Individual tax return instructions supplement 2012 - Australian ...

Instructions for taxpayersIndividual tax returninstructions supplement2012To help you complete the supplementary section of your tax return1 July 2011 – 30 June 2012NAT 71051-06.2012

OUR COMMITMENT TO YOUWe are committed to providing you with accurate,consistent and clear information to help you understandyour rights and entitlements and meet your obligations.If you follow our information in this publication and itturns out to be incorrect, or it is misleading and youmake a mistake as a result, we must still apply the lawcorrectly. If that means you owe us money, we must askyou to pay it but we will not charge you a penalty. Also,if you acted reasonably and in good faith we will notcharge you interest.If you make an honest mistake in trying to follow ourinformation in this publication and you owe us money asa result, we will not charge you a penalty. However, wewill ask you to pay the money, and we may also chargeyou interest. If correcting the mistake means we oweyou money, we will pay it to you. We will also pay youany interest you are entitled to.If you feel that this publication does not fully cover yourcircumstances, or you are unsure how it applies to you,you can seek further assistance from us.We regularly revise our publications to take account ofany changes to the law, so make sure that you have thelatest information. If you are unsure, you can check formore recent information on our website at ato.gov.au orcontact us.This publication was current at May 2012.DO YOU NEED THIS SUPPLEMENT?Individual tax return instructions supplement 2012contains instructions for completing the supplementarysection (pages 13–16) of the Tax return for individuals2012. Two copies of the Tax return for individuals(supplementary section) 2012 are at the back ofthis publication.The items in the supplementary section of the tax returnare those that our records show are least commonlyused by taxpayers.Check the contents list on the next page. If any ofthese items apply to you, follow the instructions in thissupplement, including those that link the supplementarysection of the tax return with the main part of thetax return (pages 1–12). You will need to attach thesupplementary section to the main part to lodge yourtax return.Remember, Individual tax return instructions supplement2012 is used in conjunction with Individual tax returninstructions 2012.© AUSTRALIAN TAXATION OFFICE FOR THECOMMONWEALTH OF AUSTRALIA, 2012You are free to copy, adapt, modify, transmit and distribute this material asyou wish (but not in any way that suggests the ATO or the Commonwealthendorses you or any of your services or products).PUBLISHED BYAustralian Taxation OfficeCanberraJune 2012JS 21469

13 Partnerships and trusts4Write5WriteWrite at L the total of your distributions of primaryproduction income or loss from trusts.If you have a loss, print L in the box at the rightof L.If you are eligible for primary production incomeaveraging and the trust has reported a loss,but you were otherwise not required to write anamount at this step, write a zero amount at L.at U the total of your distributions ofnon‐primary production income or loss fromtrusts excluding amounts of net capital gains,foreign income and franked distributions (if theseamounts are separately shown on your statementof distribution). Make sure you include your shareof any credits for tax withheld (including frankingcredits from franked dividends) from income thetrusts distributed to you.If you have a loss, print L in the box at the rightof U.at C your share of franked distributions fromtrusts. Also include at C any share of frankingcredits referrable to those franked distributions.The franking credits are also shown at label Q.6 Can you claim deductions for adistribution from a partnershipor trust?No Go to step 13.Yes Read on.If a trustee incurred eligible expenditure onlandcare operations or water facilities, only thetrustee, not a beneficiary of the trust, can claimdeductions for that expenditure.Primary production deductions7If you were a partner in a partnership that incurredeligible expenditure on landcare operations orwater facilities, write your share of the total at Iitem 13 on your tax return.8Write9Inat X item 13 the total of other deductionsyou can claim for your share of:n primary production income or loss from apartnership, andn primary production income of a trust.the TYPE box at the right of X, print:n D if the entire amount at X is a deferrednon‐commercial business loss from a prior yearn P if only part of the amount at X is a deferrednon-commercial business loss from a prior year.Otherwise leave the TYPE box blank.Non-primary production deductions101112If you were a partner in a partnership that incurredeligible expenditure on landcare operations orwater facilities, write your share of the total at Jitem 13 on your tax return.Write at Y item 13 the total of other deductionsyou can claim for your share of:n non-primary production income or loss froma partnership, andn non-primary production income of a trust,including any deductions relating to frankeddistributions from trusts.In the TYPE box at the right of Y, print:n D if the entire amount at Y is a deferrednon‐commercial business loss from a prior yearn P if only part of the amount at Y is a deferrednon-commercial business loss from a prior year.Otherwise leave the TYPE box blank.INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012 s3

14Personal servicesincomeAre you a sole trader?No Go to question 15.Yes Read on.Did you receive income forpersonal services you providedas a sole trader?Personal services income is income that is mainly areward for an individual’s personal efforts or skills.This includes personal services income you received:n under a pay as you go (PAYG) voluntaryagreementn under a labour hire arrangement as anindependent contractorn under a contract which is wholly or principallyfor your labour or servicesn from which an amount was withheld becauseyou did not quote your Australian businessnumber (ABN)n as a professional practitioner in a sole practicen as a professional sportsperson or entertainerfor sports or entertainment activitiesn from the exercise of professional expertise asa consultant.Your personal services income also includespayments (called specified payments) that youreceived for:n providing tutorial services for the IndigenousTutorial Assistance Scheme of the Department ofEducation, Employment and Workplace Relationsn providing translation and interpretation services forthe Translating and Interpreting Service National ofthe Department of Immigration and Citizenshipn performing as a performing artist in a promotionalactivity.Personal services income is not income youreceived:n as an employeen for supplying or selling goods (from retailing,wholesaling or manufacturing)n generated by an income-producing asset(for example, from operating a bulldozer)n for granting a right to use property (for example,the copyright to a computer program)n generated by a business structure (for example,a large accounting firm).No Go to question 15.Yes Read on.Answering this questionYou must read the publication Business and professionalitems 2012 instructions before you can complete thisitem. You may also need the Personal services businessself assessment checklist. These publications areavailable at ato.gov.au/instructions2012Completing your tax return1You2Ifmust complete the Business and professionalitems schedule for individuals 2012 and attach itto page 3 of your tax return.you received personal services income fromwhich tax was withheld, complete the IndividualPAYG payment summary schedule 2012.3 Did you write an amount atA item P1 on your Business andprofessional items schedule forindividuals 2012?No Go to question 15.Yes Read on.INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012 s5

14 Personal services income4Transferthe net personal services income or lossthat you show at A item P1 on your Business andprofessional items schedule for individuals 2012to A item 14 of your tax return.If you made a loss, print L in the LOSS box at A.5 Did you show an amount atM, N or O item P1 on yourBusiness and professionalitems schedule forindividuals 2012?9Addup all the amounts on your IndividualPAYG payment summary schedule 2012 at theTax withheld boxes with an N in the TYPE box.These amounts must relate to the paymentsyou show at N item P1 on your Business andprofessional items schedule for individuals 2012.No Go to question 15.Yes Read on.6 Did you have amounts of taxwithheld under a pay as you go(PAYG) voluntary agreement?7AddNo Go to step 8.Yes Read on.up all the amounts on your IndividualPAYG payment summary schedule 2012 at theTax withheld boxes with a V in the TYPE box.These amounts must relate to the paymentsyou show at M item P1 on your Business andprofessional items schedule for individuals 2012.Write the total at H item 14.10 Did you have amounts of taxwithheld because you receivedpersonal services income from:n working under a labour hire arrangement,orn a specified payment?11No Go to question 15.Yes Read on.Add up all the amounts on your IndividualPAYG payment summary schedule 2012 at theTax withheld boxes with an S in the TYPE box.These amounts must relate to the paymentsyou show at O item P1 on your Business andprofessional items schedule for individuals 2012.Write the total at J item 14.Write the total at G item 14.8 Did you have amounts of taxwithheld because you did notquote your ABN?No Go to step 10.Yes Read on.s6 INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012

15AnsweringNet income or lossfrom businessDid you derive income or incura loss from any business?This question covers:n income from being a sole tradern income or a loss from a primary productionbusiness (For information about whatis a primary production business, go toato.gov.au/instructions2012 and readquestion 15.)n income under a pay as you go (PAYG) voluntaryagreementn income from which an amount was withheldbecause you did not quote your Australianbusiness number (ABN)n income you derived as a foreign resident fromwhich an amount was withheld because it wassubject to foreign resident withholdingn income of an independent contractor workingunder a labour hire arrangementn income from the following specified payments– payment for tutorial services provided for theIndigenous Tutorial Assistance Scheme of theDepartment of Education, Employment andWorkplace Relations– payment for translation and interpretationservices provided for the Translating andInterpreting Service National of the Departmentof Immigration and Citizenship– income as a performing artist in a promotionalactivityn any other business income.Do not show at this item personal services incomeincluded at item 14.No Go to question 16.Yes Read on.this questionYou must read the Business and professional items 2012instructions and complete the Business and professionalitems schedule for individuals 2012 (NAT 2816).n You may also need:– Information for primary producers 2012 (NAT 1712)– Individual PAYG payment summary schedule 2012(NAT 3647).To get a copy of these publications and for details ofother publications which may help you to complete thisitem, go to ato.gov.au/instructions2012Completing your tax return1Completethe Business and professional itemsschedule for individuals 2012 and attach it topage 3 of your tax return.2 Did you receive business incomefrom which tax was withheld?No Go to step 3.Yes Complete the Individual PAYG paymentsummary schedule 2012 and attach it topage 3 of your tax return. Go to step 3.3 Did you derive income orincur a loss from a primaryproduction business?No Go to step 4.Yes Read on.Transfer your net income or loss from a primaryproduction business shown at Y item P8 on yourBusiness and professional items schedule forindividuals 2012 to B item 15 on your tax return.If you made a loss, print L in the LOSS box at theright of B item 15.INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012 s7

