see the inside front cover and page 1 · 2018-05-22 · surcharge (M2) This item is compulsory for all taxpayers. If you do not complete the item you may be charged the full Medicare

Commissioner’s guaranteeand important messagessee the ins ide f ront cover and page 1

This year• you may be entitled to the

savings rebate• you MUST answer question M2

• you may also needTaxPack 99 supplement

see pages 4–5

Australian Taxation Officelodgment addresses and locationssee pages 136–7

Lodge your tax returnby 31 October or earlierfor a quicker refund

AUSTRALIAN TAXATION OFFICE

www.ato.gov.au

NO

T FO

R S

ALE

T A X PA C K 9 9 1

CONTEN

TS

m e s s a g e s

Do you have to lodge atax return? 2

TaxPack 99 and TaxPack 99

supplement 4

What’s new this year? 4

The ways the questions inTaxPack can help you 6

What are your choices fordoing your tax return? 7

If you need more information 7

Getting started with yourtax return—page 1 8

Do you want a faster refund? 10

Do you want to pay yourtax debt by EFT? 11

You do not have to paytax on this exempt income 12

c o n t e n t sI N C O M E 13

D E D U C T I O N S 33

R E B AT E S 61

P R I VAT E H E A LT HI N S U R A N C E P O L I C YD E TA I L S 87

M E D I CA R E L E V YR E L AT E D I T E M S 89

A D J U S T M E N T S 99

Is your tax returncomplete—pages 1–6? 110

How your tax is worked out 112

CA L C U L AT I O N S 113

YO U R R I G H T S 127

Child Support Agencyclient charter 134

Taxpayers’ Charter—an overview 135

L O D G M E N T A D D R E S S E S 136

A U S T R A L I A N T A X AT I O NO F F I C E L O CAT I O N S 137

I N D E X 138

1999 TAX RETURN FORINDIV IDUALS

T E L E P H O N E H E L P L I N E Sinside back cover

I f you cannot lodge by31 October 1999

If you cannot lodge your tax returnby this date due to circumstancesbeyond your control, write to us tofind out if you can lodge at a laterdate. Send a written request assoon as possible—and certainlybefore 31 October 1999—to theaddress that appeared on your1998 notice of assessment, if youhave one, or your nearest taxoffice. Explain why you need tolodge late and suggest anotherdate. We will consider your requestand reply in writing.

The following explanations will notnormally be accepted as reasons forallowing a late lodgment: a delay inreceiving your group certificate,losing your group certificate, orbeing absent from Australia.

If you have not received your groupcertificate or you have lost it, seeYOU NEED TO KNOW on page 14 forinformation on late or lost groupcertificates.

What is TaxPack 99?TaxPack 99 is a guide designed tohelp you complete your 1999 taxreturn for individuals for the1998–99 financial year—from1 July 1998 to 30 June 1999. Youwill find 2 copies of the tax returnat the back of TaxPack 99.

We recommend that you carefullyread page 4 to find out what is newin TaxPack 99 that may apply toyou—for example, the newsavings rebate.

Medicare levysurcharge (M2)

This item is compulsory for alltaxpayers. If you do not completethe item you may be charged thefull Medicare levy surcharge. Seepages 94–8 in TaxPack 99.

When do you haveto lodge?

You have from 1 July 1999 to31 October 1999 to lodge your taxreturn, but we encourage you tostart early and send it in as soonas you can. The lodgmentaddresses are on page 136.

Don’t delay sending your taxreturn, even if you think you willowe tax. The earliest due datefor any 1998–99 tax debt is1 December 1999.

Do you have to lodge?To find out if you need to lodge atax return, carefully read page 2.

2 T A XPA C K 9 9

DO Y

OU H

AVE

TO L

ODGE

A T

AX R

ETUR

NDo you have to lodge a tax return?There are a number of reasons why you may be required to lodge a tax return for the 1998–99

financial year (1 July 1998 to 30 June 1999). Check each reason below to see if you do or do notneed to lodge.

REASON 1 You paid tax during 1998–99.

You need to lodge if you were an Australian resident(see page 8) and any of the following applied to you:

• You had tax deducted from income you received orearned.

• You paid provisional tax.

• You had amounts deducted from payments to youunder the reportable payments system orprescribed payments system.

• You purchased income tax credit vouchers.

• You had amounts deducted from interest, dividendsor unit trust distributions because you did notquote your tax file number to the investment body.

REASON 2 You received a Commonwealth ofAustralia government pension,allowance or payment.

You need to lodge if ANY of the following appliedto you:

• You received an allowance or payment listed atquestion 5 on page 23 and you had other income.

• You received a pension, allowance or paymentlisted at question 6 on page 24 AND yourassessable income was more than the followingrelevant amount:– $12 369 ($475.73 each fortnight) if you were

single or widowed at any time during the year– $12 054 ($463.61 each fortnight) if you had a

spouse but either of you lived in a nursing homeor you had to live apart due to illness

– $10 514 ($404.38 each fortnight) if you livedwith your spouse for the full year.

Your assessable income includes the ‘taxablepension’ shown on your group certificate plus othertypes of income, such as bank interest, taxable unittrust distributions, dividends, wages, most foreignpensions, eligible termination payments and netcapital gains. It does not include exempt incomeshown on page 12.

• You meet any of the conditions in the REASON 1 orOTHER REASONS boxes.

?REASON 3 You received or earned income not

covered by REASON 2.

You need to lodge if your taxable income exceededthe following amounts:$5400 if you were an Australian resident for tax

purposes for the full year$643 if you were under 18 years of age at

30 June 1999 and your income was notsalary or wages

$1 if you were a non-resident and you hadincome taxable in Australia—excludingincome that has non-resident withholdingtax deducted from it

Part-year If you stopped full-time education for thetax-free first time or you became or stopped beingthreshold an Australian resident for tax purposes,amount you will have a part-year tax-free

threshold which determines whether youhave to lodge a tax return. Page 113

shows you how to work out this amount.

OTHER REASONS

You need to lodge if ANY of the following appliedto you:• You are the liable parent under a child support

assessment.• You are entitled to a rebate at question R6 on

pages 82–5.• You carried on a business.• You made a loss, or you can claim a loss you made

in a previous year.• You were entitled to a distribution from a trust, or

you had an interest in a partnership AND the trustor partnership carried on a business of primaryproduction.

• You were an Australian resident for tax purposesand you had overseas income that was not apension.

• You are a special professional covered by theincome averaging provisions. These provisionsapply to authors of literary, dramatic, musical orartistic works, inventors, performing artists,production associates and active sportspersons.

If after reading the above you find that you do not need to lodge a tax return for 1998–99, read the informationat the top of page 3 to see if you need to complete and send us a non-lodgment advice. If a tax return isrequired, proceed to page 4.

Deceased estateIf you are looking after the estate of someone who died during 1998–99, consider the above points on theirbehalf and, if a tax return is not required, complete the form on the next page and send it to the AustralianTaxation Office. If a tax return is required, see page 9 for more information.

T A X PA C K 9 9 3

NON

-LODGMEN

T ADV

ICEIf you do not need to lodge a tax return, complete the form below and send it to the Australian Taxation Officeat the relevant address on page 137 by 31 October 1999.

Do not send us this form if:• your only income was from an allowance or payment listed at question 5• you received a pension, allowance or payment listed at question 6 and your assessable income was less than

the relevant amount in reason 2.The agencies that pay these have provided information for us to determine that you do not need to lodge a tax return.• you have previously sent us a tax return, a form or a letter that told us that you do not need to lodge a

tax return for all future years.

Your tax file numberIt is not an offence not to quote your tax file number(TFN). However, your TFN helps the AustralianTaxation Office to correctly identify your tax records.

Your name

Surname or family name

Given names

State Postcode

Your postal address

Title—for example,Mr, Mrs, Ms, Miss

Your daytime telephone number—if it is convenient

Reason for notlodging a tax return

Suburb or town

Signature Date

The tax law imposes heavy penalties for giving false or misleading information.

Countryif not

Australia

Area code Telephonenumber

Print the address onyour last notice ofassessment or theaddress you lasttold us about. State Postcode

Suburb ortown

Countryif not

Australia

I will not have to lodge a tax return for future years because:

I will not have to lodge a tax return for 1999 because none of thereasons listed on page 2 apply.

Have you changed your postal address since your last tax return?

YES

NO

If you receive child support, complete the following details.

Source(s) of the income—for example,Centrelink allowance, salary or wages

1998–99 income—do notinclude exempt incomedescribed on page 12.

$

Child Support Agencyreference number

Child supportIf you are liable to pay child supportyou must lodge a tax return.

NAT 2586—6.1999

19 9 9 N O N - L O D G M E N T A DV I C E

Day Month Year

Date of birth

(please print)

✄CU

T A

LON

G D

OTT

ED L

INE

TO R

EMO

VE

4 T A XPA C K 9 9

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TaxPack is divided into 2 parts:• TaxPack 99 and the 1999 tax return for individuals

• TaxPack 99 supplement and the 1999 tax return forindividuals (supplementary section).

The list on the next page shows you the questions inTaxPack 99 and TaxPack 99 supplement. Please checkto see if you need to use the supplement.

TaxPack 99 and TaxPack 99 supplement

The following is an overview of new TaxPackquestions and those that contain changes that havetaken place this year.

Savings rebate

The savings rebate commenced on 1 July 1998. Therebate will reduce the amount of tax you have to payif you are an Australian resident and have qualifyingsavings, investments or business income, or certainsuperannuation contributions. The rebate is notaffected by the level of your income.

There is no specific question for this rebate. We willwork out if you are entitled to it by using informationyou provide on your tax return—including any personalundeducted superannuation contributions at item R4.

It is proposed that this rebate will no longer applyfrom 1 July 1999—therefore, it will not be taken intoaccount when working out any 2000 provisional tax.

