What is Working Holiday Maker Net Income?

• Income your received from 1 January 2017 to 30 June 2017 while you were on a 417 or 462 working holiday visa less any deductions at D1 to D10 that relate to earning your working holiday maker income.
• In most cases, the Pay As You Go (PAYG) summary provided by your employer will show the payment type H to indicate that you earned working holiday maker income.
• If your payment summary does not show the payment type H but you earned the income at any time from 1 January 2017 to 30 June 2017 (while you were on a 417 or 462 visa), then that income still forms part of your working holiday maker income.

This section does not include any income or deductions earned between 1 July and 31 December 2016. However, income and deductions from this period should still be included at Item 1 (income) and the relevant deduction section of the return.

How do I complete it?

Your working holiday maker net income can be calculated in two simple steps:

1. Add up all the income that you have earned from 1 January 2017 to 30 June 2017 while you were on a 417 or 462 working holiday visa.
2. Subtract any deductions at D1 to D10 that relate to earning your working holiday maker income.

The result is your working holiday maker net income.

If this amount is less than zero, your working holiday maker net income is $0.

Do I claim the super co-contribution?

You do, if:

• you made an eligible personal super contribution (for which you are not claiming a deduction) to a complying super fund or retirement savings account
• you were under 71 years old on 30 June 2016
• your taxable income for 2016-17 was less than $50,454.

What do I need?

• The amount of superannuation contribution you made.
• Information about income from investments, partnerships and other sources.

Do I claim the part year threshold?

Complete this section if you:

• Became an Australian resident during the 2017 financial year; or,
• Ceased being an Australian resident during the 2017 financial year.
• The tax-free threshold for the full year is $18,200. If you became an Australian resident, or stopped being an Australian resident, part way through the financial year – then you are not eligible for the full $18,200 tax-free threshold. We need to adjust the amount that you are eligible for on your tax return.
• If you are not an Australian resident for tax purposes, then you should not complete this section because you are not eligible for the tax-free threshold.

What do I need?

• The date you became an Australian resident. For example, the date you came to Australia on a sponsored business visa
• The date you ceased being an Australian resident. For example, the date you left to go overseas for a couple of years

How do I complete this section?

• Enter the date you entered or exited Australia.
• The number of months you should list is the number of months you were in Australia from 1 July 2015 to 30 June 2016. If you arrived on 10 July 2015 and left on 1 February 2016, that would count as 7 months. You include your start and finish months (even though you weren’t here the whole month).

Do I complete this section?

If you were under 18 years old on 30 June 2017, you must complete this item or you may be taxed at a higher rate than necessary.

It must be noted:

If you don’t complete this section and you are under 18 on 30 June 2017, then it is likely you will be taxed at a very high, unnecessary rate.

Did you work full time and did not study full time?

If you are under 18 on 30 June 2017, AND you answer yes to one of these items below,

• You are working full time and are intending to work full time for most or all of 2016-17.
• You were entitled to a disability support pension or someone was entitled to a carer allowance to care for you.
• You were permanently blind or disabled.
• then you should write 0 at  A1.

Did you work part-time and study full time?

If you are under 18 on 30 June 2018 AND you earned any of the following income whilst studying full-time, you must list your taxable income amount at  A1:

• employment income
• taxable pensions or payments from Centrelink or the Department of Veterans’ Affairs
• a compensation, superannuation or pension fund benefit
• income from a deceased person’s estate
• income from your own business

Do I complete this section?

You will need to fill in this section if you had a spouse during the year.

The ATO states that a spouse is someone that is either married to you or lives with you under de-facto terms. i.e. living together under a genuine domestic basis

You will require the following information:

Your spouse’s full name

Your spouse’s date of birth

Your spouse’s taxable income

What if we haven’t been together for the full year?

If you only had a spouse part-year, please include a start and end date

I don’t know my spouse’s income?

It is understandable that this information can be confidential, the ATO accepts a reasonable estimates

DO I complete this section?

You should complete this section if you meet either of the following conditions if you are in an exemption category such as:

Free medical with the Defence Force

On a visa and not eligible for Medicare Levy and you have received an exemption certificate

Please note: Most taxpayers are required to pay the Medicare Levy. This is different to the Medicare levy surcharge which is not payable if you have private hospital cover or your income is less than $90,000 for singles and $180,000 for families. (This item is covered at Item M2).

How to complete this section if you are in an exemption category

1. Enter the number of dependants you had during the tax year at field Y (enter 0 if you have no dependants).
2. Enter the number of days you were fully exempt at field V (enter 0 if not applicable).
3. If applicable, enter the full level exemption action code.
4. Enter the number of days you were half exempt at field W (enter 0 if not applicable).

Finally, attach a copy of your Medicare Levy Exemption Certificate if you have one.

If you are not sure if you are eligible for this section or the figures to enter, please ask us by calling us on 0473 503 704.

Do I complete this section?

It is mandatory to complete this section if you had a private health insurance policy for any or all of the financial year.

You will find the information you need to enter into the tax return in the Annual Tax Statement from your Private Health Cover Provider(s). The essential elements to input are:

The membership or policy number

The private insurance health fund name

The premiums paid in the financial year

The Australian government Rebate received

The tax claim benefit code

Note: only enter the amounts that relate to yourself.

You only need to complete the spouse’s policy details IF you will use their rebate including your own.

Please get in touch if you need assistance.

Do I complete this offset?

You need to complete this section if you are entitled to a tax offset for:

• A Conservation tillage refundable tax offset for an eligible no-till seeder; or
• If you are a principal beneficiary of a Special disability trust that is entitled to a tax offset or tax paid by the trustee.
• If you are not sure if you are eligible for this tax offset, please ask us!

Do I claim this offset?

• You need to complete this section if you are entitled to a tax offset for:
• Interest from the infrastructure borrowings scheme; or
• You performed work or services in the Joint Petroleum Development Area (JPDA) of the Timor Sea.

Do I claim this offset?

You need to complete this section if you incurred expenses in taking care of your:

• Spouse
• Child, brother or sister aged 16 years or older
• Spouse’s child, brother or sister aged 16 years or older
• Parent
• Spouse’s parent

And

• They are an invalid or carer.
• The dependant must also be an Australian resident for tax purposes in order to make a claim.
• Your Adjusted Taxable Income must not be more than $100,000 to be eligible to claim this offset.

What do I need?

Details of each dependant’s adjusted taxable income. From this you can calculate tax offsets for each dependant and you will need to state the total amount at this Item on your tax return.

• If you advise us of these details, we can work out your tax offset.

Do I claim this offset?

You need to complete this section if:

• Your medical expenses only relate to disability aids, attendant care or aged care.

Please note: In 2016 the net medical expenses offset has been phased out for all other taxpayers. Even if you claimed this offset in 2015, you cannot claim it in 2016 unless the expense is for disability, attendant car or aged care.

Who can I claim medical expenses for?

The medical expenses must be for:

• You,
• Your spouse,
• Your children who were under 21 years old, or
• Your children who is a student under 25 years old

What you will need to complete this section

• Details of the medical expenses you want to claim.
• Details of any refunds received from both Medicare and your Private Health Insurer.

Do I complete this section?

You need to complete this section if you made contributions to a complying superannuation fund or a retirement savings account (RSA) on behalf of your ‘non-working’ or ‘low income-earning’ spouse – married or de facto.

You will be eligible for a tax offset of up to $540 if:

• The contributions were not deductible to you AND
• Both you and your spouse were Australian residents when the contributions were made AND
• At the time of making the contributions, you and your spouse were not living separately and apart on a permanent basis AND
• The sum of your spouse’s assessable income and total reportable fringe benefits was less than $13,800.

What you will need to complete this section

• Your spouse’s assessable income, reportable fringe benefits amounts and reportable employer superannuation contributions
• The amount of contributions you have made for your spouse if you advise us of these details, we can work out your tax offset.

Take Note:

• This tax offset cannot be claimed for superannuation contributions that you made to your own fund then split to your spouse.
• If you are claiming this offset you need to make sure you complete the section for “Spouse details – married or de facto”.

Tax Losses Of Earlier Income Years Claimed This Income Year

Who should complete this section?

• You need to complete this section if you had:
• any un-deducted tax losses of earlier income years. or
• any unclaimed foreign income losses (please note there are special rules around this).
• Please talk to your Pop - Tax Accountant if you are uncertain whether your un-deducted or unclaimed loss falls into either of the two categories above.

