperannuationlumpsum taxoffset.Formoreinformationonhowweworkouttheamountofyourlow-rategotowww.ato.gov.auandenterlowratecaponsuper lumpsumbenefitsintheSearchforboxatthetopofthepage.

118 TAXPACK 2011

Specialcircumstancesandglossary

Related payments rule Therelatedpaymentsruleappliestoarrangements enteredintoafter7.30pm(AustralianEasternStandard Time)on13May1997.Broadly,itappliestoyouifyou effectivelyhadnointerestinadividendbecauseyou wereunderanobligationtomake,orwerelikelyto make,arelatedpaymenttoanotherpartyforthe dividendandyoudidnotholdyoursharesatriskfor atleast45days(90daysforcertainpreferenceshares).
Whenworkingoutthenumberofdaysyouheldthe sharesatrisk,donotcountthedayonwhichyou acquiredthesharesandthedayonwhichyoudisposed oftheshares(oryouenteredintoanarrangementto reducetheriskofmakingalossonthem). A related payment includes you, or your associate, doing something under an arrangement that has the effect of passing the benefit of the dividend to someone else. If either the holding period rule or related payments rule is likely to affect you, see You and your shares 2011 (NAT 2632).

Youcanclaimadeductionforthedeclineinvalueofa leasedluxurycar(butnotforotherleasedcars).Thecar canbeneworsecond-hand.Youmustuseeitherthe: n one-thirdofactualexpensesmethod,or n logbookmethod. Whenclaimingadeductionfordeclineinvalue,the initialvaluethatyouuseforthecaristhelimitthat appliedintheincomeyearinwhichtheleasebegan. TABLE 2 Luxury car limits for the past 10 years 201011 200910 200809 200708 200607 $57,466 $57,180 $57,180 $57,123 $57,009 200506 200405 200304 200203 200102 $57,009 $57,009 $57,009 $57,009 $55,134

LEASED LUXURY CARS Ifyouleasedaluxurycarandwishtoclaima deductionatitemD1 orD2,thefollowinginformation aboutluxurycarswillhelpyou.

Aleasedluxurycarisaleasedcarthatatthetimethe leasebegancostmorethantheluxurycarlimitthat appliedintherelevantincomeyear. TABLE 3 Travel expense records

WORK-RELATED TRAVEL EXPENSES Table 3outlinestheevidenceyouneedtokeepto claimovernighttravelexpenses.

Domestic travel Written evidence If you did not receive a travel allowance: travellessthan6nightsinarow travel6ormorenightsinarow Yes Yes No Yes Travel diary1

Overseas travel Written evidence Travel diary1

Yes Yes

No Yes

If you received a travel allowance and your claim does not exceed the reasonable allowance amount: travellessthan6nightsinarow travel6ormorenightsinarow No No No No No2 No2 No Yes3

If you received a travel allowance and your claim exceeds the reasonable allowance amount: travellessthan6nightsinarow travel6ormorenightsinarow
1 2

Yes Yes

No Yes

Yes Yes

No Yes3

 Atraveldiaryisadocumentinwhichyourecordthenature,dates,places,timesanddurationofyouractivitiesandtravel.  Writtenevidenceisrequiredforoverseasaccommodationexpensesregardlessofthelengthofthetripbutnotforfood,drinkandincidentals. 3  Membersofinternationalaircrewsdonothavetokeepatraveldiaryiftheylimittheirclaimtotheamountoftheallowancereceived.

TAXPACK 2011 119

Specialcircumstancesandglossary

RULES FOR CERTAIN TYPES OF GIFTS OR DONATIONS Thefollowinginformationisaboutdifferenttypes ofgiftsordonationsforwhichyoumaybeableto claimadeductionatitemD9. Gifts of property Youcanclaimadeductionforagiftofproperty (suchasland,artworkormemorabilia)toan approvedorganisationif: n youpurchasedthepropertywithin12months ofmakingthegift,or n youpurchasedthepropertymorethan12months beforeyoumadethegiftandtheAustralianValuation Office(AVO)valueditatmorethan$5,000.
Ifyoupurchasedthepropertywithin12monthsof makingthegift,theamountdeductibleisthemarket valueofthepropertyatthetimeofthegiftorthe amountyoupaidfortheproperty,whicheverisless. Ifyoupurchasedthepropertymorethan12months beforeyoumadethegiftandtheAVOvalueditat morethan$5,000,theamountdeductibleisthe valueofthepropertyasdeterminedbytheAVO. Youcannotclaimadeductionforagiftofproperty ifyoudidnotpurchaseit(forexample,youinherited orwontheproperty)unlesstheAVOhasvaluedit atmorethan$5,000. Ifyouhavemadeagiftofpropertyunderthe CulturalGiftsProgramtherulesdescribedabovedo notapplytoyou.Formoreinformationonworkingout whetheryoucanclaimadeductionforagiftunderthis program,seethepublicationCultural Gifts (NAT8236) availableatwww.ato.gov.auorphone13 28 61. Formoreinformationaboutpropertyvaluations, phonetheAVOon1300 356 780,fax1300 357 267 orseetheAVOwebsiteatwww.avo.gov.au

n thebenefityoureceiveddoesnotexceed

aspecifiedlimit.