Question 12—Deposits and withdrawals—income equalisation and/or farm managementfor primary producers

This question is in TaxPack 99 supplement. It affectsprimary producers who have made deposits to orwithdrawals from income equalisation or farmmanagement accounts.

Question R4—Personal undeductedsuperannuation contributions—for thesavings rebate

If you are an Australian resident and you have madecontributions to a complying superannuation fund orretirement savings account and you have not claimeda deduction, we need to know the amount of thesecontributions to work out your savings rebate. Readthis question carefully.

What’s new this year?

Questions R5 and R6—Private healthinsurance rebates

The Private Health Insurance Incentives Schemeceased on 31 December 1998 and has been replacedby the 30% private health insurance rebate. If youhad private health insurance during 1998–99 either orboth of these questions may apply to you.

Private health insurance policy details

If you had a private health insurance policy during1998–99 you will need to provide the details of yourpolicy on your tax return.

Question R11—Landcare and water facilityrebate for primary producers

This question is in TaxPack 99 supplement. It affectsprimary producers who have incurred this type ofexpense.

Question M2—Medicare levy surcharge—alltaxpayers must answer this question to beassessed correctly.

Taxpayers with income above a certain level andwithout private patient hospital cover are liable to theMedicare levy surcharge.

Question A3—Amount on which family trustdistribution tax has been paid

If you received a distribution from a trust, company orpartnership on which family trust distribution tax hasbeen paid you need to check this question. Thesedistributions are not included in your assessableincome, but they will affect your liability to Medicarelevy surcharge and superannuation contributions tax.

How to get a copy of TaxPack 99 supplement

We have sent TaxPack 99 supplement to those peoplewho we believe will need it, based on information ontheir last year’s tax return.

If you have not received TaxPack 99

supplement and need to use it, from1 July to 31 October 1999 you can get acopy from newsagencies displaying thislogo. It is also available all year from theAustralian Taxation Office.

T A X PA C K 9 9 5

GENERA

L INFORM

ATIONWhat’s in TaxPack 99

These questions will help you complete pages 1–6

of the tax return.

INCOME10 Partnerships and trusts

11 Net income or loss from business

12 Net income equalisation and/or farmmanagement deposits or withdrawals

13 Capital gains or losses—for example, ondisposal of assets

14 Foreign entities

15 Foreign source income (including foreignsource pension or annuity) and foreign assetsor property

16 Rent

17 Bonuses from life insurance companies andfriendly societies

18 Other income

DEDUCTIONSD10 Total allowable prior year losses

D11 Australian film industry incentives

D12 Deductible amount of undeducted purchaseprice of foreign pension or annuity

D13 Non-employer sponsored superannuationcontributions—generally for the self-employed

D14 Other deductions

REBATESR7 Superannuation contributions on behalf

of your spouse

R8 Zone or overseas forces

R9 Net medical expenses over $1250

R10 Parent, spouse’s parent or invalid relative

R11 Landcare and water facility

R12 Other rebates

CREDITS FOR TAX PAIDC1 Income tax credit vouchers—not

shown elsewhere on your tax return

C2 Credit for interest on early payments—amount of interest

What’s in TaxPack 99 supplementThese questions will help you if you also need tocomplete the supplementary section of the tax return(pages 7–10).

INCOME1 Salary or wages2 Allowances, earnings, tips, director’s fees, etc.3 Lump sum payments4 Eligible termination payments5 Commonwealth of Australia government

allowances and payments like Newstart, youthallowance and austudy payment

6 Commonwealth of Australia governmentpensions and allowances

7 Other Australian pensions or annuities—including superannuation pensions

8 Gross interest9 Dividends

DEDUCTIONSD1 Work related car expensesD2 Work related travel expensesD3 Work related uniform, occupation specific or

protective clothing, laundry and dry cleaningexpenses

D4 Work related self-education expensesD5 Other work related expensesD6 Interest and dividend deductionsD7 Gifts or donationsD8 Deductible amount of undeducted purchase

price (UPP) of Australian pension or annuity

D9 Cost of managing tax affairs

REBATESR1 Spouse—married or de facto—

child-housekeeper or housekeeperR2 Sole parentR3 Low income aged personR4 Superannuation contributions, annuity

and pensionR5 Private health insurance incentive—from

1 July to 31 December 1998

R6 30% private health insurance rebate—from1 January 1999

PRIVATE HEALTH INSURANCE

POLICY DETAILS

MEDICARE LEVY RELATED ITEMSM1 Medicare levy reduction or exemptionM2 Medicare levy surcharge

ADJUSTMENTSA1 Under 18 excepted net incomeA2 Part-year tax-free thresholdA3 Amount on which family trust distribution tax

has been paidA4 Family tax assistance

6 T A XPA C K 9 9

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The ways the questions in TaxPack can help you

LIGHT BULBTells you about recordsyou need to keep.

QUESTION CAPTIONCheck each question caption carefully.If it doesn’t apply to you, go to thenext question.

COLOUR BARSEach question iscolour coded tomatch the sectionon your tax return.

EXAMPLES ANDWORKSHEETSWorked examplesand calculationworksheets help toexplain the steps.

JUST FOLLOWTHE STEPSSTEP 1

STEP 2

STEP 3

?

STOP SIGNRead this information

carefully beforecompleting the

question.

WHAT YOU MAY NEEDHelps you to get

organised.

CAUTIONTake care to read allthe information.

NOTEAdditional

information thatwill assist you.

YOU NEED TO KNOWInformation you need

to know before youanswer the question.

DEFINITIONSDefinitions for

important termsrelevant to the

question.

CHECK THAT YOU HAVEBe sure you have really

finished the question.

QUESTION NUMBERSMatch the item onyour tax return.

T A X PA C K 9 9 7

GENERA

L INFORM

ATION

What are your choices for doing your tax return?

If you need more information

REGISTERED TAX AGENTSA registered tax agent can prepare and lodge your taxreturn for a tax deductible fee.

What are your responsibilities?

Even if someone else—a family member, friend or taxagent—helps you to prepare your tax return, you arestill legally responsible for the accuracy of theinformation.

You must sign and date the Taxpayer’s declaration onyour tax return to confirm that it is true and correct.

You can do it yourself. Use TaxPack 99. Just follow theinstructions.

Can someone else do it for you?

FAMILY MEMBER OR FRIENDA family member or friend can help you but theycannot charge you a fee.

TAX HELP VOLUNTEERSTax Help is a network of community volunteers whoare trained to help people prepare their tax returns.

This free service is available for people on lowincomes—including those who are also seniors,people from non-English speaking backgrounds,people with a disability, Aboriginal people or TorresStrait Islander people.

See page 15 of TaxPack 99 for more information.

You can ring the Australian Taxation Office (ATO)

You can ring the ATO if you need assistance with aquestion in TaxPack, including the supplement, oranother matter concerning your tax affairs. If youdecide to ring us, please have your TaxPack orsupplement handy. See the inside back cover ofTaxPack for the right telephone number to ring.

You can get copies of publications

TaxPack referred publicationsBecause we can’t cover everything in TaxPack, we willsometimes refer you to other publications that willhelp you to complete your tax return.

To find out how to get these publications, see theinside back cover of TaxPack.

Tax returnsAdditional copies of the tax return are available fromthe ATO.

TaxPack 99 and TaxPack 99 supplement

From 1 July to 31 October 1999 you canget additional copies from newsagenciesdisplaying this logo. Copies also availableall year from the ATO.

You can ask for a taxation ruling

If you have a complex enquiry about your tax affairs,you may want to ask for a private ruling. To do this,complete a Request for private ruling. To find out howto get this publication, see the inside back cover ofTaxPack. A private ruling will relate just to yourparticular situation. If you lodge your tax returnbefore you receive your private ruling, be aware thatthe ruling may alter the accuracy of your tax return.

You can ask for a review of a private ruling decision ifyou disagree with it even if you have not yet receivedyour assessment. The ATO branch that made theruling can give you more information about objectionprocedures.

8 T A XPA C K 9 9

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Getting started with your tax return—page 1

Page 1 of your tax return provides the AustralianTaxation Office (ATO) with information about you thatis vital for the successful completion of the tax returnprocess—for this year and for future years. Make surethat you carefully complete all the items.

Your tax file number

If you already have a tax file number (TFN), it will beon your last notice of assessment or the top right-hand corner of your group certificate. If you do nothave these documents, to find out your TFN ring thetax file number helpline on the inside back cover ofTaxPack. We will ask you to provide informationconfirming your identity and we will post your TFN toyou—we cannot provide TFNs over the phone.

If you have changed your postal address and youwant to find out your TFN, write to us with yourrequest and your new address.

If you do not have a TFN, you can apply for one bycompleting a Tax file number application or enquiry,available from the ATO. To lodge your application youwill need to provide original, unaltered documentsshowing proof of your identity. You will find a list ofappropriate proof of identity documents on theapplication, or ring the tax file number helpline onthe inside back cover of TaxPack.

You can mail your application and documents, orbring them to any tax office. If you post yourapplication we will return your documents to you byregistered post. We will post your TFN within 28 daysto the address on your application—we cannotprovide TFNs over the phone.

Are you an Australian resident?

The tax rates that apply to your taxable income dependon whether or not you are an Australian resident. Ahigher rate of tax is applied to a non-resident’s taxableincome and they are not entitled to a tax-freethreshold. See page 113 for more information.

The standards the ATO uses to determine yourresidency status are not the same as those used bythe Department of Immigration and MulticulturalAffairs.

Generally, the ATO considers you to be an Australianresident for tax purposes if:• you have always lived in Australia or you have

come to Australia and live here or

• you have actually been in Australia for more thanhalf of 1998–99—unless your usual home isoverseas and you do not intend to live in Australia.

If you go overseas temporarily and you do not set upa permanent home in another country, you maycontinue to be treated as an Australian resident fortax purposes.

Overseas students coming to Australia to study whoare enrolled in a course that is more than 6 monthslong are generally treated as Australian residents fortax purposes.