15 Net income or loss from business4 Did you derive income or incura loss from any non-primaryproduction business?No Go to step 5.Yes Read on.Transfer your net income or loss from a non primaryproduction business shown at Z item P8 on yourBusiness and professional items schedule forindividuals 2012 to C item 15 on your tax return.If you made a loss, print L in the LOSS box at theright of C.5 Do you show income fromwhich tax was withheld at theINCOME items A, B, C, D, E, F, Nor O at P8 on the Business andprofessional items schedule forindividuals 2012?No You have now finished this item.Go to question 16.Yes Go to step 6.6 Did you have tax withheldunder a pay as you go (PAYG)voluntary agreement?No Go to step 7.Yes Read on.Add up all the amounts shown in the Tax withheldboxes on your Individual PAYG payment summaryschedule 2012 where you have printed V in theType box.These amounts must correspond with the paymentsshown at E and F item P8 on the Business andprofessional items schedule for individuals 2012.Write this total at D item 15.7 Did you have tax withheldbecause you did not quoteyour Australian businessnumber (ABN)?No Go to step 8.Yes Read on.Add up all the amounts on your Individual PAYGpayment summary schedule 2012 shown in theTax withheld boxes where you have printed Nin the Type box.These amounts must correspond with the paymentsshown at C and D item P8 on the Business andprofessional items schedule for individuals 2012.Write this total at W item 15.8 Did you have tax withheldbecause your income wassubject to foreign residentwithholding?No Go to step 9.Yes Read on.Add up all the amounts on your Individual PAYGpayment summary schedule 2012 shown in theTax withheld boxes where you have printed Fin the Type box.These amounts must correspond with the paymentsshown at A and B item P8 on the Business andprofessional items schedule for individuals 2012.Write this amount at E item 15.s8 INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012

15 Net income or loss from business9 Did you have tax withheldbecause you received:n income from working under a labour hirearrangement, orn a specified payment?NoYesYou have now finished this item.Go to question 16.Read on.Add up all the amounts on your Individual PAYGpayment summary schedule 2012 shown in theTax withheld boxes where you have printed S inthe Type box.These amounts must correspond with the paymentsshown at N and O item P8 on the Business andprofessional items schedule for individuals 2012.Write this amount at F item 15.16Deferred‘non‐commercial’business losses‘Non-commercial’ losses are business losses that youcannot claim against other income this year. The lossesmust be deferred until next year, when you can claimthem against any income that you generate from abusiness activity. You may be able to claim the lossesagainst other income next year, depending on how thenon-commercial loss rules apply to you then.Did you conduct a business activity:n as a sole trader that resulted in a loss, orn as a partner in a partnership that resulted in a lossafter deducting your expenses?No Go to question 17.Yes Read on.Answering this questionYou must read Business and professional items 2012instructions to answer this question. This publication isavailable at ato.gov.au/instructions2012Completing your tax return1Completethe Business and professional itemsschedule for individuals 2012. You must attachit to page 3 of your tax return, then print X in theYes box at Taxpayer’s declaration question 2bon page 12 of your tax return.2 Were you a partner in apartnership that resulted ina loss after deducting yourexpenses?No Go to step 5.Yes Read on.INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012 s9

16 Deferred ‘non‐commercial’ business losses3Write4Check5Write6Check7Add8Addat F item 16 your total net losses (frombusiness activities that you carried on in partnershipwith others) that are to be deferred.that you included the amount that you wroteat F item 16 in your calculation when you workedout your net distribution at item 13 and 20.Otherwise, you will have overstated yourtaxable income.at G item 16 your total net losses (from yourbusiness activities as a sole trader) that are tobe deferred.that you included the amount that you wroteat G item 16 in your calculation when you workedout your net income or loss at item 14, 15 and 20.Otherwise, you will have overstated yourtaxable income.up the amounts of primary productiondeferred losses at F and G item 16. Write the totalof primary production deferred losses at I item 16.up the amounts of non-primary productiondeferred losses at F and G item 16. Write the totalof non-primary production deferred losses at Jitem 16.17Net farm managementdeposits or repaymentsDid you make farm managementdeposits (FMDs) or receiverepayments from your FMD Schemeaccount during 2011–12?No Go to question 18.Yes Read on.The law about FMDs has changed.Before you complete this item you must:n have your account statement from your FMD providern read Information for primary producers 2012(NAT 1712)n read Farm management deposits scheme (NAT 8776).You must go to ato.gov.au/instructions2012and read question 17 to complete this question.Completing your tax return1Add2Add3Add4Add5Addup the deductible deposits you made.Write the total at D item 17.up early repayments that qualify for theexceptional circumstances exemption.Write the total at C.up early repayments that qualify for the naturaldisaster exemption.Write the total at N.up FMDs you withdrew which you had held for12 months or more.Write the total at R.up the amounts you showed at C, N and R,and take away the amount you showed at D.Write the answer at E. If the amount is negative,print L in the LOSS box at E.s10 INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012

18 Capital gainsCompleting your tax return1You2Work3Add4Work5Ifmust go to ato.gov.au/instructions2012and read the publication that is relevant to yourcircumstances.out the amount of your capital gain or capitalloss for each CGT event that occurred, and theamount of your capital gains from a trust for the2011–12 income year.up all your capital gains for the 2011–12income year (except those that are disregarded)to work out your total current year capital gains.Do not apply capital losses, any CGT discountsor the small business concessions (other than the15-year exemption) yet.Write this amount at H item 18.out your net capital gain or net capital loss.This is the amount remaining after applying to yourcurrent year capital gains whichever of the followingitems are relevant to you (in the order listed):n capital losses from this yearn unapplied net capital losses from earlier yearsn any CGT discountsn the small business 50% active asset reductionn the small business retirement exemptionor rollover.If you have capital losses to apply, you will find it toyour advantage to apply them first to any capitalgains that do not qualify for the CGT discount.You can only use capital losses from collectablesto reduce capital gains from collectables. You mustdisregard capital losses from personal use assets.the total amount remaining is positive or zero,write it at A item 18. You have now finished thisquestion, go to question 19.If you have a negative amount, do not put anythingat A. You have net capital losses to carry forward tolater income years.Write the amount at V item 18. You have nowfinished this question. Go to question 19.6PrintX in the NO box at G item 18 if:n you did not have a capital gain or capital loss, orn all of your capital gains or capital losses weredisregarded.Read on.7 Did you have any unapplied netcapital losses from earlier years?You can use net capital losses from earlier yearsthat you have not yet used to reduce a capitalgain in later years.No Go to question 19.Yes You have net capital losses from earlieryears that are carried forward to laterincome years.Write the amount at V item 18.s12 INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012

19Foreign entitiesAre you an Australian resident who:n had an interest in a foreign company over whichyou have some control, orn has ever transferred, or caused the transferof, property (including money) or servicesto a non‐resident trust?No Go to question 20.Yes Read on.Answering this questionTo complete this item you must read the Foreign incomereturn form guide (NAT 1840), go to ato.gov.au andsearch for ‘Foreign income return form guide’.Completing your tax return1Readchapter 1 of the Foreign income returnform guide.2 Did you have either a direct orindirect interest in a controlledforeign company (CFC)?No Print X in the NO box at I item 19.Go to step 5.Yes Read on.4Work5Readout your attributed foreign income from theseforeign companies and write the amount at K.chapter 2 of the Foreign income returnform guide.6 Did you ever, directly orindirectly, transfer or cause thetransfer of property (includingmoney) or services to anon‐resident trust?7Work8OnNoYesPrint X in the NO box at W. Go toquestion 20.Print X in the YES box at W. Read on.out your attributed foreign income fromtransferor trusts and write the amount at B.a separate sheet of paper, print:n SCHEDULE OF ADDITIONAL INFORMATION:ITEM 19n your name, address and tax file numbern the name of the non-resident trust andits trusteesn the amount of any attributable income in relationto the trust.Attach your schedule to page 3 of your tax return.3 Did you, alone or with associates:n have direct or indirect controlling intereststotalling 10% or more in a foreign company, orn have effective control of a foreign company?No Print X in the NO box at I item 19.Go to step 5.Yes Print X in the YES box at I item 19.Read on.INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012 s13

20YouForeign source incomeand foreign assets orpropertyDid you:n receive income from foreign employmentn receive a foreign pension or annuityn receive a lump sum payment from a foreignsuperannuation fundn transfer money from a foreign superannuationfund to an Australian superannuation fundn receive any other foreign source income includinginterest, dividends, royalties or rentn at any time during 2011–12, own or have aninterest in assets located outside Australia thathad a total value of A$50,000 or more?You can receive income even if it is held overseasfor you.No Go to question 21.Yes Read on.Answering this questionYou will need:n Foreign tax assessments, PAYG payment summary –foreign employmentn Distribution advices from foreign companies,partnerships and trustsn Details of any expenses you incurred in earning yourforeign incomeAll foreign income, deductions and foreign tax paid mustbe converted to Australian dollars before you completethis item. You can go to ato.gov.au/instructions2012and use the Foreign income conversion calculator.must include on your tax return your foreignemployment income that is exempt from tax. This istaken into account in working out the amount of tax youhave to pay on your other income. However, you donot include foreign employment income that is exemptbecause of:n a privileges and immunities agreement or a lawcovering persons connected with internationalorganisationsn specific exemptions for the pay and allowances ofmembers of the Australian Defence Force, related toqualifying service in a declared operational area.If you need to work out whether your foreignemployment income is exempt from tax, go toato.gov.au and search for:n ‘Exempt foreign employment income’n ‘Foreign income while working on an approvedoverseas project’.Australian residentsIf you received income from overseas, you must showyour assessable foreign income here, even if tax wastaken out in the country from which the income came.If you received a lump sum payment from a foreignsuperannuation fund, phone 13 10 20. Some of thesepayments are taxable and some are exempt fromAustralian tax.Temporary residentIf you were a temporary resident, show only incomethat you earned from foreign employment while atemporary resident.Completing your tax returnDid you receive a PAYG paymentsummary – foreign employment?No Go to part A.Yes Read on.s14 INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012