Afund-raisingeventincludesafete,ball,galashow, dinner,performanceorsimilarevent. Youcanclaimadeductionifyoumade: n acontributionofmoneyorpropertytoattend orparticipatein(orfortherighttoattend orparticipatein)afund-raisingevent,or n acontributionofmoneytopurchasegoods orservicesatacharitableauction. Yourcontributionmustmeetthefollowingconditions. n Itwasmadetoanapprovedorganisation. n Ifitwasmoney,itwasmorethan$150. n Ifitwasproperty,youhadeither: purchaseditwithin12monthsofmakingthe contribution,andboththemarketvalueonthe dayofthecontributionandthepurchaseprice weremorethan$150,or owneditformorethan12monthsandthe AVOvalueditatmorethan$5,000. n Ifitwaspubliclylistedshares,thevaluewasmore than$150andlessthanorequalto$5,000. n Thefund-raisingeventwasheldinAustralia. n TheGST-inclusivemarketvalueoftheminorbenefit youreceivedforyourcontributionmusthavebeen worthnomorethan$150or20%ofthevalueofthe contribution,whicheverisless.Thereceiptfromthe approvedorganisationwillshowthemarketvalueof theminorbenefityoureceived. Yourdeductionisthevalueofyourcontribution thatsatisfiestheconditionssetoutaboveless the GST-inclusivemarketvalueoftheminorbenefityou received.Bothoftheseamountsappearonyour receipt. Thereisnolimittothenumberofdeductionsyou canclaimforsuccessfulbidstopurchasegoodsor servicesatacharitableauction,providedtheabove conditionsaremet.

Receiving a benefit Generally,youcannotclaimadeductionfora donationifyoureceivedsomethinginreturn(for example,araffleticket,dinnerorareductionin yourchildsschoolfees)otherthantokenslikelapel badgesandstickersthatpromotetheorganisation. Thisruledoesnotapplytocertainfund-raisingevents (seethenextcolumn). Deductions for contributions relating to fund-raising events Youcanclaimadeductionforcontributionsto approvedorganisationsthatrelatetofund-raising eventswhereyoureceivedaminorbenefitfor yourcontribution,providedthat: n thecontributionmeetscertainconditions,and
120

Gifts of shares valued at $5,000 or less Youcanclaimadeductionforagiftofsharestoan approvedorganisationif: n theshareswereheldinacompanythatwaslisted onanapprovedAustralianstockexchangeonthe daythegiftwasmade n youacquiredthesharesatleast12monthsbefore makingthegift(acquiredincludespurchased, inherited,wonorreceivedasagiftorabonus) n theparcelofshareshadamarketvalueof$5,000 orlessonthedayyoumadethegift n theparcelofshareswasvaluedat$2ormore.

TAXPACK 2011

Specialcircumstancesandglossary

Youcannotclaimadeductionforsharesthatare suspendedfromtrading(otherthanameretradinghalt). Giftsofsharesheldindifferentcompaniesare separategiftsevenifgivenatthesametime. Adeductionisalsoavailabletoyouwhereyou contributethesharesinreturnforarightpermitting youoranotherindividualtoattendorparticipatein aparticularfund-raisingeventinAustralia.Thegift mustsatisfytherulesforcontributionstofund-raising events(seethepreviouspage),themarketvalueof thesharesonthedaytheyarecontributedmustbe morethan$150butlessthanorequalto$5,000,and themarketvalueoftherighttoattendorparticipate inthefund-raisingeventmustnotexceed20%ofthe valueofthesharesor$150,whicheverisless. Beawarethatcapitalgainstaxapplieswhenyou makeagiftofshares.

Parliament,astateparliament,orthelegislative assemblyoftheNorthernTerritoryorAustralian CapitalTerritory. Anindependentcandidateisanindividualwhose candidatureinanelectionforparliamentisnot endorsedbyaregisteredpoliticalparty.An independentmemberisamemberofparliamentwho isnotamemberofaregisteredpoliticalparty.

AUSTRALIAN SUPERANNUATION INCOME STREAM TAX OFFSET IfyouarecompletingitemT4 andyourpayment summarydoesnotshowthetaxoffsetamount,follow thestepsbelowtocompletetheitem. Completing your tax return Step 1 ForeachPAYG payment summary superannuation income stream thatdoesnotshowataxoffset amount,youcanworkoutyourtaxoffsetamount bymultiplyingthetaxedelementandtheuntaxed elementofthetaxablecomponentshownoneach ofthosepaymentsummariesbytherelevant percentageshownintable 4 onthenextpage.
WORKSHEET 1 Working out the amount of your tax offset Theamountof yoursuperannuation incomestreambenefitpaid toyoubeforeyour55thor 60thbirthdayforwhichyou areentitledtoataxoffset Relevantpercentage fromtable 4 Multiply(a)by(b). Theamountofyour superannuationincome streambenefitpaidtoyou onorafteryour55thor60th birthdayforwhichyouare entitledtoataxoffset Relevantpercentage fromtable 4 $