If you are visiting Australia on a working holiday, youwill generally not be considered an Australianresident for tax purposes.

If you are an Australian resident for tax purposes,print X in the YES box at this item.

If you are not an Australian resident for tax purposes,print X in the NO box at this item.

If you need help in deciding whether or not you are anAustralian resident for tax purposes, ring the generalenquiries helpline on the inside back cover ofTaxPack.

Important: If your residency status for tax purposeshas changed during 1998–99, you will need to answerquestion A2 on pages 101–2. We need thisinformation to work out your tax-free threshold.

Your personal details

Carefully complete the personal informationquestions on page 1 of your tax return. These includequestions about your name, address, date of birthand contact telephone number.

Will you need to lodge anAustralian tax return in the future?

If you know that you will need to lodge an Australiantax return in the future, print X in the YES box at thisquestion. If you are unsure, print X in the DON’T KNOW

box. If you know that your 1998–99 tax return will bethe last Australian tax return that you will lodge,print X in the NO box.

This may be your last tax return if:• your annual taxable income in the future will be

below the tax-free threshold, currently $5400, or• your only source of income in the future will be a

Commonwealth of Australia government pension or• you are moving overseas permanently.

T A X PA C K 9 9 9

GENERA

L INFORM

ATION

Are you lodging a tax return for someone who died during the year? Page 2 inTaxPack 99 will tell you if a tax return is required.If yes, prepare a final tax return for the financial year up to the date of death.

Print DECEASED ESTATE on the top of page 1 of the tax return and print X in the NO

box at Will you need to lodge an Australian tax return in the future? The executoror administrator of the estate must sign the tax return on behalf of the deceasedperson.

Certain types of income received after the date of death may need to be shown in atrust tax return. If you have any questions, ring the general enquiries helpline onthe inside back cover of TaxPack.

10 T A XPAC K 9 9

ELEC

TRON

IC F

UNDS

TRA

NSF

ER

$Do you want a faster refund?

PAGE 1 OF YOUR TAX RETURN

Direct refund

By using electronic funds transfer (EFT) the Australian Taxation Office can deposityour tax refund directly into the bank, credit union or building society account ofyour choice. EFT gives you quicker access to your money. Direct refund is notavailable on the full range of accounts. If you are in doubt, check with yourfinancial institution.

Important: If you provide another person’s account details, your refund will be sentto that account. Be careful to provide the correct account details.

To use direct refund

Print X in the YES box on page 1 of your tax return at the question Do you want touse electronic funds transfer (EFT) for your refund this year? If you used EFT lastyear and the account details you provided are correct, there is no need to providethem again. Go to page 11. Otherwise, go to step 1.

STEP 1 Write the bank state branch (BSB) number. This is a 6-digit number that identifiesthe financial institution. If the account has a cheque facility—excluding credit unionaccounts—the BSB number can be found on a cheque form. See the example on thenext page.

If you do not know the BSB number, or it has less than 6 digits, check with thefinancial institution. Do not include spaces, dashes or hyphens in the BSB number.

STEP 2 Write the account number as shown on the account records. See the example on thenext page. An account statement, cheque book or other document from the financialinstitution will show this information. You cannot use an account number longerthan 9 characters. Do not include spaces in the account number.

STEP 3 Print the account name—also called account title—as shown on the account records.Do not print the account type—for example, savings, cheque, mortgage offset.

See the Account name instructions below and the example on the next page.

Account name instructions

If your name was John Q Citizen, you might have an account with the account nameshown as JQ Citizen or John Q and Mary Citizen or another variation. Quote theaccount name as it is shown on the account records. Include a space between eachword and between any initials in the account name.

On the next page is an example of a completed direct refund request.

T A X PA C K 9 9 11

ELECTRONIC FUN

DS TRAN

SFERXYZ Bank2 Constitution Avenue, Canberra City 19

Pay

The sum of

or Bearer

John Q and Mary Citizen

$

Finding BSB number,account number and

account name detailson a bank or building

society cheque (notcredit union cheques)

Where to write theBSB number, accountnumber and account

name details on yourtax return

Do you want to use electronic funds transfer (EFT) for your refund this year?Read page xx of TaxPack 99 for more information.

BSB number Account number

Account name—for example, JQ Citizen. Do not show the account type, such as cheque, savings, mortgage offset

Go to page 2.

YES

NO

ACCOUNT NAME ACCOUNT NUMBERBSB NUMBER

$Do you want to pay your tax debt by EFT?

Direct debit

You can use electronic funds transfer (EFT) direct debit to pay your tax debt directlyfrom your account. Why write cheques or queue to pay tax when you can have yourpayment made electronically on the due date—no earlier than 1 December.

The account you use for direct debit must be in your name. Accounts in joint namesare acceptable, as long as yours is one of the names.

To use direct debit

Your notice of assessment will show a due date that is at least 30 days after theissue date shown on the notice. This gives you time to make a direct debit request—ring the EFT helpline on 1800 802 308 and get a Direct debit request, complete itand send it back to the Australian Taxation Office. The instructions about where topost the Direct debit request will come with the form. Allow at least 10 working daysfor processing. A direct debit request remains in force until it is cancelled. See theDirect debit request for full instructions.

If you used direct debit last year and the account details you provided are correctyou do not need to make another request. Your notice of assessment will display amessage that your tax debt will be debited from your nominated account on thedue date.

If your account details have changed you will need to complete a Direct debitrequest if you want to use direct debit this year.

Please note that special rules apply when paying quarterly provisional tax bydirect debit.

For more information about EFT ring the EFT helpline on 1800 802 308.

If you used EFT last year and the account details youprovided are correct, do not write them again.

12 T A XPAC K 9 9

EXEM

PT I

NCO

ME

Exempt income is not included in your assessableincome. The most common types of exempt incomeyou may have received are listed here.

Note: Some questions in TaxPack ask you to showyour spouse’s exempt income.

Commonwealth of Australia governmentpensions, allowances and payments

Exempt pensions• carer payment where both the carer and the person

being cared for are under age pension age, or thecarer is under age pension age and the personcared for has died

• carer service pension and partner service pensionwhere both the carer, or the partner, and theveteran being cared for are under age pensionage and the veteran receives an invalidity servicepension, or the veteran has died and received aninvalidity service pension at the time of death

• invalidity service pension where the recipient isunder age pension age

• disability support pension paid by Centrelink to aperson who has not reached age pension age

• Veterans’ Affairs disability pension andallowances, war widow’s and war widower’spension

• double orphan pension• wife pension where both the recipient and partner

are under age pension age or the recipient is underage pension age and the partner has died

Note: Superannuation Act 1976 and Defence ForcesRetirement Benefits Act 1948 pensions and paymentsare taxable. Show them on your tax return at item 7.

Exempt other payments• family tax payment• child care rebate• child care assistance• child disability allowance• basic parenting payment (partnered)• supplementary or additional benefits for children

received as part of a social security payment• disaster relief payment• employment entry payment• family allowance• family allowance advance• farm household support payments that have been

converted to a grant• maternity allowance• maternity immunisation allowance• mobility allowance paid under the Social Security

Act 1991

• pharmaceutical allowances paid under the SocialSecurity Act 1991 or the Veterans’ EntitlementsAct 1986

• rent assistance• remote area allowance• telephone allowance paid under the Social Security

Act 1991 or Veterans’ Entitlements Act 1986

• Veterans’ Affairs loss of earning allowance• lump sum pension bonus paid under the Social

Security Act 1991 or the Veterans’ EntitlementsAct 1986

Education payments• allowances for students under 16 years of age

including those paid under ABSTUDY, youthallowance and the Veterans’ Children EducationScheme

• allowances for students paid under the Assistancefor Isolated Children Scheme

• Australian–American Educational Foundation grant• Commonwealth scholarships or bursaries provided

to foreign students• Commonwealth secondary education assistance• some scholarships and bursaries received by

full-time students• pensioner education supplement and fares

allowance paid by Centrelink

Defence Force and United Nations payments• pay and allowances for Defence Force personnel

and prescribed civilians who served with certainUnited Nations peacekeeping forces—youremployer will advise you if an amount is exempt

• some allowances paid to Defence Force personnelwho served in prescribed overseas areas—youremployer will advise you if an allowance is exempt

• pay and allowances for part-time service in theDefence Force Reserve and EmergencyReserve Forces

Other exempt payments• child support or spouse maintenance payments• domiciliary nursing care benefits• open employment incentive bonus• rent and mortgage relief scheme payments• amounts on which family trust distribution tax has

been paid (see question A3 on page 103)• payments from the Commonwealth under the

incentives payments scheme relating to certainprivate health insurance policies

For information on the type of payment you received,contact the agency or person that paid you.

You do not have to pay tax on this exempt income

Salary or wages 14

Allowances, earnings, tips,director’s fees etc. 16

Lump sum payments 18

Eligible termination payments 19

Commonwealth of Australia governmentallowances and payments like Newstart,youth allowance and austudy payment 23

Commonwealth of Australia governmentpensions and allowances 24

Other Australian pensions or annuities—including superannuation pensions 26

Gross interest 27

Dividends 28

You will need to complete the 1999 tax returnfor individuals (supplementary section) toanswer the following income questions.For more information see page 31.

Partnerships and trusts s4

Net income or loss from business s8

Net income equalisation and/or farmmanagement deposits or withdrawals s11

Capital gains s12

Foreign entities s19

Foreign source income andforeign assets or property s21

Rent s27

Bonuses from life insurancecompanies and friendly societies s28

Other income s30

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Question Page

I N C O M E

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Did you receive salary or wages, including income earned from part-timeand casual jobs, from which tax instalments were deducted?

To complete this question you should have a group certificate, letter or statementfrom your employer which shows:• your income in the ‘Gross salary, wage, bonus etc.’ box AND• the tax instalments that were deducted.