20 Foreign source income and foreign assets or property1Add2Add3TakePart Aall the ‘Gross payments’ from each paymentsummary.all the deductible expenses you incurred inearning your foreign employment income step 1.You would have included these deductibleexpenses at items D1 to D5.the total deductible expenses from step 2away from the total gross payments from step 1.Write the answer at U item 20.If the answer is a negative amount, print Lin the LOSS box at the right of U item 20.If you received no other foreign income,go to part G. Otherwise, read on.Did you receive income from foreignemployment that was not shownon a PAYG payment summary –foreign employment?No Go to part B.Yes Read on.1Add2Add3Addup all your foreign employment income thatis exempt from tax.Take away any expenses you incurred earningthat income.Write the answer at N item 20. If the answer is anegative amount, write 0.up all your gross foreign employment incomethat is assessable. Include any foreign tax that wastaken out.up any deductible expenses that you incurredin earning the foreign employment income.The types of expenses you may be able to deductagainst your foreign employment income areexplained at questions D1 to D5 on pages 25–31,but do not claim these expenses at D1 to D5.Do not include any interest or borrowing costs.4TakePart Bthe amount you worked out at step 3 awayfrom the amount you worked out at step 2.Write the answer at T item 20.If the answer is a negative amount, print L in theLoss box at the right of T item 20.If you received no other foreign income, go topart E. Otherwise read on.Did you receive a foreign pensionor annuity?No Go to part C.Yes Read on.1Add2Sort3Addthe amount of any foreign tax withheld to theamount of foreign pension or annuity you received.your foreign pensions and annuities into thosewith an undeducted purchase price (UPP) andthose without a UPP.up all foreign pensions and annuities withouta UPP.Add up any deductible expenses you incurredin gaining these foreign pensions and annuities.Do not include any interest or borrowing costs.Take the deductions away from the amount of theforeign pensions and annuities.Write the answer at L item 20.If the answer is a negative amount, print Lin the LOSS box at the right of L item 20.INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012 s15

20 Foreign source income and foreign assets or property4Addup all foreign pensions and annuities with a UPP.Add up any deductible expenses you incurredin gaining these foreign pensions and annuities.Do not include any interest or borrowing costs.Take the deductions away from the amountof the foreign pensions and annuities.Write the answer at D item 20.If the answer is a negative amount, print L inthe LOSS box at the right of D item 20.If you received no other foreign income, go topart E. Otherwise, read on.Part CDid you receive any foreign rentalincome?No Go to part D.Yes Read on.1Add2Add3Takeup your foreign rental income. Include anyforeign tax that was withheld from it.up all the deductible expenses that youincurred in relation to your foreign rental income.the amount you worked out at step 2 awayfrom the amount you worked out at step 1.Write the answer at R item 20.If the answer is a negative amount, print L in theLOSS box at the right of R item 20.If you received no other foreign income, go topart E. Otherwise, read on.Part DDid you receive any other foreignsource income, including:n assessable foreign superannuation lump sums notincluded at item 4n interest, royalties or dividendsn income from carrying on a business wholly orpartly overseasn any other foreign income?If you received a payment on termination of yourforeign employment that you did not show at item 4,include the payment at this item.Include dividends you received from a New Zealandcompany, including any:n non-share dividendsn supplementary dividendsn dividends you received or became entitled toduring 2011–12 through a partnership or a trust.Do not include any Australian franking credits from aNew Zealand company that you received directly, orindirectly, through a trust or partnership. Show theseamounts at part F.No Go to part E.Yes Read on.1Add2Addup all of the assessable foreign income,including foreign tax withheld on that income, thatyou have not already shown on your tax return.up all the deductible expenses that youincurred in earning the foreign income at step 1.Do not include any interest and borrowing costsunless they related to income earned through apermanent establishment in an overseas country.3Take the amount at step 2 away from the amountat step 1.4Write the total at M item 20.If the answer is a negative amount, print L in theLOSS box at the right of M item 20.s16 INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012

20 Foreign source income and foreign assets or propertyPart EWorking out your assessable foreign sourceincome1Add up the amounts you showed at T, L, D, R andM at item 20 on your tax return.2Add3AddPart Fup the deductions that you took into accountin working out the amounts you showed at T, L,D, R and M at item 20.the amount you worked out at step 1 to theamount you worked out at step 2.Write the total at E item 20.Make sure the amount you have shown at E doesnot include any exempt foreign income or incomeshown on a PAYG payment summary – foreignemployment.If you have Australian franking credits fromNew Zealand companies, go to part F.Otherwise, go to part G.Working out your Australian franking creditsfrom a New Zealand company1Add up all amounts of Australian franking creditsfrom a New Zealand company that you areentitled to:n by way of franked dividends or franked non-sharedividends paid to you by the company, orn indirectly through a trust or partnership.Do not include New Zealand imputation credits.In certain circumstances you may have to reduceyour Australian franking credits from a New Zealandcompany where the company paid a supplementarydividend in connection with the franked dividend.You must go to ato.gov.au/instructions2012 andread question 20 before completing step 2.2Write the total at F item 20.Part GWorking out your foreign income tax offsetThe Guide to foreign income tax offset rules (NAT 72923)explains how to work out your foreign income tax offset.You must read this publication before completingpart G if:n you are claiming a tax offset of more than $1,000for foreign tax paid, orn the amount of foreign tax you have paid relates to anamount that differs from the amount included in yourassessable income. For example, where you haveboth capital losses and foreign capital gains, the netcapital gain included in your assessable income willbe less than the foreign capital gain on which youpaid foreign tax.In certain circumstances a credit in the form of a foreignincome tax offset may also be allowed against yourliability to pay the flood levy. This may apply if foreigntax was paid in a country which has a tax treaty withAustralia. Read the Guide to foreign income tax offsetrules to work out if you are eligible.If you think you are eligible for this credit, or you showedexempt foreign employment income at N item 20,you must complete a schedule of additional information.Go to ato.gov.au/instructions2012 and readquestion 20 to find out how to complete the schedule,then read on.If you showed exempt foreign employment income at Nitem 20, go to part H. Otherwise, read on.1 Did the total amount of foreigntax you paid during 2011–12exceed $1,000?NoYesWrite the total of foreign tax paid at Oitem 20. Show cents. Go to part H.Read on.INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012 s17

20 Foreign source income and foreign assets or property2Ifthe total amount of foreign tax you paid during2011–12 is greater than $1,000 you can either:n simply claim $1,000 by printing $1,000 at Oitem 20, orn work out the full amount of foreign income taxoffset that you are entitled to claim and thencomplete O item 20. You must read the Guide toforeign income tax offset rules to work this out.21RentDid you earn rental income or wasyour property available for rent?No Go to question 22.Yes Read on.Part HAt any time during 2011–12, did youown or have an interest in assetslocated outside Australia that hada total value of A$50,000 or more?Assets include real estate, shares in companies,bonds, interests in partnerships or trusts, fundsheld in accounts or by other parties, and loansto other parties.If all the assets you held overseas are covered underquestion 19, your answer to this question is No.NoYesPrint X in the NO box at P item 20. You havenow finished this question. Go to question 21.Read on.Determine the value of all your overseas assets andwhether or not you received any income from thoseassets during 2011–12. Use:n the historical cost or market value, whicheveris greatern the exchange rate at 30 June 2012 to convert thevalue of the assets to Australian dollars or, if youdisposed of the assets during the year, the exchangerate at the time of disposal.Print X in the YES box at P item 20 if the value of youroverseas assets was A$50,000 or more.You have now finished this question. Go to question 21.Do not include rental income from properties locatedoutside Australia.Answering this questionYou must read the publication Rental properties2012 (NAT 1729) to work out the amounts youinclude at this item. To get a copy of this publication,go to ato.gov.au/instructions2012You may also need the following publications:n Guide to depreciating assets 2012 (NAT 1996)n Deductions for prepaid expenses 2012 (NAT 4170)You will need details of:n all rental income earnedn interest charged on money you borrowed for therental propertyn other expenses relating to your rental propertyn any expenditure on capital works to yourrental property.If you derived rent from a jointly held property, show onlyyour share of the rent and expenses at this item.s18 INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012

21 RentCompleting your tax return1You2Write3Write4Write5Write6Addmust read Rental properties 2012 to work outthe amounts you show at this item.your share of the total amount of gross rentat P item 21.your share of the interest expenses that canbe claimed as a deduction at Q.your share of the capital works deductionsthat can be claimed as a deduction at F.your share of the other rental expensesthat can be claimed as a deduction (except anylow‐value pool deduction) at U.up the amounts at Q, F and U. Take awaythe total from the amount at P.Write this amount at Net rent.If you have made a rental loss, print L in theLOSS box at Net rent.22Bonuses from lifeinsurance companiesand friendly societiesDid you receive a bonus becauseyour life insurance policy or friendlysociety insurance bond:n matured, orn was terminated, forfeited, or surrendered in fullor in part?No Go to question 23.Yes Read on.Answering this questionShow a bonus amount at this item if all the followingconditions apply:n You received the bonus amount or directed how itis to be dealt with, within 10 years from when thepolicy started.n Your life insurance policy or friendly society insurancebond matured, was partly or fully terminated, forfeited,or surrendered.n The bonus amount was in addition to the premiumsyou paid to the life insurance company or friendlysociety.Do not show:n bonus amounts received after the 10th year ofthe policyn benefits you received from a friendly society that arebonuses from income bondsn life insurance bonuses from policies that– you started before 28 August 1982– matured due to the death of the person insured– you surrendered due to an accident, illness or otherdisability of the person insured– you surrendered due to severe financial hardship, or– are retirement savings accounts.INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012 s19

22 Bonuses from life insurance companiesand friendly societiesYou must go to ato.gov.au/instructions2012and read question 22 if you:n received a bonus from a policy that startedon or after 28 August 1982 and before8 December 1983n increased the amount of your premiums bymore than 25% during the term of the policy.You will need your:n life insurance policy and bonus advicen friendly society policy and bonus advice.Completing your tax return1Writeat W item 22:n the whole bonus amount you received in2011–12 if you received it during the firsteight years of the policyn two-thirds of the bonus amount you received in2011–12 if you received it during the ninth yearof the policy, orn one-third of the bonus amount you received in2011–12 if you received it during the 10th yearof the policy.Do not include any bonus amount received after the10th year of the policy.You will get a tax offset equal to 30% of the amountyou show at this item. We will work out this taxoffset for you.23Forestry managedinvestment schemeincomeDid you receive income from aforestry managed investmentscheme (FMIS)?No Go to question 24.Yes Read on.Answering this questionYou must go to ato.gov.au/instructions2012to complete this question.Completing your tax return1Go2Writeto ato.gov.au/instructions2012 and readquestion 23 to work out the total amount of yourforestry managed investment scheme income.the amount at A item 23.s20 INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012