CONTRIBUTIONS AND GIFTS TO REGISTERED POLITICAL PARTIES AND INDEPENDENT CANDIDATES AND MEMBERS Youcanclaimadeductionforcontributionsorgiftsto registeredpoliticalparties,independentmembersof parliament(stateorCommonwealth)orindependent candidatesinanelectionforparliament.Contributions mustbe$2ormore.Thecontributionorgiftmustbe ofmoneyorpropertythatyoupurchasedduringthe 12monthsbeforemakingthecontributionorgift.Ifit isproperty,theamountdeductibleisthemarketvalue ofthepropertyatthetimeofthedonationorthe amountyoupaidfortheproperty,whicheverisless.
Ifthetotalofallyourcontributionsandgiftstopolitical partiesduringtheyearisgreaterthan$1,500then themaximumamountyoucandeductis$1,500. Aseparatedeductionlimitof$1,500appliesifthe totalofallyourcontributionsandgiftstoindependent candidatesorindependentmembersofparliamentfor theyearexceeds$1,500. Youcannotclaimadeductionforapoliticalgiftor contributionof$2ormore(includingmembership fees)toregisteredpoliticalparties,independent candidatesandmembersofanAustralianlegislature ifyoumakethegiftorcontributioninthecourseof carryingonabusiness. Thecontributionmustbetoapoliticalpartythatis registeredunderCommonwealth,stateorterritory electorallaws. Thecontributiontoanindependentcandidateor independentmembersmustbetoacandidatefor electionto,ormemberof,theCommonwealth

(a) % (b)  (c)

(d)

% (e) 

TAXPACK 2011

121

Specialcircumstancesandglossary

Multiply(d)by(e). Add(c)and(f). Addupthetaxoffset amountsyouhaveworked outatstep(g)foreach incomestream.

$ $

(f) (g)

(h)

TABLE 4 Percentages used to work out your Australian superannuation income stream tax offset Income stream Deathbenefit Age of the deceased Under60yearsold Your age at date of each payment Under60yearsold 60yearsold andolder 60yearsold andolder Disability superannuation benefit Allother income streams Notapplicable Anyage Under60yearsold 60yearsold andolder Notapplicable Under55yearsold Taxed element 15% Notapplicable* Notapplicable* 15% Notapplicable* 0% Untaxed element 0% 10% 10% 0% 10% 0%

5559yearsold 60yearsold andolder

15% Notapplicable*

0% 10%

*Thetaxoffsetdoesnotapplybecausethisisnon-assessablenon-exemptincome,thatis,tax-freeincome.

Step 2 Ifyoudidnotturn55or60yearsoldduring201011, gotostep3. Ifyouturned55or60yearsoldduringthe201011 incomeyear,adifferentpercentageoftaxoffsetmay applytothesuperannuationincomestreamyouwere receivingbeforeandafteryourbirthday. Youcanaskyourpayerwhatamountsofyour superannuationincomestreamattractataxoffset, oryoucanuseworksheet 1 onthepreviouspage toworkouttheamountofyourtaxoffset.

Usesteps(a)to(g)inworksheet 1 toworkout theamountofyourtaxoffsetforeachelement ofthesuperannuationincomestreamyoureceived. Ifyoureceivedmorethanonesuperannuation incomestream,repeatsteps(a)to(g)foreach ofthoseincomestreams.

122

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Specialcircumstancesandglossary

Step 3 IfyouhaveanyPAYG payment summary superannuation income stream thatshowstaxoffset amounts,adduptheseamountsandtheamount from(h)inworksheet 1 onpages1212.Writethe totalamountatS itemT4 onyourtaxreturn.Donot showcents.

nApaymentofcompensationundersection68,

71or75oftheMilitary Rehabilitation and Compensation Act 2004 nApaymentofcompensationmentionedin paragraph234(1)(b)oftheMilitary Rehabilitation and Compensation Act 2004 Ifyouarenotsurewhetheragovernmentpension orbenefityouhavereceivedisatax-freegovernment pensionorbenefitforthepurposeofthisquestion, gotowww.ato.gov.au andenterIncometestsand howtheyaffectyouintheSearchforboxatthetop ofthepage,orphone13 28 61.

TAX-FREE GOVERNMENT PENSIONS OR BENEFITS THAT ARE TAKEN INTO ACCOUNT IN THE INCOME TESTS Ifyoureceiveanyofthegovernmentpensionsor benefitslistedbelow,thenyoumustincludeat IT3 thepartofthosepensionsandbenefitsthatare exemptfromtax.Insomecases,allofyourpension orbenefitcouldbeexemptfromtax,andinother casesonlypartofitmightbe.
Donotincludeanypartofthesepensionsand benefitsthatisabereavementpayment, pharmaceuticalallowance,rentassistanceorremote areaallowance,orlanguage,literacyandnumeracy supplement. nDisabilitysupportpensionpaidbyCentrelinkto apersonwhoisunderage-pensionage nWifepensionwhereboththerecipientandtheir partnerareunderage-pensionageortherecipient isundertheage-pensionageandtheirpartner hasdied nCarerpaymentunderPart2.5oftheSocial Security Act 1991 nPensionfordefence,peacekeepingorwar-caused deathorincapacityoranyotherpensiongranted underPartIIorPartIVoftheVeterans Entitlement Act 1986 nInvalidityservicepensionwheretheveteranis underage-pensionage nPartnerservicepensionwhereeither: thepartnerandtheveteranareunderthe age-pensionageandtheveteranisreceiving aninvalidityservicepension,or thepartnerisunderage-pensionage,theveteran hasdiedandwasreceivinganinvalidityservice pensionatthetimeofdeath nIncomesupportsupplementpaidunderPartIIIAof theVeterans Entitlements Act 1986 nDefenceForceincomesupportallowancepayable toyouonadaywhenthewholeofyoursocial securitypensionorbenefit,whichisalsopayable toyouonthatday,isexemptfromincometax undersection52-10oftheIncome Tax Assessment Act 1997 nAspecialratedisabilitypensionunderPart6of Chapter4oftheMilitary Rehabilitation and Compensation Act 2004
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GLOSSARY Spouse Yourspouseincludesanotherperson(whether ofthesamesexoroppositesex)who: n youwereinarelationshipwiththatwasregistered underaprescribedstateorterritorylaw, n althoughnotlegallymarriedtoyou,livedwithyouona genuinedomesticbasisinarelationshipasacouple.

