Individual tax return instructions supplement 2012 - Australian ...

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