24Other incomeDid you receive any other income?Other income includes:Category 1 incomen lump sum payments in arrears, except for thoserelating to superannuation income streamsn foreign exchange gainsn benefits or prizes from investment-related lotteriesand some game-show winningsn reimbursement or recoupment of tax-relatedexpenses or election expenses which you areclaiming as a deductionn any assessable balancing adjustment when youstop holding a depreciating asset for which youhave claimed a deduction for depreciation ordecline in value in previous yearsn a gain on the disposal or the redemption oftraditional securitiesn work-in-progress amounts that you have notincluded at item 15.Category 2 incomen jury attendance feesn royaltiesn bonus amounts distributed from friendly societyincome bondsn taxable scholarships, bursaries, grants or othereducational awardsn income from activities as a special professionaln payments made to you under an incomeprotection, sickness or accident insurance policywhere the premiums were deductible and thepayments replaced income, that you have notalready shown at item 1 or 2n interest from infrastructure borrowings if youintend to claim a tax offset at item T14n allowances or payments you received as amember of a local government council that youhave not shown at item 1 or 2n other taxable allowances or payments youreceived from Centrelink that you have not shownat item 5 or 6n an amount released by one or more ofyour superannuation funds greater than theexcess contributions tax liability stated on therelease authorityn any other amount of income not already shownon your tax return.For an explanation of some of these types ofincome, see Answering this question below.NoYesGo to ato.gov.au/instructions2012 andread question 24 if you have income notlisted here that you are unsure about.Go to Total supplement income or loss.Read on.Answering this questionLump sum payments in arrearsThese payments relate to earlier income years. Theyappear at E on your:n PAYG payment summary – individual non-business, orn PAYG payment summary – foreign employment.You need to provide additional information.You must go to ato.gov.au/instructions2012and read question 24.Jury attendance feesShow here jury attendance fees you received. Do notinclude:n attendance fees if you had to pay the fees to youremployer because you received your normal incomewhile on jury dutyn any travel and meal allowances you have alreadyshown on your tax return.Foreign exchange gainsShow here any foreign exchange gains you have notalready shown at item 15 or 20.RoyaltiesIf you were an Australian resident for tax purposes in2011–12, show here income from royalties you havenot already shown at item 15 or 20.INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012 s21

24 Other incomeBonus amounts distributed fromfriendly societiesShow here bonus amounts distributed from a friendlysociety income bond. Your friendly society income bonddistribution statement will advise you of the amountto report.Taxable scholarships, bursaries, grantsand other educational awardsShow here income from a scholarship, bursary, grantor other award that you have to pay tax on, unless youhave already shown it at item 1, 2 or 15. If you are notsure about a payment, contact the organisation thatpaid you.Benefits or prizes from investment-relatedlotteries and some game-show winningsShow here the value of benefits or prizes you receivedfrom an investment-related lottery offered by aninvestment body such as a bank, building societyor credit union. Prizes may include cash, low-interestor interest-free loans, holidays or cars.Do not include prizes won in ordinary lotteries, forexample, lotto draws, caskets and raffles. Do not includeprizes won in game shows unless you regularly receiveappearance fees or game-show winnings.Income from activities as a specialprofessionalIf you are a special professional, you must show hereyour taxable professional income.A special professional is an author of a literary, dramatic,musical or artistic work, an inventor, a performing artist,a production associate or an active sportsperson.Amounts you have already included at item 1, 2, 13, 14or 15 may also have to be shown here. You will not betaxed twice on these amounts.You must read Income averaging for specialprofessionals 2012 (NAT 2475) available atato.gov.au/instructions2012 before you completethis item.Reimbursements of election andtax‐related expensesShow here:n reimbursement of election expenses for which you areclaiming a deductionn refund of tax-related expenses for which you areclaiming a deductionn any remission of an ATO interest or underestimationcharge. Go to ato.gov.au/instructions2012 and readquestion 24 for more information.Assessable balancing adjustmentShow here the assessable balancing adjustmentwhen you stop holding a depreciating asset for whichyou have claimed a deduction for decline in value inprevious years. The publication Guide to depreciatingassets 2012 explains how to make these calculations.Go to ato.gov.au/instructions2012 to get a copy ofthis publication.Gains derived on disposal or redemptionof traditional securitiesShow here gains you made when you disposed of orredeemed traditional securities.For more information, see the section on Sale ordisposal of company bonds and convertible notesin You and your shares 2012 (NAT 2632).Completing your tax return1Print2If3Ifa description in the relevant Type of incomecategory box at item 24.If you received more than one type ofeither category of income, you will needto provide additional information. Go toato.gov.au/instructions2012 and read question 24to find out how to complete this item.you received lump sum payments in arrears,write the amount of any tax withheld from thesepayments at E. Do not show here any tax withheldthat you show elsewhere on your tax return.you are a special professional, write the taxableprofessional income you received at Z. We take thisamount into account for income averaging.s22 INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012

24 Other income4Add5Addup your category 1 income and write the totalat Y.up your category 2 income. Include theamount you show at Z (but do not include amountsyou have shown at item 1, 2, 13, 14 or 15) andwrite this total at V.D11Deductible amount ofundeducted purchaseprice of a foreign pensionor annuityTotal supplementincome or lossCompleting your tax return1Add2Add3Take4Write5Transferup all the income amounts in the right-handcolumn of items 13 to 24 on your tax return. Includeany primary production and non-primary productiondeferred non-commercial business losses addedback at item 16.up all the loss amounts, if any, in the right-handcolumn of items 13, 14, 15, 17, 20 and 21.away the amount you worked out at step 2from the total income amount you worked out atstep 1.your answer from step 3 at TOTALSUPPLEMENT INCOME OR LOSS on page 15of your tax return. If you made an overall loss,print L in the LOSS box at the right of TOTALSUPPLEMENT INCOME OR LOSS.the amount you wrote at TOTALSUPPLEMENT INCOME OR LOSS to I on page 3of your tax return. If the amount is a loss, print L inthe LOSS box at the right of the amount.Did you receive a foreign pensionor annuity which has a deductibleamount of undeducted purchaseprice (UPP)?No Go to question D12.Yes Read on.Answering this questionTo claim this deduction you must show income froma foreign pension or annuity at D item 20 (on thesupplementary section of your tax return).The UPP is the amount you contributed towards yourpension or annuity. Only some foreign pensions andannuities have a UPP.If you need information about pensions from particularcountries, go to ato.gov.au/instructions2012 and readquestion D11.Completing your tax return1If2Writeyou already know the deductible amount, go tostep 2.Otherwise, you must go toato.gov.au/instructions2012 and read questionD11 to work out the deductible amount.the deductible amount at Y item D11.INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012 s23

D12Personal superannuationcontributionsDid you make personalsuperannuation contributions to acomplying superannuation fund or aretirement savings account (RSA)?No Go to question D13.Yes You may be able to claim a deduction.Read on.Answering this questionYou may claim a deduction for personal contributionsyou made to your complying superannuation fund orRSA if:n you gave them a valid notice to tell them how muchyou intend to claim as a deductionn your fund or RSA acknowledged your noticen either of the following applied to you– you were fully self-employed and not workingunder a contract principally for your labour– the salary, wages and other remuneration, whichyou received in return for your personal labouror skills, make up less than 10% of the sumof the following:– your reportable employer superannuationcontributions (shown at item IT2)– your total reportable fringe benefits amounts(shown at item IT1)– your assessable income.Your assessable income is the amount you wrote at Totalincome or loss on page 3 of your tax return unless:n you had a distribution from a partnership or trust,income or losses from rent or business (includingpersonal services income), capital gains or capitallosses or foreign source incomen you claimed a deductible amount for a foreign pensionor annuity at item D11 on your tax return, orn you have a deductible farm management depositamount at item 17 label D.In any of these cases, phone 13 10 20 for help to workout your assessable income.s24 INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012Generally, you cannot claim a deduction for personalsuperannuation contributions if:n you made the contributions after you turned75 years oldn you were under 18 years old on 30 June 2012 and youwere not carrying on a business and did not receiveremuneration for your personal labour or skills, orn you were under 55 years old and the contributionwas attributable to a capital gain to which the smallbusiness retirement exemption applied.Go to ato.gov.au/instructions2012 and readquestion D12 for more information, including:n whether you qualify to claim a deductionn splitting your contributionsn the meaning of ‘personal labour or skills’n contribution caps and co-contributionn completing an additional information scheduleif you received– a parental leave payment which you showedat item 1– a payment under an income protection,sickness or accident insurance policy whichyou showed at item 1.Are you eligible to claim a deductionfor personal superannuationcontributions?No Go to question D13.Yes Read on.Completing your tax returnIf you contributed to more than one fund or RSA,you will need to provide additional information. Go toato.gov.au/instructions2012 and read question D12for instructions on how to complete this item.1Add2Printup all your eligible contributions for 2011–12and write the amount at H item D12. The deductionyou claim can reduce your taxable income to nil,but it cannot add to or create a loss.in the boxes at item D12:n the full name of your fund or RSAn either its Australian business number (ABN) or itstax file number (TFN)n your account number with the fund or RSA.