Childincludes: n youradoptedchild,stepchildorex-nuptialchild nachildofyourspouse,and nsomeonewhoisyourchildwithinthemeaningof theFamily Law Act 1975(forexample,achildwho isconsideredtobeachildofapersonunderastate orterritorycourtordergivingeffecttoasurrogacy agreement). Thefollowingdefinitionsareforkeytermsin questions4and8.

Foreign termination payment (FTP) Ifyouthinkyoureceivedaforeigntermination payment(discussedatquestion4),thefollowing descriptionwillhelpyoudecidewhattodo.

AnFTPisapaymentthat: nyoureceivedinconsequenceofthetermination ofyouremploymentinaforeigncountryandthe paymentrelatesonlytoaperiodofemployment whenyouwereaforeignresident,or nwasnotexemptfromincometaxintheforeign country,youwereanAustralianresidentduringthe periodoftheemploymentorservice,andyoureceived thepaymentasaresultoftheterminationofyour employmentinaforeigncountrywheretheforeign earningswereexemptfromAustraliantaxforthe periodofemployment,or qualifyingserviceonanapprovedprojectand theeligibleforeignremunerationwasexempt fromAustraliantaxduringtheperiodof engagement.
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ThepaymentisnotanFTPifitisasuperannuation benefitpaidfromasuperannuationfund,retirement savingsaccountoranapproveddepositfundorifit isapaymentofapensionoranannuity. Foreignterminationpaymentsarenon-assessable non-exemptincome,thatis,tax-freeincome.Donot showthemanywhereonyourtaxreturn.

Thesepaymentsarenon-assessablenon-exempt income,thatis,tax-freeincome.Donotshowdirected terminationpaymentsanywhereonyourtaxreturn.

Late termination payment Alateterminationpaymentisalumpsumpayment, similartoemploymentterminationpayments(ETPs) referredtoinquestion4,whichyoureceivedmore than12monthsafterthetimeyouretiredorceased employment.

AlateterminationpaymentistreatedasanETPwhere: n legalactionaboutyourentitlementtotheETPor abouttheamountoftheETPwascommenced within12monthsoftheterminationofyour employment,or n thepaymentwasmadebyapersonwhowas appointedwithin12monthsofyouremployment terminationasaliquidator,receiverortrusteein bankruptcyfortheemployer. Iftheseconditionsarenotmet,andyoureceivedthe paymentmorethan12monthsafterterminationof youremployment,thenyoumustshowtheamount ofthepaymentatitem1onyourtaxreturn.

Death benefit employment termination payment (ETP) AdeathbenefitETPisalumpsumpaymentwhich ispaidtoyoubecauseyouarethebeneficiaryofa personwhohasdied.IftheETPwaspaidtoyouas thetrusteeofadeceasedestate,youmustshowthe ETPonthetaxreturnofthedeceasedestate,noton yourpersonaltaxreturn.
IfyoureceivedadeathbenefitETPfromadeceased personsemployer,theinformationprovidedonyour PAYG payment summary employment termination paymentwilldependonwhetheryouwereadeath benefits dependant (seethedefinitionbelow). Ifyouwereadeathbenefitsdependant,thepayment summarywillshowonlythetaxablecomponents oftheETPover$160,000.Ifyouwerenotadeath benefitsdependant,thepaymentsummarywill showtheentiretaxablecomponentoftheETP.

Transitional termination payment Atransitionalterminationpaymentisapaymentto whichtransitionalarrangementsapply.Transitional arrangementsapplytoanETP: n madetoyouonorafter1July2007,and n towhichyouwereentitledon9May2006under awrittencontract anAustralianorforeignlaw(oraninstrument undersuchalaw),or aworkplaceagreementundertheFair Work Transitional Provisions and Consequential Amendment Act 2009.
Thecontract,laworagreementshouldspecifythe amountofthepaymentorawaytoworkoutthe specificamountofthepayment. Formoreinformation,seetheelectronicpublication Employment termination payments transitional arrangements (NAT70644) availableat www.ato.gov.au

Death benefits dependant Youareadeathbenefitsdependantofthedeceased if,atthetimetheydied,youwere: n thesurvivingspouse n aformerspouse n achildofthedeceasedandyouwereunder 18yearsold n anyotherpersonwhowasfinanciallydependent onthedeceased,or n anyotherpersoninaninterdependency relationship withthedeceased(seethe definitiononthenextpage).
Forquestion 8,youarealsoadeathbenefitsdependant whenyoureceiveasuperannuationlumpsumpayment becauseamemberoftheAustralianDefenceForceor ofanAustralianpoliceforce,includingtheAustralian ProtectiveService,diedinthelineofduty. Ifyoudisagreewiththedependencystatusshown onyourpaymentsummary,youshoulddiscussitwith thepayer. Forthepurposesofthedefinitionofdeathbenefits dependantthefollowingapply: n Spouseofthedeceasedincludesanotherperson (whetherofthesameoroppositesex): withwhomthedeceasedwasinarelationship thatwasregisteredunderaprescribedlawof astateorterritory notlegallymarriedtothedeceasedperson,who livedwiththedeceasedonagenuinedomestic basisinarelationshipasacouple.
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Directed termination payment Atransitionalterminationpaymentcan,atyour request,bepaidbyyouremployertoacomplying superannuationfundortopurchaseasuperannuation annuity.Thesepaymentsarecalleddirected terminationpayments.

