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Tax Summary - Taxpayers Australia

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Tax Summary - Taxpayers Australia Powered By Docstoc
					                          2012 & 2013
Tax Summary
          Your plain English guide to tax



Tips, traps and ideas, saving you real tax dollars
                                Invaluable for:
                                •	 Individuals	and	
                                   contractors
                                •	 Professionals	
                                •	 Financial	planners
                                •	 Business	owners	
                                •	 Property	and		
                                   other	investors
                                •	 Students	
                                •	 Tax	planning	on	
                                   GST,	CGT	and	


                                                        93rd
                                   superannuation
                                •	 Retirement	
                                   planning
                                •	 Completing	your	     edition
                                   2012	tax	return
                2012 & 2013
Tax Summary
   Your plain English guide to tax
1.000                CONTENTS
Please see the last section of the book for a detailed index.

Chapter 1: Introduction                                                           Class Rulings ...................................................... 3.170
Glossary of abbreviations ....................................1.050               Practice Statements ............................................3.180
Tax Determinations .............................................1.500             Objections............................................................3.200
Tax Rulings .........................................................1.600        Self-amendments and Tax Office amendments .. 3.270
                                                                                  Reviews and appeals ..........................................3.300
Chapter 2: Tax rates and offsets                                                  Process for Federal Court tax disputes............... 3.305
Self-assessment .................................................3.000            Small Taxation Claims Tribunal .......................... 3.360
Issues to be addressed by taxpayers ................. 3.020                       Settlement of taxation disputes ........................... 3.380
Australian Taxation Office ...................................3.060               Tax audits ............................................................3.400
Lodging tax returns..............................................3.070            Audits and access ...............................................3.405
Elections and notifications ...................................3.080              Know your rights..................................................3.410
Rulings.................................................................3.100     Taxpayers’ Charter ..............................................3.420
Public Rulings...................................................... 3.110        Lodging a complaint against the Tax Office ........ 3.430
Private Rulings .................................................... 3.120        Tax Ombudsman .................................................3.440
Private Ruling application checklist ..................... 3.145                  Inspector-General of Taxation .............................3.450
Oral Rulings.........................................................3.150        Privacy Commissioner.........................................3.460
Product Rulings ................................................... 3.160         Accounting working and advice papers............... 3.485
Class Rulings ...................................................... 3.170        Anti-avoidance rules ............................................3.500
Practice Statements ............................................3.180             Income tax anti-avoidance rules ......................... 3.510
Objections............................................................3.200       GST anti-avoidance rules ....................................3.520
Self-amendments and Tax Office amendments .. 3.270                                FBT anti-avoidance rules ....................................3.530
Reviews and appeals ..........................................3.300               Penalties ..............................................................3.600
Process for Federal Court tax disputes............... 3.305                       Reasonable care .................................................3.630
Small Taxation Claims Tribunal .......................... 3.360                   Calculation of penalties and interest ................... 3.650
Settlement of taxation disputes ........................... 3.380                 Interest.................................................................3.660
Tax audits ............................................................3.400      Fines ....................................................................3.680
Audits and access ...............................................3.405            Tax records .........................................................3.700
Know your rights..................................................3.410
Taxpayers’ Charter ..............................................3.420            Chapter 4: Tax collection systems
Lodging a complaint against the Tax Office ........ 3.430                         Tax file number system .......................................4.000
Inspector-General of Taxation .............................3.450                  Applying for a tax file number .............................4.040
Privacy Commissioner.........................................3.460                Tax file number privacy rules ..............................4.050
Accounting working and advice papers............... 3.485                         Australian Business Number ...............................4.100
Anti-avoidance rules ............................................3.500            PAYG withholding ...............................................4.200
Income tax anti-avoidance rules ......................... 3.510                   Types of withholding............................................4.300
GST anti-avoidance rules ....................................3.520                Payers’ obligations and other matters ................. 4.400
FBT anti-avoidance rules ....................................3.530                Declarations and PAYG withholding variation..... 4.410
Penalties ..............................................................3.600     Payers’ obligations ..............................................4.420
Reasonable care .................................................3.630            HELP and SFSS..................................................4.500
Calculation of penalties and interest ................... 3.650                   Higher Education Loan Program ......................... 4.510
Interest.................................................................3.660    Student Financial Supplement Scheme .............. 4.520
Fines ....................................................................3.680   PAYG withholding tax tables ...............................4.600
Tax records .........................................................3.700        PAYG instalments ...............................................4.700
                                                                                  Amount of PAYG instalment ...............................4.730
Chapter 3: Self-assessment
                                                                                  Activity Statements ..............................................4.800
Issues to be addressed by taxpayers ................. 3.020
                                                                                  Completing an Activity Statement ....................... 4.840
Australian Taxation Office ...................................3.060
                                                                                  Common problems with Activity Statements ....... 4.850
Lodging tax returns..............................................3.070
Elections and notifications ...................................3.080              Chapter 5: Companies
Rulings.................................................................3.100     Definition of a company.......................................5.100
Public Rulings...................................................... 3.110        Public unit trusts taxed as companies................. 5.150
Private Rulings .................................................... 3.120        Debit/equity provisions ........................................5.200
Private Ruling application checklist ..................... 3.145                  Loans, payments and debt forgiveness .............. 5.300
Oral Rulings.........................................................3.150        Loans: Pre-December 1997 ................................5.350
Product Rulings ................................................... 3.160         Carry forward losses ...........................................5.400

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1.000                                                                  Contents

Tax consolidation ................................................5.500           Employment income and allowances ................ 10.050
Bad debts ............................................................5.600       Non-cash business benefits ..............................10.060
Lodgements .........................................................5.700         Frequent flyer, reward programs
Dividend imputation system ................................5.800                    and club benefits ............................................. 10.100
Franking tax return ..............................................5.820           Lump sum payments on termination
Distribution statement..........................................5.850               of employment ................................................10.200
Anti-avoidance rules ............................................5.900            Employment termination payments ................... 10.210
                                                                                  Transitional termination payments .................... 10.220
Chapter 6: Trusts                                                                 Directed termination payments..........................10.230
Comparison of trust structures ............................6.150                  Genuine redundancy and early retirement
Trustee distribution resolutions by 30 June ........ 6.170                          scheme payments ........................................... 10.240
Family trusts ........................................................6.200       Invalidity payments ............................................10.250
Trustee beneficiary reporting...............................6.300                 Unused annual leave.........................................10.260
TFN trust withholding rules .................................6.350                Unused long service leave ................................10.270
Service trusts....................................................... 6.400       Investment income ............................................10.300
Trading trusts ...................................................... 6.500       Interest...............................................................10.400
Calculating trust income ......................................6.600              Rental income ................................................... 10.500
Taxing trusts and beneficiaries ...........................6.700                  Royalty income .................................................. 10.600
Other CGT consequences...................................6.800                    Dividends ...........................................................10.700
Trust losses and bad debts .................................6.900                 Franking credit trading rules..............................10.740
Deceased estates................................................6.950             Other assessable income ..................................10.760
Chapter 7: Partnerships                                                           Profit-making undertakings................................10.770
                                                                                  Land sold under conditional
Definition of partnership ......................................7.100
                                                                                    or instalment contracts .................................... 10.780
Jointly derived income .........................................7.110
                                                                                  Income from leasing arrangements................... 10.790
Existence of a partnership...................................7.120
                                                                                  Life policy bonuses ............................................10.800
Tax treatment of a partnership ............................7.200
                                                                                  Employee share schemes .................................10.850
Partnership changes ...........................................7.300
                                                                                  The former Division 13A rules ...........................10.860
Tax returns ..........................................................7.400
                                                                                  Exempt income.................................................. 10.900
Chapter 8: Comparison of structures                                               Organisations exempt from income tax............. 10.910
Overview of structures.........................................8.020              Non-assessable non-exempt income ................ 10.950
Tax rates .............................................................8.050      Chapter 11: Capital gains tax
Pooled development funds ..................................8.200
                                                                                  Capital gains tax ................................................11.000
Early stage venture capital limited partnership ... 8.300                         Step 1: Did a CGT event happen? .................... 11.010
Clubs, societies and associations ....................... 8.400                   The CGT events ................................................11.020
Bodies corporate .................................................8.500           Step 2: Did the CGT event involve
Chapter 9: Small business entity framework                                          a CGT asset? ..................................................11.050
Small business entity framework                                                   Step 3: Does an exemption or concession
 from 1 July 2007 ............................................... 9.000             apply?..............................................................11.070
Overview..............................................................9.100       Step 4: Is there a capital gain or capital loss? .. 11.090
Eligibility...............................................................9.200   Step 5: Calculating the capital gain or
Grouping provisions ............................................9.230               capital loss ......................................................11.160
Small business entity concessions ..................... 9.300                     Step 6: Does a rollover provision apply? .......... 11.190
Accounting methods and transitional measures . 9.400                              Step 7: Maintain appropriate CGT records ....... 11.200
Simplified trading stock rules ..............................9.500                Special CGT rules .............................................11.250
Simplified depreciation rules ...............................9.600                Exemption for main residence...........................11.300
Prepayments .......................................................9.700          Joint tenants and tenants in common ............... 11.350
Temporary investment allowance deduction ....... 9.750                            Rolling over assets ............................................11.450
Entrepreneurs’ tax offset abolished..................... 9.800                    Involuntary disposals .........................................11.455
                                                                                  Marriage breakdown..........................................11.460
Chapter 10: Assessable income                                                     Strata title conversions ......................................11.465
Assessable income ...........................................10.000               Superannuation funds .......................................11.466
Characteristics of assessable income ............... 10.005                       Scrip for scrip rollover .......................................11.468
Calculation of taxable income ...........................10.010                   Tax relief for demergers ....................................11.470
Residency ..........................................................10.020        Demutualisation .................................................11.472
Deriving income................................................. 10.030           Business reorganisation ....................................11.475

12                                                     Taxpayers Australia Inc 2012 & 2013
                                                                    Contents                                                                          1.000

Asset transfers between certain                                                Chapter 14: Deductions for capital expenditure
  group companies ............................................ 11.510          Capital allowance write-offs for
Value shifting .....................................................11.515      non-SBE regime taxpayers ............................. 14.000
Small business CGT concessions..................... 11.525                     Depreciation (decline in value) ..........................14.010
Capital losses transferred within a                                            Depreciation flow chart ......................................14.020
  wholly-owned group of companies ................. 11.535                     Depreciating assets costing less than $300...... 14.030
Partnerships and CGT.......................................11.550              Software development pool ...............................14.050
Trusts and CGT .................................................11.600         Selection of depreciation method ...................... 14.060
CGT and estate beneficiaries............................11.650                 Balancing adjustment events ............................14.070
Listed investment companies and CGT ............ 11.675                        Rollover relief for certain CGT events ............... 14.080
CGT and foreign residents ................................11.700               Luxury vehicles.................................................. 14.085
Leases ...............................................................11.750
                                                                               Leases of luxury cars ........................................14.088
Investments: Shares, rights and options ........... 11.800
                                                                               Primary production ............................................14.090
Controlled foreign companies and CGT ............ 11.840
                                                                               Immediately deductible capital expenditure ...... 14.100
Renewal or disposal of statutory licences ......... 11.900
                                                                               Blackhole expenditure .......................................14.110
Liquidators’ distributions ....................................11.925
                                                                               Effective life tables for depreciating assets ....... 14.160
Compensation ...................................................11.950
                                                                               Temporary investment allowance deduction ..... 14.180
Chapter 12: General deductions                                                 Capital works .....................................................14.200
Checklist of employment-related claims............ 12.000                      Research and development ..............................14.500
Substantiation ....................................................12.100      Environmental expenditure................................14.600
Written evidence................................................ 12.120        Australian film investments................................14.700
Overtime meal allowances ................................12.140                Capital allowance clawback ..............................14.800
Minor work expenses ($300 threshold) ............. 12.145                      Tax breaks for green buildings ..........................14.900
Travel expenses ................................................ 12.160
                                                                               Chapter 15: The personal services income rules
Travel claims within Australia ............................12.180
Claims by long distance truck drivers ............... 12.187                   Personal services income .................................15.100
Overseas travel allowances ..............................12.190                Personal services business ...............................15.200
Travel claims: Overseas ....................................12.200             Effect of the PSI rules .......................................15.300
Summary of substantiation requirements.......... 12.210                        PSI earned through PSEs:
Car expenses .................................................... 12.220        The attribution rules ........................................ 15.400
Car expense substantiation ...............................12.225               PAYG withholding obligations ...........................15.500
Log book method: Worked example ................. 12.260                       Application of the general anti-avoidance
Exemptions from substantiation ........................12.265                   provisions to PSB............................................ 15.600
Disposal of car...................................................12.280       Chapter 16: Investments
Car parking expenses .......................................12.290             Revenue or capital ................................................. 16.100
Work-related clothing ........................................12.300           Investment earnings ............................................... 16.200
Superannuation deductions...............................12.400                 Capital gains........................................................... 16.300
Entertainment expenses....................................12.500               Typical investment products ................................... 16.400
Home office expenses .......................................12.600             Specialised investment products ............................ 16.500
Self-education expenses ...................................12.700              Common deductions allowable to investors ........... 16.600
Donations and gifts............................................12.800          Common mistakes.................................................. 16.700
Tax-related deductions ......................................12.900            Investment structures ............................................. 16.800
Carry forward tax losses ...................................12.950             Other taxation issues .......................................16.900

Chapter 13: Business deductions                                                Chapter 17: Rental property
Checklist of business deductions ...................... 13.000                 Assessable income ...........................................17.100
Prepayment of expenses...................................13.170                Rental business ................................................. 17.150
Negative gearing ...............................................13.190         Deductions.........................................................17.200
Trading stock ..................................................... 13.200     Capital works .....................................................17.300
Debt forgiveness ...............................................13.400         Decline in value of a depreciating asset ........... 17.350
Losses from non-commercial                                                     Residential rental property assets ..................... 17.360
 business activities ........................................... 13.450        Holiday houses and family arrangements ......... 17.400
Capital protected borrowings.............................13.600                FBT and rental properties .................................17.500
Forestry managed investment schemes ........... 13.700                         GST and rental properties .................................17.600

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1.000                                                                Contents

Chapter 18: Superannuation                                                      Certain other Centrelink benefits....................... 19.500
Superannuation: An overview ..........................18.000
                                                                                Chapter 20: Primary producers
Thresholds .........................................................18.002
Superannuation: A quick guide ........................ 18.004                   What is a primary producer? .............................20.100
Contribution acceptance and deductibility table 18.008                          Income of primary producers ............................20.200
Contributions .....................................................18.010       Livestock............................................................20.400
Acceptance of contributions ..............................18.015                Valuing horses as trading stock ........................20.490
Concessional (before-tax) contributions ............ 18.020                     Deductions.........................................................20.500
Non-concessional (after-tax) contributions ........ 18.030                      Capital improvements........................................20.600
Contribution caps ..............................................18.040          Managed investment schemes..........................20.700
Excess contributions tax....................................18.050              Farm management deposits..............................20.800
Tax file numbers and superannuation ............... 18.060
                                                                                Fuel tax credits ..................................................20.850
Reportable superannuation contributions.......... 18.065
                                                                                Averaging income..............................................20.900
Types of contributions .......................................18.070
Contributions made to non-complying                                             Chapter 21: International taxation
  superannuation funds ..................................... 18.080             Taxation of foreign income derived
Form of contribution ..........................................18.085            by residents.....................................................21.000
Other amounts................................................... 18.090
                                                                                Foreign source income - individuals.................. 21.010
Superannuation and fringe benefits tax ............ 18.095
                                                                                Foreign source income - business .................... 21.020
Superannuation entities and rules..................... 18.100
Penalties ............................................................18.250    Taxation of non-residents ..................................21.100
Splitting superannuation and family law ............ 18.260                     Non-resident businesses ...................................21.110
Superannuation and same-sex relationships .... 18.265                           Non-resident individuals ....................................21.120
Superannuation and bankruptcy ....................... 18.270                    Capital gains and investment returns ................ 21.130
Superannuation and insolvency                                                   Withholding tax as a final tax ............................21.140
  administrations ................................................ 18.275       Double taxation agreements .............................21.200
First Home Saver Accounts ..............................18.280                  Broad concepts ................................................. 21.210
MySuper ............................................................18.285      Australia’s double tax agreements .................... 21.220
Taxing superannuation entities .........................18.300                  Certificates of residency ....................................21.230
Tax return lodgements for superannuation
                                                                                Other international agreements ......................... 21.240
  funds ...............................................................18.310
Tax payable by superannuation entities............ 18.320                       Foreign exchange translation ............................21.300
Superannuation guarantee ................................18.500                 Conversion of foreign currency amounts .......... 21.310
Superannuation guarantee charge .................... 18.530                     Realisation of foreign currency gains
Choice of fund ...................................................18.560         and losses ....................................................... 21.320
Portability ...........................................................18.570   Elections ............................................................21.330
Small amounts of employer superannuation ..... 18.580                           Foreign exchange rates.....................................21.340
Retirement savings accounts ............................18.590                  Foreign income tax offsets ................................21.400
Taxation of superannuation benefits ................. 18.600                    Entitlement to a foreign income tax offset ......... 21.410
Rollovers............................................................18.660     Foreign losses ................................................... 21.420
Departing Australia superannuation payment ... 18.670                           Transitional rules ending 30 June 2013 ............ 21.430
Terminal illness ................................................. 18.680
                                                                                Conduit foreign income .....................................21.500
Income streams ................................................. 18.700
                                                                                Trust distributions to non-residents ................... 21.550
Transition to retirement income streams ........... 18.710
Income stream standards ..................................18.720                Proposed investment manager regime ............. 21.560
Non-complying superannuation funds ............... 18.800                       Foreign hybrids.................................................. 21.600
                                                                                Thin capitalisation..............................................21.700
Chapter 19: Retirement                                                          Key features of the thin capitalisation rules ...... 21.710
Phases of superannuation.................................19.100                 Outward investing entities .................................21.720
Transition to retirement .....................................19.200
                                                                                Anti-tax-deferral regimes ...................................21.800
Government incentives......................................19.300
                                                                                Outline of the current system ............................21.810
Mature age worker tax offset.............................19.310
Pension bonus scheme .....................................19.320                Controlled foreign companies............................21.820
Salary sacrifice to superannuation .................... 19.330                  Transferor trusts ................................................ 21.830
Centrelink age benefits......................................19.400             Accruals taxation reform....................................21.840
Age pension benefits .........................................19.410            Transfer pricing ................................................. 21.900
Means tests .......................................................19.430       Review of transfer pricing rules .........................21.910

14                                                    Taxpayers Australia Inc 2012 & 2013
                                                                       Contents                                                                       1.000