If you do not have a group certificate, letter or statement you can use a statutorydeclaration—see below.

Include payments for lost salary or wages paid under an accident or insurancepolicy or worker’s compensation scheme from which tax instalments have beendeducted.

NO Go to question 2. YES Read below.

YOU NEED TO KNOW

Late, lost or wrong group certificates, letters or statements from your employerIf you do not have all of your documents, or any are wrong, contact the employerwho paid you. Ask your employer to give you a letter showing the correct details.

If you are unable to get these documents from your employer, you will need tocomplete a statutory declaration and attach it to page 3 of your tax return.To find out how to get a statutory declaration, see the inside back cover of TaxPack.

The statutory declaration must show the period or periods of employment coveredby your lost documents, the names of your employers, the amounts of taxinstalments deducted and the amount of gross salary or wages you earned.

NOTE

If you lodge your tax return without a group certificate or statutory declarationshowing the correct details we will send your tax return back to you to lodge it againwith the necessary documents attached.

WHAT YOU MAY NEED For each job you had during 1998–99:• your group certificate or• a letter or statement from your employer or• a completed statutory declaration if required.

Completing this question

STEP 1 Print the occupation from which you earned most of your salary or wages includedat this question in the Your main salary or wage occupation box at item 1 on yourtax return.

STEP 2 Print the name of the employer shown on each group certificate, letter or statementfrom your employer in a Name of employer box at item 1 on your tax return.

STEP 3 Write the amount of tax instalments deducted as shown on each group certificate,letter or statement from your employer at the left of C to G item 1 on your taxreturn. Show cents.

STEP 4 Write the amount of gross salary or wages shown on each group certificate, letteror statement from your employer at C to G item 1 on your tax return. Do notshow cents.

SALARY ORWAGES

1

Do not showat thisquestion:

STOP

• amounts in the‘Allowances’ or‘Lump sumpayments’ boxes onyour groupcertificates

• Commonwealth ofAustralia governmentpensions, allowancesand payments

• income from anAustralian annuity orsuperannuationpension

• income paid to youas a partner in apartnership

• prescribed paymentssystem or reportablepayments systemincome

• foreign employmentincome.

Other questions dealwith these matters.Read on or refer to theIndex.

Exempt income is shown on page 12.

T A X PA C K 9 9 15

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EImportant: If you have more than 5 group certificates, letters or statements fromyour employers, complete steps 2 to 4 for your first 4 documents only. Then add upthe tax instalments deducted shown on your fifth and remaining documents andwrite the total at the left of G item 1 on your tax return. Show cents.

Add up the amounts of gross salary or wages shown on your fifth and remainingdocuments and write the total at G item 1 on your tax return. Do not show cents.

CHECK THAT YOU HAVE • printed on your tax return your occupation• printed on your tax return the names of your employers• written on your tax return the amounts of tax instalments deducted• written on your tax return the amounts of gross salary or wages• attached to page 3 of your tax return the employee’s tax return copy of

all your group certificates, letters or statements from your employers, and yourstatutory declaration if required

• kept a copy of your group certificate, letter, statement or statutory declaration foreach employer. You need to keep it for 5 years from 31 October or, if you lodgelater, for 5 years from the date you lodge your tax return.

Are you on a low income?

Need help with your tax affairs but can’t afford to pay a registered tax agent?

Tax Help is a free and confidential service for people on a low income. It operateseach year from July until the end of October.

Tax Help volunteers can explain your tax obligations and assist you to prepare yourtax return. They are trained by the Australian Taxation Office to help taxpayers whoget Commonwealth of Australia pensions, allowances and payments, salary orwages, interest, dividends and overseas pension income.

Volunteers are not allowed to help with your more complex tax affairs such ascapital gains, rental properties, prescribed payments and other business issues.

There are Tax Help centres throughout the metropolitan area of each State and inmany country areas. If you want to visit a volunteer, you need to make anappointment first. Don’t forget to take your TaxPack and any relevant papers withyou when you go.

If you cannot locate a Tax Help centre in your area, ring the Australian TaxationOffice on 13 2861 for more information.

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EARNINGS, TIPS,DIRECTOR’SFEES, ETC.

2

Did you receive any income from working—whether or not it is shownon a group certificate—such as:• salary and wage income, including income earned from part-time and

casual jobs, from which tax instalments were NOT deducted• allowances• benefits• tips, bonuses, gratuities and payments for your services• consultation fees and honoraria—payments for voluntary services• commissions?

Embassy staff must show at this question salary and wage income from which taxinstalments were not deducted and the total amount of any tax paid by purchasingincome tax credit vouchers.

Show at this question income from sickness and accident insurance policies shownon a group certificate where no tax instalments have been deducted.


YOU NEED TO KNOW

Allowances, benefits and earnings from your employer may include:• car, travel or transport allowances even if they were paid in cash• allowances for tools, clothing or laundry• dirt, height, site, risk, meal or entertainment allowances• allowances for qualifications—for example, a first aid certificate• any reimbursement of car expenses—calculated by reference to the distance

travelled by the car—which is an exempt car expense payment benefit for fringebenefits tax purposes.

Award transport paymentsAward transport payments are allowances covering car expense reimbursements—worked out on a cents per kilometre basis—or transport expenses. The awardtransport payments are paid under an industrial law or award that was in force on29 October 1986.

These payments are assessable income and must be included at this question.

If you have incurred car or transport expenses associated with these payments, youmay be able to claim a deduction at item D1 or D2 on page 3 of your tax return.

DeductionsYou cannot automatically claim a deduction just because you got an allowance.Carefully read the Deductions section that starts on page 33.

WHAT YOU NEED • your group certificates, income tax credit vouchers or statements of earnings• other details of your income

If you do not have all of your documents, contact the person who paid you.


STOP

• amounts shown as‘LSPA’ in the‘Allowances’ box onyour group certificate

• Commonwealth ofAustralia governmentpensions, allowancesand payments

• income fromsickness andaccident insurancepolicies NOT shownon a group certificate

• foreign employmentincome

• income paid to youas a partner in apartnership

• income—includingcommissionincome—you earnedbecause you wereself-employed

• income you earnedas a non-employeetaxi driver—forexample, a driveroperating under astandard bailmentagreement with anowner/operator.

Other questions dealwith these matters.Refer to the Index.

Exempt income is shown on page 12.

T A X PA C K 9 9 17

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ECompleting this question

STEP 1 At the left of K item 2 on your tax return write the total amount of tax instalmentsdeducted from allowances or benefits plus the amount of any tax paid bypurchasing income tax credit vouchers. Show cents.

Do not include any amounts already shown on your tax return.

STEP 2 Add up all your allowances, benefits, earnings and other salary and wage income.Do not include amounts shown at item 1 or required to be shown at items 3 to 7.

Include all allowances, benefits and earnings you received, whether or not they areshown on a group certificate, income tax credit voucher or statement of earnings.

Include any reimbursements of car expenses you received that were worked out byreference to the distance travelled by the car. You may be able to claim a deductionfor work related car expenses at item D1. For more information, read pages 36–42 ofTaxPack 99.

STEP 3 Write the total at K item 2 on your tax return. Do not show cents.

CHECK THAT YOU HAVE • written on your tax return the total amount of tax instalments deducted fromallowances or benefits plus the amount of any tax paid by purchasing income taxcredit vouchers

• written on your tax return the total amount of allowances, benefits and otherincome required to be shown

• attached to page 3 of your tax return the employee’s tax return copy of all yourgroup certificates, letters or statements from your employers and your tax returncopy of any income tax credit vouchers.

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3

LUMP SUMPAYMENTS

3

Did you receive any lump sum payments for unused annual leave orunused long service leave?


WHAT YOU MAY NEED

• your group certificate showing an amount at A or B in the lump sumpayments box

• a letter or statement from your employer

WHAT ARE THE The amount at A was paid to you:AMOUNTS AT A AND B? • for unused long service leave that accrued after 15 August 1978 if you left your

job because of bona fide redundancy, invalidity or under an approved earlyretirement scheme

• for unused annual leave if you left your job because of bona fide redundancy,invalidity or under an approved early retirement scheme

• for unused long service leave that accrued after 15 August 1978 and before18 August 1993 if you did not leave your job because of bona fide redundancy,invalidity or under an approved early retirement scheme

• for unused annual leave that accrued before 18 August 1993 if you did not leaveyour job because of bona fide redundancy, invalidity or under an approved earlyretirement scheme.

The amount at B was paid to you for unused long service leave which youaccumulated before 16 August 1978.

What to do with amounts shown at A on your group certificate, letter or statementSTEP 1 Add up the amounts of tax instalments deducted on all your group certificates and

letters or statements from your employers. Do not include any amounts alreadyincluded at questions 1 or 2. Write the total at the left of R item 3 on your taxreturn. Show cents.

STEP 2 Add up the amounts at A on all your group certificates and letters or statementsfrom your employers. Write the total at R item 3 on your tax return.Do not show cents.

What to do with amounts shown at B on your group certificate, letter or statementSTEP 1 Add up the amounts of tax instalments deducted on all your group certificates and

letters or statements from your employers. Do not include any amounts alreadyincluded at questions 1 or 2 or at step 1 above. Write the total at the left of Hitem 3 on your tax return. Show cents.

STEP 2 Add up the amounts at B on all your group certificates and letters or statementsfrom your employers. Then divide by 20 to work out 5 per cent of the amount.

STEP 3 Write your answer at H item 3 on your tax return. Do not show cents.

CHECK THAT YOU HAVE • written on your tax return the amounts of tax instalments deducted• written on your tax return the amounts of income• attached to page 3 of your tax return the employee’s tax return copy of all your

group certificates, letters or statements from your employers.

T A X PA C K 9 9 19

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EDid you receive an eligible termination payment (ETP)?

If you have received a lump sum payment which fits the description of one of thepayments set out below—particularly if an ETP group certificate or a Statement oftermination payment accompanied your lump sum—it is likely to be an ETP.