What you will need to complete this section

You will need:

• Records of your tax losses of earlier income years, separated into primary and non-primary production.
• Records of your foreign losses of earlier income years.

Take Note:

• You must complete this question whether or not you are able to claim the losses against taxable income this year.
• Do not show capital losses at this question – see Item 18.
• Your tax losses of earlier income years can only reduce your source income to zero. If your tax losses of earlier income years are more than your source income you will need to keep a record of the losses to claim next year.
• Do not claim non-commercial losses here.

Do I need to complete this section?

The most common item that goes here is your salary and wages income earned using your TFN paid by your employer. Your employer is required to provide an annual payment summary which includes the amounts to report.

Items that may go at this section:

• commissions
• bonuses
• income from part-time or casual work
• parental leave pay
• dad-and-partner pay
• amounts for lost salary or wages paid under
  • an income protection policy
  • a sickness or accident insurance policy
  • a workers compensation scheme

Do I need to complete this section?

This question is about payments of income from working.

These include:

• allowances (on your annual payment summary/group certificate)
• payments from which tax was not withheld, including
  • salary, wages, commissions, bonuses
  • income earned from part-time and casual jobs
  • income from income protection, sickness and accident insurance policies
• tips, gratuities and payments for your services
• consultation fees
• payments for voluntary services (honoraria).

Allowances include:

• car, travel and transport allowances, and reimbursements of car expenses (calculated by reference to the distance travelled by the car, such as 'cents-per-kilometre' allowances)
• award transport payments (paid under an industrial law or award that was in force on 29 October 1986)
• tool, clothing and laundry allowances
• dirt, height, site, first aid and risk allowances
• meal and entertainment allowances.

Do I need to complete this section?

If you received a lump sum payment please record it at this section.

You will need your PAYG payment summary – individual non-business, PAYG payment summary - foreign employment or a comparable statement from your payer showing an amount at 'Lump sum A' or 'Lump sum B' where relevant.

Do I complete this section?

This question is about employment termination payments (ETPs), which you received as a result of the termination of your employment.

These payments are shown on a PAYG payment summary – employment termination payment (NAT 70868).

This item also includes:

• death benefit ETPs; these are certain payments made as a consequence of the cessation of a person's employment that you received due to that person's death
• foreign ETPs; these are certain ETPs received from overseas employment which were exempt from income tax under that country's law
• late termination payments; these are certain ETPs you received more than 12 months after you retired or ceased employment.

Do I need to complte this section?

This question is about the following Australian Government payments:

• Newstart allowance
• youth allowance
• Austudy payment
• parenting payment (partnered)
• partner allowance
• sickness allowance
• special benefit
• widow allowance
• farm household allowance
• an education payment of any of the following when you were 16 years old or older
  • ABSTUDY living allowance
  • payment under the Veterans' Children Education Scheme
  • payment under the Military Rehabilitation and Compensation Act Education and Training Scheme 2004, shown as 'MRCA Education Allowance' on your PAYG payment summary – individual non-business
• other taxable Commonwealth education or training payments shown on your payment summary
• an income support component from a Community Development Employment Project (CDEP) shown as 'Community Development Employment Projects (CDEP) payments' on your PAYG payment summary – individual non-business
• a CDEP scheme participant supplement
• disaster recovery allowance
• disaster income support allowance for special category visa (subclass 444) holders.

You will need:

• your PAYG payment summary – individual non-business, or
• a letter from the agency that paid your allowance or payment stating the amount you received.

If you have not received this information or you have lost it, contact the agency that paid you.

Do I need to complete this section?

This question is about the following Australian Government payments:

• age pension
• bereavement allowance
• carer payment
• disability support pension, if you have reached age-pension age
• education entry payment
• parenting payment (single)
• widow B pension
• wife pension, if either you or your partner was of age-pension age
• age service pension
• income support supplement
• Defence Force income support allowance (DFISA) where the pension, payment or allowance to which it relates is taxable
• DFISA-like payment from the Department of Veterans' Affairs (DVA)
• Veteran payment
• invalidity service pension, if you have reached age-pension age
• partner service pension.

You will need:

• your PAYG payment summary – individual non-business, or
• a letter from the agency that paid your pension, allowance or payment stating the amount that you received.

If you have not received this information, or you have lost it, contact the agency that paid you.

Do I complete this section?

This question is about income you received from annuities and superannuation income streams.

Australian annuities (also called non-superannuation annuities) are paid to you by Australian life insurance companies and friendly societies. These payments are shown on your PAYG payment summary – individual non-business.

Australian superannuation income streams (including lump sum in arrears amounts) are paid to you by Australian superannuation funds, retirement savings account (RSA) providers and or life insurance companies. These payments are shown on your PAYG payment summary – superannuation income stream and may include:

• account based income streams
• capped defined benefit income streams that are
  • lifetime pensions, regardless of when they started
  • lifetime annuities that existed prior to 1 July 2017
  • life expectancy pensions and annuities that existed prior to 1 July 2017
  • market-linked pensions and annuities that existed prior to 1 July 2017.

Answering this question

This question is divided into four parts. The amount to be included in your income tax return is dependent on the type of superannuation income stream you receive.

The following outlines the parts that you will need to complete based on the superannuation income stream received. Where you received multiple superannuation income streams, you may be required to complete some or all of the parts:

Complete parts A and B if you received:

• A superannuation income stream (including death benefit income streams) – for example an account based pension and not a capped defined benefit income stream that is covered below
• an Australian annuity.

Complete parts A and B if all of the following apply:

• you received a capped defined benefit income stream
• • you were aged 59 years or younger for all of 2017–18 (including if you have a death benefit income stream(s) where the deceased was also aged 59 or younger at the time of death).

Complete parts A and C if all of the following apply:

• you received a capped defined benefit income stream
• you were aged 60 years old or older for all of 2017–18
• you were in receipt of your income stream for all of 2017–18.

Complete parts A and D if you received a capped defined benefit income stream, and at least one of the following apply:

• you turned 60 years old during 2017–18
• you were 60 years old or older for all of 2017–18 and started an income stream for the first time during the year
• you were 59 years or younger and have a death benefit income stream where the deceased died at age 60 or older. This will be indicated on your payment summary as Death benefit (Reversionary income stream).

Completing your tax return

You will need:

• for annuities
  • all your PAYG payment summary – individual non-business which show the amount of your annuity and its undeducted purchase price (UPP)
• for superannuation income streams
  • all your PAYG payment summary – superannuation income stream.

Do I complete this section?

This question is about Australian superannuation lump sum payments or superannuation death benefit payments you received, including those paid by

• Superannuation funds
• approved deposit funds
• Retirement savings account providers (RSAs)
• life insurance companies

It is also about any:

• amounts we paid to you in respect of the superannuation guarantee charge or the superannuation holding accounts special account
• payments you received from the unclaimed money registers.

Answering this question

You will need your PAYG payment summary – superannuation lump sum.

If you have not received it, have lost it or think the details (such as the dependency status) on it are wrong, contact your payer. If you still cannot obtain it or cannot agree on the details, see PAYG payment summary – individual non-business.

Do I need to complete this section?

You must complete this item if you provided personal services and you:

• received a PAYG payment summary – business and personal services incomeshowing an X against 'Personal services attributed income', or
• had personal services income attributed to you.

If you provided personal services and payment was made to you as a sole trader, do not complete this item. You must answer question 14 Personal services income (PSI) 2018and complete item P1 Personal services income in the Business and professional items schedule for individuals 2018. If this applies to you, then you cannot lodge a paper tax return.

Personal services income is income that is mainly a reward for your personal efforts or skills and is generally paid either to you or to a personal services entity (a company, partnership or trust). If your personal services income is paid to a personal services entity, the income (less certain deductions relating to gaining or producing that income) is attributed to you unless:

• the personal services entity gained the income in the course of conducting a personal services business, or
• the income was promptly paid to you by the entity as salary.

Answering this question

You will need:

• your PAYG payment summary – business and personal services income showing the amount of personal services income attributed to you and the total amount of tax paid or withheld
• details of any other personal services income attributed to you.

What do I report here?

You will need to report any bank account interest earned during the year. You can log into your online banking or review your annual bank statement to get the interest earned.

You would also include any interest paid from the ATO, or any interest paid to a child’s account that you controlled.

Do I need to complete this section?

This question is about dividends and distributions that were paid or credited to you by Australian companies that you had shares in. You should receive dividend statements from the companies you hold an interest in.

These include:

• dividends applied under a dividend reinvestment plan
• dividends that were dealt with on your behalf
• bonus shares that qualify as dividends.