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n Child

ofthedeceasedincludes: anadoptedchild,stepchildorex-nuptialchild ofthedeceased achildofthedeceasedsspouse someonewhoisachildofthedeceased withinthemeaningoftheFamily Law Act 1975 (forexample,achildwhoisconsideredtobea childofapersonunderastateorterritorycourt ordergivingeffecttoasurrogacyagreement).

seeAccessing your super if you have a terminal medical condition (NAT72437)availableat www.ato.gov.au

Low-rate cap for taxable components of superannuation lump sum payments Thisconcessionappliesonlytosuperannuationlump sumspaidtoyouwhenyouare55to59yearsold, thatis,whenyouhavereachedyourpreservationage (55yearsold)butbeforeyouturn60yearsold.
Thelow-ratecapisthemaximumamountoftaxable components(taxedanduntaxedelements)thatcan betaxedataconcessionallowerrate. For201011,thelow-ratecapis$160,000,butit couldbelessforyouifbeforeJuly2010youreceived asuperannuationlumpsumafteryour55thbirthday. Thelow-ratecapisalifetimelimit.Thismeans thatthetaxed element anduntaxed elements ofall superannuationlumpsumpaymentsthat youreceivewhenyouare55to59yearsoldwillbe taxedataconcessionalrateuntiltheirtotalreaches thelow-ratecapamount.Paymentsyoureceivein excessofthelow-ratecapwillbetaxedatthetax rateshownintable 1 onpage118. Consequently,for201011themaximumamount forwhichyoucanbetaxedataconcessionalrateis $160,000lessanyamounttowhichtheconcessional taxratehaspreviouslybeenapplied.

Interdependency relationship Aninterdependencyrelationshipexistsifthereis aclosepersonalrelationshipbetweentwopersons andthefollowingconditionsaremet: n theylivetogetherand n oneoreachofthemprovidestheotherwith financialsupport,domesticsupportand personalcare.

Aninterdependencyrelationshipcanalsoexistifthere isaclosepersonalrelationshipbetweentwopersons butoneormoreoftheconditionsstatedaboveare notsatisfiedbecauseofthephysical,intellectualor psychiatricdisabilityofoneofthepeople. However,twopersonsdonothavean interdependencyrelationshipifoneofthemprovides domesticsupportandpersonalcaretotheother: n underanemploymentcontractoracontractfor service,or n onbehalfofanotherpersonororganisationsuch asagovernmentagency,abodycorporateor abenevolentorcharitableorganisation.

Terminal medical condition Youhaveaterminalmedicalconditionifboththe followingcircumstancesaremet: n tworegisteredmedicalpractitioners(withatleast onebeingaspecialistpractisinginthearearelated totheillnessorinjury)havecertifiedthatyousuffer anillnessorhaveincurredaninjurythatislikely toresultinyourdeathwithina12-monthperiod n eachofthecertificatesislessthan12monthsold.
Superannuationlumpsumpaymentspaidtoyou aretaxfreeifyouhaveaterminal medical condition and,atthetimeofpayment,orwithin90days ofreceivingpayment,youhavetherequiredmedical certificatesstatingthatyouhaveaterminalmedical condition.YoushouldnothavereceivedaPAYG paymentsummaryforthesepayments. Ifyoureceivedsuchapaymentandtaxwaswithheld, youcangetarefundofthetax. Forinformationabouthowtogettherefund andforfurtherinformationaboutthesepayments,

Untaxed-plan cap for untaxed elements Theuntaxed-plancapisthemaximumamountofthe untaxedelementsofyoursuperannuationlumpsum paymentswhichwillbesubjecttoconcessionaltaxrates.

For201011,theuntaxed-plancapis$1.155million. Thecapisindexedtoaverageweeklyordinarytime earnings(AWOTE)androundeddowntothenearest multipleof$5,000.SeeKey superannuation rates and thresholdsavailableatwww.ato.gov.au Thereisaseparateuntaxed-plancapforeach superannuationfundyouhave.Thismeansthat, foreachfund,theuntaxedelementswhichmake upyoursuperannuationpaymentswillbetaxedata concessionalrateuntiltheseuntaxedelementsreach theuntaxed-plancapamount($1.155millionplus futureindexedincreases).Amountsabovethislimit aretaxedatthetopmarginalrate. Ifyourolloveranamountfromonesuperannuation fundtoanother,anyuntaxedelementthatispartof thatamountwillcounttowardstheuntaxed-plancap forthefundfromwhichtheamountwasrolledover.

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Important information
OUR COMMITMENT TO YOU Wearecommittedtoprovidingyouwithaccurate, consistentandclearinformationtohelpyou understandyourrightsandentitlementsandmeet yourobligations.
Ifyoufollowourinformationinthispublicationandit turnsouttobeincorrect,oritismisleadingandyou makeamistakeasaresult,wemuststillapplythe lawcorrectly.Ifthatmeansyouoweusmoney,we mustaskyoutopayitbutwewillnotchargeyou apenalty.Also,ifyouactedreasonablyandingood faithwewillnotchargeyouinterest. Ifyoumakeanhonestmistakeintryingtofollowour informationinthispublicationandyouoweusmoney asaresult,wewillnotchargeyouapenalty.However, wewillaskyoutopaythemoney,andwemayalso chargeyouinterest.Ifcorrectingthemistakemeans weoweyoumoney,wewillpayittoyou.Wewillalso payyouanyinterestyouareentitledto. Ifyoufeelthatthispublicationdoesnotfullycover yourcircumstances,oryouareunsurehowitapplies toyou,youcanseekfurtherassistancefromus. Weregularlyreviseourpublicationstotakeaccount ofanychangestothelaw,somakesurethatyou havethelatestinformation.Ifyouareunsure,you cancheckformorerecentinformationonourwebsite atwww.ato.gov.auorcontactus. ThispublicationwascurrentatMay 2011.