If you have received a lump sum on termination of foreign employment or from anon-resident superannuation fund, you need to read question 15 in TaxPack 99

supplement.


YOU NEED TO KNOW For ETPs made on or after 1 July 1998:• the Statement of termination payment (STP) has been replaced by the ETP group

certificate• the Roll-over payment notification has been replaced by the ETP roll-over

statement

An ETP is:• a lump sum paid to you by your employer when you retire or cease employment,

such as:– a payment in lieu of notice or a ‘golden handshake’– a payment for unused sick leave or unused rostered days off– compensation for loss of a job or wrongful dismissal– a bona fide redundancy payment or an approved early retirement scheme

payment that exceeded the tax-free threshold for such payments—currently$4712 plus $2356 for each complete year of service

– a payment received because of invalidity.• a lump sum payment from a superannuation fund, an approved deposit fund,

retirement savings account, a life assurance company or a registeredorganisation, such as:– payments received when you change your superannuation pension or annuity

into a lump sum– payments received when you make a withdrawal from an approved

deposit fund– other payments, excluding a pension or annuity, from a superannuation fund.

• a similar payment to those above, paid to you as the beneficiary of a person whohas died—we call this a death benefit ETP. However, if the payments were madeto you as the trustee of a deceased estate they must be shown in the trust taxreturn, not your tax return for individuals.

• a payment from the Australian Taxation Office of amounts collected from theSuperannuation Guarantee or the Superannuation Holding Accounts Reserve.

• a payment from the sale of an active asset of a small business which wouldotherwise be an assessable capital gain—called the CGT exempt component.

If you are still unsure whether the payment you received is an ETP, you can ring oursuperannuation helpline on 13 1020 for assistance.

What if your ETP A roll-over means you transferred a part or all of an ETP to a complyingwas ‘rolled over’? superannuation fund, retirement savings account or an approved deposit fund, or

you purchased an annuity with it. In this case, the tax payable on the rolled-overcomponent is deferred until the benefit is received. Any tax deducted in 1998–99 iscredited to you. The instructions show you how to claim for a roll-over.

ELIGIBLETERMINATION

PAYMENTS

4

You can also find moreinformation in thebooklets Eligibletermination payments:a guide to lump sumpayments for employeesand Eligible terminationpayments: an individualsguide to lump sumsuperannuationpayments. To find outhow to get thesepublications, see theinside back cover ofTaxPack.

NOTE

If you have received anETP group certificate,your ETP is theassessable amountshown at ‘Section 3 ETPcash payment details’.If you have received anordinary groupcertificate, your ETP isthe amount at Cin the lump sumpayments box. Anyamount shown at D D D D D isnot an ETP and istax-free—you do nothave to show it on yourtax return.

NOTE

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WHAT YOU MAY NEED

• your ETP group certificate. If you have lost it, youwill need a letter or statement from your payer thatshows all the details of your eligible terminationpayment (ETP). If you think the details on your ETPgroup certificate are wrong, contact the personwho prepared it.

• your Statement of termination payment (STP) fromyour payer. When you get an ETP, the payer mustgive you an STP with your ordinary groupcertificate unless you roll over all of your ETP. TheSTP shows your personal details and the totalamount of your ETP and the amount of eachcomponent making up the ETP.Contact your payer if:– you did not get an STP, you have lost it or you

think the details on your STP are wrong– you did not get an STP and you did not roll over

all of your ETP– your STP does not show the separate

components needed to work out your tax.• your ordinary group certificate with your STP. If you

have lost your group certificate, you will need aletter or statement from your payer that shows allthe details of your ETP. If you think the details onyour group certificate are wrong, contact theperson who prepared it.

• your Roll-over payment notification with your STPif you rolled over all or part of any ETP that waspaid to you. Your payer should have returned theoriginal to you after you notified them of your roll-over. You should have one for each amount yourolled over. Contact your payer if they did notreturn your Roll-over payment notification to you.

• your Reasonable benefit limit determination if youhave an excessive component. Your reasonablebenefit limit (RBL) is the maximum amount ofretirement and other employment terminationbenefits you can receive that are taxed atconcessional—reduced—rates. In most cases, thepayer of the ETP will have reported the payment tothe Australian Taxation Office (ATO), and we willwork out whether your benefit is within your RBL.The ATO will send you an RBL determination only ifsome or all of your benefits were above your RBL.We will work out the excessive component andadjust the other components of your ETP. Thesewill also be shown on your RBL determination. Youthen use the information on the RBL determinationinstead of the related ETP group certificate or STP.

If you are unsure whether you need an RBLdetermination or if you have any enquiries regardingyour RBL, you can ring the RBL helpline on 13 2864 orwrite to: RBL Section, Private Bag 6000, BankstownNSW 1888.

Working out the taxable amountParts A, B, C and D below will show you how to workout your taxable amount. This is the amount toinclude in your taxable income at item 4 on your taxreturn. We work out the tax based on the componentsof your ETP and it is therefore important that youattach your documents to page 3 of your tax return.

If you lodge your tax return without any ETP groupcertificate, or the STP and the ordinary groupcertificate, we will return it to you and ask you tolodge it again with the documents attached.

If you received more than one ETP, check parts A, Band C for each ETP. You may need to add totals beforetransferring them to your tax return.

PART A—Did you roll over all of an ETP?

NO Go to part B. YES Read below.

Your tax on this ETP will be deferred and you do notneed to work out its taxable amount for 1998–99. Ifyou have other ETPs that you did not roll over in total,check parts B and C to see which applies to them. Ifyou have no other ETPs go to step 8 of part D.

PART B—Were you aged 55 or over whenyou received an ETP that you did notroll over?

NO Go to part C. YES Read below.

Low rate thresholdIf you were aged 55 or over when you received yourETP and have a post-June 1983 component shown onyour ETP group certificate or STP, this portion of theETP is taxed at a lower rate—up to a lifetime limitcalled the low rate threshold. The limit is indexedeach year.

The low rate threshold applies to the total of all yourpost-June 1983 elements (taxed and untaxed), thatyou have received since 1 July 1988 as long as youwere 55 years or older at the time of receiving the ETP.

Once the limit has been used up, it cannot be usedagain in future years except for any extra amountadded for annual indexation. If you exceed this limityou will pay tax on the amount in excess of thethreshold at the rates set out in the table on page 22.

T A X PA C K 9 9 21

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EIf you turned age 55 on or after 1 July 1988 and youdid not receive the benefit of the low rate thresholdincreased by indexation, write to the AustralianTaxation Office (ATO) stating your age at the time youreceived the eligible termination payment (ETP), theamount of the ETP, the amount of the post-June 1983

component and the name and address of the payer.Enclose copies of any ETP group certificates orstatements of termination payment (STPs) youreceived from the payer. The ATO will work outwhether you are entitled to have the amount of tax onyour ETP recalculated.

LOW RATE THRESHOLDS FOR 1988–89 TO 1998–99

1988–89 $60 000 1992–93 $76 949 1996–97 $86 495

1989–90 $64 500 1993–94 $77 796 1997–98 $90 474

1990–91 $68 628 1994–95 $79 586 1998–99 $93 731

1991–92 $73 776 1995–96 $83 168

PART C—Did you:• receive an ETP direct from your employer

which you did not roll over OR• receive a death benefit ETP—that is, a lump

sum you received because of the death ofanother person?

NO Go to part D. YES Read below.

You need a copy of Eligible termination payments:instructions and worksheet. To find out how to getthis publication see the inside back cover of TaxPack.The worksheet will instruct you how to completeitem 4 on your tax return. Print X in the YES box atTaxpayer’s declaration question 2a on page 6 of yourtax return. Go to CHECK THAT YOU HAVE.

PART D—Completing this question

You will find the necessary ETP components at‘Section 3 ETP cash payment details’ on your ETPgroup certificate OR part E on your STP OR on anyreasonable benefit limit (RBL) determination.

Any non-qualifying amounts shown on an STP mustbe shown at item 18 on your tax return(supplementary section). If you have an ETP groupcertificate with a non-qualifying amount, ring thesuperannuation helpline before completing thisquestion.

Undeducted contributions, post-June 1994 invaliditycomponents and CGT exempt components are exemptfrom tax and are not included in your taxable amount.

If you received an STP, you need to go through steps 1to 5 for each STP. If you received an ETP groupcertificate, go to step 6.

STEP 1

From your STP or RBL determination find yourconcessional component. Divide this amount by 20 togive you 5 per cent. Write the result at line A, COLUMN 2

of the TAXABLE AMOUNT WORKSHEET below.

STEP 2

From your STP or RBL determination find your pre-July1983 component. Divide this amount by 20 to giveyou 5 per cent. Write the result at line B, COLUMN 2 ofthe worksheet.

STEP 3

From your STP or RBL determination find your post-June 1983 untaxed element and copy it to line C,COLUMN 2 of the worksheet.

STEP 4

From your STP or RBL determination find your post-June 1983 taxed element and copy it to line D,COLUMN 2 of the worksheet.

STEP 5

Add up the amounts in COLUMN 2. This is your taxableamount.

TAXABLE AMOUNT WORKSHEET

COLUMN 1 COLUMN 2

ETP components Taxable amount$

Undeducted contributions(exempt from tax) 0

Post-June 1994 invalidity component(exempt from tax) 0

CGT exempt component(exempt from tax) 0

A Concessional component 5% =

B Pre-July 1983 component 5% =

C Post-June 1983 showuntaxed element full amount

D Post-June 1983 showtaxed element full amount

Add up COLUMN 2.

This is the taxable amount of this ETP—include it at I item 4 on your tax return.

STEP 6

Add up the taxable amounts of each ETP from yourSTP or RBL determination and the assessable amountshown on any ETP group certificates. Write the totalat I item 4 on your tax return. Do not show cents.