Dividends include:

• distributions by a corporate limited partnership
• dividends paid by a corporate unit trust
• dividends paid by a public trading trust
• dividends paid by a listed investment company.

The following may also be included as dividends:

• earnings you received, or were credited with, on a non-share equity interest
• amounts you received from, or were credited by, a private company as a shareholder or an associate of a shareholder in the form of payments, loans or debts forgiven (these are generally unfranked dividends)
• amounts you received from, or were credited by, the trustee of a trust estate in the form of payments, loans or debts forgiven where a private company in which you were a shareholder, or an associate of a shareholder, had an unpaid present entitlement (or was going to have such an entitlement by a certain time) from the trust (these are generally unfranked dividends).

Do not include dividends paid under a demerger unless the company advised you to include them. Your dividend statements will show the amounts and should show the payment dates.

Answering this question

You will need your statements from each Australian company, corporate limited partnership, corporate unit trust, public trading trust and listed investment company that paid you dividends or made distributions to you from 1 July 2017 to 30 June 2018 inclusive.

Statements may show:

• amounts of franked and unfranked dividends
• amounts of franking credits
• tax file number (TFN) amounts withheld from unfranked dividends.

Franking credits are amounts of tax paid by the company that are allocated to your dividend or distribution. You include as assessable income both:

• the amount of your dividend or distribution, and
• the amount of the franking credits allocated to you.

Do I need to complete this section?

This question is about discounts on 'employee share scheme interests' (ESS interests) that you or your associate received under an employee share scheme. ESS interests are:

• shares
• stapled securities (provided at least one of the stapled interests is a share in a company)
• rights to acquire shares and stapled securities.

An ESS interest acquired by your associate in respect of your employment is treated as though the ESS interest was acquired by you.

The discount is the difference between the market value of the ESS interests and the amount paid to acquire them.

The ESS interests can be:

• from an Australian company or a foreign company
• related to your employment inside or outside Australia
• related to a work relationship other than employment, for example sub-contracting.

You will be taxed on the discount in the year in which you acquired the interest. Such schemes are known as 'taxed-upfront schemes'. However, if you and the scheme meet certain conditions the taxing point is deferred until a later time. These tax-deferred schemes are known as 'deferral schemes'.

Do I need to complete this section?

Did you receive or were you entitled to:

• income or a loss from a partnership
• income from a trust (including a managed fund)
• a credit for amounts of tax paid on, or amounts withheld from, partnership or trust income, or
• a share of the 'national rental affordability scheme' tax offset?

If so, please report at this item.

What you may need

• a statement of distribution or advice from the partnership or trustee showing the following details in relation to your share of partnership distribution or share of trust net income for tax purposes
  • the amount of any primary production income or loss and the amount of any non-primary production income or loss
  • the amount of net small business income from a small business entity trust or partnership
  • the amount of any franked distribution from a trust
  • the amount of attributed foreign income and other foreign source income
  • the amount of any income on which family trust distribution tax or trustee beneficiary non-disclosure tax has been paid
  • that you are a chosen beneficiary if you are the beneficiary of a discretionary primary production trust that has made a loss
  • your entitlement to any of the following credits or tax offsets
    • credit for amounts of tax withheld because the partnership or trust failed to quote its Australian business number
    • credit for amounts of tax withheld by the trustee of a closely held trust because you did not provide your TFN
    • credit for amounts of tax withheld due to the imposition of non-resident withholding tax or managed investment trust withholding tax from partnership or trust income you received when you were a resident
    • share of the 'national rental affordability scheme' tax offset
    • allowable franking credits from franked dividends
    • credit for tax file number amounts withheld
    • credit for tax paid by the trustee.

Do I need to complete this section?

Did you receive income for personal services you provided as a sole trader?

Personal services income is income that is mainly a reward for an individual's personal efforts or skills.

Your personal services income can include:

• personal services income under a pay as you go (PAYG) voluntary agreement
• personal services income from which an amount was withheld because you did not quote your Australian business number (ABN)
• personal services income from
  • working under a labour hire arrangement as an independent contractor
  • payments (called specified payments) for
  • tutorial services you provided for the Indigenous Student Success Programme (formerly known as the Indigenous Tutorial Assistance Scheme) of the Department of the Prime Minister and Cabinet
  • translation and interpretation services you provided for the Translating and Interpreting Service National of the Department of Immigration and Border Protection
  • performing as a performing artist in a promotional activity.

Examples of personal services income are:

• income of a professional practitioner in a sole practice
• income payable under a contract which is wholly or principally for the labour or services of a person
• income derived by a professional sportsperson or entertainer from the exercise of professional skills
• income derived by consultants from the exercise of personal expertise.

Complete business income section and report the PSI there. This will flow into this item.

Do I need to complete this section?

If you complete the business income section, please report the NET Income or Loss form your business(es) at this item. The total amount reported here needs to equal the Profit or Loss at the business income section.

Do I need to complete this section?

Did you:

• conduct a business activity as a partner in a partnership that resulted in a loss or resulted in a loss after deducting your expenses, or
• conduct a business activity as a sole trader that resulted in a loss?
• AND; you did not pass one of the four commericiality business tests?

If so, please fill in this section.

This amount must be included in the business income schedule and must equal the Activity Loss for which is non-commercial.

Do I need to complete this section?

This question is for primary producers only.

Did you make farm management deposits (FMD) or have repayments during 2017–18?

Definitions

• An FMD provider is an institution that accepts farm management deposits.
• An FMD owner is a person who makes an eligible farm management deposit.

If you received a distribution of income as a beneficiary of a trust that carried on a business of primary production, you are considered to be carrying on a business of primary production and therefore eligible for the farm management deposit tax concessions.

If you are the beneficiary of a primary production trust that made a loss, you are considered to be in a business of primary production, and therefore eligible for the farm management deposit tax concessions, if:

• the trustee of the primary production trust nominated you as a chosen beneficiary, or
• you are the beneficiary of a fixed trust.

Answering this question

What you may need

• Your account statement from your FMD provider
• Information for primary producers 2018
• Farm management deposits scheme

Do I need to complete this section?

You may have made a capital gain, or capital loss, if a capital gains tax (CGT) event happened in 2017–18. For most CGT events, you make:

• a capital gain if the amount of money and property you received, or were entitled to receive, from the CGT event was more than the cost base of your asset; you may then have to pay tax on your capital gain
• a capital loss if the amount of money and property you received, or were entitled to receive, from the CGT event was less than the reduced cost base of your asset.

Did you have a capital gains tax event in 2017–18?

There is a wide range of CGT events. The most common CGT event happens when you sell or give away a CGT asset, assets such as:

• real estate, including your family home, a holiday home, investment property, hobby farm or vacant block of land
• shares
• units in a unit trust or managed investment fund
• forestry managed investment scheme interests (as a subsequent participant)
• cryptocurrency
• collectables, for example, jewellery
• personal use assets.

Other CGT events occur. Examples are:

• an asset you owned was lost or destroyed
• you received an amount for entering into an agreement, for example, you agreed not to work in a particular industry for a set period of time
• you entered into a conservation covenant over land that you owned
• you received a non-assessable payment from a trust or company.

You may also have made a capital gain if:

• you were a beneficiary of, or had money invested in, a trust (including a managed investment fund), and
• the trust made a capital gain.

You cannot deduct a capital loss from your income, but in most cases it can be used to reduce any capital gain you made in 2017–18.

You may disregard some capital gains and capital losses. Generally speaking, you disregard a capital gain or capital loss on:

• assets you acquired before 20 September 1985
• cars, motorcycles and similar vehicles
• compensation you received for personal injury
• disposal of your main residence
• collectables, for example an antique or jewellery, which you acquired for $500 or less
• the exchange of shares or units you owned in a company or trust under a takeover, if certain conditions were met
• shares in a company or interests in a trust where there had been a demerger and certain conditions had been met
• disposal of an asset to which the small business 15-year exemption applies
• disposal of certain investments by
  • a venture capital limited partnership
  • an early stage venture capital limited partnership
  • an Australian venture capital fund of funds
• disposal of shares in a pooled development fund
• personal use assets, such as boats, furniture, electrical goods and household items used or kept mainly for personal use or enjoyment. If you acquired it
  • for more than $10,000, you disregard only capital losses
  • for $10,000 or less, you disregard both capital gains and capital losses.

Answering this question

Please ensure you have the purchase document and sale documents to calculate the capital gain or loss. Some expenses may be added or subtracted form the cost base so please ask a POP specialist if you are unsure.