Chapter 22: GST: Overview                                                         Board and meals ...............................................24.700
How GST works ................................................22.010              Superannuation and FBT ..................................24.750
Taxable supply .................................................. 22.100          Employees in remote areas ..............................24.800
GST on taxable supplies ...................................22.170                 Residual fringe benefits .....................................24.820
Creditable acquisitions and input tax credits..... 22.200                         Living away from home allowance .................... 24.840
Input taxed supplies ..........................................22.300             Property benefits ...............................................24.860
GST-free supplies .............................................22.400             Airline transport fringe benefits .........................24.880
Exports ..............................................................22.410      Entertainment ....................................................24.900
GST and travel ..................................................22.420           Entertainment: Income tax and FBT ................. 24.920
Health goods and services ................................22.430                  ‘Entertainment’ or ‘non-entertainment’ .............. 24.940
Education and childcare ....................................22.440                Tax-exempt body entertainment........................24.960
Charitable activities ...........................................22.450           Salary sacrifice arrangements ...........................24.980
Supply of a going concern.................................22.460
                                                                                  Chapter 25: Payroll tax
Religious services .............................................22.470
GST on food ......................................................22.480          Payroll tax..........................................................25.000
Other GST-free supplies ...................................22.490                 Definition of wages ............................................25.010
                                                                                  Allowances ........................................................25.020
Chapter 23: GST: Admin and special topics                                         Where are wages received? .............................25.030
Registration, tax periods and GST accounting ...... 23.000                        Where is the tax payable?.................................25.040
How to account for GST ......................................... 23.100
                                                                                  Objections and appeals .....................................25.050
Special rules on attribution ..................................... 23.130
                                                                                  Due date for returns ..........................................25.060
Administration ......................................................... 23.200
Special topics ......................................................... 23.300   Grouping of employers ......................................25.070
GST groups and joint ventures .............................. 23.310               Payments to contractors....................................25.100
Partnerships ........................................................... 23.320   Reducing ‘deemed wages’ ................................25.160
Agency relationships and consignment sales ........ 23.330                        Apprentice wages, rebates and grants.............. 25.200
GST and real property............................................ 23.340          Payroll tax rates and thresholds ........................25.300
GST and non-residents .......................................... 23.350           Deductions for interstate employers.................. 25.310
Simplified accounting methods............................... 23.360               Annual payroll tax thresholds ............................25.320
Hire purchase and leases ...................................... 23.370            Monthly payroll tax reductions...........................25.330
Special GST rules .................................................. 23.380
                                                                                  Monthly payroll tax deductions ..........................25.340
Transitional arrangements...................................... 23.390
                                                                                  Payments liable for payroll tax ..........................25.350
GST and fringe benefits ......................................... 23.410
GST and income tax .............................................. 23.420          Chapter 26: Land tax
Anti-avoidance 23.430                                                             Australian Capital Territory ................................26.100
Chapter 24: Fringe benefits tax                                                   Victoria...............................................................26.200
Fringe benefits tax: Overview............................24.000                   New South Wales ..............................................26.300
FBT administration ............................................24.050             Queensland .......................................................26.400
Taxing fringe benefits ........................................24.100             South Australia .................................................. 26.500
FBT and GST ....................................................24.150            Western Australia ..............................................26.600
FBT exemptions ................................................ 24.200            Tasmania ...........................................................26.700
Record keeping for FBT ....................................24.250                 Chapter 27: Duties
Reportable fringe benefits .................................24.300                Australian Capital Territory duties ..................... 27.100
Car benefits ....................................................... 24.350       Northern Territory duties ...................................27.200
Valuing car benefits ...........................................24.360            Victorian duties .................................................. 27.300
Using the statutory formula method .................. 24.370                      New South Wales duties ...................................27.400
Using the operating cost method ...................... 24.380                     Queensland duties ............................................27.500
Leased cars .......................................................24.390         South Australian duties .....................................27.600
Calculating the FBT liability ...............................24.395               Western Australian duties .................................27.700
Car parking benefits ..........................................24.400             Tasmanian duties ..............................................27.800
Taxable value of a car parking benefit .............. 24.410
Loan benefits .....................................................24.450         Chapter 28: Other taxes
Debt waiver fringe benefits................................24.500                 Luxury car tax ....................................................28.100
Expense payment benefits ................................24.550                   Wine equalisation tax ........................................28.200
Road toll and e-tag expenses ...........................24.600                    Carbon tax .........................................................28.280
Housing benefits................................................ 24.650           Fuel tax credits ..................................................28.300

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INDEX
A                                                         lodgement dates 4.830
                                                          luxury car tax information 4.842
AAT see Administrative Appeals Tribunal                   PAYG instalments 4.844
ABN see Australian Business Number                        PAYG withholding information 4.843
Above average special professional income 2.070           when tax obligations must be included in an entity’s
  assessable professional income 2.072                       statement 4.846
  calculating average Taxable Professional Income      Actuarial certificates 18.240, 18.300
     2.074                                             Actuarial reports 18.235
  calculating taxable professional income 2.073        Adjustable value 14.060
  how ‘special income’ is taxed 2.075                  Adjusted taxable income (ATI)
  persons eligible for concession – special               definition 2.104, 13.470
     professionals 2.071                                  and new non-commercial loss rules from 1 July 2009
ABR see Australian Business Register                         13.470
Accident/sickness payment 10.050                       Adjustment notes, not always required 23.234
  PAYG withholding 4.314                               Administrative Appeals Tribunal (AAT) 3.300, 3.320
  payroll tax 25.350                                      cost of lodging an appeal 3.320, 3.330
Accommodation                                          Administrative services, effective life tables 14.160
  away from home 24.202                                Adoption leave 25.010, 25.350
  effective life tables 14.160                         Advertising and product launches 12.540
  short-term traveller 14.210                          Affiliates 9.231, 11.525
  temporary when relocating 24.202                     Age pension benefits 19.000, 19.410
Account based pensions 18.720, 19.120                     age limits 19.420
Accounting for GST 23.100–124                             age pension age to increase 19.425
  accruals basis 23.120, 23.122                           assets test 19.435
  cash basis 23.120, 23.121
                                                          future age pension age men and women 19.425
  changing methods 23.124
                                                          Government pension test 2.191
  concluding tax periods 23.111
                                                          income test 19.437
  creditable acquisition 23.121, 23.122
                                                          means test 19.430
  global method 23.381
  holding a tax invoice 23.123                            Pension Supplement 19.410
  progressive supplies 23.122                             principle 19.410
  tax periods 23.100                                      residence tests 19.410
  taxable supplies 23.121, 23.122                         transferring from one to another benefit 19.410
  see also Simplified accounting methods (GST)         Age test, for senior Australian tax offset 2.191
Accounting working and advice papers                   Agency relationships 23.330–331
  access to papers 3.485                                  agent treated as a separate supplier/acquirer 23.335
  access to restricted source and non-source              and disbursements 23.334
     documents 3.485                                      and GST 23.333
  categories of documents 3.485                           selling on a ‘sale or return’ basis or as an agent
  objection papers 3.485                                     23.331
  proposed ‘tax advice privilege’ 3.485                Aggressive tax planning, investments 16.900
  Tax Office access to 3.485                           Agricultural managed investment schemes 13.700,
  time to seek advice on the request 3.485               16.455, 16.470, 20.700
Accruals basis 10.040, 23.120                             see also Forestry managed investment schemes
  creditable acquisition 23.122                        Agriculture
  hire purchase agreement 23.371                          effective life tables 14.160
  income received in advance 10.040                       see also Primary producers; Primary production
  long term construction projects 10.040               Air transport
  professional practices 10.040                           New Zealand agreement 21.220
  progressive supplies 23.122                             United Kingdom agreement 21.220
  share of partnership income 10.040                      United States of America agreement 21.220
  taxable supplies 23.122                              Airline transport fringe benefits 3.740, 24.880
  trust distributions 10.040                              exemptions 24.886
  work in progress 10.040                                 ‘Frequent flyers’ 24.883
Accruals taxation reform 21.840                           GST and taxable value 24.881
  Board recommendations 21.840                            non-standby travel 24.884
  legislative developments 21.840                         otherwise deductible rule 24.885
Acknowledgements (probate), NSW 27.400                    standby travel 24.882
Acquirable assets 18.213                                  see also Travel; Travel allowances; Travel expenses
Active asset test 11.525, 17.400                       Alienation of personal services income rules 12.600
  meaning of ‘active asset’ 11.525                     Alimony and child support, United States of America
Active income test 21.820                                agreement 21.220
Activity Statements 4.800                              All-day parking 24.401
  Business Activity Statements 4.820                   Allocable cost amount (ACA) 5.550
  common problems 4.850                                Allocated pensions 18.720
  completing 4.841–846                                 Allowances 10.050
  Fringe Benefits Tax information 4.845                   entertainment allowance 12.560
  GST information 4.841                                   as exempt income 10.900
  Instalment Activity Statements 4.810                    hostess allowance 12.560

                                 www.taxpayer.com.au • Phone 1300 657 572                                 1423
                                                    Index

  living away from home allowance 3.740, 24.840–843,        Approved auditors, superannuation funds 18.110
     25.350                                                 Approved deposit funds (ADFs) 18.155
  meal allowances 10.050, 12.520, 12.525                       optional CGT loss rollover 11.466, 18.320
  overtime meal allowances 12.140, 12.515                      rules 18.230
  payroll tax 25.020, 25.350                                APRA see Australian Prudential Regulatory Authority
  travel allowances 10.050, 12.180–200, 12.520              APRA regulated funds
Amalgamated loans 15.330                                       investment managers and others 18.155
Ambulance Service Levy (ACT) 27.100                            regulatory return 18.100
Amendments to assessments 3.270                                tax return 18.100
  2004–05 and later income years 3.270                         trustees 18.100
  amending amended assessments 3.270                           winding up a fund 18.195
  prior to 2004–05 3.270                                    Artistic persons 2.071
  requests for 3.430                                           see also Entertainers
  self amending 3.270                                       Arts, effective life tables 14.160
Annual leave 10.050                                         Assessable income 10.000
  payroll tax 25.010, 25.350                                   accruals basis 10.040
  unused 4.312, 10.260                                         annual leave 10.050
Annual leave loading, and PAYG withholding 4.301               balancing adjustment events 14.070
Annual reports 4.423                                           business income 2.184
Annuities                                                      calculating taxable income 10.010
  New Zealand agreement 21.220                                 cash or cheques in transit 10.035
  and PAYG withholding 4.309, 4.412                            cash receipts basis 10.035
  United States of America agreement 21.220                    characteristics 10.005
Anti-avoidance rules 3.500, 5.490, 5.900                       deriving income 10.030
  determining purpose 5.900                                    directed termination payments 10.230
  FBT anti-avoidance rules 3.530                               dividends 10.035, 10.700
  GST anti-avoidance rules 3.520, 23.430                       early retirement scheme payments 10.240, 10.260,
  income tax anti-avoidance rules 3.510                           10.270
  leased luxury cars 14.088                                    Employee Share Schemes 10.850
  personal services business 15.600                            employment income and allowances 10.035, 10.050
  scrip lending 5.900                                          employment termination payments 10.210
  share capital tainting 5.950                                 exempt income 10.005, 10.900
  shares purchased ‘cum-dividend’ 5.900                        Frequent Flyer and club benefits 10.100
  what is a ‘scheme’ for the disposition of shares or an       genuine redundancy payments 10.240, 10.260,
     interest in shares? 5.900                                    10.270
Anti-overlap provisions (to prevent double taxation)           and GST 10.005
 11.074, 11.250                                                income received in advance 10.040
Anti-roll-up rule 21.840                                       income under ordinary concepts 10.005
Anti-streaming rules                                           interest 10.035, 10.400
  disclosure rule 5.800                                        invalidity payments 10.250, 10.260, 10.270
  overview 5.800                                               investment income 10.300, 16.100
  streaming benefits to members who benefit more from          land sold under conditional or instalment contracts
     imputation than others 5.800                                 10.780
  streaming using linked distributions 5.800                   leasing arrangements 10.790
  streaming using tax-exempt bonus shares 5.800                life policy bonuses 10.800
Anti-tax deferral regimes 21.800                               livestock 20.400–460, 20.409
  accruals taxation reform 21.840                              long service leave 10.035, 10.050
  controlled foreign companies 21.820                          long term construction projects 10.040
  deemed present entitlement 21.840                            lump sum payments on termination of employment
  foreign investment funds 21.840                                 10.200
  outline of current system 21.810                             non-assessable non-exempt income 10.005, 10.950
  tax treatment of sovereign instruments (government           non-cash business benefits 10.060
     proposal) 21.810                                          not included in 10.050
  transferor trusts 21.830                                     pathway to 10.005
Apartments, subdivision into strata title units 23.342         primary producers 20.200–320, 20.400–460, 20.490
Appeals see Reviews and appeals                                professional practices 10.040
Apportionment rule                                             profit-making undertakings 10.770
  capital proceeds 11.144                                      rental income 10.500, 17.100
  cost base 11.140                                             rental property 17.100
Apprentice wages, rebates and grants 25.200                    and residency 10.005
  ACT 25.280                                                   residency 10.020
  NSW 25.250                                                   revenue versus capital 10.005
  NT 25.270                                                    rewards programs 10.100
  Qld 25.210                                                   rights issues on shares 10.800, 16.425
  SA 25.220                                                    royalty income 10.600
  Tas 25.230                                                   share of partnership income 10.040
  Vic 25.240                                                   small business entities 10.035
  WA 25.260                                                    special professionals 2.072

1424                                         Taxpayers Australia Inc 2012 & 2013
                                                     Index

   and statutory income 10.005                                 lay-bys 23.133
   taxpayers carrying on a business 10.005                     personal services entities 15.400
   taxpayers not carrying on a business 10.005                 supply of goods on approval 23.134
   termination payments 10.210–30                            Audit certificates, superannuation funds 18.110
   transitional termination payments 10.220                  Auditors, superannuation funds 18.110
   trust distributions 10.040                                Australian Business Number (ABN) 4.100, 23.212
   unused annual leave 10.260                                  not quoted in respect of an investment 4.315
   unused long service leave 10.270
                                                               payer’s obligations 4.150
   work in progress 10.040
Assessable income test 13.460                                  purpose 4.110
Assessable recoupments 10.005                                  superannuation funds registering for 18.100
Assessment notice 2.000                                        supplier fails to quote ABN in respect of supply 4.131,
   early payments 2.003                                           4.316
   Electronic Lodgement System 2.001                           verification 4.150
   interest receivable 2.004                                   withholding exceptions 4.140
   overpayments 2.003                                          withholding where ABN not quoted 4.130
   tax charged and amounts credited 2.002                    Australian Business Register (ABR) 4.120
Asset register (CGT) 11.200                                  Australian Capital Territory
Asset used again after ceasing use, depreciation               apprentice wages, rebates and grants 25.280
  14.060                                                       duties 27.100
Assets                                                         land tax 26.100
   change in definition 11.058                                     exemptions 26.100
   classification 11.060                                     Australian Defence Force payments, as exempt
   collectables 11.060, 11.460, 11.650, 18.206                income 10.900
   consolidated group 5.530
                                                             Australian film investments 14.700
   other than collectables or personal use assets 11.060
   personal use assets 11.060, 11.460, 11.650                Australian government agencies, PSI rules 15.110
   separate CGT assets 11.062                                Australian government education payments, as
Assets test 19.435                                            exempt income 10.900
   assessable assets 19.435                                  Australian government payments, as exempt income
   assets test rule 19.435                                    10.900
   concessions cessation 18.720                              Australian government pensions, allowances and
   deprived assets 19.435                                     payments 2.201
   excluded assets 19.435                                      as exempt income 10.900
   and Family Tax Benefit 2.140                                see also Pensions
   hardship provisions 19.435                                Australian Property Trusts, and stapled securities
   for income streams 19.437                                  11.489
   retirement village and granny flat residents 19.435       Australian Prudential Regulatory Authority (APRA)
Associates                                                    18.100
   benefits provided to 24.002                                 powers of inquiry 18.115
   definition, PSI rules 15.110                                restriction of use of assets 18.115
   payments to, PSI rules 15.305                             Australian real property 11.700
   supplies to 22.128
                                                             Australian shares 16.420
Associations see Clubs, societies and associations
At-call loans 5.200                                            tax issues 16.425
Athletes see Sportspersons                                     see also Shares, options and rights
ATI see Adjusted taxable income                              Australian Superannuation Fund (ASF) 18.100
Attributable income                                          Australian Taxation Office see Tax Office(s)
   Controlled Foreign Companies 21.820                       Australia’s double tax agreements 21.220
       resident in listed countries 21.820                   Authors 2.071
       resident in unlisted countries 21.820                 Averaging income (primary producers) 20.900
   exemption for amounts paid out of 21.820                    average income less than taxable income 20.900
   from overseas 21.010                                        average income more than taxable income 20.900
   income excluded from 21.830                                 basic taxable income 20.900
   listed and unlisted countries 21.830                        ceasing averaging 20.900
   non-resident trusts 21.830                                  ceasing business 20.900
Attributable taxpayer                                          first average year 20.900
   controlled foreign companies 21.820                         income subject to averaging 20.900
   records 21.820
                                                               must be a ‘primary producer’ in the income year
   transferor trusts 21.830
Attributed tax account, transfer 5.545                            20.900
Attribution account, transfer 5.545                            number of years in ‘average income’ 20.900
Attribution rules 23.130                                       permanent reduction of taxable income 20.900
   Commissioner’s determination 23.131                         taxable non-primary production income 20.900
   consideration 23.135                                        taxable primary production income 20.900
   floor plan arrangements 23.134                              trust beneficiaries 20.900
   hire purchase 23.134                                        when extra income tax is payable or a tax offset
   land sales 23.132                                              applies 20.900

                                    www.taxpayer.com.au • Phone 1300 657 572                                     1425
                                                 Index