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Post-June 1983 component—consisting of a ‘taxedelement’ or an ‘untaxed element’. ‘Taxed element’means that the payer—usually a fund—has paid acontributions tax on this element. ‘Untaxed element’means that the payer— usually an employer—has notpaid a contributions tax on this element. For thisreason the elements are taxed differently.

TAX RATES ON POST-JUNE 1983 ELEMENTS

Age when received Taxed Untaxedelement element

Under age 55 20% 30%

Age 55 or over– up to $93 731 0% 15%

– excess over $93 731 15% 30%

Any Medicare levy is on top of these rates. A Medicarelevy will not apply to a taxed element where the tax rateis zero.

The post-June 1983 component is initially included inyour tax return as assessable income. You are thengiven a rebate to ensure that the correct tax ratesare applied. This may affect your entitlement to otherrebates—for example, age pension and low incomerebates.

Excessive component—the amount, if any, bywhich your ETP benefits have exceeded your RBL. In1998–99, the RBL is $471 088 if more than half of allbenefits are taken as a lump sum and $942 175 ifmore than half of all benefits are taken as a pension.Any excessive component is taxed at the highestmarginal rate plus Medicare levy.

Can the components of your ETP be changed?It may be in your interests to ask the ATO to changethe components of your ETP if:• you were in a superannuation fund but only received

what you contributed with no interest added• you were receiving a pension or annuity before

1 July 1983 and changed it into a lump sum• you were in a ‘self-employed superannuation fund’

or one not supported by your employer and youmade contributions before 19 August 1980

• the pre-July 1983 component shown on your ETPgroup certificate or STP is less than the amountthat you would have received if you had left yourjob or withdrawn from your superannuation fund at30 June 1983.

Your superannuation fund can tell you if you meetthese conditions. If you think you are entitled to havethe components of your ETP changed, ring thesuperannuation helpline for assistance.

STEP 7

Write the total amount of tax instalments deductedfrom all of your eligible termination payments(ETPs)—including any that you rolled over—in the taxinstalments deducted column at item 4 on your taxreturn. You will find this amount on your ETP groupcertificate or ordinary group certificate. Show cents.

If you have already included these tax instalments atitem 1 or 3, do not include them again here.

STEP 8

If you have a reasonable benefit limit (RBL)determination which shows an excessive component,write the amount of the excessive component at Nitem 4 on your tax return. Do not show cents.

STEP 9

Attach your employee’s tax return copy of any ETPgroup certificates or ordinary group certificates, anyletters or statements you received, the originals ofany statements of termination payment (STPs) andany roll-over payment notifications to page 3 of yourtax return. Print X in the YES box at Taxpayer’sdeclaration question 2a on page 6 of your tax return.

CHECK THAT YOU HAVE

• written on your tax return the amount of your taxinstalments deducted

• written on your tax return the total taxable amountof your ETPs and any excessive component

• attached to page 3 of your tax return the originalsof your STPs, any roll-over payment notifications,completed ETP worksheets and the employee’s taxreturn copy of any group certificates, letters orstatements from your employer.

• kept a copy of your payment instructions. Do notattach these to your tax return but keep them for5 years. There is no need to keep a copy of any ETPpre-payment statement or ETP roll-over statementyou receive, unless it also includes your paymentinstructions.

HOW IS YOUR TAX WORKED OUT?We will work out your tax based on the individualcomponents of your ETP. The tax rates applying tosome common ETPs that are not death benefit ETPsare explained below. The tax treatment of a deathbenefit ETP is described in the publication Eligibletermination payments: instructions and worksheet.

Concessional component and pre-July 1983

component—5 per cent of these components isincluded in your taxable income and taxed at yourusual rate.

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EDid you receive:• additional parenting payment (partnered)• exceptional circumstances relief payment, restart income support or farm

household support (by way of financial assistance)• Newstart allowance• youth allowance• mature age allowance and you started to receive the allowance on or

after 1 July 1996

• partner allowance• sickness allowance• special benefit• widow allowance• austudy payment—includes payments shown on a group certificate

for AUSTUDY• ABSTUDY living or dependent spouse allowance or payment under the

VCES (Veterans’ Children Education Scheme) AND you were 16 years or over• Training for Employment Program allowance, NEIS (New Enterprise

Incentive Scheme) allowance, TCF (Textile Clothing and Footwear)special allowance, Green Corps training allowance, or other taxableCommonwealth education or training payments?

Under proposed legislation the income support component of the wage of aparticipant in a Community Development Employment Project (CDEP) will be shownat this question. If this proposal applies to you ring the general enquiries helpline onthe inside back cover of TaxPack.

Do not show Student Financial Supplement Scheme amounts at this question. Theyare not shown anywhere on your tax return.

Show your income from these payments here unless your payment was exempt.Check page 12 if you are not sure.


WHAT YOU MAY NEED • your group certificate• your statement of allowance or payment from the agency that paid you.

If you have not received these, or you have lost them, contact the agency that paid you.

STEP 1 Add up all the amounts of tax instalments deducted as shown on your groupcertificates or statements of allowance or payment. Write the total amount of taxinstalments deducted at the left of A item 5 on your tax return. Show cents.

STEP 2 Add up all the gross amounts you received. Gross amount might also be calledgross allowance or gross payment. Write the total amount you received at A item 5.Do not show cents.

You may be entitled If you received one or more of the payments listed above, you may be entitled to ato a rebate on beneficiary rebate. You do not have to work out your rebate. We work it out for you

this income from the income you show at A item 5. If you want to work it out before you receiveyour notice of assessment, you can use the table on page 123.

CHECK THAT YOU HAVE • written on your tax return the total amount of tax instalments deducted• written on your tax return the total amount of income you received• attached to page 3 of your tax return the tax return copy of all your group

certificates or statements of allowance or payment.

COMMONWEALTHOF AUSTRALIAGOVERNMENTALLOWANCES

AND PAYMENTS

5

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Did you receive a Commonwealth of Australia government:• age pension• bereavement allowance• carer payment• disability support pension and you have reached age pension age• mature age allowance and you started to receive the allowance

before 1 July 1996

• mature age partner allowance• parenting payment (single)• widow B pension• wife pension• age service pension• carer service pension• income support supplement• invalidity service pension and you have reached age pension age• partner service pension?

Show your income from these payments here unless your payment was exempt.Check page 12 if you are not sure.


WHAT YOU MAY NEED • your group certificate• your statement of pension, allowance or payment• a letter from the agency that paid your pension, allowance or payment stating the

amount that you receivedIf you have not received these, or you have lost them, contact the agency thatpaid you.• your spouse’s notional taxable income—this is the taxable income of your

spouse, married or de facto, plus any exempt pensions listed on page 12.


STEP 1 Add up all the amounts of tax instalments deducted as shown on your groupcertificates, statements or letters. Write the total amount of tax instalmentsdeducted at the left of B item 6 on your tax return. Show cents.

STEP 2 Add up all the income you received. Write the total amount at B item 6 on your taxreturn. Do not show cents.

STEP 3 Find the code letter that applies to your circumstances in the REBATE CODE LETTERS

table on page 25. This code letter tells us the amount of rebate your entitlement willbe based on. Rebates may reduce the amount of tax you have to pay.

If you do not print a code letter on your tax return or you print an incorrect codeletter, processing of your tax return may be delayed.

If more than one code letter applies to you, use the letter that appears first in thefollowing order: S, A, H, M, Q. For example, if both code letters S and H apply to you,use S.

Exceptions to this rule:• If both S and M apply to you and your spouse’s notional taxable income was less

than $8195, use M as this gives you the correct rebate.• If both S and A apply to you and your spouse’s notional taxable income was less

than $11 275, use A as this gives you the correct rebate.


STOP

• Superannuation Actand Defence ForcesRetirement BenefitsAct pensions andpayments

• eligible terminationpayments

• foreign pensions.Other questions dealwith these matters.Refer to the Index.

COMMONWEALTHOF AUSTRALIAGOVERNMENT

PENSIONS ANDALLOWANCES

6

T A X PA C K 9 9 25

6

INCOM

EREBATE CODE LETTERS

If at any time during 1998–99 while you were receiving a Commonwealth of Australiagovernment pension or allowance listed at question 6, you were:

• single or widowed S

• separated S

• a sole parent S

If you had a spouse, married or de facto, and your spouse did NOT receive any of theCommonwealth of Australia government pensions or allowances listed at question 6or any exempt pensions listed on page 12 and:

• you started to receive your pension or allowance before 12 March 1992

and you have been receiving it continuously since then S

• you started to receive your pension or allowance on or after 12 March 1992 and:– you and your spouse had to live apart due to illness or either of you was in a

nursing home at any time during 1998–99 H– you and your spouse lived together during 1998–99 Q

If you and your spouse, married or de facto, both received a Commonwealth ofAustralia government pension or allowance listed at question 6 or you receivedsuch a pension and your spouse received any exempt pensions listed on page 12

at any time during 1998–99 and:

• you and your spouse had to live apart due to illness or either of you was in anursing home at any time during 1998–99 A

• you and your spouse lived together during 1998–99 M

STEP 4 Print your code letter from the table above in the small box at the right of Bitem 6 on your tax return.

STEP 5 Have you used A or M? If so you must complete Spouse details—married or de factoon page 6 of your tax return. Provide relevant details including your spouse’staxable income at O and any exempt pensions your spouse received at Q . If theseamounts are zero, write ‘0’.

If both you and your spouse received any of the Commonwealth of Australiagovernment pensions or allowances shown at this question—or you received such apension and your spouse received any exempt pensions listed on page 12—you maybe able to get any unused portion of your spouse’s pensioner rebate. By using theamounts you write on the spouse details section on your tax return we will work outif you are entitled to have the unused portion transferred to you. If so, we will makesure it is taken into account in working out your rebate.