Do I need to complete this section?

Are you an Australian resident for tax purposes who:

• had either a direct or an indirect interest in a controlled foreign company (CFC), or
• at any time, directly or indirectly transferred or caused the transfer of property (including money) or services to a non-resident trust?

If Yes, you will need to complete this section.

What you need

Foreign income return form guide 2018

If you are a temporary resident you will not need to show your foreign investment income at this item. See Tax-free income for temporary residents in Amounts that you do not pay tax on 2018 for the definition of a temporary resident and details of the exemption.

Part A

The controlled foreign company (CFC) measures may apply to income and gains of foreign companies in which you had a direct or indirect controlling interest, or which you effectively controlled. For more information read chapter 1 of the Foreign income return form guide 2018.

Part B

Completing this part

The transferor trust measures may apply if, at any time, you directly or indirectly transferred or caused the transfer of property (including money) or services to a non-resident trust. A trust is a non-resident trust if no trustee of the trust estate was an Australian resident, and the trust estate's central management and control was not in Australia, at any time during the income year. For more information read chapter 2 in the Foreign income return form guide 2018.

Check that you have...

• written on your tax return your attributed foreign income from all CFCs
• written on your tax return your attributed foreign income from transferor trusts
• attached to page 3 of your tax return your Schedule of additional information - Item 19, if you need to send us one.

Do I need to complete this section?

Complete this section if you received one of the following:

• receive income from foreign employment
• receive a foreign pension or annuity
• receive a lump sum payment from a foreign superannuation fund
• transfer money from a foreign superannuation fund to an Australian superannuation fund
• receive any other foreign source income including interest, dividends, royalties, rent, business income or a share of income from a partnership or trust
• at any time during 2017–18, own or have an interest in assets located outside Australia that had a total value of A$50,000 or more?

What you may need

• Foreign tax assessments, PAYG payment summary – foreign employment
• Distribution advices from companies, partnerships and trusts
• Details of any expenses you incurred in earning your foreign income
• You and your shares 2018 (NAT 2632)
• Guide to foreign income tax offset rules 2018
• Taxation Determination TD 2012/8 Income tax: what types of temporary absences from foreign service form part of a continuous period of foreign service under section 23AG of the Income Tax Assessment Act 1936?
• If you received income for work or services performed in the Joint Petroleum Development Area (JPDA), you may need a JPDA fact sheet to work out how to deal with your JPDA income at this item.

Completing your tax return

PAYG payment summary – foreign employment

If you have foreign employment income shown on a PAYG payment summary – foreign employment, read on. Otherwise go to part A.

Make sure you have included on your tax return the income shown on your PAYG payment summary – foreign employment. These amounts should be included at items 1, 3 or 24.

If you are an Australian Government agency employee (and not a member of a disciplined force), you now pay tax on income earned from delivering Australian official development assistance (ODA). Members of a disciplined force delivering ODA are still eligible for exemption. For more information, see Exempt foreign employment income

Do I need to complete this section?

Did you earn rental income or was your property available for rent? If yes, complete this section.

Rental income

This is the full amount of money you earn when you rent out your property (including if you are renting out a room through the sharing economy). You must include any bond money retained in place of rent or kept because of damage to the property requiring repairs. An insurance payout for lost rent or a reimbursement of any rental expenses you claim in 2017–18 or claimed in an earlier year must also be included as income.

Rental expenses

You can claim most expenses relating to your rental property but only for the period your property was rented or available for rent, for example, advertised for rent.

Expenses could include advertising for tenants, bank charges, body corporate fees, borrowing expenses, council rates, decline in value of depreciating assets, gardening and lawn mowing, insurance, land tax, pest control, property agent fees or commissions, repairs and maintenance, stationery, phone and water charges.

If part of your property is used to earn rent, you can claim expenses relating to only that part of the property. You will need to work out a reasonable basis to apportion the claim. You can however, claim 100% of any fees or commissions charged by a sharing economy facilitator or administrator.

You will need your annual management statement form the real estate and any expenses not included on that statement. These may include council rates, water rates, bank interest, depreciation.

Your rental income is taxed at marginal rates, and any rental loss can be used to offset your ordinary income including salary and wages.

Do I need to complete this section?

Did you receive a bonus because your life insurance policy or friendly society insurance bond matured, or was terminated, forfeited, or surrendered in full or in part? If yes, you may need to complete this income source.

What you may need

• Your life insurance policy and bonus advice
• Your friendly society policy and bonus advice

Completing this item

Write at W item 22 on page 15 of your tax return:

• the whole bonus amount you received in 2017–18 if you received it during the first eight years of the policy
• two-thirds of the bonus amount you received in 2017–18 if you received it during the ninth year of the policy, or
• one-third of the bonus amount you received in 2017–18 if you received it during the 10th year of the policy.

Do I need to complete this section?

Did you receive income from a forestry managed investment scheme (FMIS)?

You need to know

A forestry interest in an FMIS is a right to benefits produced by the scheme (whether the right is actual, prospective or contingent and whether it is enforceable or not).

You are an initial participant in an FMIS if you meet the following conditions:

• you obtained your forestry interest in the FMIS from the forestry manager of the scheme
• your payment to obtain the forestry interest in an FMIS results in the establishment of trees.

You are a subsequent participant if you are not an initial participant.

A forestry manager of an FMIS is the entity that manages, arranges or promotes the FMIS.

Completing this item

Show at A item 23 the total income from forestry interests you held in an FMIS from the following activities.

Initial participants

• Thinning receipts
• Sale and harvest receipts: forestry interest you still held

Subsequent participants

• Thinning receipts
• Sale and harvest receipts: forestry interest you still held

If unsure about this section, please contact a POP specialist to assist.

Do I need to complete this section?

Did you receive any other income?

Other income includes:

• an amount released by one or more of your superannuation funds greater than the liability stated on a release authority
• lump sum payments in arrears; do not include lump sum payments in arrears relating to superannuation income streams, show them at item 7
• Business Services Wage Assessment Tool (BSWAT) lump sum payment in arrears
• jury attendance fees
• foreign exchange gains
• royalties
• bonus amounts distributed from friendly society income bonds
• taxable scholarships, bursaries, grants or other educational awards
• benefits or prizes from investment-related lotteries and some game-show winnings
• income from activities as a special professional (author of a literary, dramatic, musical or artistic work, inventor, performing artist, production associate or active sportsperson); amounts you have already included at item 1, 2, 13, 14 or 15 may also have to be shown here as you may be entitled to a concessional rate of tax if you have certain amounts of professional income; you will not be taxed twice on these amounts
• reimbursements of tax-related expenses (including amounts imposed by us as an interest charge) or election expenses which you have claimed as a deduction
• any assessable balancing adjustment when you stop holding a depreciating asset (for example, because of its disposal, loss or destruction) for which you have claimed a deduction for depreciation or decline in value in previous years; your car is a depreciating asset
• payments made to you under an income protection, sickness or accident insurance policy where the premiums were deductible and the payments replaced income; do not include payments from which tax has been withheld which you have already shown at item 1, or payments which have been shown on a payment summary which you have already shown at item 2
• interest from infrastructure borrowings if you intend to claim a tax offset at item T10
• gains derived on disposal or redemption of traditional securities that are assessable under section 26BB of the Income Tax Assessment Act 1936
• allowances or payments you received as a member of a local government council that you have not shown at item 1 or 2
• other taxable allowances or payments you received from the Department of Human Services that you have not shown at item 5 or 6 (such as the activity supplement or farm financial assessment supplement that are paid under the farm household allowance program)
• work-in-progress amounts assessable under section 15-50 of the Income Tax Assessment Act 1997 that you received and have not included at item 15 Net income or loss from business.

Can I claim this deduction?

If you have paid for any work-related car expenses as an employee during the financial year and your employer did not reimburse you for those expenses then you should use this section.

The following conditions must be met:

1. You were required to use your car as part of your employment.
2. The travel was work-related, generally, from a work to another work location (see industry specific deductions as this may change per job)

Which method should I used to claim my car expenses?

1. Cents per kilometre method - Use this method if no logbook maintained for 12 consecutive weeks.
2. Logbook method - Use this method if logbook used for 12 consecutive weeks.

The method that usually provides the best refund is “Logbook” method but you must have kept a logbook for 12 weeks and receipts for all your car expenses to use this.

If you have no logbook, then you may still be able to make a claim at this section of your return using the Cents per kilometre method instead up to a maximum 5000km per year.