LODGE YOUR TAX RETURN BY 31 OCTOBER 2011 Youhaveuntil31October2011tolodgeyourtax return,unlesswehaveallowedyoutolodgeitlate, oryouhavealaterduedatewhenaregistered taxagentpreparesyourtaxreturn.
Ifyoucannotlodgeyourtaxreturnby31October2011 contactusassoonaspossible,andcertainlybefore 31October2011,tofindoutwhetheryoucanlodge atalaterdate.

Failure to lodge on time penalty Wemayapplyapenaltyforfailuretolodgeontime ifyourtaxreturnisnotlodgedbytheduedate.

Generally,weapplyapenaltyof$110forevery 28days(orpartthereof)thatyourtaxreturnis overdue,toamaximumof$550.Wemayapply thepenaltyevenwherethereisnotaxpayable. However,ourpolicyisnottoapplyapenaltywhere: nyoulodgeyourtaxreturnvoluntarily,and nnotaxispayable.

WHERE TO SEND YOUR TAX RETURN Within Australia Ifyoudecidetolodgeapapertaxreturn,youcanuse thepre-addressedenvelopeprovidedtosendittous, orsenditto: Australian Taxation Office GPO Box 9845 IN YOUR CAPITAL CITY
Do not replace the words IN YOUR CAPITAL CITY with the name of your capital city and its postcode they are not needed because of a special agreement with Australia Post.

WHO CAN COMPLETE YOUR TAX RETURN? Youcangetsomeoneelsetocompleteyourtax returnforyou. nAfamily member or friendcanhelpyoubutthey cannotchargeyouafee.Youmuststillsignitand youarestilllegallyresponsiblefortheaccuracyof theinformation. n Tax Help isafreeserviceprovidedbycommunity volunteerstrainedtohelppeopleonlowincomes preparetheirtaxreturns.

From overseas Youcanlodgeyourtaxreturnonlineusinge-taxgo towww.ato.gov.auformoreinformation.Mostrefunds areissuedwithin14daysandyouhavetheoptionto usethepre-fillingservicewhichdownloadsinformation reportedtotheATOdirectlytoyourtaxreturn.

Alternatively,youcanlodgeapapertaxreturnanduse thepre-addressedenvelopetosendittous.Changethe addressbycrossingoutIN YOUR CAPITAL CITY and replacewith SYDNEY NSW 2001, AUSTRALIA. Itwillassistusifyoucrossoutthebarcodeabove theaddress.

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Importantinformation

IF YOU MADE A MISTAKE OR NEED TO AMEND YOUR TAX RETURN Ifyourealisethatyoudidnotincludesomethingon yourtaxreturnthatyoushouldhave,oryoumade amistake,youneedtocorrectitassoonaspossible byrequestinganamendment.
Youcanrequestanamendmentbycompletingthe Request for amendment of income tax return for individualsform.ThisformisavailablefromtheATO websiteatwww.ato.gov.auunderFixaproblem, thenCorrectamistakeinyourtaxreturn. Alternatively,youcanwritealettertous.Intheletter provide: nyourname,address,phonenumberandtax filenumber ntheyearshownonthetaxreturnyouwantto amendforexample,2011 nthetaxreturnitemnumberanddescriptionaffected bythechange ntheamountofincomeordeductionstobeadded ortakenaway,ifrelevant ntheamountoftaxoffsetstobeincreasedor decreased,ifrelevant ntherelevantclaimtypecode,ifapplicabletothe itembeingchanged nanexplanationofwhyyoumadethemistake nanyadditionalinformation,ifapplicable,totheitem beingchanged,and nasignedanddateddeclarationIdeclarethatall theinformationIhavegiveninthisletter,including anyattachments,istrueandcorrect. Itisveryimportantthatyourletterexplainswhyyou madethemistakeorthereasonforthechange,sothat wecancorrectlyassessanypenaltyorinterestcharge. Postyourletterandattachmentsto: Australian Taxation Office GPO Box 3004 Penrith NSW 2740 Keepacopyforyourrecords. Donotsendanothertaxreturnunlessweaskyouto. If,afterlodgingyourtaxreturn,youvoluntarilytellus thatyoumadeamistakeandanamendmentwillresult inyoupayingmoretax,theamountofpenaltythatmay otherwisehavebeenimposedwill,inmostcases,be reduced.Inmostcasesyoumustlodgeyourrequest foranamendmentwithintwoyearsofthedatethe Commissionerissuedyournoticeofassessment.

YOUR RIGHT TO COMPLAIN Ifyouaredissatisfiedwithaparticulardecisionwe havemade,orwithoneofourservicesoractions, youhavetherighttocomplain.