D13Deduction forproject poolDid you have capital expendituredirectly connected with a project?You may be able to claim a deduction for capitalexpenditure allocated to a project pool for aproject you:n operated in 2011–12 for a taxable purposen carried on, or proposed to carry on, for a taxablepurpose which was abandoned, sold or otherwisedisposed of in 2011–12, before or after it startedto operate.Examples of this capital expenditure include:n site preparation for depreciating assets (other thanin draining swamp or low-lying land or for clearingland for horticultural plants)n feasibility studies or environmental assessmentsfor the project.No Go to question D14.Yes Read on.Answering this questionYou must go to ato.gov.au/instructions2012to complete this question and for moreinformation.Completing your tax return1Go2Writeto ato.gov.au/instructions2012 and completeworksheet 1 in question D13.your project pool deduction amount at Ditem D13.D14Forestry managedinvestment schemedeductionDid you make payments to aforestry managed investmentscheme (FMIS)?No Go to question D15.Yes You may be able to claim a deduction.Read on.You can claim a deduction at this item only if the forestrymanager has advised you that the FMIS satisfies the70% direct forestry expenditure rule.You must go to ato.gov.au/instructions2012to complete this question.Completing your tax return1To2When3Ifwork out the total amount of your deductiblepayments, go to ato.gov.au/instructions2012and read question D14.you have worked out the total amountof your deductible payments, write that amountat F item D14.your interests in an FMIS are covered by aproduct ruling, then at item D14:n print the code PR at Un write the year of the product ruling at Vn write the product ruling number at W(do not include the year of the product rulingor the slash).Otherwise, if your interests in an FMIS are coveredby private rulings, at item D14:n print the code AN at Un leave the year of the private ruling V blankn write the authorisation number printed on thefront page of your notice of private ruling at W.INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012 s25

D15Other deductionsDid you have any other expensesthat you have not been able toclaim as deductions elsewhereon your tax return?NoYesGo to Total supplement deductions.Read on.Answering this questionExpenses you may be entitled to claimYou may claim at this item:n election expensesn premiums you paid for insurance against the loss ofyour incomen foreign exchange lossesn debt deductions incurred in earning assessableincome that have not been claimed elsewheren debt deductions incurred in earning certain foreignnon-assessable non-exempt incomen amounts you can deduct over five years undersection 40-880 for certain business-related capitalexpenditure not claimed before you stopped carryingon a businessn a deduction for the net personal services incomeloss of a personal services entity that related to yourpersonal services incomen certain capital expenditure not claimed before ceasinga primary production business where a deduction canbe claimed in a subsequent year or yearsn losses incurred on the disposal or redemption of atraditional security; see Sale or disposal of companybonds and convertible notes in You and your shares2012 (NAT 2632) at ato.gov.au/instructions2012n interest incurred on money borrowed to invest underthe infrastructure borrowings scheme if you intend toclaim a tax offset at item T14n small business pool deductions for depreciatingassets that you cannot claim at item P8 on theBusiness and professional items schedule forindividuals 2012 (NAT 2816) because you did notcarry on a business in 2011–12; see Concessionsfor small business entities (NAT 71874) atato.gov.au/instructions2012n self-education expenses incurred in satisfying thestudy requirements of a bonded scholarship.Legislation has been introduced into Parliament toprevent deductions being claimed against governmentassistance payments, from 1 July 2011. This meansthat you will no longer be able to claim deductions forexpenses incurred in actively seeking paid work if inreceipt of a Newstart allowance or Youth allowance asa job seeker. At the time of printing the changes hadnot become law. For more information on the progressof the legislation, go to ato.gov.au/jobsearchexpensesthen ‘How to claim’ and read ‘Claims for 2012 andlater years’.Election expensesElection expenses include a candidate’s costs ofcontesting an election at a local, territory, state or federallevel of government. A deduction for local governmentbody election expenses cannot exceed $1,000 for eachelection contested, even if the expenditure is incurredin more than one income year. Entertainment expensesonly qualify as deductible election expenses in veryrestricted circumstances.Foreign exchange lossesClaim your foreign exchange losses (forex) at this item,except for:n those you have included at item 15n foreign source forex losses you have included atitem 20n losses of a private or domestic nature or that relateto exempt income, which are not deductible.For more information about foreign exchangelosses and exchange rates, you can go toato.gov.au/instructions2012 and readquestion D15.s26 INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012

D15 Other deductionsDebt deductionsClaim at this item ‘debt deductions’ you incurredin earning:n assessable income you have not claimed elsewhereon your tax return, orn certain types of foreign non-assessable non-exemptincome that were payments out of attributedcontrolled foreign company income and attributedforeign investment fund income.A ‘debt deduction’ is an expense incurred in obtainingor maintaining a loan or other form of debt finance.Examples include interest, establishment fees, legalcosts for preparing loan documents and fees chargedby lending institutions for drawing on a loan facility.If you incur expenses in borrowing money that youuse for producing assessable income (such as,establishment fees and legal costs for preparing loandocuments) and the total of these expenses is morethan $100, you have to deduct the expenses over theshorter of the following periods:n the life of the loan, orn five years from the date you first borrowed the money.If the total of these expenses is $100 or less, you candeduct them immediately.If you have debt deductions that exceed $250,000in the income year, they may be reduced. For moreinformation, go to ato.gov.au and read the Guideto thin capitalisation.Section 40-880 deductionsYou can claim a deduction for certain business-relatedcapital expenditure over five income years.Claim a deduction at this item if:n you incurred the relevant capital expense and– the expenditure relates to a business that wasproposed at the time the expense was incurred– the business commenced before 30 June 2012,and– you are carrying on the business through acompany or trust, orn you incurred the relevant capital expense and theexpenditure relates to a business which ceased in aprevious income year and you carried on the businessthrough a company or trust.If you incurred relevant expenses and you carried on thebusiness as a sole trader or through a partnership, claimthe amount at item P8 on the Business and professionalitems schedule for individuals 2012.If you incurred these expenses but had not commencedthe business by 30 June 2012, your deduction isdeferred until the year in which the business activitycommences.For more information about these deductions, see theGuide to depreciating assets 2012 (NAT 1996).Go to ato.gov.au/instructions2012 to geta copy of these publications.Net personal services income loss of apersonal services entity that related toyour personal services incomePersonal services income is income that is mainly areward for your personal efforts or skills and is generallypaid to you or to a personal services entity (being acompany, partnership or trust).Where the payment was made to a personal servicesentity and that entity incurred a personal services incomeloss relating to your personal services income, you canclaim a deduction for that loss.For more information about net personal servicesincome losses, see the Personal services incomeschedule 2012 (NAT 3421).Self-education expenses related to abonded scholarshipYou can claim a deduction at this item for expenses youincurred in meeting the study requirements of a taxablebonded scholarship where you were not an employeeof the scholarship provider.Examples of expenses you can claim are textbooks,stationery, student union fees, student services andamenities fees, the decline in value of your computer,and certain course fees.You cannot claim a deduction for travel from your hometo your normal place of education and back.INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012 s27

D15 Other deductionsT7Completing your tax return12Election expensesAdd up all your deductible election expenses.Write the total amount at E item D15. If you haveno other expenses, you have finished this question.Otherwise, read on.Other expensesPrint the type of expense you are claiming in theDescription of claim box at item D15. If you areclaiming for more than one type of expense, printadditional information in the Description ofclaim box.On a separate piece of paper, print SCHEDULE OFADDITIONAL INFORMATION – ITEM D15. Includeyour name, address and tax file number. Show thetype and amount of each expense you are claiming.Print X in the Yes box at Taxpayer’s declarationquestion 2a on page 12 of your tax return. Attachyour schedule to page 3 of your tax return.Read on.3Add up all the other expenses that you are claimingat this item (excluding election expenses).4Write the amount from step 3 at J item D15.Total supplementdeductionsCompleting your tax return1Add2Write3Transferup any deduction amounts in the right-handcolumn of items D11 to D15 on your tax return.the amount from step 1 at TOTALSUPPLEMENT DEDUCTIONS on page 15 of yourtax return.the amount you wrote at TOTALSUPPLEMENT DEDUCTIONS to D on page 4 ofyour tax return.Superannuationcontribution on behalfof your spouseDid you make contributions to acomplying superannuation fundor a retirement savings account(RSA) on behalf of your spousewho is earning a low income ornot working?No Go to question T8.Yes You may be eligible for a tax offset.Read on.Answering this questionYou are entitled to a tax offset of up to $540 per year if:n the sum of your spouse’s assessable income, totalreportable fringe benefits amounts and reportableemployer superannuation contributions was lessthan $13,800n the contributions were not deductible to youn the contributions were made to a superannuation fundthat was a complying superannuation fund for theincome year in which you made the contributionn both you and your spouse were Australian residentswhen the contributions were made, andn when making the contributions you and yourspouse were not living separately and apart ona permanent basis.For the meaning of spouse, see Definitions on page 74.s28 INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012

T7 Superannuation contribution on behalfof your spouseIn answering this question, your spouse’s assessableincome is the amount your spouse wrote at TOTALINCOME OR LOSS on page 3 of their tax return,unless:n they had a distribution from a partnership or trustn they had income or losses from rent or business(including personal services income)n they had a capital gain or foreign source incomen they made a deposit into a Farm ManagementDeposit Scheme Account, orn they claimed a deductible amount for a foreignpension or annuity at item D11 on their tax return(supplementary section).If any of these apply phone 13 10 20 for help to workout your spouse’s assessable income before completingthis item.Your spouse’s reportable fringe benefits amounts andreportable employer superannuation contributions areshown at items IT1 and IT2 on their tax return.Completing your tax return1Write2Addthe total of your contributions atContributions paid item T7.up your spouse’s assessable income, totalreportable fringe benefits amounts and reportableemployer superannuation contributions.If the total was $10,800 or less, use worksheet 1.If the total was more than $10,800 but less than$13,800, use worksheet 2.3Worksheet 1Maximum spouse contributionseligible for the tax offsetContributions paid (from step 1)Write the lesser of (a) or (b).Multiply (c) by 18 and divideby 100.Worksheet 2Maximum spouse contributionseligible for the tax offsetThe amount of your spouse’sincome worked out at step 2Base amountTake (c) away from (b).Take (d) away from (a).Contributions paid (from step 1)Write the lesser of (e) or (f).Multiply (g) by 18 and divideby 100.$3,000 (a)$ (b)$ (c)$ (d)$3,000 (a)$ (b)$10,800 (c)$ (d)$ (e)$ (f)$ (g)$ (h)4Thetax offset is the amount shown at (d) onworksheet 1 or (h) on worksheet 2. Write thisamount at A.If you had more than one spouse during the year,complete steps 1 to 4 for each spouse. Your taxoffset is the lesser of:n the sum of the tax offset you are entitled to foreach spouse, orn $540.Write the lesser amount at A.INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012 s29