What types of car expenses can you claim under the logbook method?

These may include (but are not limited to):

• Fuel
• Services
• Tyres
• Registration
• Insurance
• Depreciation (only for logbook method)

What you need to complete this section?

If you’re claiming under the logbook method, you will need to keep a valid logbook for 12 consecutive weeks and receipts for all your car expenses. The logbook is good for 5 years and provides a business % to claim against all your car expenses.

For cents per kilometre method, you would need to show how you calculated the number of kilometres you’re claiming on your return.

What are the rates for cents per kilometre method?

From 2017 on, the ATO has one fixed rate of 66 cents per km for all cars regardless of engine size. This may reduce the amount that you can claim as a deduction so using a logbook may increase your deduction amount.

Example - 20 business KM's driven per week x 48 weeks worked x 66 cents (ATO set rate) = $633.60 D1 Deduction amount.

Can you claim travel from home to work or vice versa?

• You cannot claim travel between your work and your home even if:
• You did minor tasks such as picking up the mail on the way to work
• You had to travel between home and work more than once per day
• You were on call

Generally, the only “home to travel” claims that are allowed are taxpayers who are required to carry heavy or bulky tools in their car each day AND there is no safe area at your place of employment to leave the tools OR you maintained a home office as part of your employment.

Do I claim this Deduction?

If you had any business-related travel costs (other than using your own car) relating to your work as an employee AND your employer did not reimburse you for them, then claim the total amount at this section.

What work-related Travel Expenses can I include?

Meals, accommodation and incidental expenses you incurred while away overnight for work that were not already reimbursed by your employer. Please also report any travel between work locations or genuine work travel expenses which may include:

• Air fares
• Bus or train fares
• Taxi fares
• Bridge and road tolls
• Parking and car hire fees
• Fuel for a vehicle you don’t own
• Running expenses for a motorbike

*If travelling was part business part leisure, only claim the business %. We recommend keeping a travel logbook to justify the business travel.

Can I claim my uniform costs?

Complete this section if you have paid for any of the following expenses relating to your employment during the past financial year:

• Protective Clothing (e.g steel cap boots or high visibility clothing)
• Occupation Specific Clothing
• Compulsory Clothing (must have employer’s logo on it)
• Non-Compulsory Clothing (must have employer’s logo on it)
• You can claim the cost of buying, renting, repairing and cleaning the above clothing.

*Please check your industry specific deductions as they may provide more detail.

What can’t I claim?

If you have a required dress code for work, but it does not meet any of the above five criteria, generally you cannot claim the costs of purchasing your work clothing even if it is “compulsory”.

This is because the clothing is available to the general public and in the ATO’s eyes could be just as easily worn outside of work.

For example, if you work at Just Jeans and you’re required to wear clothing from Just Jeans while on shift, it is not claimable as you could also wear the same clothing outside of work.

This also applies to an office that requires plain business wear at work. Unless the business clothing has an employer’s logo on it, the clothing is not claimable on your tax return.

How do I claim laundry expenses?

You can claim $1 per load of washing that was completed where your work clothes were the only items in that load.

You can claim 50 cents per load of washing where your work clothes were washed with other items of clothing.

You can claim up to $150 on your return in this way.

You need receipts for any dry cleaning, purchases of clothing or protective gear and repairs.

Can I claim self-education expenses?

If your current study is directly related to your current employment, then Yes.

As an example, you can claim a Forklift ticket when you work in a Factory and will be required to drive a forklift.

You can’t claim a Forklift license if you work at a clothing store and are looking to get a job working at a Factory after you get the license.

What education expenses should go here?

• Tuition fees, including fees payable under FEE-HELP (Does not include expenses paid under HECS-HELP)
• Self-education expenses paid with OS-HELP loan
• Textbooks, professional and trade journals
• Stationery, photocopying, computer expenses (decline in value)
• Student services, union fees, amenities fees
• Accommodation and meals, where course requires you to be away from home for one or more nights
• Running expenses (if you have a room set aside for study purposes)
• Allowable travel expenses (claim car expenses if you went straight to your self-education course from work)

I need more detail, what are the requirements?

• Upgrading qualifications for current employment – e.g. Bachelor to Masters qualification
• Improving specific skills or knowledge used in current employment – e.g. course allowing you to operate new machinery.
• Employed as a trainee and you are undertaking a course that forms part of the traineeship – e.g. childcare worker doing a traineeship as part of her course.
• Prove that at the time you were working and studying, the course will increase employment income – e.g. a receptionist getting a pay increase for finishing her diploma.

When and what can’t I claim though?

• There is no sufficient connection between the self-education and current employment
• Cost of accommodation and meals associated with day-to-day living expenses
• Undertaking the course has allowed you to secure employment, or change jobs.

Repayments (compulsory or voluntary) on debts under the following loan schemes:

• HECS-HELP
• FEE-HELP
• OS-HELP
• VET FEE-HELP
• SA-HELP
• SFSS

Can I claim for equipment?

We would recommend checking the industry specific deductions for this item.

You can claim a deduction here if you’ve purchased tools or equipment used for work purposes and have not received any reimbursement from your employer.

What type of tools and equipment can I claim?

The tools and equipment you’ve purchased must be directly necessary for you to do your work (i.e. tools of the trade for electricians, styling tools for hairdressers or software for photographers.)

Can I claim for my mobile phone bill?

If you use your personal mobile phone for work-related calls, you’ll be able to claim a portion of your bill on your tax return that relates to your employment.

How can I work out how much to claim?

Over a 4-week period, keep track of how much of your mobile phone usage is work related. This “work-related” percentage can then be applied to your total mobile phone expenses for the financial year.

Please note if you employer reimburses you for your mobile phone usage then you are not able to claim those mobile phone expenses on your tax return.

Example - Over 4 weeks the time you use your phone is 20% work related. Apply this amount to your total mobile bill.

50 per month x 48 weeks worked x 20% business use = $120 Deduction

Can I claim my internet expense?

You can only claim a deduction for internet if you’re genuinely required to use your home internet for work purposes. If your employer expects you to work from home, keep a record of when you’re using the internet for work and you can claim the “work related” percentage of your Internet use on your tax return.

You’ll can claim a portion of your internet expenses if you occasionally work from home.

Ensure if the internet bill is paid by more than 1 person, you only claim your expense share, then the work portion of that.

Can I claim my computer/laptop?

If you work from home on your personal computer/laptop you may be entitled to a deduction for the purchase of your computer/laptop.

Remember, you must calculate a “work related” percentage of your total computer use and if the purchase price was above $300 the purchase price and purchase date is used to calculate depreciation across multiple years.

Just fill in the section and it will report the business % and the depreciation amount.

Do I claim my union fees?

If you pay union fees you can generally claim a tax deduction.

You can usually find out your total union fees for the year on your PAYG summary, official statement provided by your union or your bank/credit card statements.

Should I claim a home office expense?

Individuals who work from home, as either self-employed or infrequently as part of employment can fill out this section to claim, “running expenses”.

How do I work out my home office deductions?

You can claim running expenses in two ways:

• 45 cents per hour which covers heating, cooling, lighting and the decline in value of any office furniture. (This is the easiest and most popular method of claiming home office expenses). Just times 45c by hours worked at home for year.
• Actual costs that you paid solely related to working from your home office. This is more difficult as costs need to be apportioned based on floor space and time.

When am I not allowed to claim home office expenses?

You cannot claim home office expenses if your “office” is not in a dedicated part or room of the house. For example, if you work from home on your laptop in the living room or at the kitchen table then you cannot claim home office expenses.

This is because the area is communal and there’s no additional “home office” expenses incurred – or in other words you’d be paying for the costs of heating, cooling, lighting in your kitchen or living room regardless of whether you were working in them or not.

Example of how the 45c method works:

This is the easiest and most popular method to claim home office expenses.

Ben is a teacher and works on average 11 hours per week from home planning lessons and marking school work. John can therefore claim 11 hours per week X 48 weeks worked x $0.45 = $237.60

Can I claim other work-related expenses?

If you have incurred any work-related expenses during the financial year that are not covered in the previous deduction sections, use this section.

What type of other work-related expenses can I claim here?

• Memberships and registrations for your employment profession
• Overtime meals
• Seminars
• Work conferences
• Stationery
• Reference books, technical journals and trade magazines
• Repair expenses or tools and/or equipment
• Tools and Equipment under $300.

What if I can’t find receipts for my work-related expenses?