Werecommendthatyoufirsttrytoresolvetheissue withthetaxofficeryouhavebeendealingwith,or phonethenumberyouhavebeengiven. Ifyouarenotsatisfied,talktothetaxofficersmanager. Ifyouarestillnotsatisfied,phoneourcomplaintsline on1800 199 010. Youcanalsomakeacomplaint:
nbywritingto:

 Complaints Australian Taxation Office PO Box 1271 Albury NSW 2640 nonlineatwww.ato.gov.au nbysendingaFREEFAXon1800 060 063.

THE COMMONWEALTH OMBUDSMAN Ifyouarenotsatisfiedwithourdecisionsoractions, youcanraisethematterwiththeCommonwealth Ombudsman.

TheCommonwealthOmbudsmansoffice caninvestigatemostcomplaintsrelatingtotax administrationandmayrecommendthatweprovide asolutionorremedytoyourproblem.Investigations areindependent,private,informalandfreeofcharge. YoucancontacttheCommonwealthOmbudsmans officeby: nvisitingtheirwebsiteatwww.ombudsman.gov.au nphoning1300 362 072 nsendinganemailto ombudsman@ombudsman.gov.au or nwritingto: The Commonwealth Ombudsman GPO Box 442 Canberra ACT 2601

THE PRIVACY COMMISSIONER ThePrivacyCommissionerreceivescomplaintsunder thePrivacy Act 1988andthetaxfilenumberguidelines issuedundertheAct.YoucancontactthePrivacy Commissionerby: nvisitingtheirwebsiteatwww.privacy.gov.au nphoningtheprivacyhotlineon1300 363 992or nwritingto:  The Privacy Commissioner GPO Box 5218 Sydney NSW 2001

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Importantinformation

PRIVACY AND ACCESS TO INFORMATION Collecting your tax information WeareauthorisedbytheTaxation Administration Act 1953toaskforyourTFN.Itisnotanoffencenot toprovideyourTFN.However,yourassessmentmay bedelayedifyoudonotprovideyourTFN.
Weareauthorisedbythetaxationandsuperannuation laws,includingtheIncome Tax Assessment Act 1936, theIncome Tax Assessment Act 1997, A New Tax System (Australian Business Number) Act 1999 and theSuperannuation (Unclaimed Money and Lost Members) Act 1999toaskfortheotherinformation onthistaxreturn.Weneedthisinformationtohelpus toadministerthetaxationandsuperannuationlaws.

Australian Business Register TheCommissionerofTaxationistheRegistrarofthe ABR.Wemayuseinformationyouprovideonyour taxreturntoupdatetheABR.Forexamplewemay usetheinformationtoupdateyourtradingname, industryclassificationandmainbusinessaddress.

Tohelpbusinessandgovernmentinteractmoreeasily theRegistrarmaydiscloseinformationfromtheABR tootherCommonwealth,state,territoryandlocal governmentagencies. Youcanfinddetailsofthegovernmentagencies regularlyreceivinginformationfromtheABR ontheinternetatwww.abr.gov.auoryoucan phone13 28 66between8:00amand6:00pm MondaytoFridayandaskforalistofagenciesto beemailed,faxedorpostedtoyou. TheseagenciesmayuseABRinformationfor purposesauthorisedbytheirlegislationorforcarrying outtheirotherfunctions.Examplesofpossibleuses includeregistration,reporting,compliance,validation andupdatingofdatabases.

Who can we give your tax information to? Wecangiveyourtaxinformationtosomegovernment agenciesandnon-governmentorganisationsspecified inthetaxationandsuperannuationlaws,forexample: nbenefitpaymentagenciessuchasCentrelink, theDepartmentofEducation,Employmentand WorkplaceRelations,andtheDepartmentofFamilies, Housing,CommunityServicesandIndigenousAffairs nlawenforcementagenciessuchasstateand federalpolice notheragenciessuchastheChildSupportAgency (CSA)andtheAustralianBureauofStatistics nsuperannuationfunds.
Thisdisclosureisusuallytocheckeligibilityfor governmentbenefits,forlawenforcementpurposes, forcollectingstatisticsorforthepurposeofreuniting lostmemberswiththeirsuperannuationaccounts. TheCSAmayusetheinformationyougiveusto assessorcollectchildsupport.Ifyoureceivearefund chequewithyournoticeofassessment,wealso providedetailsofyourrefundtotheReserveBankof Australiatoassistinclearingyourcheque.Information youprovideonyourtaxreturnmayalsobeusedto updatetheAustralianBusinessRegister(ABR). Wecanalsodiscloseyourinformationinperforming ourdutiesunderthetaxlaw.Otherwisewecanonly giveyourinformationtoyouorsomeoneappointed toactforyou.

How do we protect your tax information? Thetaxlawscontainsecrecyprovisionsthatprohibit anyofficeroftheATO(includingemployeesand contractors)oranyothergovernmentagencyfrom improperlyaccessingordisclosinganyinformation youprovideonyourtaxreturn.Theseprovisionsonly allowofficerstodiscloseyourtaxinformationinthe performanceoftheirdutiesandincertainother specifiedcircumstances.
Inaddition,thePrivacy Act 1988protectspersonal informationheldbyfederalgovernmentagencies. ItalsoprotectsTFNs,nomatterwhoholdsthem.