CHECK THAT YOU HAVE • written on your tax return the total amount of tax instalments deducted• written on your tax return the total amount of income you received• printed on your tax return your rebate code letter• if required, written on the spouse details section of your tax return your spouse’s

income details• attached to page 3 of your tax return your statement or letter and the tax return

copy of all group certificates.

DO YOU WANT TO WORK OUT YOUR REBATE?You do not have to work out your rebate. We will work it out for you from yourtaxable income details and your rebate code letter. Make sure you print your codeletter on your tax return.

If you do want to work out your rebate, go to page 123.

‘Had to live apart due toillness’ is a technicalterm in relation to thepayment of pensions. Ifyou are unsure if youwere paid the pensionat a higher rate becauseyou were separated dueto illness, check withCentrelink.

NOTE

26 T A XPAC K 9 9

7

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PENSIONS ORANNUITIES

7

Did you receive any income from an Australian:• annuity• superannuation or other pension not shown at question 6?

Do not show foreign pensions or foreign annuities at this question. Refer to the Index.

NO Go to TOTAL TAX YES Read below.INSTALMENTS DEDUCTED.

YOU NEED TO KNOW

Australian annuities and pensions include:• superannuation and similar pensions and annuities paid to you by an Australian

superannuation fund, retirement savings account (RSA) provider, registeredorganisation or life assurance company

• pensions paid by a fund established for the benefit of Commonwealth, State orTerritory employees and their dependants.

WHAT YOU NEED

Your group certificate or statement from your Australian annuity, superannuation,other pension fund or RSA provider—attach it to page 3 of your tax return.

STEP 1 Print the type of annuity or pension—for example ‘annuity’ or ‘superannuationpension’—in the Type box at item 7 on your tax return. If you received more thanone type, print the type that gave you the largest amount of income.

STEP 2 Add up all the tax instalments deducted as shown on your group certificates andstatements and write the total amount at the left of J item 7. Show cents. Do notinclude amounts already shown at items 1, 3 or 4.

STEP 3 Add up all the gross amounts shown on your group certificates and statements andwrite the total amount at J item 7. Do not show cents.

Undeducted If your annuity or pension has an undeducted purchase price, you may be able topurchase price claim the deductible amount of your undeducted purchase price at question D8.

Superannuation You may be entitled to a rebate for your annuity or pension. Read question R4

rebate on pages 73–5 to find out more about this rebate.

Low income aged You may be entitled to a low income aged person rebate. Read question R3 onperson rebate pages 71–2 to find out more about this rebate.

TOTAL TAXINSTALMENTS

DEDUCTED

Completing item TOTAL TAX INSTALMENTS DEDUCTED

Add up all the amounts in the tax instalments deducted boxes for items 1 to 7 onyour tax return.

Write the total amount at $ item TOTAL TAX INSTALMENTS DEDUCTED on your taxreturn. Show cents. Go to question 8.

Rebates and your tax instalment deductionsIf your rebate entitlement has changed since you last filled in an employmentdeclaration, you may need to fill in a new one. Contact your employer for moreinformation. Pages 61–86 tell you about rebates.

Additional tax instalment deductions for the Higher Education Contribution SchemeIf you have a Higher Education Contribution Scheme (HECS) debt, the additional taxinstalments deducted from your pay form part of your normal tax instalmentdeductions (TIDs). When you receive your group certificate, the additional TIDsdeducted for HECS purposes form part of the total amount you show at $ itemTOTAL TAX INSTALMENTS DEDUCTED on your tax return. Page 112 shows you how yourtax is worked out.

Superannuation fundscan now use tax filenumbers (TFNs) to keeptrack of superannuationbenefits. If your fundhas your TFN, you willpay less tax on yourbenefit. Call or write toyour fund today andquote your TFN.

NOTE

T A X PA C K 9 9 27

8

INCOM

EDid you receive, or were you credited with, interest from any sourcewithin Australia?

Include interest earned from financial institution accounts and term deposits—unless you are a non-resident and have paid non-resident withholding tax onthat interest.

Include any interest you received from, or were credited with by, the AustralianTaxation Office (ATO).


Children’s accountsIf you open or operate an account for a child and the funds in that account belong toyou, or you spend or use the funds in the account as if they belonged to you, youmust include any interest from the account at this question. Taxation RulingIT 2486—Children’s savings accounts has more detail. To find out how to get thisruling, see the inside back cover of TaxPack.

Non-residentsWithholding tax paid by non-residents is a final tax. If you are not an Australianresident for tax purposes, do not include interest at this question if withholding taxwas deducted from the interest by your financial institution. However, if you havenot paid withholding tax on any interest you earned, you need to show that interestat this question.

WHAT YOU NEED

• your passbook, your statement or other documentation from your financialinstitution or other source that shows 1998–99 income

• any ATO notice of assessment or amended assessment you received during1998–99 that shows interest on early payments or interest on overpayments.

STEP 1 Using your records, add up all the amounts of gross interest received by or creditedto you. You do not have to show an amount if the total gross interest you earnedfrom all accounts during the year is less than $1.

If you are not the sole holder of an account, show only your share of interest. For anyaccount where the account holders do not share equally in the interest, keep arecord to show how you worked out your share.

Do not deduct tax file number (TFN) amounts. These are amounts of tax deducted bythe financial institution because you did not quote your TFN to the institution. Thesewill be shown on your statement or other document as Commonwealth tax or TFNwithholding tax.

STEP 2 Write your gross interest at L item 8 on your tax return. Do not show cents.

STEP 3 Add up all the TFN amounts deducted.

Do not deduct account keeping fees, charges and Financial Institutions Duty here.You may be able to claim these amounts at item D6.

STEP 4 Take away from your step 3 total any TFN amounts already refunded to you.These will be shown on your statement or other document.

STEP 5 Write the answer from step 4 at M item 8. Show cents. These amounts will becredited to you on your notice of assessment.


STOP

• distributions ofinterest you received,or are entitled toreceive, from apartnership or trust—including a cashmanagement, moneymarket, mortgage,property, unit or anysimilar trustinvestment product

• interest from a foreignsource

• tax paid on yourinterest by purchasingincome tax creditvouchers

• interest from landtransport facilities taxrebate scheme orinfrastructureborrowings scheme.


GROSS INTEREST

8

28 T A XPAC K 9 9

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DIVIDENDS

9

Did an Australian company, corporate unit trust, public trading trust orcorporate limited partnership pay or credit you with any dividends ordistributions?

If you carried on the business of trading in shares include any dividend income andimputation credits at this question; if you have a profit or loss on the sale of shares,read question 11 in TaxPack 99 supplement.

Do not claim dividend expenses here. Claim them at question D6.

If you were paid or credited with dividends from a foreign company you mustread question 15 in TaxPack 99 supplement.

If you sold shares during the year you must read question 13 in TaxPack 99

supplement to see if you need to show a capital gain or loss.

NO Go to INCOME FROM YES Read below.SUPPLEMENTARY SECTION.

YOU NEED TO KNOW

You need to show at this question all your assessable dividends including thosedirectly paid to you, dividends applied under a dividend reinvestment plan,dividends which are otherwise dealt with on your behalf, and bonus shares whichqualify as dividends.

Dividends include distributions made by a corporate limited partnership. This is apartnership taxed in accordance with Division 5A of Part III of the Income TaxAssessment Act 1936.

A dividend is assessable income in the year it was paid or credited to you. Yourdividend statement should have the relevant date (generally referred to as thepayment date or date paid).

EXAMPLE

Anastasia received a dividend statement notifying her of a final dividend for the yearended 30 June 1998. The payment date shown on the dividend statement was30 September 1998. Anastasia must include the amount of the dividend as part of herassessable income for the year ended 30 June 1999—on her 1998–99 tax return.

Payments, benefits and loans to be treated as dividends—deemed dividendsIf you are a shareholder, or an associate of a shareholder, of a private company andreceived payments or loans from the company or had debts forgiven by thecompany, the value of those payments, loans or debts forgiven are deemed to bedividends unless they are specifically excluded under the provisions of Division 7Aof Part III of the Income Tax Assessment Act 1936.

Deemed dividends must be combined with any unfranked dividends you receivedand be included in your assessable income at S item 9 on your tax return. For moreinformation, read the booklet You and your shares. To find out how to get thispublication, see the inside back cover of TaxPack.

EXAMPLE

Vanessa owns shares in a private company, X Pty Ltd. On 30 June 1999, X Pty Ltd makes apayment of $5000 on behalf of Vanessa’s father, Frank. Frank and Vanessa are notemployees of X Pty Ltd nor are they associates of any employee of the company. Under theprovisions of Division 7A this payment is deemed to be an unfranked dividend paid toFrank because Frank is an associate of a shareholder of X Pty Ltd—namely Vanessa.Frank must include the $5000 as assessable income at S item 9.


STOP

• dividends that youreceived, or areentitled to receive, aspart of a distributionfrom a partnership ortrust—including acash management,money market,mortgage, propertyunit or similar trustinvestment product

• a dividend ordistribution onwhich family trustdistribution tax hasbeen fully paid.


T A X PA C K 9 9 29

9

INCOM

ENon-residentsIf you are not an Australian resident for tax purposes,do not include dividend income at this question if:• the dividend was fully franked• the dividend was not fully franked but withholding

tax was deducted from the unfranked amount bythe company that paid you the dividend.

If your dividends were not fully franked and you havenot paid withholding tax on your dividends, you willneed to include them at this question.

IMPUTATION SYSTEMDividends paid to shareholders by Australian residentcompanies are taxed under a system known asimputation. It is called an imputation system becausethe payment of company tax is imputed, or attributed,to the shareholders. The shareholders receive a creditfor the tax paid by the company, called an imputationcredit.

The basis of the system is that if a company pays to aresident shareholder dividends which have beenfranked, the shareholder may be entitled to a frankingrebate equal to the imputation credit. The rebate willcover, or partly cover, the tax payable on thedividends. If the rebate is more than the tax payableon the dividends, the excess rebate will be applied tocover, or partly cover, any tax payable on other taxableincome received. However, any excess rebate cannotresult in a refund, and it does not reduce the amountof Medicare levy that would otherwise be payable.