You can claim up to $300 without any receipts provided you genuinely incurred the expenses. Otherwise, please also check your bank statements for evidence of any purchases as these can be used instead of receipts.

What are some things I can’t claim here?

• You cannot claim the cost of entertainment, fines or penalties
• You cannot claim private expenses such as child care expenses
• You must apportion expenses for private usage
• If you only work for part of the financial year, you cannot claim expenses for the full financial year
• You can claim up to a maximum of $300 from D2 to D5 without any receipts provided you have incurred work-related expenses.

Can I claim home occupancy costs?

If you only work from your home office, you may be eligible to claim occupancy costs on your tax return.

To be claimable, the work area that you consider to be your office must be separate and distinct from the rest of your property – e.g. a room with a door would be considered an office, but working from a laptop on the kitchen table would not.

What items are tax deductible?

• Heating
• Lighting
• Depreciation of furniture
• Equipment
• Cleaning
• Rent/mortgage interest

How do I complete this section?

1. In the large box at the bottom of your tax return, enter the total amount you paid during the year for each item you wish to claim. Make sure if you share a bill payment 50/50 you only include your share.
2. Enter the square meter area of the inside of your home
3. Enter the square meter area of your home office
4. POP then apportions your claims to get a business use %.

Important Note

If you claim your home office expenses using the Occupancy Expenses method and you own the home, it will affect your main residence expansion for capital gains tax purposes. This means that when you sell your property you may be required to pay capital gains tax on the portion of your family home which is deemed your “office.

Can I claim sun protection?

If you work outside, or are affected by the sun while working, then you may be able to claim anything you buy to protect you from the sun on your tax return. Common occupations that are eligible to claim sun protection expenses are:

• Pilots and airline staff
• Builders
• Tradespeople
• Couriers and delivery people
• Farmers
• Fishermen
• Foresters and gamekeepers
• Landscapers and gardeners
• Miners
• Sports professionals
• Coaches and trainers
• Outdoor recreation staff

What can I claim?

There are many items you may be able to claim as tax deductions including:

• Hats
• Sunscreen
• Sunglasses

What is low value pool deductions?

Small business entities can claim a tax deduction for depreciation of low-cost assets and other depreciating assets which have been allocated to a low-value pool.

What do I need?

You need to keep written evidence from the purchase of your other work-related expenses. These may include:

• Statements from your bank, building society or credit union
• Written evidence from your supplier or association
• Your PAYG payment summary

Can I claim interest deductions?

You can claim interest deductions if you incur expenses against the interest received. These may include:

• Account-keeping fees or management fees.
• Interest charged on money borrowed to purchase shares.

What do I need?

You need to keep written evidence that may include:

• Bank or financial institution statements or passbooks

Can I claim expenses against dividend income?

You need to complete this section if you have any of the following:

• Expenses that you can claim as deductions against dividend income
• A ‘listed investment company (LIC) capital gain amount’ included in a dividend received from an LIC.
• Expenses can include:
• Account-keeping fees or management fees.
• Interest charged on money borrowed to purchase shares.

What do I need?

You need to keep written evidence that may include:

• Bank or financial institution statements or passbooks
• Dividend statements showing any LIC capital gain amount.

Can I claim donations made?

Any donation of $2 or more given by you to an approved charitable organisation (eg. World Vision).

A contribution of more than $150 to an approved organisation for a fund-raising event.

An amount of $2 or more given to a registered political party, an independent candidate in an election for parliament or an individual who was an independent member of parliament at the time.

What are the most common donations?

Donations to approved organisations like:

• Certain funds, organisations or charities that provide help in Australia
• Some overseas aid funds that are Australian charities
• School building funds
• Some environmental or cultural organisations
• Some people donate to charity via their employer’s payroll system (known as ‘workplace giving’). The PAYG summary from your employer will state the amount donated.

To check if the donation made is deductible, enter the organisations ABN in the ABN look up and select the entity. It will advise if the entity is a registered 'Deductible Gift Recipient'. https://abr.business.gov.au/

What if I can’t find my receipts?

Contact the organisation you gave money to. They should be happy to give you a replacement receipt or an end of financial year statement.

If you have made one or more donations of $2 or more to bucket collections conducted by an approved organisation for natural disasters such as bush fires, severe storms and flooding, you can claim a tax deduction of up to $10 for the total of those contributions without a receipt.

Please Note:

You cannot claim a deduction for a gift or donation if you received something in return (for example, raffle tickets, chocolates, pens or an entry to an event).

You should have receipts for all donations you claim.

Can I claim my accounting fees from prior year?

Yes, for most people this means the fee you paid to a tax agent or tax advisor last year.

Also include at this section:

• Interest charges that the ATO charged to you, if any.
• Quantity Surveyor reports
• Tax reference books

What if I used ATO software and did my taxes myself?

Then you can’t claim anything in this section.

What if I can’t remember how much I paid or I have lost my receipt?

Please contact your previous tax agent and ask for a receipt – they should be happy to email or post one to you.

DO I need to complete this section?

You need to complete this section if you received a foreign pension or annuity which has a deductible amount of un-deducted purchase price (UPP).

The UPP is the amount you contributed towards the purchase price of your pension or annuity, i.e. your personal contributions.

British pensions

If you received a category A pension or a category B widows pension from the United Kingdom State (UK State) pension (previously known as the British National Insurance Scheme (BNIS)), you are entitled to a UPP deduction. One method of calculating your deduction is to multiply your UK State pension (in Australian dollars) by 8%. This method is accepted by the Tax Office and generally results in the maximum deduction you are entitled to.

Dutch pensions

If you received an old age pension, a widows, widowers or orphans pension from theSociale Verzekeringsbank (SVB) under the Netherlands social security system and you can obtain all the necessary information to determine your UPP, claim the amount you have worked out. If you cannot, you can claim an annual UPP deduction equal to 25% of your gross pension payment.

German pensions

If you received a German pension you will need to provide a copy of the insurance resume (Versicherungsverlauf) from the pension provider. You will need to contact the pension provider directly to obtain this information.

Italian pensions

If you received an Italian pension, the Italian authorities will send you an Article 10 letter (previously an Article 17 letter) each year giving you an estimate of the amount of pension income you will receive and the amount that you contributed towards your pension.

Austrian pensions

If you received an age, premature age, invalid, disability, widowed persons or orphans pension paid by an Austrian superannuation insurance fund under one of the Austrian social insurance Acts, you are entitled to a UPP deduction.

What you will need to complete this section:

You need to keep the statement from the pension provider.

What is this deduction amount?

You need to complete this section if you made personal superannuation contributions to a complying superannuation fund or a retirement savings account (RSA). This is different to your employer 9.5% super guarantee charge and must be paid to your superfund from your personal bank account, not employer.

What will I need?

Written documentation to your super fund or RSA provider advising them of the amount you intend to claim as a deduction.

Written acknowledgement from you fund or RSA provider of your letter and an agreement in writing to the amount you intend to claim as a deduction.

The name of your fund or RSA provider and your policy number(s).

Do I complete this section?

If you incurred capital expenditure directly connected to a project then you need to complete this section.

You may be able to claim a deduction at this item for certain capital expenditure allocated to a project pool for:

• A project that you operated in the current year for a taxable purpose.
• A project carried on or proposed to be carried on for a taxable purpose which was abandoned, sold or otherwise disposed of in the current year, before or after is started to operate.

What will I need?

The capital expenditure incurred on the project and if there was a project pool or not.

The expected life of the project.

What is this section?

You can claim a deduction at this item if you made payments to a forestry managed investment scheme (FMIS) and you have:

• a forestry interest in an FMIS, or held one during the year; and
• paid an amount to a forestry manager of an FMIS under a formal agreement.

Please note you can only claim a deduction at this item if the forestry manager has advised you that the FMIS satisfies the direct forestry expenditure rule in Division 394 of the Income Tax Assessment Act 1997.

What do I need though?

You will need to know the amount of the payments made to the FMIS during the tax year. Payments that are excluded from being claimed are:

• Payments for borrowing money
• Interest and payments in the nature of interest
• Payments of stamp duty
• Payments of GST
• Payments that relate to transportation and handling of felled trees after the earliest of:
• Sale of the trees
• Arrival of the trees at the mill door
• Arrival of the trees at a port
• Arrival of the trees at the place of processing
• Payments that relate to processing
• Payments that relate to stock piling

Complete this section if:

You have deductions which you have not been able to claim at Item D1 to D14 (or anywhere else on your tax return), then you can claim them at this Item.