B                                                           contributions from proprietors 8.500
                                                            features 8.500
Baby Bonus (first child tax offset) 2.121                   investment income and income from non-members
Baby Bonus (maternity payment) 2.120                           8.500
   from 1 January 2009 2.120                                investments and TFN 4.022
   pre-1 January 2009 2.120                                 tax rates 8.500
Back payments of income, and PAYG withholding               taxation 8.500
  4.301                                                   Bonus shares 11.820, 16.425
Bad debts 13.160                                          Bonus units 11.830
   adjustment 23.262                                      Bonuses, and PAYG withholding 4.301
   claims under s8-1 13.160                               Book entries 22.121
   companies 5.600, 13.160                                Borrowing expenses 13.135
   ‘continuity of ownership’ test 5.610                     loans 16.610
   debt for equity swaps 5.630                              rental property 17.200
   deduction allowed 13.160                               Buildings
   partial debt ‘write offs’ 13.160                         green, tax breaks 14.900
   ‘same business’ test applied 5.620                       industrial 14.225
   trusts 6.900, 13.160                                     substantial renovations 23.342
Balancing adjustment events (depreciation) 11.040,        Business
  14.070                                                    what constitutes a business? 10.030
   assessable income or deduction 14.070                    winding up 13.230
   different car expense methods used 14.070              Business Activity Statements (BAS) 4.820
   in-house software 14.070                                 common problems 4.850
   involuntary disposals 14.070                             FBT information 4.845
   partnerships 14.070                                      GST information 4.841
   reduction for non-taxable use 14.070                     input tax credits claimable on earlier 23.251
   rollover relief for certain CGT events 14.080            lodgement dates 4.830
   termination value determination 14.070                   luxury car tax information 4.842
Bank accounts, children’s 2.045, 10.400                   Business assets, transfer, WA 27.700
Bankruptcy 12.970, 23.213                                 Business deductions 13.050
   and HELP debt 4.511                                      Australian film investments 14.700
   payment of debt by bankrupt 11.040                       bad debts 13.160
   and superannuation 18.270, 18.275                        bills of exchange discount 13.145
        contributions which are recoverable 18.270          blackhole expenditure 14.110
        recovery of void contributions 18.270               boats 13.167
   and Superannuation Guarantee Charge 18.270,              borrowing expenses 13.135
      18.543                                                business-related capital expenditure 14.110
Bare trusts, PAYG instalments 4.751                         capital protected borrowings 13.600
Barter transaction 22.126                                   capital works 14.200–280
BAS see Business Activity Statements                        checklist 13.000
Benchmark interest rates 5.312                              connecting mains electricity 13.185
Benchmark rule 5.800                                        control of health risks 13.150
   breaches 5.800                                           costs of new business 13.055
   departure from 5.800                                     debt forgiveness 13.400
Benchmark tax 4.736                                         decline in value (depreciation) 13.110
   credit for overpaid instalment 4.736                     donations and gifts 12.810
   reduction in the GIC 4.736                               entertainment expenses 12.500
   underestimating 4.736                                    environmental expenditure 14.600
   variation 4.735                                          environmental protection activities 14.100
Beneficiary tax offset 2.210                                exploration or prospecting 14.100
   calculating 2.211                                        forestry managed investment schemes 13.170,
Bills of exchange discount 13.145                              13.700
Binding Death Benefit Nominations (BDBNs) 18.165            general running expenses 13.105
Blackhole expenditure 14.110                                hire purchase 13.155
   business-related capital expenditure 14.110              illegal activities 13.166
   project expenditure 14.110                               immediately deductible capital expenditure 14.100
Board fringe benefit 24.700                                 interest 13.130
   definition 24.701                                            on money borrowed to pay tax 13.180
   exemptions 24.704                                        lease premiums and improvements by lessee 13.178
   reductions 24.703                                        leasing 13.155
   taxable value 24.702                                     legal expenses 13.115
Board of Taxation                                           leisure facilities 13.168
   review of the application of GST to cross-border         loss by theft 13.165
      transactions 23.000                                   losses from non-commercial business activities
   review of GST administration 23.000                         13.450–460
Boats, deductions 13.167                                    lump sums on ceasing employment 13.120
Bodies corporate 8.500                                      mining site rehabilitation 14.100
   body corporate expenditure 8.500                         mortgage discharge 13.140

1426                                  Taxpayers Australia Inc 2011 & 2012
                                                      Index

  negative gearing 13.190                                          applied 11.165
  payments to relatives must be reasonable 13.120               calculation of net capital gain 11.160
  petroleum resource rent tax 14.100                            case studies 11.165
  prepayment of expenses 13.170                                     asset acquired after 11.45 am on 21 September
  presently existing obligation 13.105                               1999 11.165
  project expenditure 14.110                                        CGT asset acquired pre-September and the CGT
  rates and land taxes paid on purchase 13.125                       event happens after 11.45 am on 21 September
  repairs 13.150                                                     1999 11.165
  research and development 14.500–560                               CGT event occurs at or before 11.45am on 21
  temporary investment allowance deduction 9.750,                    September 1999 11.165
     14.180, 20.510                                             companies 11.165
  trading stock 13.200                                          complying superannuation funds 11.165, 18.320
  travel – domestic and overseas 12.160                         determining 11.165
  see also Deductions                                           discount capital gains must not be indexed 11.165
Business grouping rules 25.070                                  exempt components, liquidators’ distributions 11.925
Business income 2.184                                           foreign currency conversion 11.165
Business norms method 23.363                                    foreign residents through fixed trusts 11.733, 21.550
Business premises 24.353                                        foreign source income 21.010
  benefits provided on 24.202                                   from disposal of shares in a foreign company 21.020
  ‘property’ consumed on 24.202                                 individuals 11.165
  use of 24.202                                                 investments 16.900
Business premises test (PSB) 15.230                             listed investment companies 11.675
Business profits                                                neither a capital gain or a capital loss 11.160
  New Zealand agreement 21.220                                  New Zealand agreement 21.220
  United Kingdom agreement 21.220                               non-residents 21.130
  United States of America agreement 21.220                         2012–13 Federal budget announcement 21.130
Business records 3.710                                          rental property 17.100
  what records should be kept? 3.710                            trusts 6.700, 11.165, 11.600–640
Business reorganisations 11.475                                 United Kingdom agreement 21.220
  Australian Property Trusts 11.489                             United States of America agreement 21.220
  conversion by a body to an incorporated company             Capital gains/losses records 3.730
     11.490                                                     assets acquired after 19 September 1985 3.730
  exchange of shares, units, rights or options 11.495           assets acquired before 20 September 1985 3.730
  exchange of shares between two companies 11.500               CGT register 3.730
  exchange of units in a unit trust for shares in a           Capital gains tax (CGT) 11.000
     company 11.510                                             anti-overlap provisions (to prevent double taxation)
  fixed trust to company transfers 11.487                          11.074, 11.250
  partnership to company transfers 11.485                       ‘asset’, change in definition 11.058
  sole trader or trustee to company transfers 11.480            asset acquired before 20 September 1985 11.072
  stapled securities 11.489                                     asset passes to an SDT from a deceased person’s
Business structures                                                estate 11.250
  comparison 8.000                                              asset passing to a tax-advantaged entity 11.040
  overview 8.020                                                asset register 11.200
  tax rates 8.050                                               asset transferred directly to SDT 11.250
  trusts, comparison 6.150                                      asset transfers between certain group companies
Business vehicles, use of 24.202                                   11.510
                                                                Australian residency ends 11.036
C                                                               balancing adjustment events for depreciating assets
                                                                   11.040
Cancellation fees 22.124                                        bringing a CGT asset into existence 11.026
Capital, versus revenue 10.005, 16.100                          business reorganisation 11.475–501
Capital allowances                                              cancellation or surrender of CGT asset 11.024
  capital works 14.205                                          cap, superannuation contributions 18.079
  clawback 14.800                                               capital proceeds 11.142–144
     hire purchase arrangements 14.800                          carried interests 11.040
     limited recourse debt 14.800                               CGT asset
     luxury cars 14.800                                             becomes trading stock 11.040
  decline in value 12.120                                           definition 11.052
  write-offs for non-SBE regime taxpayers 14.000                CGT event steps
Capital assets, versus trading stock, shares 16.425                 Step 1: did a CGT event happen? 11.010–042
Capital expenditure                                                 Step 2: did the CGT event involve a CGT asset?
  business-related 14.110                                            11.050–062
  and cost base 11.092                                              Step 3: does an exemption or concession apply?
  immediately deductible 14.100                                      11.070–074
  industrial buildings 14.225                                       Step 4: is there a capital gain or capital loss?
  primary producers 20.600–650                                       11.090–150
Capital gains 11.090–165, 11.160                                    Step 5: calculating the capital gain or capital loss
  12 month rule 11.165                                               11.160–165
  calculating net capital gain where capital losses are             Step 6: does a rollover provision apply? 11.190

                                     www.taxpayer.com.au • Phone 1300 657 572                                       1427
                                                        Index

      Step 7: maintain appropriate CGT records 11.200             record keeping 11.200
  CGT events 11.020–042                                           register 3.730
      what are they? 11.010                                       renewal/disposal of statutory licences 11.900
      which is the appropriate event? 11.010                      rental property 17.100
  change of ownership on death 11.250                             resettlement (creation of a new trust) 6.850
  change in ownership of non-public entities 11.250               reversal of rollovers 11.038
  change in underlying assets 11.250                              rollover relief/provisions 11.190, 11.450–501, 14.080,
  checklist 11.200                                                   18.260, 18.320, 20.210
  classification of assets 11.060                                 scrip for scrip rollover 11.468
  collectables 11.060                                             separate assets, records 11.200
  compensation 11.950–987                                         separate CGT assets (Subdivision 108-D) 11.062
  concessions 11.070, 11.074                                          improvements to pre-CGT assets 11.062
      for active foreign companies 11.845                         shares, rights and options 11.032, 11.040, 11.124,
      available to SBEs 9.300, 11.525                                11.800–837
  conservation covenants 11.026                                   short-term foreign exchange gains and losses after 30
  consolidated groups 11.042                                         June 2003 11.040
  controlled foreign companies 11.840                             small business entity concessions 6.700, 9.300,
  copyright 11.072                                                   11.525
  cost base 11.092, 11.094, 12.930                                special capital receipts 11.034
      indexation 11.096                                           special collectable losses 11.040
      modifications 11.140                                        special rules 11.250
      reduced 11.102, 11.120                                      splitting superannuation and family law 18.260
  creating contractual or other rights 11.026                     strata title conversions 11.465
  demerger relief 11.470                                          superannuation funds 11.466–467, 18.320
  demutualisation 11.472                                          tenants in common 11.350
  direct value shifts 11.040                                      and thin capitalisation rules 21.760
  disposal of CGT asset 11.021                                    tradable water entitlements 20.210
  donations and gifts 12.850, 12.885                              trust cloning 6.820
  end of an option to acquire shares or debentures                trusts 6.700, 6.800–870, 11.028, 11.038, 11.600–640,
     11.024                                                          16.445
  end of a CGT asset 11.024                                       use and enjoyment of assets before title passes
                                                                     11.022
  and estate beneficiaries 11.650
                                                                  value shifting 11.515
  exemptions 11.070, 11.074
                                                                  warrants 16.545
      asset transferred to a special disability trust 11.250
                                                                Capital losses 11.090–165, 11.160, 11.165
      exempt assets 11.074
                                                                  calculation of net capital loss 11.160
      for main residence 11.300
                                                                  carry forward 13.400
  foreign hybrids 11.040
                                                                  foreign residents through fixed trusts 11.733, 21.550
  foreign residents 11.700, 17.100                                from disposal of shares in a foreign company 21.020
  goodwill 11.072                                                 group carry forward 13.400
  granting an option 11.026                                       investments 16.900
  granting a right to income from mining 11.026                   neither a capital gain or a capital loss 11.160
  how CGT works see above CGT event steps                         rental property 17.100
  incidental costs 11.092, 11.094                                 transfer, deceased estates 11.650
  index factors 11.098                                            transferred within a wholly-owned group of companies
  indexation of cost base 11.096                                     11.535
  investments 11.800–837, 16.300                                  trusts 6.900
  involuntary disposals 11.455                                  Capital proceeds 11.142
  joint tenants 11.350                                            apportionment rule 11.144
  leases 11.030, 11.750–758                                       assumption of liability rule 11.144
  liquidators’ distributions 11.925                               crown leases 11.755
  listed investment companies 11.675                              earn-out arrangements 11.142
  loss or destruction of CGT asset 11.024                         market value substitution rule 11.144
  main residence exemption 11.300                                 misappropriation rule 11.144
  marriage breakdown 11.460                                       modifications 11.144
      and rollover relief 18.260                                  non-receipt rule 11.144
  MEC groups 11.042                                               repaid rule 11.144
  other CGT events 11.040, 11.150                               Capital protected borrowings (CPB) 13.600
  overseas property 17.100                                        entered into or extended on or after 1 July 2007 but
  partnerships 7.400, 11.550                                         before 13 May 2008 13.600
  patents 11.072                                                  entered into from 13 May 2008 13.600
  payment of debt by bankrupt 11.040                              put option exercised/not exercised 13.600
  personal use assets 11.060                                      summary of appropriate benchmark interest rates
  pre-CGT asset deemed to be post-CGT 11.250                         13.600
  pre-CGT shares or trust interest 11.040                         tax-treatment of non-deductible interest component
  property                                                           13.600
      ordinary meaning 11.054                                     transitional rules covering 16 April to 30 June 2007
      statutory meaning 11.0056                                      13.600
  public entities 11.250                                              indicator method 13.600

1428                                       Taxpayers Australia Inc 2011 & 2012
                                                   Index

      percentage method 13.600                               road toll and e-tag expenses 12.220, 12.295,
Capital protected loans (CLP), interest and fees 16.615         24.600–605
Capital works 14.200                                         unregistered cars 24.354
  apportionment 14.245                                       vehicles other than cars 24.356
  calculating the deduction 14.270                           ‘work related’ travel in commercial cars 24.354
  capital allowances 14.205                                Car parking benefits 24.202, 24.400–417
  capital improvements not eligible 14.205                   all-day parking 24.401
  construction costs 14.260                                  business day 24.401
  depreciable items not eligible 14.205                      business premises 24.401
  earthworks 14.205                                          commercial parking station 24.401
  environment protection earthworks 14.265                   costs paid or reimbursed by employer 24.405
  industrial activities                                      declaration by employer 24.416
      ancillary 14.235                                           vacant car spaces 24.416
      core 14.230                                            definition 24.401
      ineligible activities 14.240                           disabled car parking 24.404
  industrial buildings 14.225                                exempt organisations 24.402
  lessees can claim expenditure 14.205                       ‘in the vicinity of’ 24.401
  record keeping 14.280                                      ‘one kilometre’ rule 24.401
  rental property 17.300                                     record keeping 24.415
      construction expenditure that can be claimed           reporting systems 24.417
        17.300                                                   exception or addition system 24.417
      construction expenditure that cannot be claimed            register system 24.417
        17.300                                               representative fee 24.401
  short-term traveller accommodation 14.210                  small business exemption 24.403
  structural improvements 14.250                             taxable value 24.410
      associated 14.250                                          12 week register method 24.414
      ineligible 14.250                                          average cost method 24.413
  tenant improvements 14.205                                     commercial car parking station method 24.411
Car expense substantiation 3.720, 12.225                         market value method 24.412
  12% of original value method 12.235                            statutory formula (spaces) method 24.414
  balancing adjustments 14.070                             Car parking expenses 12.220, 12.290
  ‘business kilometres’, definition 12.225                   employees 12.290
  car used by more than one person 12.230                    employer provided car 12.290
  cents per km method 12.230, 12.280                         non-employees 12.290
  claims for fuel and oil 12.242                           Carbon Sequestration Rights 20.210
  disposal of car 12.280                                   Carbon sink forests 20.210
  employer provided car 12.290                               deductible establishment expenditure 20.210
  exemptions from substantiation 12.265                    Carbon tax 28.280
  log book method 12.245                                   Carried interests 11.040
      keeping a log book 12.245                            Carry forward tax losses 5.400, 12.950
      worked example 12.260                                  anti-avoidance measures – Division 175 5.490
  one third of actual expenses method 12.240                 and bankruptcy 12.970
  owner registered for GST 12.235                            claim only if no loss generated 12.950
  part year claim 12.235                                     Continuity of Ownership Test 5.410
  switching methods 12.250, 12.280                           current year losses 5.480
Car expenses 12.220                                          death of shareholder 5.410
  business travel rates 24.557                               deducting tax losses 12.950
  ‘car’, definition 24.351                                   eligible Division 166 company 5.420
  cars available for private use 24.352                      Family Court Order 5.410
  cars supplied by personal services entities 24.354         and franking offsets 5.440
  cars used for emergency services 24.354                    from donations and gifts 12.828
  employees 24.556                                           inter-entity loss multiplication rules – Division 165-CD
  exempt car benefits 24.354                                    5.460
  fringe benefits 3.740, 23.411, 24.106, 24.202,             objections involving 3.235
     24.350–396                                              partial claims 5.470
      liability calculation 24.395                           Same Business Test 5.430
      operating cost method 24.380–384                       ‘savings rule’ 5.410
      small business 24.252                                  shares held by a discretionary trust 5.410
      statutory formula method 24.370–377                    tax offsets in year loss incurred 12.950
      valuing benefits 24.360                                unrealised loss rules – Division 165-CC 5.450
  hire cars and taxis 24.357                                 widely held companies – modified COT rules 5.420
  input tax credits 22.226                                 Cars
  leased cars see Leased cars; Leased luxury cars            fuel-efficient see Fuel-efficient cars
  luxury cars see Luxury cars                                leased see Leased cars; Leased luxury cars
  ‘otherwise deductible’ rule 24.826, 24.869                 luxury see Luxury cars
  ‘private use’ 24.351                                       see also Motor vehicles
  and PSI rules 15.305                                     Cash, consideration 23.135
  reimbursed per km 24.556                                 Cash basis 23.120, 23.121