T8Zone or overseas forcesAre you entitled to claim a zonetax offset or an overseas forcestax offset?You may be able to claim a taxoffset if you:n lived or worked in a remote or isolated area ofAustralia, not including an offshore oil or gas rig,orn served overseas as a member of the AustralianDefence Force or a United Nations armed force.No Go to question T9.Yes Read on.Answering this questionIf you qualify for both an overseas forces tax offset anda zone tax offset, you can claim only one of them. Claimthe one that gives you the higher tax offset.Zone tax offsetTo qualify for the tax offset, you must have lived orworked in a remote area (not necessarily continuously)for 183 days or more during:n 2011–12, orn the period 1 July 2010 to 30 June 2012 (including atleast one day in 2011–12), and you did not claim azone tax offset in your 2011 tax return.If you lived in a zone for less than 183 days in 2011–12,you may still be able to claim a tax offset if all thefollowing conditions apply:n you lived in a zone for a continuous period of less thanfive years after 1 July 2006n you were unable to claim in the first year because youwere there less than 183 days, andn the total days you were there in the first year and in2011–12 is 183 or more.Remote areas are classed as either zone A or zone B.There are also special areas within these zones. If youdo not know which zone your area is in, see table 2 onthe next page. If your area is not listed, go to ato.gov.auand search for ‘Australian zone list’ to check whether itis in a zone.Overseas forces tax offsetYou may be eligible for an overseas forces tax offset ifyou served in a specified overseas locality as a memberof the Australian Defence Force or a United Nationsarmed force in 2011–12, and your income relatingto that service was not specifically exempt from tax.Periods of service for which your income was ‘exemptforeign employment income’ are excluded in workingout your eligibility for the tax offset.Your employer will be able to advise you whetheryou served in a locality that qualifies for theoverseas forces tax offset or you can check atato.gov.au/instructions2012If your overseas service was less than 183 days,you may be able to claim part of the tax offset.To claim the full overseas forces tax offset:n you must have served in the overseas locality for183 days or more in 2011–12, orn the total number of days served in the overseaslocality, when added to the number of days spentin one or more zones, must be 183 days or more.If you served as a member of the Australian DefenceForce, days spent in a zone must be defence forceservice.Completing your tax return1Yourtax offset is the relevant amount in table 1 onthe next page if all the following apply:n you lived or worked in only one zone or servedin only one specified overseas locality for at least183 daysn you are either not claiming any tax offsets foryour dependants or a housekeeper, or the onlydependant you are claiming a tax offset for isyour spousen you either did not have a dependent child orstudent at any time in 2011–12, or if you did havea dependent child or student, their ATI was equalto or greater than $282 plus $28.92 for eachweek you maintained them, andn your circumstances are shown in table 1 on thenext page.s30 INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012

T8 Zone or overseas forcesTable 1: Tax offset amountsYour circumstances Zone A Zone B Special area Overseas forcesYou were single $338 $57 $1,173 $338You are eligible to claim the maximumdependent spouse tax offset ($2,355) atitem T1 or the maximum invalid or carerspouse tax offset ($2,355) at item T10.$1,516 $528 $2,351 $1,516For the meaning of spouse, child, student, invalid spouse and carer spouse, see Definitions on pages 71–4.2If3WriteThese instructions reflect legislation introducedinto Parliament which prevents the claiming ofmore than:n one amount of offset for the same spouse as acomponent of the zone or overseas forces taxoffsetsn the full offset amount for an invalid spouse or acarer spouse if you are eligible for both the zoneand overseas forces tax offsets.At the time of printing these changes had notbecome law. For more information on the progressof the legislation, go to ato.gov.au and search for‘Dependent spouse tax offset phase-out’.Do the circumstances in step 1apply to you?NoYesYou must use the Zone or overseasforces tax offset calculator atato.gov.au/instructions2012 to work outyour tax offset, and then go to step 3.Read on.you are claiming an overseas forces tax offset, goto step 3.If you are claiming a zone tax offset and youreceived a remote area allowance from Centrelinkor the Department of Veterans’ Affairs, or anequivalent amount was included in an exceptionalcircumstances relief payment, take this amountaway from your zone tax offset. The answer is yourzone tax offset. Go to step 3.the amount of your tax offset at R item T8 onyour tax return. Go to question T9.Table 2Western AustraliaTown Zone Town ZoneBalladonia Special Madura SpecialBidyadanga(Lagrange)A Marble Bar ABoulder B Meekatharra SpecialBroome* A Mount Magnet SpecialCarnarvon A Mullewa BCoolgardie B Newman* ADampier A Norseman BDeakin Special Northampton BDenham Special Onslow SpecialDerby A Pannawonica AEsperance B Paraburdoo AEucla Special Port Hedland* AExmouth Special Ravensthorpe BFitzroyCrossingSpecial Rawlinna SpecialGoldsworthy A Roebourne AHalls Creek Special Shay Gap AKalgoorlie* B Southern Cross BKambalda B Tom Price* AKarratha A Turkey Creek(Bow River)SpecialKununurra Special Wiluna SpecialLaverton Special Wittenoom ALeinster Special Wyndham SpecialLeonoraB* Locations within 250 kilometres of these localities are also in therelevant zone.INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012 s31

T8 Zone or overseas forcesQueenslandTown Zone Town ZoneAirlie Beach B Hughenden SpecialAtherton B Ingham BAugathella B Innisfail BAyr B Julia Creek SpecialBarcaldine B Karumba SpecialBlackall B Kowanyama SpecialBoulia Special Longreach BBowen B Mackay BBurketown Special Mareeba BCairns B Mossman BCamooweal A Mount Isa* ACardwell B Normanton SpecialCharleville B Port Douglas BCharters Towers B Proserpine BClifton Beach B Quilpie BCloncurry A Sarina BCollinsville B Stamford SpecialCooktown Special Tambo BCoppabella B Thargomindah SpecialCunnamulla B Townsville BDoomadgee Special Tully BGeorgetown Special Weipa SpecialGreenvale B Windorah SpecialHelen Vale Special Winton BHome HillB* Locations within 250 kilometres of these localities are also in therelevant zone.Northern TerritoryTown Zone Town ZoneAlice Springs* A Nguiu SpecialAlyangula Special Ngukurr SpecialAngurugu Special Nhulunbuy(Gove)SpecialBatchelor A Numbulwar SpecialBorroloola Special Oenpelli SpecialDarwin A Papunyah SpecialElliott Special Pine Creek AGaliwinku Special Ramingining SpecialHermannsburg A Santa Teresa AJabiru Special Tennant Creek SpecialKatherine* A Tindal ALajamanu(Hooker Creek)Special Yirrkala SpecialManingrida Special Yuendumu SpecialMilikapiti Special Yulara SpecialMilingimbiSpecial* Locations within 250 kilometres of these localities are also in therelevant zone.South AustraliaTown Zone Town ZoneAmataAboriginalCommunitySpecial Nullarbor SpecialCoober Pedy Special Oodnadatta SpecialCook Special Penong SpecialInnamincka Special Roxby Downs SpecialLeigh Creek Special Tarcoola SpecialMarree Special Woomera BNew South WalesTown Zone Town ZoneBourke B Lightning Ridge BBrewarrina B Menindee BBroken Hill B White Cliffs SpecialCobar B Wilcannia BCollarenebri Bs32 INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012

T8 Zone or overseas forcesT9TasmaniaTown Zone Town ZoneFurneauxGroup IslandsSpecial Queenstown BKing Island Special Rosebery BIslands and territoriesTownAustralian Antarctic TerritoryCocos (Keeling) IslandsHeard IslandLord Howe IslandMacquarie IslandMcDonald IslandsNorfolk IslandPalm Isles GroupZoneSpecialSpecialSpecialSpecialSpecialSpecialSpecialSpecialIf your area is not listed, go to ato.gov.au and search for‘Australian zone list’ to check whether it is in a zone.20% tax offset on netmedical expensesYou can claim 20% of your net medical expenses over$2,060. There is no upper limit on the amount youcan claim.Net medical expenses are your total medical expensesless refunds from Medicare and private health insurerswhich you, or someone else, received or are entitledto receive. The medical expenses must be for:n youn your spouse (regardless of their income)n your children under 21 years old (including youradopted children, stepchildren, ex-nuptial children andchildren of your spouse) regardless of their incomen other dependants (see Definitions on page 73).You and your dependants must be Australian residentsfor tax purposes, but you can include medical expensespaid while travelling overseas.You can include medical expenses relating to an illnessor operation you paid to:n legally qualified doctors, nurses and chemistsn public and private hospitals.You can include payments:n to dentists, orthodontists or registered dentalmechanicsn to opticians or optometrists, including for the costof prescription spectacles or contact lensesn to a carer who looks after a person who is blindor permanently confined to a bed or wheelchairn for therapeutic treatment under direction of a doctorn for medical aids prescribed by a doctorn for artificial limbs or eyes and hearing aidsn for maintaining a properly trained dog for guidingor assisting people with a disability (but not forsocial therapy).INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012 s33

T9 20% tax offset on net medical expensesYou can also include payments you made for personal ornursing care to approved residential aged-care providers(such as nursing homes and hostels, but not retirementhomes). You can include payments for:n daily feesn extra services feesn respite caren accommodation charges, periodic payments ofaccommodation bonds or amounts drawn fromaccommodation bonds paid as a lump sum.You cannot include the following expenses:n contributions to a private health insurern ambulance charges and subscriptionsn travel or accommodation expenses associatedwith medical treatmentn inoculations for overseas traveln cosmetic operations for which a Medicare benefitis not payablen dental services or treatments that are solely cosmeticn therapeutic treatment where the patient is not formallyreferred by a doctorn purchases from a chemist that are not related toan illness or operation, chemist-type items, suchas tablets for pain relief, purchased in retail outletsor health food stores, non-prescribed vitamins orhealth foods.Completing your tax return1Completethe worksheet to work out how much youcan claim.WorksheetTotal of all your eligiblemedical expensesTotal of all the refunds which youor someone else has receivedor is entitled to receive for thesemedical expensesTake (b) away from (a).If (c) is $2,060 or less, you cannotclaim. Go to question T10.Take $2,060 away from (c).Divide (d) by 5.2Write$ (a)$ (b)$ (c)$ –2,060the amount from (e) at X item T9.$ (d)$ (e)For more information about medical expenses,go to ato.gov.au/instructions2012 and readquestion T9.Did you have net medical expensesover $2,060 in 2011–12?No Go to question T10.Yes Read on.Answering this questionTo work out your claim, you can go toato.gov.au/instructions2012 and use theNet medical expenses tax offset calculator.s34 INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012