Examples of items you can claim at this Item are:

• Certain deductible capital expenditure not claimed in full prior to ceasing a primary production business where a deduction can be claimed in subsequent years.
• Deductions allowable for subscriptions for shares under the film licensed investment company (FLIC) scheme.
• Non-capital losses incurred on the disposal or redemption of a traditional security which are deductible under the Tax Act.
• Sickness and accident insurance premiums.
• Foreign exchange losses.
• Any net personal services income loss.

Do I need to complete this section?

You must complete this item if you provided personal services and you:

• received a PAYG payment summary – business and personal services incomeshowing an X against 'Personal services attributed income', or
• had personal services income attributed to you.

If you provided personal services and payment was made to you as a sole trader, do not complete this item. You must answer question 14 Personal services income (PSI) 2018and complete item P1 Personal services income in the Business and professional items schedule for individuals 2018. If this applies to you, then you cannot lodge a paper tax return.

Personal services income is income that is mainly a reward for your personal efforts or skills and is generally paid either to you or to a personal services entity (a company, partnership or trust). If your personal services income is paid to a personal services entity, the income (less certain deductions relating to gaining or producing that income) is attributed to you unless:

• the personal services entity gained the income in the course of conducting a personal services business, or
• the income was promptly paid to you by the entity as salary.

Answering this question

You will need:

• your PAYG payment summary – business and personal services income showing the amount of personal services income attributed to you and the total amount of tax paid or withheld
• details of any other personal services income attributed to you.

Do I need to complete this section?

Did you receive any other income?

Other income includes:

• an amount released by one or more of your superannuation funds greater than the liability stated on a release authority
• lump sum payments in arrears; do not include lump sum payments in arrears relating to superannuation income streams, show them at item 7
• Business Services Wage Assessment Tool (BSWAT) lump sum payment in arrears
• jury attendance fees
• foreign exchange gains
• royalties
• bonus amounts distributed from friendly society income bonds
• taxable scholarships, bursaries, grants or other educational awards
• benefits or prizes from investment-related lotteries and some game-show winnings
• income from activities as a special professional (author of a literary, dramatic, musical or artistic work, inventor, performing artist, production associate or active sportsperson); amounts you have already included at item 1, 2, 13, 14 or 15 may also have to be shown here as you may be entitled to a concessional rate of tax if you have certain amounts of professional income; you will not be taxed twice on these amounts
• reimbursements of tax-related expenses (including amounts imposed by us as an interest charge) or election expenses which you have claimed as a deduction
• any assessable balancing adjustment when you stop holding a depreciating asset (for example, because of its disposal, loss or destruction) for which you have claimed a deduction for depreciation or decline in value in previous years; your car is a depreciating asset
• payments made to you under an income protection, sickness or accident insurance policy where the premiums were deductible and the payments replaced income; do not include payments from which tax has been withheld which you have already shown at item 1, or payments which have been shown on a payment summary which you have already shown at item 2
• interest from infrastructure borrowings if you intend to claim a tax offset at item T10
• gains derived on disposal or redemption of traditional securities that are assessable under section 26BB of the Income Tax Assessment Act 1936
• allowances or payments you received as a member of a local government council that you have not shown at item 1 or 2
• other taxable allowances or payments you received from the Department of Human Services that you have not shown at item 5 or 6 (such as the activity supplement or farm financial assessment supplement that are paid under the farm household allowance program)
• work-in-progress amounts assessable under section 15-50 of the Income Tax Assessment Act 1997 that you received and have not included at item 15 Net income or loss from business.

Do I complete this section?

You need to complete this section if you have received an Australian:

• Annuity
• Superannuation pension
• A pension not shown at Item 6

If you were aged 60 or more when you received the superannuation income stream benefit, this item should only be completed if your “PAYG summary – superannuation income stream” shows either an untaxed element amount or an amount of tax was withheld from the payment.

How do I complete this section?

To complete this section, you will need:

• All of your “PAYG summaries – superannuation income stream” you have received from the payer of your pension or annuity.
• All of your “PAYG summaries – individual non-business” which highlight your non-superannuation annuity under Gross Payments.

If you have not received this information, or you have lost it, you will need to contact the organisation that paid you to obtain the information.

Do I need to complete this section?

This question is about discounts on 'employee share scheme interests' (ESS interests) that you or your associate received under an employee share scheme. ESS interests are:

• shares
• stapled securities (provided at least one of the stapled interests is a share in a company)
• rights to acquire shares and stapled securities.

An ESS interest acquired by your associate in respect of your employment is treated as though the ESS interest was acquired by you.

The discount is the difference between the market value of the ESS interests and the amount paid to acquire them.

The ESS interests can be:

• from an Australian company or a foreign company
• related to your employment inside or outside Australia
• related to a work relationship other than employment, for example sub-contracting.

You will be taxed on the discount in the year in which you acquired the interest. Such schemes are known as 'taxed-upfront schemes'. However, if you and the scheme meet certain conditions the taxing point is deferred until a later time. These tax-deferred schemes are known as 'deferral schemes'.

Do I need to complete this section?

If you complete the business income section, please report the NET Income or Loss form your business(es) at this item. The total amount reported here needs to equal the Profit or Loss at the business income section.

Do I need to complete this section?

Did you:

• conduct a business activity as a partner in a partnership that resulted in a loss or resulted in a loss after deducting your expenses, or
• conduct a business activity as a sole trader that resulted in a loss?
• AND; you did not pass one of the four commericiality business tests?

If so, please fill in this section.

This amount must be included in the business income schedule and must equal the Activity Loss for which is non-commercial.

Only include if you started the business during the year.

Australian resident or foreign resident?

Most people who come to Australia for a working holiday or to visit are foreign residents for tax purposes. This includes people on visa subclass 417 (Working Holiday) or 462 (Work and Holiday) (backpackers).

As a working holiday maker, the first $37,000 of your income is taxed at 15% and the balance is taxed at ordinary rates. You are a working holiday maker if you have a visa subclass:

• 417 (Working Holiday)
• 462 (Work and Holiday).

If you have a debt with the government, please report YES and include the amount if known. The repayment rates are listed below which will reduce your income tax refund or if you have a tax payable, will increase the tax payable.

Please report your work-related expenses paid during the financial year.

To claim an expense, it must satisfy the following:

• You must have spent the money yourself and weren’t reimbursed
• It must directly relate to earning your income
• You must have a record to prove it

If the expense was for both work and private purposes, you can only claim a deduction for the work-related portion. Work expenses that were reimbursed by your employer are not deductible.

If you are unsure if an expense is deductible, please check the (?) icon next to the item or alternatively, please ask one of our friendly accountants who can advise.

Your income is declared on your tax return each year.

The following is a summary of income that should be reported in your tax return if earned:

• Employment income
• Super pensions, annuities and government payments
• Investment income (including interest, dividends, rent and capital gains tax
• Business, partnership and trust income
• Foreign income
• Crowdfunding
• Other income - including compensation and insurance payments, discounted shares under employee share schemes, and prizes and awards.

If you are unsure if a certain income type should be reported, please check the (?) icon next to the item, or alternatively, please ask one of our friendly accountants who can advise.

If you have a debt with the government, please report YES and include the amount if known.

The repayment rates are listed below which will reduce your income tax refund or if you have a tax payable, will increase the tax payable.

2017–18

2017–18 repayment income thresholds and rates for HELP, SSL, ABSTUDY SSL and TSL 

Are you a resident for tax purposes?

Do I need to complete this section?

You need to complete this section if:

• received an Australian superannuation income stream as highlighted on a PAYG payment summary – superannuation income stream; or
• received a statement from an Australian superannuation fund.

You also need to show this income at Item 7 of the tax return.

What you will need to complete this section

• All your PAYG payment summaries – superannuation income stream if these show the tax offset amount.
• If the tax offset is not mentioned, you need to work this out using your taxed and untaxed component by a percentage according to your age and type of income stream (please ask POP for help).
• What the rebate proportion is of your pension or annuity. Your rebate proportion will be one unless:
  • You were issued with an RBL determination stating otherwise, or
  • You were receiving a pension that was previously payable to someone who has died and an RBL determination was issued for the pension when it originally commenced.
• Any deductible amount from item D11.

To claim this offset, please read on below:

• You must have income at Item 7 on your tax return to claim this tax offset.
• If you have received an Australian Superannuation lump sum payment at Item 8 on your return, your offset will be automatically calculated. You do not need to list it on the tax return.
• You are not entitled to a tax offset for the taxed element of any superannuation income stream you received before you turned 55 years old unless the superannuation income stream was either a disability - superannuation benefit or a death benefit income stream.