                                   www.taxpayer.com.au • Phone 1300 657 572                                     1429
                                                 Index

  creditable acquisitions 23.121                                insurance requirements 18.563
  hire purchase agreement 23.371                                penalties 18.563
  taxable supplies 23.121                                       record keeping 18.563
Cash and fixed interest investments 16.410                      required steps 18.563
  discounted or deferred interest securities 16.415         standard choice form 18.564
  first home saver accounts 16.415                          Superannuation Clearing House Facility 18.565
  interest income 16.415                                 City Centre Marketing and Improvements Levy (ACT)
  tax issues 16.415                                        27.100
  taxing of yield interest 16.415                        Class Rulings 3.170
Cash management trusts, income 16.700                       certainty for participants 3.170
Cash receipts basis 10.035                                  obligations after issue of 3.170
  cash or cheques in transit 10.035                         requests for 3.170
  dividends 10.035                                          when Rulings not issued 3.170
  employment income 10.035                                  withdrawal of 3.170
  interest 10.035                                        Clawback adjustments 14.550
  long service leave 10.035                              Cloning trusts 6.820
  small business entities 10.035                         Closely held trusts 6.000, 10.745
Cash register roll records 3.710                            trustee beneficiary 6.300
Caveats, Qld 27.500                                         trustee beneficiary reporting 6.300
Centrelink                                               Clothing see Work-related clothing
  loans to beneficiaries of trusts 6.700                 Clubs, societies and associations 8.400
  tests for income streams 19.437                           deductions for memberships 10.100
Centrelink age benefits 19.400                              establishing taxable and non-taxable amounts 8.400
  age pension benefits 19.410                               member income sources 8.400
  assets test 19.435                                        mixed source gross receipts 8.400
      for income streams 19.437                             non-member income sources 8.400
  income test 19.437                                        non-profit clubs and community service groups 8.400
  means test 19.430                                         principle of mutuality 8.400
Centrelink benefits 19.500                                  tax rates 8.400
  Commonwealth Seniors Health Card 19.516, 19.520,          tax-exempt organisations 8.400
     19.526                                              Collectables 11.060, 11.460, 11.650
  Department of Veterans’ Affairs Gold Card 19.516          investment in by SMSFs 18.206
  pensioner advance payment 19.525                          losses 11.040
  Pensioner Concession Card 19.523                       College building funds, donations to 12.860
  rent assistance 19.524                                 Commercial debt, definition 13.400
  Seniors Supplement 19.516, 19.526                      Commercial parking station 24.401
  telephone allowance 19.520                             Commercial property
  utilities allowance 19.522                                leasing 23.341
Cents per km method (car expense substantiation)            outgoings payable by tenant under a commercial
 12.230, 12.280                                                lease 23.341
Certificates of residency 21.230                            residential premises previously sold as 23.342
Cessation of business 23.213, 24.252                        tenant pays outgoings directly to landlord’s supplier
  primary producers 20.800, 20.900                             23.341
CGT see Capital gains tax                                Commercial residential property
Charitable activities 22.450                                leasing 23.341
Charitable institutions                                     as long term accommodation 23.341
  fund-raising events 22.360                                residential premises previously sold as 23.342
  health promotion charities 24.102                      Commissions, payroll tax 25.350
Chattels 23.342                                          Common employees 25.070
Cheque payment, consideration 23.135                     Commonly controlled businesses 25.070
Cheques in transit, as assessable income 10.035          Commonwealth Seniors Health Card (CSHC) 19.516,
Child care rebate 2.130                                    19.520, 19.526
  eligibility 2.131                                         benefits 19.526
Child care tax offset 2.130                                 income test 19.526
Child care tax rebate 2.130                                 Medicare safety net 19.526
Child-housekeeper tax offset 2.116                          Seniors Supplement 19.516, 19.526
Childcare 22.442, 23.204                                 Commonwealth superannuation scheme, and
Children see Minors                                        residency 10.020
Children’s bank accounts 2.045, 10.400                   Community service groups 8.400
Children’s share investments 2.046                       Companies 5.000, 8.020
Choice of superannuation fund 18.560                        acquisition of land, NT 27.200
  employees and choice 18.562                               amalgamated loans 5.330
      eligibility requirements 18.562                       anti-avoidance rules 5.490, 5.900, 5.950
      options for eligible employees 18.562                 anti-streaming rules 5.800
  employer obligations under choice 18.563                  bad debts 5.600–630, 13.160
      employer information and advice 18.563                benchmark interest rates 5.312
      employer nominated funds 18.563                       benchmark rule 5.800
      insurance exemptions 18.563                               breaches 5.800

1430                                 Taxpayers Australia Inc 2011 & 2012
                                                    Index

    departure from 5.800                                      public companies see Public companies
capital gains 11.165                                          public unit trusts taxed as 5.150
carries on business in Australia 10.020                       related payments rule 5.800
carry forward losses 5.400–490                                relief from excessive overfranking penalty 5.800
ceasing to be a member of wholly-owned group after            residency requirements for tax offsets 5.800
   rollover 11.038                                            residency rules 10.020
central management and control 10.020                         Same Business Test 5.430, 5.620
    location of in more than one country 10.020               ‘savings rule’ 5.410
    location of 10.020                                        share capital tainting 5.950
change of control, WA 27.700                                  sole trader or trustee to company transfers 11.480
consolidations 5.500–575                                      tax losses and franking tax offsets 5.440
Continuity of Ownership Test (COT) 5.410, 5.420,              tax offsets for direct distributions 5.800
   5.610                                                      tax rates 8.050
conversion of tax offsets into losses 5.800                   trust distributions to 6.700
current year losses 5.480                                     unrealised loss rules – Division 165-CC 5.450
debt/equity provisions 5.200                                  widely held companies, modified COT 5.420
debt for equity swaps 5.630                                   winding up 10.755
debt forgiveness 5.100, 5.300, 5.310                        Company directors see Directors
    excluded 5.320                                          Company title conversions 23.342
deemed dividends 5.310                                      Company title units, land tax, NSW 26.300
    overview of Division 7A 5.310                           Compensation payments 10.050
definition 5.000                                              apportioning receipt 11.987
distribution statement 5.850                                  CGT 11.950
distributions 5.800                                           compensation for compulsory acquisition of part of
dividend 5.800                                                   CGT asset 11.987
dividend imputation system 5.800                              compensation received under insurance policy 11.980
Division 7A and court orders 5.310                            disposal of notional asset 11.975
dwelling owned by 11.300                                      disposal of underlying asset 11.955
effect of receiving a franked distribution 5.800              excessive consideration 11.965
eligible Division 166 company, modified COT 5.420             exempt assets 11.985
exchange of shares between two companies 11.500               goodwill 11.987
exchange of units in a unit trust for shares in               interest 10.400, 11.987
   company 11.501                                             monetary compensation 11.455
excluded loans and payments 5.310                             PAYG withholding 4.314
fixed trust to company transfers 11.487                       payroll tax 25.350
foreign hybrid 21.600                                         permanent damage 11.960
foreign source income 21.020                                  replacement asset as compensation 11.455
    tax concessions 21.020                                    right to seek compensation 11.970
formed from trusts 6.870                                      rollover relief 11.987
franking account 5.800                                        undissected lump sum compensation 11.987
franking account tax return 5.820                           Complaints against the Tax Office, lodgement of 3.430
franking credits 5.800                                      Complying approved deposit funds see Approved
franking debits 5.800                                        deposit funds (ADFs)
franking deficit tax 5.800                                  Complying pensions 18.720
franking period 5.800                                       Complying superannuation funds
gross-up and offset rules 5.800                               capital gains 11.165, 18.320
group companies see Group companies                           no pre-CGT exemption 11.466
holding period rule 5.800                                     optional CGT loss rollover 18.320
    small shareholder exemption 5.800                         personal concessional contributions 18.026
incorporated in Australia 10.020                              residency 18.100
incorporated companies see Incorporated companies             rollover relief 11.466
inter-entity loss multiplication rules – Division 165-CD      tax payable 18.320
   5.460                                                      taxation 18.300
interest incurred 13.130                                    Composers 2.071
interposed company chooses rollover 11.500                  Composite supplies, GST on 22.174
loans through interposed entities – tracing rules 5.325     Compulsory acquisition of land 22.111
loans to shareholders 5.300, 5.340, 5.345, 5.350            Compulsory uniforms 12.340
lodgements 5.700–710                                          special circumstances 12.340
    balancing payment or refund 5.720                       Computer software 14.050, 14.070
maximum franking percentage 5.800                           Computers, deductions 12.155, 16.680
negative gearing 13.190                                     Concessional (before-tax) contributions 18.020
not incorporated in Australia 10.020                          employer contributions (concessional) 18.022
partial claims 5.470                                          personal concessional contributions 18.026
partnership to company transfers 11.485                     Concessionally taxed ‘deed’ trusts 6.000
PAYG instalment system 5.710                                Concessionally taxed employers 24.102
payments to shareholders 5.300, 5.310, 5.340                Concessionally taxed ‘will’ trusts 6.000
pre-establishment costs 22.232                              Conduit foreign income 21.500
private companies see Private companies                     Conferences and seminars 12.530

                                   www.taxpayer.com.au • Phone 1300 657 572                                 1431
                                                    Index

Connected with Australia (taxable supply) 22.140            Continuity of Ownership Test (COT) 5.410
Connected entities 9.232, 11.525                              bad debts 5.610
Conservation covenants 11.026, 12.883                         modifications to 5.420
Consideration (debt forgiveness) 13.400                       modified
Consideration (taxable supply) 22.120                             for eligible Division 166 companies 5.420
  book entries 22.121                                             for widely held companies 5.420
  cancellation fees 22.124                                    and ‘savings’ rule 5.410
  court orders and out-of-court settlements 22.125            shares held by a discretionary trust 5.410
  definition 22.120                                         Contractors
  government taxes, fees and charges 22.129                   payments to 25.100–150, 25.350
  liabilities assumed by purchaser of an enterprise           superannuation 18.524
     22.122                                                 Contracts for Difference 16.510
  non-monetary consideration 22.126                           tax issues 16.515
  security deposits 22.124, 23.382                          Control of health risks 13.150
  stolen takings 22.123                                     Control tests 9.233
  supplies to associates 22.128                               Commissioner’s discretion 9.233
  vouchers 22.127                                             discretionary trusts 9.233
  when provided/received? 23.135                              entities other than discretionary trusts 9.233
Consignment sales 23.332                                      indirect control 9.233
  GST payment 23.332                                          non-fixed trusts 6.900
  input tax credits on 23.332                                 payments to employees 4.301
Consolidated groups 5.500                                   Controlled foreign companies 21.820
  allocable cost amount                                       active income test 21.820
      discharged amount of liability differs from amount      associate-inclusive control interest 21.820
        for ACA purposes 11.042                               attributable income 21.820
      entities joining or becoming a consolidated group       attributable taxpayer 21.820
        5.550                                                 becomes a resident after 30 June 1990 11.840
      where amount remaining after step 4 of leaving          CGT 11.840
        ACA is negative 11.042                                CGT concession 11.845
      where no reset cost base assets and excess of net       change of residence 11.840, 21.820
        ACA on joining 11.042                                 consolidated groups 5.545
      where pre-formation intra-group rollover reduction
                                                              cost base adjusted on return of capital 11.840
        results in negative ACA 11.042
                                                              exemptions for amounts paid out of attributed income
      where tax cost setting amounts for retained cost
                                                                21.820
        base assets exceed joining ACA 11.042
  assets 5.530                                                foreign losses 21.820
  basic rules 5.515                                           legislative developments 21.840
  CGT events 11.042                                           passive income 21.820, 21.840
  effect of not consolidating 5.510                           records 21.820
  entities leaving a consolidated group 5.555                 residency – listed and unlisted countries 21.820
  error in calculation of tax cost setting amount for         rollover relief 11.840
     joining entity’s assets 11.042                           tainted income ratio 21.820
  franking accounts 5.540                                     tainted sales income 21.820
  head company 5.520                                          tainted services income 21.820
  international provisions                                    tax records 3.750
      foreign income tax offsets 5.545                        taxes paid 21.820
      transfer of attribution account and attributed tax      and transferor trusts 21.830
        account surpluses 5.545                             Conventional clothing 12.330
  with life insurance companies 5.565                       Conveyance and transfer of property
  loss of pre-CGT status of membership interests in           ACT 27.100
     entity becoming a subsidiary member 11.042               NSW 27.400
  MEC groups – resident wholly-owned subsidiaries of          NT 27.200
     a common foreign holding company 5.560                   Qld 27.500
  membership 5.520                                            SA 27.600
  methods of consolidation 5.525                              Tas 27.800
  and PAYG instalments 5.570                                  Vic 27.300
  subsidiary member 5.520                                     WA 27.700
  tax sharing and funding arrangements 5.575                Co-operative companies 5.100
  transferring losses to 5.535                              Copyright 11.072
  trusts as subsidiary members 5.520                        Corporate boxes 24.909
  where reduction in tax cost setting amounts for reset     Corporate credit card statements, and tax invoices
     cost base assets cannot be allocated 11.042             23.233
Construction                                                Corporate entities, imputation rules 5.800
  costs 14.260                                              Corporate shareholders 10.720
  effective life tables 14.160                              Corporate tax entity (CTE), and conduit foreign income
Construction projects, long term 10.040                      21.500
Constructive dismissal 10.240                               Corporate unit trusts 4.754, 5.150, 11.640
Consumer credit legislation, lease termination                rules for taxing 5.150
 pursuant to a statutory right 23.373                       Corporations see Companies

1432                                    Taxpayers Australia Inc 2011 & 2012
                                                   Index

Cosmetic medical and dental procedures 2.162                 if new lease is of different land 11.755
Cost base 11.092, 12.930                                     if trustee holds 11.755
  adjustment on return of capital, CFCs 11.840               land tax, NSW 26.300
  apportionment rule 11.140                                  rollover relief 11.755
  assumption of liability rule 11.140                             for depreciable property 11.755
  capital expenditure incurred 11.092                        rollover of replacement Crown lease 11.755
  capital expenditure to establish, preserve or defend     Cultural bequests program 12.870
    title to the asset or a right over the asset 11.092    Cultural gifts program 12.835
  consideration given on acquisition of CGT asset
    11.092                                                 D
  consolidations 11.042
  costs of owning a CGT asset acquired after 20            De minimis exemption 21.830, 22.227
    August 1991 11.092                                     Death benefit employment termination payments
  and debt forgiveness 13.400                               10.210
  impact of acquisition time on elements of 11.092           concessional cap 10.210
  incidental costs incurred 11.092, 11.094                   payment to a ‘death benefits dependent’ 10.210
  indexation 11.096                                          payment to a non-dependent 10.210
      exceptions to the 12 month ownership rule 11.096     Death benefits 19.130
  market substitution rule does not apply 11.140           Death of business owner 23.213
  market value substitution rule 11.140                    Death of shareholder, carry forward tax losses 5.410
  modifications 11.140                                     Death of taxpayer
  new statutory licence 11.900                               asset passing to a tax-advantaged entity 11.040
  reduced 11.102, 11.120                                     before living in new home or before satisfying three
  rules for acquiring entity 11.468                             month occupation requirement 11.300
  split, changed or merged assets 11.140                     depreciating assets 14.060
Court orders                                                 Farm Management Deposits 20.800
  carry forward tax losses 5.410                             and HELP debt 4.511
  and Division 7A 5.310                                      and lodgement of return 3.070, 6.950
  taxable supplies 22.125                                    and main residence exemption 11.300
Credit card payment, consideration 23.135                    and SFSS debt 4.522
Credit card statements, corporate, and tax invoices          and tax-related expenditure 12.905
 23.233                                                      and trading stock 13.230
Credit card summary statements 3.710                         and unused annual leave 10.260
Credit unions, tax rates 8.050                               and unused long service leave 10.270
Creditable acquisitions 22.200                               see also Deceased estates
  accruals basis 23.122                                    Debenture trust deeds, Qld 27.500
  acquisition 22.210                                       Debit card (EFTPOS), consideration 23.135
  annual apportionment of creditable purpose 22.225        Debt for equity swaps 5.630
  car expenses 22.226                                      Debt forgiveness 5.100, 5.300, 5.310, 13.400
  cash basis 23.121                                          amalgamated debt 5.310
  changes in extent of creditable purpose 22.224             amounts included in assessable income 13.400
  creditable purpose 22.220                                  by statute of limitations 5.310
  ‘de minimis’ rule 22.227                                   calculating net amount forgiven 13.400
  and input tax credits 22.200–33                            carry forward capital losses 13.400
  input tax credits see Input tax credits                    commercial debt 13.400
  method of apportionment 22.222                             consideration 13.400
  partly for a creditable purpose 22.221                     cost base of CGT asset 13.400
  whose creditable purpose? 22.223                           debt parking 5.310
Creditable purpose, change in extent of 23.263               as deemed dividend 5.310
  adjustment for new residential property 23.263             definition 5.310
      interaction between Division 129 and the ‘5 year       discharge of debt by transfer of property 5.310
        rule’ in s40-75(2) 23.263                            exclusions 5.320
  adjustment periods 23.263                                  failure to rely on obligation to repay 5.310
  calculation of the adjustment 23.263                       forgiveness of amalgamated debt 5.310
  goods applied solely for private or domestic use           gross forgiven amount 13.400
    23.264                                                   group carry forward capital losses 13.400
  method statement 23.263                                    group deductible revenue losses 13.400
  sale of things used partly for a creditable purpose        partnerships 13.400
    23.264                                                   prior year revenue losses 13.400
Crops and crop stools 20.300                                 related companies 13.400
Cross-border transactions, Board of Taxation review of       remainder 13.400
 application of GST to 23.000                                shareholders 5.100, 5.310
Crown leases 11.755                                          trusts 5.335
  capital proceeds 11.755                                        exclusions 5.340
  conveyance and transfer                                    undeducted balances of deductible expenditure
      ACT 27.100                                                13.400
      NT 27.200                                              what is ‘forgiveness’? 13.400
  depreciation 11.758                                      Debt interest test 5.200
  Government-acquired lease 11.755                         Debt waiver fringe benefits 24.500

                                   www.taxpayer.com.au • Phone 1300 657 572                                   1433
                                                       Index

  exemptions 24.502                                              interest deductions 16.635
  taxable value 24.501                                           interest on line of credit 16.640
Debt/equity provisions 5.200                                     interest on linked and split loans 16.645
  at-call loans                                                  investments 16.600–680
      being an equity interest, tax consequences 5.200           laundry expenses 12.150
      being a debt interest, tax consequences 5.200              leased luxury cars 14.088
      that are debt interests for tax purposes 5.200             negative gearing/margin lending 16.650
      to companies 5.200                                         prepaid expenses 16.655
  debt interest test 5.200                                       primary production 14.090
  documentation 5.200                                            self-education expenses 12.700
  equity interest test 5.200                                     stamp duty 16.670
  non-share capital account 5.200                                superannuation 12.400
  non-share equity interest 5.200                                tax advice 16.675
  transitional rules, related party ‘at-call’ loans 5.200        tax-related deductions 12.900
Deceased estates 6.000, 6.950                                    telephone, computer, internet expenses 12.155,
  assets bought from the estate 11.650                              12.600, 16.680
  CGT issues 11.650                                              travel expenses see Travel expenses
      CGT event occurs within 12 months of death                 work-related clothing see Work-related clothing
        11.650                                                 Deemed dividends 5.310, 24.003, 24.454
      exceptions 11.650                                          back-to-back arrangements 5.310
  collectable and personal use assets 11.650                     Commissioner’s discretion 5.310
  death after 19 September 1985 11.650                               decision issued 5.310
  death before 20 September 1985 11.650                              factors in making decision 5.310
  estate assets 6.950                                                meaning of an honest mistake and inadvertent
  and interest in shares 10.745                                       error 5.310
  land tax exemption                                                 overview 5.310
      NSW 26.300                                                 consequences of Division 7A applying 5.310
      Qld 26.400                                                 distributable surplus 5.310
  main residence 11.650                                          Division 7A amounts 5.310
  non-estate assets 6.950                                        Division 7A and court orders 5.310
  overview 6.950                                                 Division 7A overview 5.310
  passing of asset to beneficiary 11.650                         excluded loans and payments 5.310
  presently entitled 6.950                                       how much of the loan, payment or debt forgiveness is
                                                                    a deemed dividend? 5.310
  remainder and life interests 11.650
                                                                 net assets, definition 5.310
  returns to be lodged
                                                               Deemed present entitlement 21.810, 21.840
      final individual return of deceased 6.950
                                                               Deemed rate of return 21.830
      first trust return 6.950                                 Defence force payments 25.010, 25.350
  stages of administration of deceased person 6.950            Deferred interest securities 10.400, 16.415
  stages of trustee administration 6.950                       Defined benefit pensions 18.720
  tax rates 6.950                                                funds paying 18.245
  taxation 6.950                                               Defined benefit schemes 18.521
  transfer of capital losses 11.650                            Delayed income tax offset 2.230
Decline in value                                                 amount of tax offset 2.232
  calculation 14.060                                             eligibility 2.231
  determining 14.060                                             salary or wages, definition 2.230
  see also Depreciation                                        Demerger relief 11.450, 11.470
Decline in value formula 14.060                                  entities eligible for 11.470
  base value, definition 14.060                                Demergers
  cost                                                           adjustments required after 11.470
      definition 14.060                                          definition 11.470
      first element 14.060                                       triggers for 11.470
      second element 14.060                                    Demutualisation 11.472
Deductible Gift Recipients (DGRs) 12.890                       Departing Australia superannuation payment 18.670,
Deductions                                                      21.140
  balancing adjustment events 14.070                             changes to unclaimed superannuation for temporary
  borrowing costs 16.610                                            residents 18.670
  business see Business deductions                               eligibility 18.670
  capital protected loans – interest and fees 16.615             how to apply for DASP 18.670
  car expenses see Car expenses                                  PAYG withholding 4.321
  carry forward tax losses 12.950                                reporting obligations 18.670
  depreciation 16.620                                            taxation consequences 18.670
  discharge of mortgage expenses 16.625                          what is it? 18.670
  donations and gifts 12.800                                     when to apply for DASP 18.670
  employment-related see Employment-related                    Department of Veterans’ Affairs, loans to beneficiaries
     deductions                                                 of trusts 6.700
  entertainment expenses 12.500                                Department of Veterans’ Affairs Gold Card 19.516
  Farm Management Deposits 20.800                              Dependant tax offsets 2.110
  home office expenses 12.600, 16.630                            child-housekeeper tax offset 2.116