T10Dependent relativeDid you maintain your:n invalid spousen carer spousen invalid relative (including your spouse’sinvalid relative)n parent, orn spouse’s parent?No Go to question T11.Yes Read on.Answering this questionFor the meaning of spouse, invalid spouse, carerspouse, invalid relative and what is maintaining adependant, see Definitions on pages 71–4.Before you complete this item, you need to work outyour Adjusted taxable income (ATI) and the ATI of theinvalid spouse, carer spouse, invalid relative or parentyou maintained. For the meaning of ATI, see Definitionson page 70.If you maintained an invalid spouse orcarer spouseYou cannot claim this tax offset for them if:n your ATI* for 2011–12 was more than $150,000, orn you can claim a dependent spouse tax offset for themat item T1 for the same period.* These instructions reflect legislation introduced intoParliament under which your spouse’s ATI is not tobe counted against the $150,000 limit. At the time ofprinting this change had not become law. For moreinformation on the progress of the legislation, go toato.gov.au and search for ‘Dependent spouse tax offsetphase-out’.Your claim will be reduced for any period that youor your spouse were:n eligible for family tax benefit (FTB) Part B, orn receiving parental leave pay.You can only claim for your spouse as an invalid spouseor a carer spouse, not both.If you maintained your or your spouse’sinvalid relative or parentYou cannot claim this tax offset for them if:n your ATI for 2011–12 was more than $150,000, orn you had a spouse for all of 2011–12 and thecombined ATI of you and your spouse was more than$150,000, orn you had a spouse for only part of the year and thesum of the following is more than $150,000– your ATI– your spouse’s ATI for 2011–12 multiplied by thenumber of days they were your spouse dividedby 366.Completing your tax returnTo work out the tax offset, you can use the Parent,spouse’s parent or invalid relative tax offset calculatorat ato.gov.au/instructions2012. Complete thecalculator for each dependant, add the totals ifnecessary and go to step 4.Alternatively, follow the steps below.1Ifyou are claiming for an invalid spouse or carerspouse, complete worksheet 1.Otherwise, go to step 2.INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012 s35

T10 Dependent relative2If3Ifyou are claiming for an invalid relative or parentand their ATI was $285 or less and you maintainedthem for the whole year, you can claim themaximum tax offset of $864 for each invalid relativeand $1,726 for each parent or spouse’s parent.Go to step 4.If their ATI was $285 or less and you maintainedthem for part of the year, go to worksheet 3.Otherwise, read on.the invalid relative or parent’s ATI for the year was$286 or more and you maintained them for:n the whole year, use worksheet 2n part of the year, use worksheet 3.Worksheet 2Your invalid relative, your parentor your spouse’s parent’s ATI forthe whole of 2011–12.Take $282 away from (a).Divide (b) by 4.If the amount at (c) is $864 ormore for each invalid relative,or $1,726 or more for eachparent or spouse’s parent, youcannot claim a tax offset forthem. If you have an amountfrom worksheet 1 to claim,go to step 4. Otherwise, go toquestion T11.If the amount at (c) is less than$864 for each invalid relative, orless than $1,726 for each parentor spouse’s parent, read on.Take (c) away from $864 foran invalid relative, or from$1,726 for your parent or yourspouse’s parent.$ (a)$ (b)$ (c)$ (d)The amount at (d), if it is more than zero (0), is yourtax offset. Go to step 4.Worksheet 3Work out the number of daysin the year you maintained aninvalid relative, your parent oryour spouse’s parent. (a)Multiply the number of days at (a)by the following daily rate:n $2.36 if you had aninvalid relativen $4.72 if you had a parentor spouse’s parent.$ (b)If your invalid relative, your parentor spouse’s parent’s ATI was$285 or less for the period youare claiming for them, the amountat (b) is your tax offset. Go tostep 4.Otherwise, read on.If your invalid relative, your parentor your spouse’s parent’s ATI was$286 or more, write their ATI forthat period at (c).Take $282 away from (c).Divide (d) by 4.Take (e) away from (b).4If5You$ (c)$ (d)$ (e)$ (f)The amount at (f), if it is more than zero (0), is yourtax offset. Go to step 4.any other person contributed to the maintenanceof your invalid spouse, carer spouse, invalid relative,parent or spouse’s parent, multiply the tax offset bythe percentage that you maintained them for theperiod. If you used the calculator on our websitethis has already been done.Write your tax offset at B item T10.must complete Income test items IT1 to IT7.If you had a spouse, you must also completeSpouse details – married or de facto.INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012 s37

T11Landcare and waterfacilityDo you have an unused ‘landcareand water facility’ tax offset froma previous year that you can usethis year?The amount of your unused tax offset is shownon your notice of assessment for the year ending30 June 2011.No Go to question T12.Yes Read on.Answering this questionThere is no limit to the number of years you cancarry forward any balance of landcare and waterfacility tax offset.Completing your tax return1To2Writework out your offset if you had exempt income inthe year the offset arose or in any subsequent year,you must go to ato.gov.au/instructions2012 andread question T11.the amount of ‘landcare and water facility’ taxoffset that you want to use this year at T item T11.T12Net income from working– supplementary sectionWere you an Australian resident55 years old or older on30 June 2012?No Go to question T13.Yes Read on.Answering this questionYou may be eligible for the mature age worker taxoffset based on your net income from working. We willautomatically calculate the offset using the informationyou provide on your tax return. Information you provideat this item ensures that when working out your offsetwe take into account relevant amounts of income youincluded in the supplementary section of your tax return.Completing this item1Completeworksheet 1. Show a loss as anegative amount.Worksheet 1Total incomeNet personal services income(PSI) from A item 14Net income or loss from business(primary production) from Bitem 15Net income or loss from business(non-primary production) from Citem 15Deferred non-commercialbusiness losses from primaryproduction from I item 16Deferred non-commercialbusiness losses from non‐primaryproduction from J item 16$ (a)$ (b)$ (c)$ (d)$ (e)s38 INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012

T12 Net income from working – supplementarysectionT133Completeworksheet 3. If (s) is a loss, show it as anegative amount.Worksheet 3Net income or loss from working(p) total income from$worksheet 1(q)(k) total deductions fromworksheet 2If the amount at (q) is a loss thenadd the amounts at (q) and (r).The total amount will be a loss.If (q) is not a loss then take theamount at (r) from the amount at(q). The result may be a loss.4Write$ (r)$ (s)the amount at (s) at M item T12. If you had aloss, print L in the box at the right of M.Entrepreneurs tax offsetWere you a sole trader with anaggregated turnover of less than$75,000 or did you receive businessincome from a partnership or trustwith an aggregated turnover ofless than $75,000?No Go to question T14.Yes Read on.Answering this questionYou may be eligible to receive the Entrepreneurs taxoffset (ETO) if you are:n a sole trader and the aggregated turnover for all yoursole trader businesses is less than $75,000n a partner in a small business partnership which hadan aggregated turnover of less than $75,000n a beneficiary of a small business trust which had anaggregated turnover of less than $75,000.We will automatically calculate your ETO from theinformation you provide at this item and at other itemson your tax return.Go to ato.gov.au/instructions2012 and readquestion T13 if you need more information todetermine your eligibility and to work out theamounts you show at this item.Completing your tax return1 Are you eligible for more thanone ETO?No Go to step 7.Yes Read on.s40 INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012

T13 Entrepreneurs tax offset2 Did you carry on a businessas a sole trader and was youraggregated turnover less than$75,000?If you carried on more than one businessactivity, your aggregated turnover mustinclude all your sole trader activities.3CompleteNo Go to step 5.Yes Read on.worksheet 1. If you carried on morethan one business as a sole trader, add togetherthe value of the business income earned fromeach business when calculating your smallbusiness entity turnover and your net smallbusiness income as a sole trader.Worksheet 1Your total small businessentity turnoverAllowable deductions thatdirectly relate to the smallbusiness entity turnoverTake (b) away from (a).$ (a)$ (b)$ (c)The amount at (c) is your net small businessincome.4 Is the amount at (c) inworksheet 1 greater than zero?NoYesYou are not eligible to claim the ETO.Go to question T14.Read on.You need to complete item T13:n write the amount of your aggregated turnoverat Kn write the amount of your net small businessincome at Nn print S in the CODE box beside the amountat N.Go to step 8.5 Did you receive a share of thenet small business income of apartnership with an aggregatedturnover of less than $75,000?No Go to step 6.Yes Read on.You need to complete item T13:n write the amount of the partnership’saggregated turnover at Kn write the amount of your share of the net smallbusiness income at N (do not reduce thisamount by any deductions that you are entitledto claim for income tax purposes)n print P in the CODE box beside the amountat N.Go to step 8.6 Did you receive a distributionof net small business incomefrom a trust with an aggregatedturnover of less than $75,000?NoYesYou are not eligible to claim the ETO.Go to question T14.Read on.You need to complete item T13:n write the amount of the trust’s aggregatedturnover at Kn write the amount of your distribution of netsmall business income from the trust at N(do not reduce your distribution by anydeductions that you are entitled to claimfor income tax purposes)n print T in the CODE box beside the amountat N.Go to step 8.INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012 s41

T13 Entrepreneurs tax offset7You8Toneed to provide a schedule of additionalinformation. Go to ato.gov.au/instructions2012and read question T13 to find out how tocomplete the schedule, then go to step 8.allow us to correctly calculate your ETOyou will need to complete the following itemsin the Income tests section on page 8 of yourtax return:n W item IT1 if you received any reportablefringe benefitsn T item IT2 if you had a reportable employersuperannuation contributionn X item IT5 if you had a net financial investmentlossn Y item IT6 if you had a net rental property loss.T14Other tax offsetsPart AWere you entitled to a tax offsetfor interest from the infrastructureborrowings scheme?You may be able to claim a tax offset of 30% ifyou elected to have interest derived from yourinvestment in infrastructure borrowings includedas part of your assessable income.NoYesGo to Part B below.Read on.9 Did you have a spouse on30 June 2012?No Go to step 10.Yes Read on.At item T13, print M in the MARITAL STATUSbox at O.You have finished this question.10 Did you have a qualifyingdependant on any dayduring 2011–12?NoYesAt item T13, print S in the MARITALSTATUS box at O.At item T13, print F in the MARITALSTATUS box at O.You have finished this question.1Work2MultiplyPart Bout the amount of interest you received frominfrastructure borrowings.the amount from step 1 by 30, then divideby 100. This is the 30% tax offset for the interestyou received. Keep a record of this amount.Read on.Did you receive income for workor services performed in the JointPetroleum Development Area(JPDA) of the Timor Sea?NoYesIf you have a tax offset under Part A, go toCompleting this item. Otherwise, go to Totalsupplement tax offsets.Read on.You will need a copy of the Timor Sea Treaty – JointPetroleum Development Area instructions 2012(NAT 8277) to work out your tax offset amount.Go to ato.gov.au to get a copy of this publication.s42 INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012