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More information
PUbLICATIONS
To get publications, taxation rulings, practice statements and forms referred to in TaxPack 2011 you can: n go to our website www.ato.gov.au/publications n phone our Publications Distribution Service 1300 720 092 Before you phone, check whether there are other publications you might need.This will save you time and help us. For each publication you order, quote the full title printed in TaxPack 2011. An automated self-help publications ordering service is available 24 hours a day, every day where you know the title of the publication. Alternatively, you can speak to an operator between 8.00am and 6.00pm Monday to Friday. n visit an ATO shopfront. For our shopfront addresses go to our website. Phone 13 28 61 for an appointment.
n n

n n

student loan schemes (HELP and SFSS) capital gains, rental income, foreign income and other questions in TaxPack 2011 supplement notice of assessment your income tax account, such as personal details, payment arrangements and lost refund cheques, lodgment and queries about questions in TaxPack 2011 binding oral advice. 13 28 66 1800 199 010 1800 060 063

business Complaints Fax (FREECALL)

EFT 1800 802 308 For enquiries about direct deposit of your tax refund Family Assistance Office (FAO) Superannuation 13 61 50 13 10 20

WEbSITE
Go to our website at www.ato.gov.au for information on anything that you read in TaxPack 2011. You can use the tools and calculators on the website to help you complete your tax return.

Aboriginal and Torres Strait Islander 13 10 30 Specialises in helping Indigenous clients with their personal tax matters ATO personal self-help 13 28 65 Our automated phone service is available 24 hours a day, every day, so you can: n check the progress of your refund n find lost superannuation n make an arrangement to pay a tax debt n lodge your application for a refund of franking credits n lodge your application for a baby bonus n lodge your application for the education tax refund. Note: Although providing your TFN is voluntary, you need to quote your TFN to use these self-help services (except publications ordering). People with a hearing, speech or vision impairment If you are deaf or have a hearing or speech impairment, you can phone us through the National Relay Service on the numbers listed below, and ask for the ATO number you need: n TTY users, phone 13 36 77. For ATO 1800 free call numbers, phone 1800 555 677. n Speak and Listen (speech to speech relay) users, phone 1300 555 727 and ask for the ATO number you need. For ATO 1800 free call numbers, phone 1800 555 727. n Internet relay users, connect to the NRS at www.relayservice.com.au For information about TaxPack 2011 in accessible formats for the vision impaired, go to the outside back cover. To report tax evasion confidentially Phone (FREECALL) Fax (FREECALL) Go to our website Mail 1800 060 062 1800 804 544 www.ato.gov.au/reportevasion

PHONE
If you have an enquiry about your tax, phone the relevant phone line below. Make sure you have TaxPack 2011 handy when you phone us. We can offer a more personalised service if you provide your tax file number (TFN) and have your last notice of assessment with you when you phone us. If you require access to your ATO records you will be asked to prove your identity by providing your TFN and either details from your last notice of assessment or some personal details. Our phone lines are open Monday to Friday 8.00am to 6.00pm except where otherwise indicated. Our automated services are available 24 hours a day, every day of the year. You can find a list of our phone lines in your White Pages. Phoning from overseas If you are phoning us from overseas, phone +61 2 6216 1111 during our business hours, 8.30am to 4.45pm (Australian Eastern Standard or daylight-saving time) Monday to Friday. Note that our phone numbers may not work from all countries. You can also fax us: +61 2 6216 2830 Individual 13 28 61 Phone between 8.00am and 6.00pm Monday to Friday. You can enquire about the following subjects from this service: n e-tax our free online tax preparation and lodgment software n pay as you go (PAYG), including instalment activity statements

Locked Bag 6050, Dandenong VIC 3175

If you do not speak English well and need help from the ATO, phone the Translating and Interpreting Service (TIS) on 13 14 50. TIS staff can assist with interpreting in over 170 languages.

Tax Help
If you want to complete your own tax return or your claim for a refund of franking credits but think you may need some assistance, then Tax Help may be the answer. We train and support this network of community volunteers to help taxpayers.

AT O (T IS : T rans lating and I nterpreting Ser vice)

Burmese

Assyrian

. 13 14 50

Tax Help is a free and confidential service for people on low incomes. To find out where your nearest Tax Help centre is, phone 13 28 61.

TaxPack in accessible formats for the vision impaired

Hindi ATO , ( TIS: Translating and Interpreting Service ) 13 14 50 . Indonesian Jika bahasa Inggris Anda kurang baik, dan membutuhkan bantuan dari ATO (Kantor Pajak Australia), teleponlah Layanan Penerjemahan dan Juru Bahasa (TIS: Translating and Interpreting Service) di 13 14 50.

TaxCD
Audio summaries of TaxPack 2011 and TaxPack 2011 supplement on CD.

TaxDisk
TaxPack 2011 and TaxPack 2011 supplement on disk formatted for computers with screen reader and speech synthesiser software.

TaxDAISY
A disk containing TaxPack 2011 and TaxPack 2011 supplement in audio format for use in a DAISY player. DAISY stands for Digital Accessible Information System and is a digital talking book that may contain sound and text. DAISY books can be read on a portable digital playback device or on a computer with DAISY software. All these are available free from the ATO phone 13 28 61.

E-tax 2011
Somali Haddii aadan si ican ugu hadlin Ingiriiska aadna caawimo uga baahan tahay ATO, wac Adeega Tarjumida Qoraalka iyo Afcelinta (TIS: Translating and Interpreting Service) telefoon 13 14 50.

Prepare your tax return on a computer, using screen reader software, and lodge online. You will need the internet and screen reader or screen magnification software. We recommend that you use a Microsoft operating system. Download e-tax from the ATO website at www.ato.gov.au