1434                                      Taxpayers Australia Inc 2011 & 2012
                                                   Index

  dependant’s income is for part of the year 2.110            amounts not included in ‘cost’ 14.060
  first child tax offset see Baby Bonus                       calculation of decline in value 14.060
  housekeeper tax offset 2.115                                decline in value formula 14.060
  invalid relative tax offset 2.117                               terminology 14.060
  no tax offset with family tax benefit part B 2.112          determining decline in value 14.060
  notional sole parent tax offset 2.114                       prime cost method 14.060
  ‘notional tax offsets’ for children 2.111                   specified ‘cost’ in particular cases 14.060
  parent or spouse’s parent tax offset 2.118               Deriving income 10.030
  part year claims 2.110                                      accruals basis 10.040
  spouse tax offset 2.113                                     cash receipts basis 10.035
  two or more can claim 2.110                              Determinations see Tax Determinations
  who is a dependant? 2.110                                Diminishing value formula see Decline in value formula
Dependent personal services, United States of              Direct credit/inter-bank transfer, consideration 23.135
 America agreement 21.220                                  Direct debit
Depreciating asset see Depreciation                           by Tax Office 3.070
Depreciation 14.010                                           consideration 23.135
  adjustable value 14.060                                  Direct refund, from Tax Office 3.070
  asset acquired through salary sacrifice 14.060           Direct value shifts 11.040
  asset used again after ceasing use 14.060                   creation of rights out of, or over, a non-depreciating
  assets acquired or constructed from 1 July 2001                asset 11.515
     (SBEs) 9.610                                             involving equity and loan interests in a single
  assets costing $300 or less 14.030                             company or trust (Division 725) 11.515
      PS LA 2003/8 14.035                                  Directed termination payments 10.230, 18.090
  balancing adjustment events 14.070                          contribution caps 10.230
  business related costs 13.110                               taxation 10.230
  cars – balancing adjustment 14.070                       Director Penalty Regime, and Superannuation
  Crown leases 11.758                                        Guarantee 18.525
  days asset held 14.060                                   Directors
  and death of taxpayer 14.060                                executive, and payroll tax 26.010
  depreciating asset                                          FBT 24.003
      decline in value commencement 14.010                    fees and allowances 25.350
      definition 14.010                                       non-working, and payroll tax 25.010
      excluded from Division 40 14.010                        and PAYG withholding 4.302
      jointly held 14.010                                  Directors’ fees
      who holds? 14.010                                       New Zealand agreement 21.220
  effective life 14.060                                       payroll tax 25.350
  effective life tables 14.160                             Disabled car parking 24.404
  flow chart 14.020                                        Disbursements, and agency relationship 23.334
      under uniform capital allowance system 14.020        Discharge of mortgage expenses 13.140, 16.625
  foreign exchange (forex) gains and losses 14.065         Disclosure rule 5.800
  hire purchase agreements 14.060                          Discounted interest securities 10.400, 16.415
  home office equipment 12.600                             Discounted staff purchases 25.350
  immediate write-off depreciating assets (SBEs) 9.605     Discretionary trusts 6.000
  in-house software 14.070                                    attributable taxpayer 21.830
  investment equipment or other assets 16.620                 beneficiaries 10.745
  investors 16.620                                            CGT 11.605
  involuntary disposal 14.070                                 comparison of structures 6.150, 8.000
  leased luxury cars 14.088                                   control tests 9.233
  low-cost assets/low-value pool 9.605, 14.040                distribution resolutions 6.170
  luxury cars 14.085                                          flexibility 6.000
  merged assets 14.060                                        renouncing interest in 6.700
  motor vehicles, special rules (from 1 July 2012) for        shares held by 5.410
     SBEs 9.615                                               trustee resolution 6.000
  non-arm’s length arrangements 14.060                        vesting or termination, WA 27.700
  partnership assets 14.060, 14.070                        Dismissal
  primary production 14.090, 20.510                           constructive 10.240
  private or domestic arrangements 14.060                     of director/employees 10.240
  remaining effective life 14.060                          Disposal of car 12.280
  rental property, decline in value 17.350                 Distributable surplus
  rollover relief 14.060, 14.080                              calculating 5.310
  and salary sacrifice 14.060                                 definition 5.310
  simplified rules for SBEs 9.600–660                         and non-commercial loans 5.310
      exceptions 9.620                                        present legal obligation 5.310
  small business pools 9.610–40, 9.660                     Distribution statement 5.850
  software development pool 14.050                            approved form 5.850
  split assets 14.060                                         franked amount of the distribution 5.850
  termination value determination 14.070                      Listed Investment Company 5.850
Depreciation methods 14.060                                   unfranked amount of the distribution 5.850

                                   www.taxpayer.com.au • Phone 1300 657 572                                    1435
                                                 Index

Distributions 5.800                                         Trans-Tasman imputation 21.220
Dividend imputation system 5.800                            and transfer pricing 21.900
   corporate entities 5.800                                 United Kingdom agreement 21.220
   extension to New Zealand companies 5.800, 21.220         United States of America agreement 21.220
   overview 5.800                                         Double wool clips 20.210
Dividend reinvestment plans 16.425                        Drugs and medicinal preparations 22.433
Dividends 10.035, 10.700                                  Duplicate or counterpart of an instrument, NSW
   Australian shares 16.425                                27.400
   definition 5.800                                       Dutiable business assets/partnership interests, ACT
       changes for Corporations Law purposes 5.800         27.100
   foreign residents, PAYG withholding 4.318              Dutiable property
   foreign source income 21.010                             ACT 27.100
   franked distributions from trusts 10.730                 gifts of, WA 27.700
   franked dividends 16.425                                 NSW 27.400
   franking a dividend 10.710                               NT 27.200
   franking offsets 16.425                                  Qld 27.500
   listed investment trusts 16.700                          Tas 27.800
   New Zealand agreement 21.220                             WA 27.700
   non-portfolio dividends 21.020                         Duties
   overseas persons, PAYG withholding 4.317                 ACT 27.100
   shareholders receiving dividends 10.720                  NSW 27.400
   unfranked dividends 10.710                               NT 27.200
   United Kingdom agreement 21.220                          Qld 27.500
   United States of America agreement 21.220                SA 27.600
   withholding tax rate 21.140                              Tas 27.800
Documentation                                               Vic 27.300
   debt/equity provisions 5.200                             WA 27.700
   property benefits 24.869                               Dwellings see Main residence
   research and development 14.560
   residual fringe benefits 24.828                        E
   see also Substantiation of expenses; Tax records       E-tag expenses 12.220, 12.295, 24.600, 24.602
Domestic travel see Travel expenses                       Early payment of tax 2.003
Donations and gifts 12.800                                   interest income 10.400
   businesses 12.810                                      Early retirement scheme payments 10.240, 10.260,
       claims under Division 30 12.810                      10.270
   CGT implications 12.850, 12.885                        Early Stage Venture Capital Limited Partnership
   conservation covenants 12.883                            (ESVCLP) Program 8.200, 8.300
   cultural bequests program 12.870                       Earthworks 14.205
   cultural gifts program 12.835                             environmental protection 14.265
   Deductible Gift Recipients 12.890                      Eastern Nitrogen case 3.510
   from the employer 10.050                               Education 22.441
   fund raising events 12.822                                education expenses against Youth Allowance
   GST implications 12.885                                      payments 12.700
   individuals 12.820                                        and training, effective life tables 14.160
   listed shares 12.830                                   Education payments, as exempt income 10.900
   livestock 20.450                                       Education tax refund 2.150
   loss carried forward 12.828                               claimable amount 2.153
   payroll tax 25.350                                        eligible education expenses 2.152
   prescribed private funds 12.875                           eligible taxpayers 2.151
   profit making purchases 12.840                         Effective life
   property 12.830                                           definition 14.060
       over $5,000 12.880                                    exceptions 14.060
   school and college building funds 12.860                  intangible assets that have a statutory effective life
   spreading deduction over five years 12.888                   14.060
   taxable supply 22.126                                     recalculating 14.060
   to employees 25.350                                       remaining 14.060
   trading stock 12.845, 13.230, 20.260                   Effective life tables 14.160
Double taxation agreements 21.200                         Effective lives (asset categories) table B as at 1 July
   Australia’s double tax agreements 21.220                 2011 14.160
   broad concepts 21.210                                  80% test (PSB) 15.210
       allocation of taxing rights 21.210                 Elections (foreign currency translation) 21.330
       double taxation relief 21.210                         $250,000 balance election 21.330
       permanent establishment 21.210                        facilities rollover election 21.330
       residency tie-breakers 21.210                         functional currency election 21.330
   certificates of residency 21.230                          retranslation election 21.330
   and foreign residents 11.710                           Elections and notifications 3.080
   New Zealand agreement 21.220                           Electricity
   other international agreements 21.240                     connecting to mains electricity 13.185, 20.510, 20.650

1436                                  Taxpayers Australia Inc 2011 & 2012
                                                    Index

   effective life tables 14.160                               upper age 75 restriction 18.022
   primary production 14.090, 20.510, 20.650                  see also Reportable Employer Superannuation
Electronic Lodgement System (ELS) 2.001                          Contributions
Eligibe investment business, definition 5.150               Employers
Eligible Division 166 company 5.420                           categories of, and FBT 24.005
   definition 5.420                                           concessionally taxed, and FBT 24.102
   modified COT 5.420                                         determining FBT liability of 24.000
Eligible termination payments 10.200                          FBT-exempt 24.201
Emergency assistance 24.202                                   income tax consequences of ESS 10.850
Employee benefits, taxing of 25.010                           obligations under superannuation choice 18.563
employee benefits trusts 6.000                                partially exempt employers 24.005
Employee contributions 24.106                                 payments made on behalf of employees 25.350
   car fringe benefit 24.375, 24.384                          rebatable 24.005
       excess contributions 24.106                            Superannuation Guarantee 18.515
   contributions by journal entry 24.106                      superannuation overview 18.004
Employee long distance truck drivers 12.187                   wholly exempt employers 24.005
Employee Share Schemes (ESS) 10.850, 11.816                 Employment, and FBT 24.003
   deferral of discount 11.816                              Employment agency contracts 25.150
   deferral of taxing point 10.850                          Employment Incentive Scheme (Payroll Tax Rebate),
   deferred taxing point 11.816                              Tas 25.230
   definitions of ESS interest and ESS 10.850               Employment income 10.035, 10.050
   eligibility 11.816                                         annual leave 10.050
   employee share trusts 11.816                               compensation 10.050
   former Division 13A rules 10.860                           foreign source 21.010
   income tax consequences                                    gifts from the employer 10.050
       for employee 10.850                                    gratuities 10.050
       for employer 10.850                                    honorariums 10.050
   interests acquired under salary sacrifice 10.850           long service leave 10.050
   international considerations 10.850                        New Zealand agreement 21.220
   involuntary forfeiture or loss of ESS interest 10.850      overtime payments 10.050
   payroll tax 25.350                                         reward for employment 10.050
   qualifying shares and rights 11.816                        sick pay 10.050
   real risk of forfeiture test 10.850, 11.816                United Kingdom agreement 21.220
   transitioning to the new rules 10.850                      see also Allowances
   upfront taxation – $1,000 exemption 10.850               Employment-related deductions
   where shares or rights acquired at a discount 11.816       car expense substantiation 3.720, 12.225
Employee share trusts 11.816                                  car expenses 12.220–280
Employee transport 24.202                                     car parking expenses 12.290
Employees                                                     carry forward tax losses 12.950
   benefits provided to 10.050                                checklist 12.000
   car benefit, costs associated with, and FBT 24.377         donations and gifts 12.800
   car expenses 24.556                                        entertainment expenses 12.500–580
   car parking expenses 12.290                                home office expenses 12.600
   choice of superannuation fund 18.562                       laundry expenses 12.150
   domestic travel 12.160                                     minor expense substantiation 3.720
   earnings base, and superannuation contributions            minor work expenses ($300 threshold) 12.145
      18.518                                                  outdoor workers 12.147
   expanded definition for superannuation 18.022              overtime meal allowances 12.140
   FBT definition 24.002                                      phone, computer and internet expenses 12.155
   income tax consequences of ESS 10.850                      self-education expenses 12.700
   or independent contractor 24.002                           substantiation 3.720, 12.100–360
   loans to see Loans to employees                            superannuation deductions 12.400
   meals provided by employer 12.525                          tax-related deductions 12.900
   overseas travel 12.160, 12.190                             travel expenses 3.720, 12.160–210
   in remote areas see Remote area employees                  work-related clothing 12.300–350
   and reportable employer superannuation contributions       written evidence 12.120
      18.065                                                Employment-related items, FBT exempt 24.202
   salary sacrificing benefits 24.105                       Employment termination payments 10.210
   on service overseas 24.203                                 ‘12 month rule’ 10.210
   Superannuation Guarantee 18.516                            death benefit ETPs 10.210
   superannuation overview 18.004                             directed termination payments 10.230
   usual place of residence 24.840                            employment days 10.255
Employer-purchased vehicles 24.392                            life benefit ETPs 4.311, 10.210
Employer superannuation, protection of small amounts          lump sum payments 10.200, 10.210, 13.120
  of 18.580                                                   and PAYG withholding 4.311
Employer superannuation contributions 18.022,                 payroll tax 25.010, 25.350
  18.072, 25.010                                              summary 4.311
   employee, definition 18.022                                transitional arrangements 10.210

                                    www.taxpayer.com.au • Phone 1300 657 572                             1437
                                                 Index

  transitional termination payments 4.311, 10.220,        Excepted trusts, trust loss rules 6.900
     18.090                                               Exchangeable interests 11.837
Employment test (PSB) 15.225                              Executive directors, payroll tax 26.010
Enduring Power of Attorneys, and SMSFs 18.100             Exempt benefits 3.740
Energy Industry Levy (ACT) 27.100                         Exempt income 10.005, 10.900
Enterprise (taxable supply) 22.130                          exempt Australian Defence Force and United Nations
  definition 22.130                                            payments 10.900
Enterprise partnership 23.322                               exempt Australian government education payments
Entertainers                                                   10.900
  New Zealand agreement 21.220                              exempt Australian government pensions, allowances
  United Kingdom agreement 21.220                              and payments 10.900
  United States of America agreement 21.220                 organisations exempt from income tax 10.910
Entertainment allowances 12.560                             other exempt amounts 10.900
Entertainment expenses 12.500                               other exempt Australian government payments
  advertising and product launches 12.540                      10.900
  ‘business of entertainment’ 12.510                        superannuation funds 18.300
  conferences and seminars 12.530                         Existing turnover test 2.252
  as deductions 12.500                                    Expense payment benefits 3.740, 24.550
  entertaining employees and non-employees 24.904           business travel rates 24.557
  ‘entertainment’, definition 12.500                        claiming input tax credits for 24.552
  entertainment consumed on business premises               employee’s car expenses 24.556
     24.903                                                 exempt benefits 24.554
  entertainment for the disadvantaged 12.580                external expense 24.551
  ‘entertainment’ or ‘non-entertainment’ 24.940             in-house expense 24.551
  examples of entertainment 24.902                          ‘otherwise deductible rule’ 24.558
  exemptions and concessions 24.903                         reductions in taxable value 24.553
  and FBT 24.900                                            substantiation rules 24.555
      12 week register method 24.906                            declarations 24.555
      50/50 split method 24.905                                 documentation 24.555
      actual cost method 24.907                                 exceptions 24.555
  food and drink – is it entertainment? 24.902              taxable value 24.551
  in-house recreation facilities 12.550                   Exploration, deductions 14.100
  income tax and FBT 24.920                               Exporters Rebate Scheme, SA 25.220
  meal entertainment 24.902, 24.967                       Exports 22.410
      and GST credits 24.904                                effective use or enjoyment takes place outside
  meals provided by employer 12.525                            Australia 22.416
  morning and afternoon tea 12.570                          goods 22.411
  otherwise deductible rule 24.903                          lease of goods used overseas 22.414
  overtime meals 12.515                                     other goods 22.413
  recreational entertainment 24.908, 24.964                 recipient exported goods 22.412
  reporting requirements 24.910                             supplies to offshore owners of Australian residential
  tax-exempt bodies 24.202, 24.960–967                         property 22.416
  taxable value 24.904, 24.963                              supply ‘directly connected with goods or real property’
  tips and entertainment 24.904                                22.416
  travelling on business 12.520                             supply that is made in relation to rights 22.416
  what is the provision of entertainment? 24.901            supply of things other than goods or real property
                                                               22.416
Entertainment facility leasing expenses 24.909,
 24.965                                                     supply of work physically performed on goods’ 22.416
                                                            tooling 22.415
  corporate boxes 24.909
Entities
  definition 22.150
                                                          F
  registered 22.160                                       Families, Medicare levy surcharge 2.063
Entrepreneurs’ tax offset 2.250                           Family Court Order, and carry forward tax losses 5.410
  abolition 9.800                                         Family law, and splitting superannuation 18.260
  calculation of ETO 9.810                                  CGT implications 18.260
  eligibility 2.251                                         CGT rollover relief on marriage breakdown 18.260
  existing turnover test 2.252                              following the split 18.260
  income test 9.820                                         in-house asset change to SMSFs acquiring assets
  new income test 2.253                                        under a split 18.260
Environment protection earthworks 14.265                    valuing superannuation interests 18.260
Environmental expenditure 14.600                          Family Tax Benefit (FTB) 2.140, 4.660
  clawback of claims 14.600                                 additional benefits 2.140
  eligible expenditure over 40 years 14.600                 Assets test 2.140
  immediate deduction allowed 14.600                        eligibility 2.140
Environmental protection activities 14.100                  family income 2.140
Equity interest test 5.200                                  Income test 2.140
Estate beneficiaries 11.650                                 Part A 2.140
Everett assignment 11.550                                       family income levels for one child family 2.140