Tax Losses of Earlier Income Years Claimed This Income Year

Should I complete this section?

Complete this section if you had any un-deducted tax losses in prior income years or if you had unclaimed foreign income losses. (As this area can be complex, please get in touch with us to determine how to complete this)

Information required to complete this section

Prior year’s tax loss records which need to be categorised into either primary and non-primary production.

Prior year’s foreign losses records

Take Note:

Complete this section if your tax losses can offset the current year’s income.

Do not input your capital losses in this section – please refer to the “Capital Gains and Losses” section

Tax losses that reduce the current year’s income can only be reduced to zero. Any excess tax losses from prior years that are not used this year will be rolled forward and can be used in future years.

Do not input non-commercial losses in this section.

Am I eligible for this tax offset?

You need to meet at least one of the following conditions to be eligible for this offset:

1. You received the aged pension (this means you have income listed at Item 6 on your tax return).
2. You were old enough to get the aged pension but weren’t eligible because your income and/or assets were too high.
3. You were old enough to get the Veterans pension but weren’t eligible because your income and/or assets were too high.

Please note: If you did not meet one of the above conditions (item 1 – 3), you are not eligible to claim this offset regardless of whether your rebate income is below the relevant thresholds.

If you meet one of the above three conditions, we’ll need to confirm that your rebate income is below the following qualifying thresholds for 2015-16:

• If you did not have a spouse and your rebate income was less than $50,119.
• If you had a spouse, and your combined rebate income was less than $83,580.
• At any time during the year, you and your spouse had to live apart due to illness or because one of you was in a nursing home and your combined income was less than $95,198.

What you will need to complete this section?

You need both your own and your spouse’s rebate income for the year.

We can work then work if you are eligible for this tax offset.

Am I eligible to claim this offset?

In 2016, the ATO has advised that fly-in-fly-out workers are not eligible to claim the offset

To qualify for this tax offset, you must have lived or worked in an ATO-listed remote area (not necessarily continuously) for:

• 183 days or more during the current income year, OR
• 183 days or more in total during the current and previous income years – and you did not claim a zone tax offset in your previous year’s tax return.
• Remote areas are classed as either Zone A or Zone B. There are also special areas within these zones.

What you will need to complete this section

• The number of days you have lived in the remote area
• Whether you are in Zone A or B or a special area
• Adjusted taxable income information for any dependents and spouse that you had during the financial year
• If you advise us of these details, we can work the offset out in your tax return.

Overseas Forces Tax Offset

Australians working on military deployments in remote locations can be eligible for the Overseas forces offset. You must meet the following criteria:

• Have served in a specified overseas locality for 183 days or more during the tax year
• The income you earned relating to that deployment must not have been exempt from tax.

Some limitations exist

If part (or all) of your income earned qualified for a Section 23AD or Section 23AG tax exemption, then it cannot be used as part of your 183-day calculation.

If your overseas service was less than 183 days, it is possible you can claim part of the overseas forces offset. Please contact us for more information.

Unlike the Zone Tax Offset, you are unable to ‘carry forward’ unused days from previous tax years to reach the 183 days.

Ref: https://www.ato.gov.au/forms/withholding-declaration---calculating-your-tax-offset/?page=3

Do I claim this offset?

You need to complete this section if you are entitled to a tax offset for:

• Interest from the infrastructure borrowings scheme; or
• You performed work or services in the Joint Petroleum Development Area (JPDA) of the Timor Sea.

Do I complete this offset?

You need to complete this section if you are entitled to a tax offset for:

• A Conservation tillage refundable tax offset for an eligible no-till seeder; or
• If you are a principal beneficiary of a Special disability trust that is entitled to a tax offset or tax paid by the trustee.

If you are not sure if you are eligible for this tax offset, please ask us!

Do I complete this section?

If you were under 18 years old on 30 June 2017, you must complete this item or you may be taxed at a higher rate than necessary.

It must be noted:

If you don’t complete this section and you are under 18 on 30 June 2017, then it is likely you will be taxed at a very high, unnecessary rate.

Did you work full time and did not study full time?

If you are under 18 on 30 June 2017, AND you answer yes to one of these items below,

• You are working full time and are intending to work full time for most or all of 2016-17.
• You were entitled to a disability support pension or someone was entitled to a carer allowance to care for you.
• You were permanently blind or disabled.

then you should write 0 in Box J item A1.

Did you work part-time and study full time?

If you are under 18 on 30 June 2017 AND you earned any of the following income whilst studying full-time, you must list your taxable income amount at Box J item A1:

• employment income
• taxable pensions or payments from Centrelink or the Department of Veterans’ Affairs
• a compensation, superannuation or pension fund benefit
• income from a deceased person’s estate
• income from your own business

Do I claim the part year threshold?

Complete this section if you:

• Became an Australian resident during the 2017 financial year; or,
• Ceased being an Australian resident during the 2017 financial year.

The tax-free threshold for the full year is $18,200. If you became an Australian resident, or stopped being an Australian resident, part way through the financial year – then you are not eligible for the full $18,200 tax-free threshold. We need to adjust the amount that you are eligible for on your tax return.

If you are not an Australian resident for tax purposes, then you should not complete this section because you are not eligible for the tax-free threshold.

What do I need?

• The date you became an Australian resident. For example, the date you came to Australia on a sponsored business visa
• The date you ceased being an Australian resident. For example, the date you left to go overseas for a couple of years

How do I complete this section?

Enter the date you entered or exited Australia.

The number of months you should list is the number of months you were in Australia from 1 July 2017 to 30 June 2018. If you arrived on 10 September 2017 and left on 10 March 2018, that would count as 6 months. You include your start and finish months (even though you weren’t here the whole month).

Do I claim the super co-contribution?

You do, if:

• You made an eligible personal contribution to a complying super fund or retirement savings account and you aren’t claiming a deduction.
• you were under 71 years old on 30 June 2018
• your taxable income an eligible personal super contribution (for which you are not claiming a deduction) to a

Your taxable income was less than $50,454.

• 10% or more of your total income was from employment or business income or a combination of both

What do I need?

• The amount of superannuation contribution you made.
• Information about income from investments, partnerships and other sources.

What is Working Holiday Maker Net Income?

Income your received from 1 January 2018 to 30 June 2018 while you were on a 417 or 462 working holiday visa less any deductions that relate to earning your working holiday maker income.

In most cases, the Pay As You Go (PAYG) summary provided by your employer will show the payment type H to indicate that you earned working holiday maker income.

If your payment summary does not show the payment type H but you earned the income at any time from 1 January 2018 to 30 June 2018 (while you were on a 417 or 462 visa), then that income still forms part of your working holiday maker income.

This section does not include any income or deductions earned between 1 July and 31 December 2017. However, income and deductions from this period should still be included at Item 1 (income) and the relevant deduction section of the return.

How do I complete it?

Your working holiday maker net income can be calculated in two simple steps:

1. Add up all the income that you have earned from 1 January 2018 to 30 June 2018 while you were on a 417 or 462 working holiday visa.
2. Subtract any deductions that relate to earning your working holiday maker income.

The result is your working holiday maker net income.

If this amount is less than zero, your working holiday maker net income is $0.

Do I complete this section?

Complete this section if you are eligible for an exemption from the Medicare Levy.

You are eligible if you are either:

Receiving free medical from the Defence Force, or

You have received an exemption certificate as part of your visa

To complete this section you will need to enter the following:

The number of dependants you had during this year

The number of days you were fully exempt

If possible, the full exemption action code

Please attach your Medicare Levy Exemption Certificate if possible.

Please get in touch with us if you need any assistance in this section

Please enter the total number of dependent children under 21, or full-time students under 24. If you are unsure if someone is a dependant, feel free to ask!

Please enter any relevant amounts at IT1 to IT08.If you are unsure, please jump on our live chat and ask for help.

Do you have an unused 'landcare and water facility' tax offset from a previous year that you can use this year? If yes, please read below..

You need to know

This question applies only if your income tax liabilities from earlier years have not absorbed all of the excess or unused landcare and water facility tax offset available to you.There is no limit to the number of years you can carry forward any balance of landcare and water facility tax offset.

What do you Need?

You will need your Notice of assessment from the prior year to prepare.

Completing this item

Write the amount of brought-forward landcare and water facility tax offset at T item T7 on your tax return.