T14 Other tax offsetsA4Completing your tax return1Add2Completeup all your tax offset amounts for this item.Write the total at C item T14.the CLAIM TYPE box at the right of Citem T14 as follows:n If you are only claiming a tax offset under theinfrastructure borrowings scheme under part A,print I in the CLAIM TYPE box.n If you are only claiming a JPDA tax offset underpart B, print H in the CLAIM TYPE box.n If you are claiming for more than one type oftax offset and code letters H and I both apply,choose the code letter that applies to the largestamount and print it in the CLAIM TYPE box.Total supplementtax offsetsCompleting your tax return1Add2Write3Transferup any tax offset amounts in the right-handcolumn of items T7, T8, T9, T10, T11 and T14on your tax return.the amount from step 1 at TOTALSUPPLEMENT TAX OFFSETS on page 16of your tax return.the amount you wrote at TOTALSUPPLEMENT TAX OFFSETS to T on page 5of your tax return.Amount on which familytrust distribution tax hasbeen paidIn 2011–12 did a trust, partnershipor company distribute anythingto you on which family trustdistribution tax has been paid?Distributions on which family trust distribution tax ispayable include:n income or property from a trust or partnershipn dividends or property from a companyn the use of property owned by the trust,partnership or company for which you havenot paid full value, such as the free use of aholiday house.The trust, partnership or company should be able totell you if family trust distribution tax has been paidon a distribution to you.No Go to question C1.Yes Read on.Completing your tax return1Add2Add3Take4Writeup the amounts or value of all distributionsto you on which family trust distribution tax hasbeen paid.up any expenses which you would have beenable to claim as a deduction if the distributions hadbeen included in your assessable income. Do notinclude expenses you have already claimed as adeduction at another question.away your step 2 amount, if any, from yourstep 1 amount.the amount from step 3 at X item A4. If theamount from step 3 is zero or less than zero, do notwrite anything.INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012 s43

C1Credit for interest onearly paymentsDuring 2011–12, did you make anypayments to the ATO more than14 days before the due date?No Go to the Taxpayer’s declaration on page 12of your tax return.Yes Read on.If you have already requested payment of interest onyour early payment, do not claim it at this item.You can claim interest on early payments made for:n income tax (including Medicare levy and Medicare levysurcharge) shown on your notice of assessmentn compulsory Higher Education Loan Program (HELP)repayment shown on your notice of assessmentn compulsory Student Financial Supplement Scheme(SFSS) debt repayment shown on your noticeof assessmentn interest on distributions from non-resident trustestatesn shortfall interest charge.You cannot claim interest on early payments made forthe following:n pay as you go (PAYG) withholding amounts including:– amounts withheld from interest, dividends androyalties– amounts withheld by payers including thosewithheld for the Higher Education Loan PaymentScheme and SFSSn PAYG instalments.Interest rates for early payments calculationPeriodInterestrate (% pa)1 July 2011 to 30 September 2011 5.001 October 2011 to 31 December 2011 4.861 January 2012 to 31 March 2012 4.621 April 2012 to 30 June 2012 4.37You will need:n your notice of assessment from the ATOn details of your date of payment.Go to ato.gov.au/instructions2012 and readquestion C1 for more information on:n interest rates, andn the period for which you can receive interest.Completing your tax returnIf the early payment extends over two or more interestperiods, you will need to complete steps 1 to 4 for thenumber of days in each period.1Workout by how many days your payment wasearly. This is the number of days:n from the later of– the date you paid the amount– the issue date on your notice informing you ofthe amount of tax, debt, interest or instalmentn to and including the date when the paymentwas due.2Divide the number of days from step 1 by 366.3Multiply the answer you got at step 2 by the amountof the payment.4Multiply the answer from step 3 by the rate ofinterest for the period and divide by 100.5Add up the amounts for each period in step 4.6If the amount from step 5 is equal to or greater than50 cents, write the total at L item C1. If the amountis less than 50 cents, you cannot claim.s44 INDIVIDUAL TAX RETURN INSTRUCTIONS SUPPLEMENT 2012

More informationWEBSITEGo to ato.gov.au/instructions2012 for informationon anything that you read in the Individual tax returninstructions supplement 2012.Our tools and calculators at ato.gov.au/calculatorscan help you complete your tax return.PUBLICATIONSTo get publications, taxation rulings, practice statementsand forms referred to in the Individual tax returninstructions supplement 2012 you can:n go to our website ato.gov.au/publicationsn phone ourPublications Distribution Service 1300 720 092An automated self-help publications ordering serviceis available 24 hours a day, every day where you knowthe title of the publication. For each publication youorder, quote the full title printed in the Individual taxreturn instructions supplement 2012.n visit an ATO shopfront.For our shopfront addresses you can visit our website.Phone 13 28 61 for an appointment.PHONEWe can offer a more personalised service if you provideyour tax file number (TFN) and have your last noticeof assessment with you when you phone us. If yourequire access to your ATO records you will be askedto prove your identity by providing your TFN and eitherdetails from your last notice of assessment or somepersonal details.Our phone lines are open Monday to Friday 8.00am to6.00pm except where otherwise indicated.You can find a list of our phone lines in your White Pages.ATO personal self-help 13 28 65Our automated phone service is available 24 hours a day,every day, so you can:n check the progress of your refundn find lost superannuationn make an arrangement to pay a tax debtn lodge your application for a refund of franking credits.Note: Although providing your TFN is voluntary, you needto quote your TFN to use these self-help services.Individuals 13 28 61Phone between 8.00am and 6.00pm Monday to Friday.You can enquire about the following subjects from thisservice:n e-tax – our free online tax preparation and lodgmentsoftwaren pay as you go (PAYG), including instalment activitystatementsn student loan schemes (HELP and SFSS)n questions in the Individual tax return instructionssupplement 2012n capital gains, rental income, foreign income and otherquestions in the Individual tax return instructionssupplement 2012n lodging your returnn your notice of assessmentn your income tax account, payment arrangementsand lost refund chequesn binding oral advice.Phoning from overseasIf you are phoning us from overseas,phone +61 2 6216 1111during our business hours, 8.00am to 5.00pm (AustralianEastern Standard or Daylight-saving Time) Monday toFriday. Note that our phone numbers may not work fromall countries.You can also fax us: +61 2 6216 2830Aboriginal and Torres Strait Islander 13 10 30Specialises in helping Indigenous clients with theirpersonal tax mattersPeople with a hearing, speech or vision impairmentIf you are deaf or have a hearing or speech impairment,you can phone us through the National Relay Serviceon one of the numbers listed below, and ask for theATO number you need:n TTY users, phone 13 36 77. For ATO 1800 free callnumbers, phone 1800 555 677.n Speak and Listen (speech-to-speech relay) users,phone 1300 555 727 and ask for the ATO numberyou need. For ATO 1800 free call numbers, phone1800 555 727.n Internet relay users, connect to the NRS atrelayservice.com.auFor information about the Individual tax returninstructions supplement 2012 in accessible formats forthe vision impaired, go to the outside back cover.Business 13 28 66ComplaintsGo to our website and go to ‘Contact us’ ato.gov.auPhone 1800 199 010Fax 1800 060 063EFT 1800 802 308For enquiries about direct deposit of your tax refundDepartment of Human Services Families and Parentsline (previously the Family Assistance Office contactnumber) 13 61 50Superannuation 13 10 20To report tax evasion confidentiallyPhone (FREECALL) 1800 060 062Fax (FREECALL) 1800 804 544Go to our websiteato.gov.au/reportevasionMail Locked Bag 6050, Dandenong VIC 3175

If you do not speak English well and need help from the ATO,phone the Translating and Interpreting Service (TIS) on 13 14 50.TIS staff can assist with interpreting in more than 170 languages.AssyrianATO(T IS : T rans lating and I nterpreting Ser vice)Burmese. 13 14 50Individual tax returninstructions in accessibleformats for thevision impairedE-tax 2012Prepare your tax return on a computerusing screen reader software, andlodge online. Download e-tax fromato.gov.au/etaxTaxCDAudio summaries of Individual tax returninstructions 2012 and Individual taxreturn instructions supplement 2012on CD.Hindiि पआ दय ीजेर्गंअ ीछ्चअहरत ेस ं लोब ीहन ेताप रऔ ोकपआATO ेस ददम ीक रूऱज त,ैह ोत दाव रऔ ुनअ ाय्खाय्व ावेस ( TIS: Translating and Interpreting Service )ोक 054131 रप नो ़फ .ं े रकIndonesianJika bahasa Inggris Anda kurang baik, dan membutuhkan bantuan dari ATO (Kantor PajakAustralia), teleponlah Layanan Penerjemahan dan Juru Bahasa (TIS: Translating andInterpreting Service) di 13 14 50.TaxDiskIndividual tax return instructions 2012and Individual tax return instructionssupplement 2012 on disk formattedfor computers with screen reader andspeech synthesiser software.TaxDAISYAudio format of Individual tax returninstructions 2012 and Individual taxreturn instructions supplement 2012for use in a DAISY player.These products are available free fromthe ATO – phone 13 28 61.SomaliHaddii aadan si fiican ugu hadlin Ingiriiska aadna caawimo uga baahan tahay ATO,wac Adeega Tarjumida Qoraalka iyo Afcelinta (TIS: Translating and InterpretingService) telefoon 13 14 50.