1438                                  Taxpayers Australia Inc 2011 & 2012
                                                   Index

       maintenance income test 2.140                       Fines 3.680
       maximum and base rate 2.140                            deductions denied for 13.115
   Part B 2.140                                               taxable supplies 22.124
       benefit taper 2.140                                    see also Penalties
       no offset with 2.112                                Fire and Emergency Services Levy (ACT) 27.100
   payment choices 2.140                                   First child tax offset see Baby Bonus
Family trust distribution tax 6.200                        First home owners
Family trust elections (FTE) 6.000, 6.200                     concession
   advantages/disadvantages 6.200                                 ACT 27.100
   overview 6.200                                                 NT 27.200
   revoking 6.200                                                 Qld 27.500
Family trusts 6.000, 6.200                                        Vic 27.300
   amendments, 1 July 2007 6.200                              duties, NSW 27.400
   choice of Specified Individual (SI) 6.200                  rebates, WA 27.700
   defined family members for distribution purposes        First Home Saver Accounts (FHSAs) 16.415, 18.280
      6.200                                                   main features 18.280
   ‘family group’, definition 6.200                        Fishing, effective life tables 14.160
   interposed entities 6.200                               Fixed interest investments 16.410
   outsiders, definition 6.900                                tax issues 16.415
   overview 6.000                                          Fixed trusts 6.000, 16.435
   purchase of a residence 17.400                             acquisition of land, NT 27.200
Farm Management Deposit (FMD) scheme 20.800                   capital gains and losses for foreign residents 11.733,
   12 month repayment rule 20.800                                21.550
   assessable FMDs 20.800                                     CGT 11.605
   cessation of business 20.800                               change of control, WA 27.700
   claiming tax deductions 20.800                             comparison of structures 6.150, 8.000
   death of deposit holder 20.800                             convertible interest in a unit trust 11.836
   FMD provider 20.800                                        converting a trust to a unit trust 11.028
   object of 20.800                                           distributions 11.605
   PAYG instalments 20.800                                    exchange of units in a unit trust for shares in a
   reporting requirements 20.800                                 company 11.501
   what is a FMD? 20.800                                      land tax, NSW 26.300
Farmland acquisition, not used to make taxable or             primary production 20.005
  GST-free supplies 23.264                                    reductions of trust capital 11.605
FBT see Fringe benefits tax                                   rights in a unit trust 11.835
Federal Budget 2012–13                                        small business CGT concessions 6.700
   capital gains, non-residents 21.130                        transfer of assets to company 11.487
   concessional caps, superannuation 18.040                   trust loss rules 6.900
   concessional withholding tax changes                    Flood levy, temporary 2.064, 18.600
       managed investment trusts 21.550                    Floor plan arrangements, attribution 23.134
       non-residents 21.550                                Fodders 20.510
   tax offsets for individuals & family benefits 2.101     Food
Federal Court 3.300, 3.320                                    and drink, is it entertainment? 24.902
   cost of lodging an appeal 3.330                            GST 22.480
   process for tax disputes 3.305                             GST-free 22.480
Feedstock adjustments 14.550                                  meaning of ‘consumed’ 22.480
Fees, capital protected loans 16.615                          ‘premises’ used to supply food 22.480
Fees for independent services, foreign source income          supplied through school tuckshop or canteen 22.350
  21.010                                                      taxable 22.480
Fertilisers 20.510                                         Food services, effective life tables 14.160
50% stake test 6.900                                       Foreclosure order, NSW 27.400
50/50 split method (entertainment FBT) 24.905              Foreign Accumulation Fund 21.840
Financial arrangements, from 1 July 2010 (or 1 July by     Foreign branch income, non-assessable 21.020
  election) 16.545                                         Foreign exchange
Financial services, effective life tables 14.160              gains and losses 11.040, 14.065, 21.320
Financial supplies 22.310                                     rates 21.340
   definition 22.311                                       Foreign exchange translation 21.300
   denial of input tax credits                                CGT event 11.165
       exceptions 22.315                                      conversion of foreign currency amounts 21.310
       non creditable purpose 22.314                          elections 21.330
   financial acquisition threshold 22.315                     GST on 22.175
   proposed amendments to financial supply provisions         realisation of foreign currency gains and losses
      22.315                                                     21.320
   reduced input tax credits 22.315                        Foreign hybrids 11.040, 21.600
   what are not financial supplies 22.311                     companies 21.600
   what is an ‘interest’ in relation to 22.312                Division 830 tax treatment 21.600
Financial supply facilitator 22.313                           limited partnerships 21.600
Financial supply provider 22.313                           Foreign income derived by residents 21.000

                                   www.taxpayer.com.au • Phone 1300 657 572                                     1439
                                                     Index

   foreign source income                                        Australian shares 16.425
       business 21.020                                          corporate shareholders 10.720
       individuals 21.010                                       individual shareholders 10.720
   temporary offer for voluntary disclosure 3.640               non-resident shareholders 10.720
Foreign income tax offsets (FITO) 5.545, 16.450,                partnership shareholders 10.720
  21.400                                                        shareholders receiving dividends 10.720
   entitlement to 21.410                                        superannuation fund shareholders 10.720
   foreign losses 21.420, 21.430                                tax effects 5.800
   foreign tax credits 21.430                                   trust shareholders 10.720
   transitional rules ending 30 June 2013 21.430             Franking account tax return 5.820
Foreign investment funds (FIFs) 21.810, 21.840               Franking accounts 5.800
   and consolidated groups 5.545                                consolidated groups 5.540
   tax records 3.760                                         Franking credit trading rules 10.740
Foreign investment income 16.450                                holding period rule 10.745
Foreign losses                                                  qualification period 10.745
   controlled foreign companies 21.820                          qualified person 10.740
   foreign income tax offset 21.420, 21.430                     small shareholder exemption 10.750
   foreign investment income 16.450                          Franking credits 5.800
Foreign managed funds, proposed investment manager              Australian shares 16.425
  regime 21.560                                                 benchmark rule 5.800
Foreign property 17.100                                         for life tenants 10.745
Foreign residents                                               maximum percentage 5.800
   assets used by 11.730                                        non-resident shareholders 10.720
   Australian real property 11.700                              refundable 10.720
   becoming an Australian resident 11.725                       share buy-backs 16.425
   capital gains and losses through fixed trusts 11.733,        small shareholder exemption 10.750
      21.550                                                 Franking debits 5.800
   ceasing to be an Australian resident 11.715               Franking deficit tax 5.800
   CGT 11.700, 17.100                                           reduction in offset 5.800
   CGT discount and small business CGT concessions              relief from excessive overfranking penalty 5.800
      11.732
                                                             Franking period, ascertaining 5.800
   distributions from managed investment trusts 21.550
                                                             Franking tax offsets, and tax losses 5.440
   dividend, interest or royalty payments received 4.317,
      4.318                                                  Frequent Flyer and club benefits 10.100, 24.883
   double tax treaties apply 11.710                          Friendly societies
   indirect real property interest 11.700                       dispensaries 5.100
   investments 16.900                                           tax rates 8.050
   as partners 11.550                                        Fringe benefits tax (FBT)
   permanent establishment in Australia 11.700                  accommodation away from home 24.202
   scrip for scrip rollover 11.468                              administration 24.050–054
   short-term residents – transitional measure 11.720           airline transport fringe benefits 3.740, 24.880–886
   taxed on Australian property 17.100                          anti-avoidance rules 3.530
   temporary residents 11.721                                   arranger provisions and meal entertainment 24.002
‘Foreign service’ 21.010                                        associates 24.002
   availability of s23AG exemption 21.010                       BAS statement 4.845
   operation of s23AG 21.010                                    benefits in connection with employment 24.003
   Section 23AF 21.010                                          board and meals 24.700–704
   Section 23AG 21.010                                          business premises use 24.202
Foreign source income 3.070, 3.640                              business vehicles use 24.202
   business 21.020                                              car benefits 3.740, 23.411, 24.202, 24.350–396
       international dealings schedule 21.020                   car parking benefits 24.400–417
   individuals 21.010                                           common problems with Activity Statements 4.850
Foreign tax credits 21.430                                      concessionally taxed employers 24.102
Forestry, effective life tables 14.160                          debt waiver fringe benefits 24.500–502
Forestry managed investment schemes 13.700,                     deductibility of 24.101
  16.460, 20.700                                                default assessment 24.053
   changes 16.470                                               determining the FBT liability of an employer 24.000
   contributions to 16.460                                      emergency assistance 24.202
   disposal of initial investments in 13.700                    employee contributions 24.106
   disposal of secondary investments in 13.700                  employee transport 24.202
   prepaid expenditure 13.170                                   employees 24.002
   proceeds from 16.460                                             car expenses 24.556
Franked distributions 5.800, 5.850                                  or independent contractor 24.002
   effect of receiving, corporate entities 5.800                    in remote areas 24.800–807
   from trusts 10.730                                               on service overseas 24.203
       from the 2010/11 income year 10.730                      employer categories 24.005
       pre 2010/11 income year 10.730                           employment-related items 24.202
   to resident companies 10.730                                 entertainment expenses 24.202, 24.900–940
Franked dividends 10.710                                        excluded fringe benefits 24.305

1440                                     Taxpayers Australia Inc 2011 & 2012
                                                      Index

exempt benefits 3.740                                           third party providers and arrangements 24.002
exempt employers 24.201                                         United Kingdom agreement 21.220
exemptions 24.003, 24.106, 24.200–4                             vehicles other than cars 24.356
expense payment benefits 3.740, 24.550–558                      volunteers 24.002
file number 24.053                                              work benefits 23.414
and GST 23.410–414, 24.150–152                                  work-related clothing 12.300, 12.360
    effect of GST on FBT 24.152                                 work-related health care 24.202
    rates 24.151                                                work-related items – s58X 24.202
hire cars and taxis 24.357                                    Fuel, primary producers 20.510
housing benefits 24.650–657                                   Fuel tax credits 20.850, 28.300
in-house benefits 24.202                                        calculation 28.300
input tax credits entitlement for the provision of fringe       eligible fuels 28.300
   benefits 23.414                                              rates 28.300
instalments 24.052                                              registration and eligibility 28.300
    varying 24.052                                            Fuel-efficient cars 28.150
leased cars 24.390                                            Fund-raising events 12.822
living away from home allowance/benefits 3, 740,                by charitable institutions 22.360
   24.840–843
loan benefits exemption 24.202                                G
loans and payments as deemed dividends 24.003
loans to employees 3.740, 24.003, 24.450–455                  Gainful employment test 18.015
loans to shareholders 24.003                                  Gambling 23.383
Local Government representatives 24.002                       Gas, effective life tables 14.160
lodgement of FBT return 24.051                                GDP-adjusted notional tax method 4.734, 4.762
medical treatment 24.202                                        variation of 4.735
membership fees 24.202                                        General insurance see Insurance
minor benefits 24.202                                         General Interest Charge (GIC) 3.660
New Zealand agreement 21.220                                    and benchmark tax 4.736
not-for-profit bodies 24.103                                    reduction in 4.736
objections and appeals 24.054                                   since 2004–05 3.660
                                                                Superannuation Guarantee 18.540
overseas medical travel 24.202
                                                                on understated instalment rate 4.737
overview 24.000
                                                              General law partnerships 7.100, 23.321, 23.323
part remuneration, part work benefit 23.414
                                                                dissolution 23.324
penalties 24.053
                                                                    change in legal ownership or property held by the
personal services income 24.004, 24.106
                                                                      partnership on a transfer of partnership interest
property benefits 3.740, 24.860–869                                   23.324
‘property’ consumed on business premises 24.202                     change in membership of a two-partner partnership
rebatable organisations 24.105                                        23.324
record keeping 3.740, 24.250–252                                    final distributions to partners 23.324
reducing the value of fringe benefits 24.106                        general dissolution 23.324
reductions 24.106                                                   GST consequences 23.324
reimbursements 23.413                                               GST consequences of a technical dissolution
    by employer to employee 24.106                                    (reconstitution) 23.324
related companies 24.002                                            GST liabilities and obligations of partners before
relocation and recruitment expenses 24.202                            and after reconstitution 23.324
remote area employees 25.350                                        no sale or assignment of interests – partnership
remote area holiday travel benefits 3.740                             transaction 23.324
remuneration benefits 23.414                                        one partner acquires all interests in the
rental property 17.500                                                partnerships and continues as a single entity
reportable fringe benefits 24.300–308                                 23.324
residual fringe benefits 24.820–828                                 sale or assignment of an interest in a partnership –
in respect of employment 24.003                                       partner to partner transaction 23.324
road toll and e-tag expenses 24.600–605                             supplies made by the partners on winding up a
salary sacrifice arrangements 24.980–986                              partnership 23.324
‘self-assessment’ 24.053                                            supplies made by a partnership on winding up
shared fringe benefits 24.306                                         23.324
shareholders and directors 24.003                                   technical dissolution/continuity clauses 23.324
situations where FBT not payable 24.003                         interest on borrowings 13.130
superannuation 24.750                                           interests in a partnership 23.323
    in-specie contributions 24.003                              and margin scheme 23.325
supply of fringe benefits that are GST-free or input            supplies and acquisitions made by the partnership on
   taxed 23.412                                                   formation 23.323
tax-exempt body entertainment 24.960–967                        supply of a going concern 23.323
taxi travel 24.202                                            General Value Shifting Regime 11.515
taxing fringe benefits 24.100                                 Genuine redundancy payments 10.240
    gross-up factor 24.100                                      constructive dismissal 10.240
    liability arises in the course of generating income         dismissal of director/employees 10.240
      which is not assessable 24.100                            genuine redundancy, definition 10.240

                                    www.taxpayer.com.au • Phone 1300 657 572                                      1441
                                                      Index

   and unused annual leave 10.260                              exports 22.410–416
   and unused long service leave 10.270                        and FBT 23.410–414, 24.150–152
Gifts see Donations and gifts                                  financial supplies 22.310–315
Global method of accounting 23.381                             food 22.480
Glossary of abbreviations 1.050                                food supplied through school tuckshop or canteen
Going concern                                                     22.350
   acquisition of, not used to make taxable or GST-free        foreign exchange conversions 22.175
     supplies 23.264                                           fund-raising events by charitable institutions 22.360
   supply of 22.460                                            gambling and lotteries 23.383
       general law partnership 23.323                          groups 23.310, 23.311
Goods                                                          GST-free supplies 22.011, 22.400–470
   exports 22.411, 22.413                                      GST turnover calculation 23.211
   lease of goods used overseas 22.414                         health goods and services 22.430–435
   recipient exported goods 22.412                             health professional services 22.432
Goods and services tax (GST) 23.000                            health related services 22.434
   accounting for GST 23.100–124                               hire purchase 23.370, 23.371
   accruals basis 23.120, 23.122                               holding a tax invoice 23.123
   adjustments 23.260                                          how GST works 22.010
       acquisition of a going concern of farmland not used     imports 22.180
         to make taxable or GST-free supplies 23.264               special scheme to defer GST 22.181
       adjustment event 23.261                                 and income tax 23.420
       bad debts 23.262                                        information 4.841
       cancellation of GST registration 23.213, 23.264             GST and annual apportionment 4.841
       change in extent of creditable purpose 23.263,              GST calculation sheet method 4.841
         23.264                                                    GST derived from accounts method 4.841
       goods applied solely for private or domestic use            paying GST annually 4.841
         23.264                                                    paying GST quarterly 4.841
       interaction between Division 129 and the ‘5 year            reporting and paying GST 4.841
         rule’ in s40-75(2) 23.263                             input tax credits 22.226–233, 23.251
       newly registered entities 23.264                        input taxed supplies 22.011, 22.300–360
       payments made to third parties 23.264
                                                               investments 16.900
       sale of things used partly for a creditable purpose
                                                               joint ventures 23.310, 23.312
         23.264
       trade rebates/offsets 23.261                            and judgment interest 22.125
   administration 23.200–264                                   leased cars 24.391
   agency relationships 23.330–331, 23.333                     leases 23.341, 23.370, 23.372–373
   anti-avoidance rules 3.520, 23.430                          literature 3.100
       consequences of applying Division 165 23.430            and luxury car tax 28.140
       GST benefit/disadvantage 23.430                         medical services 22.431
       matters to be considered 23.430                         non-residents 23.350–352
       scheme 23.430                                           outside GST system 22.011
   and assessable income 10.005                                overview 22.000
   attribution rules 23.130–134                                partnerships 23.320–325
   Board of Taxation reviews                                   precious metals 22.340
       application of GST to cross-border transactions         real property 23.340–344
         23.000                                                records 3.715
       GST administration 23.000                                   adjustments 3.715
   and car expense substantiation 12.235                           tax invoices 3.715
   cash basis 23.120–1                                         recovery and oncharge 23.384
   charitable activities 22.450                                registration 23.000, 23.210
   childcare 22.442                                                cancellation 23.213, 23.264
   common problems with Activity Statements 4.850                  procedures 23.212
   consignment sales 23.332                                    religious services 22.470
   correcting GST mistakes 3.640, 23.250–257                   remittances and refunds 23.240
       annual GST preparers 23.255                             rental property 17.600
       correction applies only to genuine error 23.257         residential care services and accommodation 22.435
       correction limits 23.253                                residential rents 22.320
       guidelines 23.252                                       and residual fringe benefit 24.823
       input tax credits claimable on earlier BAS 23.251       Rulings 1.650
       notification for the purpose of credits or refund       sale of residential premises 22.330
         entitlement 23.256                                    second-hand goods 23.381
       time limits 23.254, 23.256                              security deposits 23.382
   creditable acquisitions 22.200–25                           selling on a ‘sale or return’ basis or as an agent
   differences between an ‘invoice’ and a ‘tax invoice’           23.331
     23.220                                                    simplified accounting methods 23.360–365
   domestic air fares 24.881                                   special rules 23.380–384
   donations and gifts 12.885                                  superannuation funds 18.100, 22.316
   drugs and medicinal preparations 22.433                     supplies not subject to GST 22.011
   education 22.441                                            supply of a going concern 22.460