An exception to this is imputation credits attached todividends on which family trust distribution tax hasbeen paid. These dividends—paid by a company orcorporate limited partnership—are exempt and youcannot claim the imputation credit. The company orcorporate limited partnership should tell you if familytrust distribution tax has been paid on the dividend.

Unfranked dividendsUnfranked dividends are paid by an Australianresident company that has not already paidAustralian company tax. If the dividend is unfranked,you are not entitled to a franking rebate. Theunfranked dividend is taxed in the same way as yourother income and must be included in yourassessable income at S item 9 on your tax return.

If you did not quote your tax file number (TFN) to yourinvestment body for shares or units held, tax mayhave been deducted from any unfranked dividends atthe highest rate plus the Medicare levy, a total of 48.5

per cent.

If you had TFN amounts deducted from your unfrankeddividends, these will be shown on your dividendstatement. You can claim a credit for any TFN amountsdeducted at V item 9 on your tax return. If you havereceived a refund of some or all of the TFN amountsdeducted, you cannot claim a credit for these amounts.

Franked dividendsIf you received a franked dividend from a residentcompany you must include the dividend amount inyour assessable income at T item 9. Frankeddividends can be either fully franked, meaning thatthe whole amount of the dividend carries imputationcredit, or partly franked, meaning that only part of theamount of the dividend carries imputation credit.

You must also include any allowable imputation creditin your assessable income at U item 9 on your taxreturn, so the correct amount of tax and Medicarelevy can be calculated. The imputation credit will beautomatically allowed as a rebate to reduce your tax.

Your entitlement to a franking rebate may be affectedby proposed legislation. The proposed measures—theholding period rule and the related payments rule—will generally operate from 1 July 1997 and in somecases from 13 May 1997 and will only apply if yourtotal entitlement to franking rebates is more than$2000. For more information read You and your shares.


WHAT YOU NEED

Your statements from the company, corporate unittrust, public trading trust or corporate limitedpartnership that paid you the dividends or made thedistributions.

These should show:• the amounts of unfranked and franked dividends

you received• the amounts of imputation credit—which the

company has already worked out• the TFN amounts deducted from unfranked

dividends.

If you have not received your dividend or distributionstatements, contact the company, corporate unittrust, public trading trust or corporate limitedpartnership that paid or credited you with thedividends or distributions.

Show only your share of any dividends which werepaid or credited to you. For example, if you owned theshares in joint names show only your portion ofdividend income on your tax return.

30 T A XPAC K 9 9

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STEP 1 Add up all unfranked dividend amounts—including any tax file number (TFN)amounts deducted—on your statements plus any deemed dividends. Write the totalamount at S item 9 on your tax return. Do not show cents.

STEP 2 Add up all franked dividend amounts on your statements and any other frankeddividends paid or credited to you. Write the total amount at T item 9. Do notshow cents.

STEP 3 Add up all allowable imputation credit amounts on your statements. Write the totalamount at U item 9. Do not show cents.

STEP 4 Add up any TFN amounts which were deducted but have not been refunded to you.Write the answer at V item 9. Show cents. This amount will appear as a credit onyour notice of assessment.

EXAMPLE OF HOW TO SHOW UNFRANKED AND FRANKED DIVIDENDS

In the following example, the imputation credits attached to dividends are class C creditsfrom dividends franked at the company tax rate of 36 cents. Dividends can also be partlyfranked or unfranked. Your statement from the company, corporate unit trust, publictrading trust or limited partnership will show the amount to which your dividends havebeen franked.

a) Judy received dividends from XYZ Ltd. Fully franked dividends of $64 and a $36

imputation credit are shown on her dividend statement.

b) Judy was entitled to receive a dividend of $100 from the DEF Public Trading Trust andshe did not quote her TFN. Her trust documents showed a TFN amount of $48.50 wasdeducted and she was paid $51.50 as an unfranked dividend. The unfranked amountto be shown on her tax return is $51.50 plus the TFN amount deducted of $48.50, atotal of $100.

c) Judy received dividends from UVW Corporate Unit Trust. $50 in unfranked dividends,$64 in franked dividends and a $36 imputation credit are shown on her dividendstatement.

d) Judy was entitled to receive a dividend of $228 from JKL Pty Ltd and she did not quoteher TFN. $100 was unfranked and $128 was fully franked. Her statement from thecompany showed a TFN amount of $48.50 was deducted from the unfranked dividendand a payment of $51.50 was made to her. The unfranked amount to be shown on hertax return is $51.50 plus the TFN amount deducted of $48.50, a total of $100. She wasalso entitled to a franked dividend of $128 and an imputation credit of $72. No TFNamount is deducted from franked dividends.

Company Unfranked Franked Imputation TFN amountsor trust amount * amount credit deducted from

dividends

a) XYZ Ltd $ 0.00 $ 64.00 $ 36.00 $ 0.00

b) DEF PT Trust $100.00 $ 0.00 $ 0.00 $ 48.50

c) UVW CU Trust $ 50.00 $ 64.00 $ 36.00 $ 0.00

d) JKL Pty Ltd $100.00 $128.00 $ 72.00 $ 48.50

Total S $250.00 T $256.00 U $144.00 V $ 97.00

* Unfranked amount includes both the amount received or credited and the TFN amountdeducted. For additional examples, refer to the booklet You and your shares.

CHECK THAT YOU HAVE • written on your tax return the total unfranked amount• written on your tax return the total franked amount• written on your tax return the total allowable imputation credit amount• written on your tax return the total TFN amount deducted from dividends• kept your dividend statements with your other records.

T A X PA C K 9 9 31

INCOM

EDid you derive any of the following types of income?• partnership and trust distributions••••• income or loss from business (including if you are self-employed)• income equalisation and/or farm management deposits or withdrawals• capital gain or loss—for example, on disposal of assets• foreign entity distribution• foreign source income—including foreign pensions and foreign employment

income—and foreign assets or property• attributed income• rent• bonuses from life insurance companies and friendly societies• other income not shown at items 1 to 9, including:

– a non-qualifying component of an eligible termination payment– foreign exchange gains– benefits from an employee share scheme– lump sum payments in arrears– royalties– taxable scholarships, bursaries, grants or other educational awards– benefits or prizes from investment-related lotteries– income from activities as a special professional—author of a literary, dramatic,

musical or artistic work, an inventor, a performing artist, a productionassociate or an active sportsperson

– reimbursements of tax-related expenses or election expenses which you haveclaimed as a deduction

– payouts from sickness and accident insurance policies—other than thoseshown on your group certificate

– balancing adjustment profit from the disposal, loss or destruction of your carfor which you have claimed car expenses

– gains from the disposal of traditional securities– interest from the land transport facilities tax rebate scheme or infrastructure

borrowings– allowances or payments you received as a member of a local government

council that you have not already shown at items 1 or 2– jury attendance fees.

NO Go to TOTAL INCOME YES You must complete theOR LOSS on page 32. 1999 tax return for individuals

(supplementary section).Read below.

The supplementary section of the tax return is located in the back of TaxPack 99

supplement. If you haven’t already got a copy of TaxPack 99 supplement, from 1 Julyto 31 October 1999 you can get a copy from newsagencies displaying this logo. It isalso available all year from the Australian Taxation Office.

If you have net income or loss from a business (item 11) you must also completethe 1999 business and professional items schedule and attach it to page 9 of yourtax return.


STEP 1 Complete the page 7 details on your tax return. Use TaxPack 99 supplement tocomplete the Income section.

STEP 2 Transfer the amount you wrote at TOTAL SUPPLEMENT INCOME OR LOSS on page 9to on page 2 of your tax return. If you made an overall loss, print L in thesmall box beside that amount.

IINCOME FROM

SUPPLEMENTARYSECTION

I

Read this questioncarefully—you mayneed to use TaxPack 99

supplement.

CAUTION

32 T A XPAC K 9 9

INCO

ME

TOTALINCOMEOR LOSS

You have now reached the end of the Income section of TaxPack 99.

Before adding up your amounts from items 1 to 9 and any amount at itemon page 2 of your tax return, please note the following.

• The more common types of exempt income are listed at page 12. Do not includeany exempt income in your tax return.

• You must have shown all of your income for tax purposes—the Taxpayer’sdeclaration on page 6 of your tax return will require you to sign that this is true.Pages 13–31 give you the information you need to show the right amounts. If youstill have income that you have not put at any item and it is not exempt income,you will need to go back through the Income section and include it.

If you are in any doubt, ring the general enquiries helpline on the inside back coverof TaxPack.

Our audit activities include checking the income details you provide on your taxreturn with other sources—for example, your employer, your bank or theCommonwealth of Australia government agency that pays your pension, allowanceor payment.

• If you have not been able to complete one or more of items 1 to 9 or itembecause you do not have all the documents you need to work out the rightamount—for example, a group certificate—do not complete this section yet.

• Remember that you have until 31 October 1999 to lodge your tax return. Youshould not lodge your tax return early if it is incomplete. If you think you arelikely to be missing information at 31 October, ask the Australian Taxation Officeif you can lodge at a later date. Page 1 in TaxPack 99 tells you how.

Completing item TOTAL INCOME OR LOSS

STEP 1 Add up all the income amounts in the right-hand column of items 1 to 9 anditem on your tax return.

STEP 2 Take away any loss amount at item from the total income amount you workedout at step 1. Your answer is your total income or loss.

STEP 3 Write your answer from step 2 at TOTAL INCOME OR LOSS on your tax return. Do notshow cents.

If you made an overall loss, print L in the small box at the right of TOTAL INCOME

OR LOSS.

I

I

I

I

Documents

see the inside front cover and page 1 · 2018-05-22 · surcharge (M2) This item is compulsory for all taxpayers. If you do not complete the item you may be charged the full Medicare