1442                                     Taxpayers Australia Inc 2011 & 2012
                                                    Index

  Tax Determinations 1.640                                  Heritage conservation 12.835
  tax invoices 23.220, 23.230–236                           High Court 3.330
  tax periods 23.110                                        Higher Education Loan Programme (HELP) 4.500,
      concluding 23.111                                       4.510
  taxable supplies 22.170–174                                  compulsory repayments 4.512
  Tourist Refund Scheme 22.423                                     calculating 4.512
  transitional arrangements 23.390                                 calculating repayment income 4.512
  travel 22.420–423                                                deferring 4.512
Goodwill 11.072, 11.987                                            low family income exception 4.512
Government Co-contribution Scheme (GCS) 18.076                     making a repayment 4.512
  calculating Government co-contribution 18.076                deductibility of HELP debt repayments 4.514
  co-contribution tables 18.076                                HELP account 4.511
  effect rates and amounts 18.076                              indexation of HELP debt 4.511
  eligibility requirements 18.076                              PAYG withholding 4.512, 4.620
  freezing of lower income threshold 18.076                    voluntary repayments 4.513
  nominating superannuation fund to receive                        best time for 4.513
     Government co-contribution 18.076                             and salary packaging 4.513
  payment of Government co-contribution 18.076                 what is a HELP debt? 4.510
Government services                                         Hire cars 24.357
  New Zealand agreement 21.220                              Hire purchase 23.370
  United Kingdom agreement 21.220                              attribution 23.134
  United States of America agreement 21.220                    capital allowance clawback 14.800
Government taxes, fees and charges (supply) 22.129             claiming input tax credits by supplier of a hire
Grain growers 20.280                                              purchase agreement 23.371
Grapevines 14.090                                              deductions 13.155
Gratuities 10.050                                              depreciating assets 14.060
Green buildings, tax breaks 14.900                             GST 23.371
Grollo case 3.510                                           Holding period rule 5.800, 10.745
Gross-up factor (FBT) 24.100                                   small shareholder exemption 5.800
Gross-up and offset rules 5.800                             Holiday houses 17.400
Group companies                                                board and lodging 17.400
  asset transfers between 11.510                               let for part year 17.400
  capital losses transferred within a wholly-owned group       letting of property to relatives 17.400
     of companies 11.535                                       occupancy on basis of sharing household costs
Grouping of employers 25.070                                      17.400
  business grouping rules 25.070                               short-term accommodation and active asset rule
  common employees 25.070                                         17.400
  commonly controlled businesses 25.070                     Holiday pay see Annual leave
  granting exclusion for a group 25.070                     Holidays, free or subsidised, and payroll tax 25.350
  lodging payroll tax returns 25.070, 25.345                Home office expenses 12.600, 16.630
  related companies 25.070                                     allowable claims 12.600
  tracing of interests in corporations 25.070                  depreciation on equipment 12.600
Grouping provisions (SBEs) 9.230–3                             home as ‘place of business’ 12.600
GST see Goods and services tax                                 occupancy expenses – place of business 12.600
GST-free supplies 22.011, 22.400                               running expenses 12.600
  charitable activities 22.450                                 telephone and internet expenses 12.600
  education and childcare 22.440–442                        Honest mistake 5.310
  exports 22.410                                            Honorariums 10.050
  food 22.480                                               Horses (valuing as trading stock) 20.490
  health goods and services 22.430–435                         male horse breeding stock 20.490
  international transportation 22.421                          natural increase 20.490
  inward duty free purchases 22.422                            special closing value 20.490
  other supplies 22.490                                        tax treatment 20.490
  real property 23.343, 23.344                              Horticultural plants 14.090
  religious services 22.470                                 Hospital employees 24.102
  supply of a going concern 22.460                          Hospitals 24.102, 24.201
GST groups 23.310, 23.311                                   Hostess allowances 12.560
  grouping rules 23.311                                     Housekeeper tax offset 2.115
GST joint ventures 23.310, 23.312                              partnered taxpayers 2.115
                                                            Housing benefits 24.650
H                                                              assistance to buy housing in remote areas 24.807
                                                               exempt benefits 24.654
Hart’s case 3.510                                              from charities and non-profit hospitals in regional
Harvesters 20.510                                                 areas 24.201
Health care, effective life tables 14.160                      housing exemption for certain regional employers
Health goods and services 22.430–435                              24.656
Health promotion charities 24.102, 24.201                      payroll tax 25.350
Health services, GST-free 22.432, 22.434                       provided by public ambulance services 24.201
HELP see Higher Education Loan Programme                       remote area housing benefits 24.654

                                    www.taxpayer.com.au • Phone 1300 657 572                                     1443
                                                    Index

  remote area housing rental 24.655                         Incorporated companies
  residential fuel expenses 24.657                             CGT rollover 11.490
  taxable value 24.653                                         conversion from a body to 11.490
  ‘unit of accommodation’ 24.651                            Independent contractor, or employee 24.002
  valuing accommodation provided to employees               Independent personal services
    24.652                                                     New Zealand agreement 21.220
Hybrid trusts 6.000                                            United States of America agreement 21.220
  comparison of structures 6.150                            Indirect value shifts 11.515
                                                            Individuals
I                                                              capital gains 11.165
                                                               donations and gifts 12.820
IAS see Instalment Activity Statements
                                                               foreign source income 21.010
Illegal activities 13.166
                                                               Medicare levy surcharge 2.062
Immediately deductible capital expenditure 14.100
                                                               non-resident 21.120
    environmental protection activities 14.100
                                                               not in business, interest on money borrowed to pay
    exploration or prospecting 14.100
                                                                  tax 13.180
    mining site rehabilitation 14.100
                                                               refund of tax offsets 5.800
    petroleum resource rent tax 14.100
                                                               transferor trusts 21.830
Imports, and GST 22.180, 22.181
                                                               who must lodge a tax return 3.070
Improvements, and repairs 13.150
                                                            Industrial activities
Imputation system see Dividend imputation system
In-house assets (superannuation funds) 18.200,                 ancillary activities 14.235
   18.212, 18.213, 18.260                                      core activities 14.230
In-house benefits 24.202                                       ineligible activities 14.240
In-house recreation facilities 12.550                       Industrial buildings, capital expenditure 14.225
In-house software 14.050, 14.070                            Industry superannuation funds 18.125
Inadvertent error 5.310                                     Information services, effective life tables 14.160
Income                                                      Input tax credits 22.200
    new definition 2.104                                       car expenses 22.226
    received in advance 10.040                                 claimable on an earlier BAS 23.251
    for surcharge purposes, definition 2.104                   claiming 22.230
    see also Assessable income; Attributable income;           consigned goods 23.332
       Business income; Exempt income; Interest income;        ‘de minimis’ rule 22.227
       Overseas income; Personal services income;              denial of
       Taxable income                                              exceptions 22.315
Income injection test 6.900                                        non creditable purposes 22.314
Income streams                                                 for expense payment fringe benefits 24.552
    assets test for 19.437                                     hire purchase agreement 23.371
    Centrelink tests 19.437                                    for input tax suppliers providing fringe benefits 22.232
    standards 18.720                                           and meal entertainment 24.904
    superannuation 4.309, 4.412, 18.600, 18.700                pre-establishment costs 22.232
    transition to retirement 18.710, 19.120, 19.200            for the provision of fringe benefits 23.414
Income tax                                                     reimbursements 22.232
    entertainment and FBT 24.920                               restrictions 22.231
    and GST 23.420                                             time limit in claiming 22.233
    organisations exempt from 10.910                        Input taxed supplies 22.011, 22.300
Income tax anti-avoidance rules 3.510                          financial supplies 22.310–315
    can Part IVA apply? 3.510                                  food supplied through school tuckshop or canteen
    case examples 3.510                                           22.350
    Review of Self Assessment 3.510                            fund-raising events by charitable institutions 22.360
    Tax Office guidance on Part IVA 3.510                      precious metals 22.340
Income tax ready reckoner 2011–12 2.011                        residential rents 22.320
    low income tax offset 2.011                                sale of residential premises 22.330
    with low income tax offset 2.012                           superannuation funds and GST 22.316
    non-resident taxpayers 2.011                            Insolvency administrations, and superannuation
Income tax ready reckoner 2012–13 2.021                       18.275, 18.543
    low income tax offset 2.021                             Inspector-General of Taxation 3.450
    with low income tax offset 2.022                           annual report 3.450
Income test 19.437                                             confidential submissions 3.450
    actual benefit paid 19.437                                 role 3.450
    for Age pensions 19.437                                 Instalment Activity Statements (IAS) 4.810
    changes from 1 July 2011 19.437                            common problems 4.850
    Commonwealth Seniors Health Card 19.526                    lodgement dates 4.830
    for complying streams 19.437                            Instalment income 4.737
    deemed income 19.437                                    Instalment rate 4.737
    and entrepreneurs’ tax offset 2.253, 9.820                 GIC on understated 4.737
    and Family Tax Benefit 2.140                               and notional tax 4.762
    for senior Australian tax offset 2.191                     varying 4.737
    work bonus for age pensioners 19.437                    Instalment rate method 4.737

1444                                    Taxpayers Australia Inc 2011 & 2012
                                                       Index

   credits for over-paid quarterly instalments 4.737           International organisations, FBT exempt 24.201
Instalment warrants 18.212, 18.213                             International tax agreements see Double taxation
Insurance                                                        agreements
   general insurance – duty                                    International transportation 22.421
       ACT 27.100                                              Internet expenses 12.155, 12.600, 16.680
       NSW 27.400                                              Interpretive Decisions (Tax Office) 3.120, 3.155
       NT 27.200                                               Invalid relative tax offset 2.117
       Qld 27.500                                              Invalidity payments 10.250, 10.260, 10.270
       SA 27.600                                               Investment allowance deduction (small business)
       Tas 27.800                                                9.750
       Vic 27.300                                              Investment management regime (IMR), proposed
       WA 27.700                                                 21.560
   life policies – duty                                        Investment structures 16.800
       ACT 27.100                                              Investments 16.000
       NSW 27.400                                                 aggressive tax planning 16.900
       NT 27.200                                                  assessable income 10.300, 16.100
       Qld 27.500                                                 Australian shares 16.420
       SA 27.600                                                       tax issues 16.425
       Tas 27.800                                                 bodies corporate 8.500
       Vic 27.300                                                 capital gains 16.300
   prepayment 13.170                                              cash and fixed interest investments 16.410
   primary producers 20.510                                            tax issues 16.415
   rental property 17.200                                         CGT 11.800–837
Insurance industry taxpayers, presently existing                  combined ownership 7.110
  obligation 13.105                                               common mistakes on tax returns 16.700
Insurance services, effective life tables 14.160                  Contracts for Difference 16.510
Intangible assets, statutory effective life 14.060                deductions 16.600–680
Intangible property 24.860                                        earnings 16.200
Integration test 4.301                                            financial arrangements from 1 July 2010 (or 1 July
Inter-entity loss multiplication rules 5.460                         2009 by election) 16.545
Interest                                                          fixed trusts 16.435
   business deductions 13.130                                     foreign investment income 16.450
   capital protected loans 16.615                                 foreign tax issues 16.900
   compensation payments 10.400, 11.987                           GST 16.900
   deductions for loans 16.635                                    held by trustees 4.022
   General Interest Charge 3.660                                  investment products 16.400–470, 16.500–545
   on line of credit 16.640                                       joint investments and TFN 4.022
   on money borrowed to pay tax 13.180                            listed investment company investments 16.430
   mortgage or interest offset arrangements 10.400                longer term investors 16.100
   negative gearing 13.190                                        losses 16.900
   New Zealand agreement 21.220                                   managed investment schemes 16.455, 16.470
   partial claims 17.200                                               forestry 16.460, 16.470
   penalty interest 3.650, 3.660, 17.200                          managed investments 16.440
   prepayment 13.170                                              non-resident withholding 16.900, 21.130
   redraw on an existing loan 17.200                              ordinary or statutory income 16.210
   rental property 17.200                                         parties not dealing at arm’s length 16.900
   Shortfall Interest Charge 3.660                                PAYG instalments 16.900
   split or linked loans 16.645, 17.200                           and PAYG withholding tax 4.022
   United Kingdom agreement 21.220                                quoting a TFN for 4.022
   United States of America agreement 21.220                      records and substantiation of expenses 16.900
   warrants 16.545                                                revenue or capital 16.100
Interest income 10.035, 10.400                                    shares, options and rights see Shares, options and
   cash and fixed interest investments 16.415                        rights
   children’s bank accounts 10.400                                solicitors or body corporates 4.022
   Commonwealth loan interest 10.400                              specialised investment products 16.500–545
   compensation and damages 10.400                                stapled securities 16.520
   discounted or deferred interest securities 10.400              tax rulings 16.900
   early payment of tax debts 10.400                              and TFN 4.020, 4.022, 16.900
   foreign resident, PAYG withholding 4.318                       and TFN withholding 16.900
   foreign source income 21.010                                   TFN/ABN not quoted 4.315
   lender carrying on business through overseas                   traders 16.100
      permanent establishment 4.319                               traditional securities 16.530
   loans to friends and related parties 10.400                    trust investor tax issues 16.445
   overpayment of tax 2.004, 3.265, 3.660, 10.400                 warrants 16.540
   overseas person, PAYG withholding 4.317                        wash sales 16.900
   paid to partners 7.250                                      Investors
   traditional securities 16.535                                  common deductions 16.600–680
   withholding tax rate 21.140                                    common mistakes on returns 16.700

                                     www.taxpayer.com.au • Phone 1300 657 572                                     1445
                                                      Index

    exempt from quoting TFN 4.021                             Leased luxury cars 10.790, 12.240, 14.088
    versus share-traders 16.425                                  lessee’s tax treatment 14.088
Invoices, differences from ‘tax invoices’ 23.220                 lessor’s tax treatment 14.088
Involuntary disposals 11.455                                     tax preferred use – anti-avoidance 14.088
    both asset and money as compensation 11.455                  termination of the lease 14.088
    depreciating assets 14.070                                Leases 23.370
    if rollover relief is not automatic 11.455                   assessable income from 10.790
    monetary compensation 11.455                                 balloon payment 13.170
    replacement asset as compensation 11.455                     business lease expenses 13.115
Inward duty free purchases 22.422                                capital works by lessee 14.205
Inward investing entities                                        CGT 11.030, 11.750
    ADI 21.740                                                   commercial property 23.341
    non-ADI 21.730                                               commercial residential premises 23.341
Itinerant workers 20.510                                         conveyance and transfer, NT 27.200
                                                                 Crown leases see Crown leases
J                                                                deductions 13.155
                                                                 depreciating assets 11.758
Joint ownership                                                  drawing up, rental property 17.200
   depreciating assets 14.010                                    duty
   donated property 12.830                                            ACT 27.100
   land
                                                                      NSW 27.400
       NSW 26.300
                                                                      Qld 27.500
       Qld 26.500
                                                                      SA 27.600
       SA 26.500
                                                                      Vic 27.300
       Vic 26.200
                                                                      WA 27.700
   rental property 17.200
                                                                 goods used overseas 22.414
Joint tenants, assets owned by 11.350
                                                                 granting a lease 11.030
Joint ventures (GST) 23.310, 23.312
                                                                      long-term lease 11.030, 11.750
   definition 23.312
                                                                      treated as disposal of an asset 11.750
   eligibility 23.312
                                                                 GST 23.372
Jointly derived income 7.110
                                                                 if initial lease payments are high 13.170
Jointly held depreciating assets 14.010
                                                                 improvements by lessees 13.178
L                                                                incentives 10.790
                                                                 land, NT 27.200
Labour hire arrangement payments, and PAYG                       lease of at least 99 years 11.750
  withholding 4.306                                              lease converted to freehold 11.750
Land                                                             lease of less than 99 years 11.750
   change in size of 23.342                                      livestock 20.510
   compulsory acquired 22.111                                    payments for changing a lease 11.030
   leased, NT 27.200                                             payments to vary or waive the terms of lease 11.750
   minor interest in, SA 26.500                                  premiums 13.178
   partitioned see Partitioned land                              prepayment 13.170
Land sales                                                       prospecting and mining entitlements 11.757
   attribution 23.132                                            residential property, GST implications 23.341
   Tas 26.700                                                    termination
   under conditional or instalment contracts 10.780                   early termination 23.373
Land taxes                                                            and GST 23.373
   ACT 26.100                                                         luxury cars 14.088
   NSW 26.300                                                 Leasing enterprise, and supply of a going concern
   paid on purchase 13.125                                      22.460
   Qld 26.400                                                 Legal expenses 13.115
   rental property 17.200                                        rental property 17.200
   SA 26.500                                                     that can be claimed 13.115
   Tas 26.700                                                    that cannot be claimed 13.115
   Vic 26.200                                                 Legal professional privilege 3.405
   WA 26.600                                                  Leisure facilities, deductions 13.168
Landcare 14.090, 20.630                                       Levies by commodity authorities, primary producers
Landholder duty                                                 20.510
   ACT 27.100                                                 Life benefit employment termination payments 4.311,
   NSW 27.400                                                   10.210
   SA 27.500                                                     concessional cap 10.210
Late Payment Offset (SG contributions) 18.534                 Life insurance companies
Laundry expenses 12.150                                          consolidated groups with 5.565
Lay-bys, attribution 23.133                                      tax rates 8.050
Leased cars 12.240, 24.390                                    Life policies see Insurance
   employer-purchased vehicles 24.392                         Life policy bonuses 10.800
   and GST 24.391                                                resetting of policy commencement date 10.800
   sale of 10.790                                                tax offsets 10.800

1446                                     Taxpayers Australia Inc 2011 & 2012
                                                     Index

Limited recourse borrowing arrangements 18.213                      value for natural increase 20.420
   ‘acquirable asset’ and collection of assets 18.213        Living away from home allowance (LAFHA) 3.740,
   effect of unlimited guarantee for a post 7 July 2010        24.840
      arrangement 18.213                                        exempt accommodation component 24.843
   granting of a charge other than to the lender 18.213         exempt food component 24.843
   instalment warrants – proposed tax changes 18.213            payroll tax 25.350
   interaction with in-house asset rules 18.213                 proposed changes to LAFH benefits 24.843
   personal guarantees and contributions to the SMSF            taxable value of benefits 24.842
      18.213                                                    versus relocation 24.841
   proposals for LRBAs to be financial products 18.213          versus travel allowances 24.841
   protection of fund assets – trustee guarantees and           who is considered to be living away from home?
      indemnity 18.213                                             24.841
   refinancing 18.213                                        Loans to employees 3.740, 24.003, 24.450–455
   repairs are allowable, but not improvements 18.213           benchmark interest rates 24.452
   replacement asset 18.213                                     as deemed dividends 24.003, 24.454
   RSF trustee breach of duty 18.213                            employer in business of money lending 24.454
   SMSFR 2012/1: ‘LRBAs – application of key                    employment-related expenses 24.454
      concepts’ 18.213                                          exempt loan benefits 24.454
   trust deed and investment strategy 18.213                    FBT exempt 24.202
   under s67A 18.213                                            low interest loans 25.350
   when is an ‘acquirable asset’ acquired 18.213                ‘otherwise deductible’ rule 24.455
Limited recourse debt 14.800                                    taxable value of loan fringe benefit 24.453
   termination 14.800                                           temporary advance to cover security deposit 24.454
   types of 14.800                                              what is a loan fringe benefit? 24.451
Line of credit                                               Loans to friends 10.400
   consideration 23.135                                      Loans to shareholders 5.100, 5.300, 5.310
   interest 16.640                                              as deemed dividends 5.310, 24.003
   negative gearing 13.190                                      loans, definition 5.310
Linked loans                                                    loans made pre-Division 7A Statute barred 5.350
   interest 16.645, 17.200                                      pre-December 1997 5.350
   negative gearing 13.190                                      sub-trust arrangement 5.310
Liquidation 23.213                                              through trusts 5.335
   record keeping 3.710                                             action list 5.345
   and superannuation 18.275, 18.543                                exclusions 5.340
Liquidators’ distributions 11.925                               unpaid present entitlement by a trust to a corporate
   ‘exempt’ components of capital gain 11.925                      beneficiary 5.310
   full distribution 11.925                                  Local Government representatives 24.002
   interim distribution 11.925                               Lodgement of FBT return 24.051
Listed investment companies (LICs)                           Lodgement of IAS and BAS 4.830
   benefiting shareholders 11.650, 11.675                    Lodgement of income tax returns 3.070
   capital gain 11.675                                          balancing payment or refund 5.720
   CGT 11.675                                                   companies 5.700
   distribution statement 5.850                                 date of lodgement 3.070
   dividends 16.700                                             death of taxpayer 3.070, 6.950
   investments 16.430                                           early lodgement for targeted taxpayers 3.070
   meaning of 11.675                                            electronic lodgement 2.001
Live-in residential care workers 24.201                         if a return lodged last year 3.070
Livestock 20.400                                                individuals who must lodge a return 3.070
   change in partnership interests 20.460                       keep a copy of the return 3.070
   computing profit 20.440                                      non-lodgement/late lodgement penalties 3.650
   deferring profit 20.440                                      PAYG instalment system 5.710
   definition 20.400                                            Payment Summary mislaid or not received 3.070
   donations of 20.450                                          postal lodgement 3.060
   election for taxpayer’s portion 20.440                       residents need to include all income 3.070
   forced sales 20.440                                          self-prepared returns 3.070
   horses 20.490                                                superannuation funds 18.310
   insurance recoveries 20.440                                  tax agent lodged returns 3.070
   leasing 20.510                                               who must lodge a return? 3.070
   livestock account 20.400, 20.420                          Lodgement of PAYG instalment returns 5.710
   other disposals 20.450                                    Lodgement of payroll tax returns
   sale of, Vic 27.300                                          date due for returns 25.060
   spreading assessable insurance recoveries 20.440             group employers 25.070, 25.345
   spreading the tax profit 20.440                           Lodging a complaint against the Tax Office 3.430
   trading stock 20.400                                         informal review by the Tax Office 3.430
   valuing 20.420                                               legal review 3.430
       cost price 20.420                                        review from outside the Tax Office 3.430
       livestock with prescribed value 20.420                   Tax Office service standards 3.430
       market selling value 20.420

                                    www.taxpayer.com.au • Phone 1300 657 572                                     1447
                                                    Index

Log book method (car expense substantiation)                Luxury cars
 12.245                                                       capital allowance clawback 14.800
  keeping a log book 12.245                                   definition 28.120
  worked example 12.260                                       depreciation 14.085
Long distance truck drivers, travel claims 12.187             depreciation cost limit 14.085
Long service awards 24.204                                    disposal above depreciation cost limit 14.085
Long service leave 10.035, 10.050                             leased 12.240, 14.088
  payroll tax 25.010, 25.350
  unused 4.312, 10.270                                      M
Long term accommodation, premises supplied for              Main residence
 23.341                                                       absence from 11.330
Long term construction projects 10.040                            deriving income after absence 11.330
  billings basis 10.040                                           rules of absence 11.330
  estimated profits basis 10.040                              accidently destroyed 11.300
Longer term investors 16.100                                  changing 11.300
Losses                                                        choice of 11.300
  carry forward see Carry forward tax losses                  concession
  investments 16.900                                              NT 27.200
  loss by theft 13.165                                            Vic 27.300
  trading stock 13.230                                        deceased’s main residence 11.650
  transferring to consolidated group 5.535                    definition 11.300
  trusts 6.900                                                dwelling, definition 11.300
Losses from non-commercial business activities                ownership interest 11.300
 13.450                                                       pensioner concession, Vic 27.300
  assessable income test 13.460                               purchase by family trust 17.400
  Commissioner’s discretion 13.460, 13.470                    senior, pensioner and carer concession, NT 27.200
  exceptions 13.460                                         Main residence exemption 11.300
  other assets test 13.460                                    attached land exemption 11.300
  pre 2009–10 income year 13.460                              dwelling owned by company/trust 11.300
  profits test 13.460                                         dwelling owned by special disability trust 11.300
  real property test 13.460                                   if a family owns two homes 11.300
  rules from 1 July 2009 13.470                               issues on death 11.300
Lost Members Register 18.175                                      SDTs 11.300
Lotteries 23.383                                              land tax
Low-cost assets/low-value pool 14.040                             NSW 26.300
  assets that cannot be allocated to 14.040                       Qld 26.400
  balancing adjustment events 14.040                              SA 26.500
  calculation of decline in value of 14.040                       Tas 26.700
  depreciation 9.605                                              Vic 26.200
  determining decline in value 14.040                             WA 26.600
  election and rate of depreciation 14.040                    marriage breakdown 11.460
Low income superannuation contribution (LISC)                 one main residence only 11.330
 18.077                                                       part exemption for home 11.325
  adjusted taxable income 18.077                              part income-producing use 11.320
  administration by Tax Office 18.077                         pre-CGT residences 11.300
  amount of 18.077                                            pre-occupation exemption 11.300
  at least 10% of total income from employment or             ‘pre-occupation period’ 11.300
     business (ie. the ‘10% test’) 18.077                     residence transfer from company or trust on marriage
                                                                 breakdown 11.315
  concessional contributions 18.077
                                                              trustee acquires dwelling under a will 11.310
  eligibility 18.077
                                                            Maintenance
  tax consequences 18.077                                     definition 13.150
Low Income Tax Offset (LITO)                                  rental property 17.200
  claimed via PAYG withholding 4.661                        Managed investment schemes (MISs) 16.455, 20.700
  income tax ready reckoner                                   agricultural 13.700
       2011–12 2.011, 2.012                                   changes in response to collapses 16.470
       2012–13 2.021, 2.022                                   forestry 13.170, 13.700, 16.460, 16.470, 20.700
Low interest loans 25.350                                     instrument relating to, NT 27.200
Lump sum payments 10.200                                      non-forestry 16.455, 16.470, 20.700
  directed termination payments 10.230                      Managed Investment Trusts (MIT) 6.000
  employment termination payments 10.210, 13.120              2012–13 Federal Budget announcement:
  superannuation 4.310, 18.600                                   concessional WHT increase 21.550
  transitional termination payments 10.220                    distributions to foreign residents 21.550
Luxury car tax (LCT) 28.100                                   withholding for 6.700
  amount of 28.130                                          Managed investments 16.440
  BAS statement 4.842                                       Management fees, rental property 17.200
  concessions 28.150                                        Manufacturing, effective life tables 14.160
  and GST 28.140                                            Margin lending 16.650

1448                                  Taxpayers Australia Inc 2011 & 2012
                                                  Index

Margin scheme                                               exemption 2.061
  and general law partnership 23.325                        families 2.063
  sale of freehold interest using 23.344                    single person 2.062
Market linked pensions 18.720                             Medicare levy surcharge lump sum in arrears tax
  flexibility of draw downs 18.720                         offset 2.240
Market value substitution rule                              amount of tax offset 2.243
  capital proceeds 11.144                                   eligibility 2.241
  cost base 11.140                                          spouse’s eligibility 2.242
Marketable securities                                     Medicare safety net, CSHC holders 19.526
  ACT 27.100                                              Medicinal preparations and drugs 22.433
      documentation and compliance obligations 27.100     Memberships 20.510
      future changes 27.100                                 fees 24.202
  NSW 27.400                                              Merged assets, depreciation 14.060
  NT 27.200                                               Metropolitan Region Improvement Tax (MRIT), Perth
  Qld 27.500                                               26.600
  WA 27.700                                               Mining
Marriage breakdown 11.315, 11.460                           effective life tables 14.160
  collectables and personal use assets 11.460               entitlements 11.757
  main residence exemption 11.460                           exploration or prospecting 14.100
  record keeping 11.460                                     right to income from 11.026
  rollover events 11.460, 18.260                          Mining site rehabilitation, deductions 14.100
Maternity payments 2.120                                  Minor work expenses ($300 threshold) 12.145
  and payroll tax 25.010, 25.350                          Minors
Matrimonial instruments, WA 27.700                          arm’s length rate 2.044
Mature age worker tax offset 2.180, 19.310                  bank accounts 2.045, 10.400
  business income 2.184                                     calculating tax on eligible income for 2011–12 2.043
  exclusions from net income from working 2.185             income derived by 2.040
  income threshold and offset 2.181                             excepted income not affected 2.042
  net income from working 2.182                                 minors not affected 2.042
  personal services income 2.183                            notional tax offset 2.111
Meal allowances 10.050                                      as partners 7.240
  meals provided by employer 12.525                         share investments 2.046
  overtime meals 12.140, 12.515                           Miscellaneous Tax Rulings 1.630
  travelling on business 12.520                           Mixed supplies, GST on 22.174
Meal entertainment 24.902                                 Monetary compensation 11.455
  and arranger provisions 24.002                            consequences of receiving 11.455
  and GST credits 24.904                                  Money, FBT definition 24.860
  tax-exempt bodies 24.967                                Morning and afternoon tea 12.570
Meals                                                     Mortgage
  and sustenance, payroll tax 25.350                        discharge expenses 13.140, 16.625
  see also Board fringe benefit                             interest offset accounts 10.400
Means test 19.430                                         Mortgage duty
  assets test 19.435                                        NSW 27.400
  income test 19.437                                        Qld 27.500
MEC groups see Multiple Entry Consolidated (MEC)            WA 27.700
 groups                                                   Motor vehicles
Media, effective life tables 14.160                         certificate of registration
Medical expenses tax offset 2.160                               NSW 27.400
  cosmetic procedures are not medical expenses 2.162            NT 27.200
  expenses that are not medical expenses 2.163              documentation and compliance, ACT 27.100
  medical expense claims 2.161                              with a Green Vehicle Rating, ACT 27.100
      dependants overseas 2.161                             licence or transfer, WA 27.700
      payments to a separated spouse 2.161                  with no Green Vehicle Rating, ACT 27.100
      trustee paying medical expenses 2.161                 payroll tax 25.350
  net medical expenses, definition 2.162                    registration
  nursing homes or hostels 2.162                                Qld 27.500
Medical services 22.431                                         Vic 27.300
  GST-free 22.431, 22.434                                   registration and transfers
  non GST-free 22.431                                           ACT 27.100
Medical treatment, FBT exempt 24.202                            SA 27.600
Medicare levy 2.050                                             Tas 27.800
  exemptions 2.052                                          special rules for SBEs (from 1 July 2012)
  trustees 2.054                                                immediate deduction up to $5,000 9.615
  who is liable to pay the levy? 2.051                          other considerations 9.615
Medicare levy relief/concessions 2.053                      transfer of registration, Vic 27.300
  family exemption thresholds 2.053                         vehicles other than cars 24.356, 24.825
  non-age pension recipients 2.055                          see also Car expense substantiation; Car expenses;
  senior Australians 2.056                                     Car parking benefits; Car parking expenses
Medicare levy surcharge 2.060                             Multi-rate trustees 4.762

                                  www.taxpayer.com.au • Phone 1300 657 572                                  1449
                                                       Index

  GDP-adjusted notional tax 4.762                                meals provided by in-house dining facility 12.525
  instalment income 4.762                                      Non-fixed trusts 6.000
  instalment rate and notional tax 4.762                         50% stake test 6.900
Multiple Entry Consolidated (MEC) groups 5.560,                  control test 6.900
 11.042                                                          income injection test 6.900
Mutual life assurance companies 5.100                            pattern of distributions test 6.900
MySuper 18.285                                                   primary production 20.005
                                                                 trust loss rules 6.900
N                                                              Non-forestry managed investment schemes 16.455,
                                                                20.700
Natural disasters, definition 11.455
                                                                 changes 16.470
Negative gearing 13.190, 16.650
                                                               Non-monetary consideration 22.126
  losses from 16.900
                                                               Non-portfolio dividends 21.020
Net assets, definition 5.310
                                                               Non-preserved benefits
Net investment loss 2.104
                                                                 restricted 18.165
Net medical expenses, definition 2.162
                                                                 unrestricted 18.165
New income test see Income test
New residential premises                                       Non-profit clubs 8.400
  adjustment for changes in extent of creditable               Non-profit companies 5.100
     purpose 23.263                                            Non-resident businesses 21.110
  building relocated on the same land 23.342                     Australian branches of 21.110
  and changes in size of the land 23.342                       Non-resident individuals 21.120
  created through substantial renovations 23.342               Non-resident superannuation funds 18.800
  not previously sold as residential premises 23.342           Non-resident trust estates see Transferor trusts
  sale of 22.330, 23.342                                       Non-resident trustee beneficiary, distribution from an
  subdivision of apartments into strata title units 23.342      Australian trust to 21.550
  where building relocated 23.342                              Non-residents
New South Wales                                                  adjustments to assessable income 5.800
  apprentice wages, rebates and grants 25.250                    capital gains and investment returns 21.130
  duties 27.400                                                  certificates of payment 21.140
  land tax 26.300                                                departing Australia superannuation payment 21.140
      exemptions 26.300                                          franked dividends 10.720
New Zealand agreement 21.220                                     GST 23.350
New Zealand companies, Australian imputation system                  reverse charges 23.351
 extended to 5.800, 21.220                                       income tax ready reckoner, 2011–12 2.011
Newspapers 24.204                                                in partnerships 7.230
No source documents 3.710                                        PAYG withholding 4.317, 4.318, 4.640
Non-age pension recipients, Medicare levy                        remittances 21.140
 concessions 2.055                                               resident agents acting for 23.352
Non-arms length arrangements 14.060                              shareholder dividends 10.720
Non-assessable foreign branch income 21.020                      tax-free threshold 2.032
Non-assessable non-exempt income 10.005, 10.950                  taxation 21.100
Non-cash benefits, and PAYG withholding 4.320                    trust distributions to 21.550
Non-cash business benefits 10.060                                withholding tax 10.020, 16.900, 21.140
Non-commercial business losses 13.450                          Non-Self Managed Superannuation Funds, powers of
  definition 5.310                                              the regulator 18.115
  pre-2009–10 income year 13.460                               Non-share capital account 5.200
  rules from 1 July 2009 13.470                                Non-share equity interest 5.200
Non-complying superannuation funds 18.800                      Non-work related expenses (otherwise deductible)
  change of status of resident 18.800                           25.350
  contributions made to 18.080                                 Non-working individuals, and superannuation 18.004
  employer contributions made to 18.800                        Northern Territory
  overseas payments to a complying fund 18.800                   apprentice wages, rebates and grants 25.270
  tax offsets 18.800                                             duties 27.200
  tax payable 18.320                                           Not-for-profit bodies
Non-compulsory uniforms 12.350                                   FBT 24.103
  accessories 12.350                                             and income tax exemption 10.910
  changes to the design 12.350                                   land tax exemption, Qld 26.400
  colour used in uniform design 12.350                           tax rates 8.050
  corporate, product or service identifiers 12.350             Not-for-profit hospitals 24.201
  durability of style 12.350                                   Notional sole parent tax offset 2.114
  nature of employer’s business 12.350                         Notional tax method 4.733, 4.762
  pattern identifiers 12.350                                     GDP-adjusted 4.734, 4.735
  range of styles allowed 12.350                                 no withholding income in taxable income for the base
  single items 12.350                                               year 4.733
  stand along identifiers 12.350                                 taxable income for the ‘base year’ contains
Non-concessional (after-tax) contributions 18.030                   ‘withholding income’ 4.733
Non-discretionary trusts 21.830                                Notional tax offsets for children 2.111
Non-employees                                                  Nurseries 20.290
  car parking expenses 12.290                                  Nursing homes or hostels 2.162

1450                                      Taxpayers Australia Inc 2011 & 2012
                                                  Index

O                                                           individuals 21.010
                                                            rental income 17.100
Objections 3.200, 3.430                                   Overseas medical travel 24.202
   against Private Rulings 3.210, 3.220                   Overseas person, dividend, interest or royalty payments
   claims for cost of objection 3.200                      4.317
   delayed lodgement 3.250                                Overseas property see Foreign property
   disputed tax 3.260                                     Overseas travel allowances 12.190
   FBT 24.054                                               no travel allowance paid 12.190
   grounds for objection 3.200, 3.210                       special locations 12.190
   how to write an objection 3.240                          travel by spouse or relative 12.190
   indirect tax decisions 3.210                             travel claims 12.200, 12.205
   interest payable if objection is successful 3.265      Overseas work, payroll tax 25.040
   involving carry forward losses 3.235                   Overtime meal allowances 12.140, 12.515
   lodging objections – time limits 3.210                 Overtime payments 10.050
   make sure it is an objection 3.200                       and PAYG withholding 4.301
   payroll tax 25.050                                     Owner-driver long distance truck drivers 12.187
   Private Rulings 3.200, 3.220                           Owners corporation fees 17.200
   review/appeal of objection decision 3.223
   reviews and appeals 3.300–380                          P
   simple tax affairs 3.225                               Paid parental leave (PPL), payments for 25.010, 25.350
   valid objections 3.210                                 Parent or spouse’s parent tax offset 2.118
   withdrawing an objection 3.230                         Parental leave 25.010, 25.350
Occupancy expenses (home office) 12.600                   Partially exempt employers
Occupation specific clothing 12.320                         benefits excluded from capping rules 24.005
Off-shore jobs 24.805                                       and FBT 24.005
Offer documents, as tax invoices 23.233                     value of capping limits 24.005
Office-holders, and PAYG withholding 4.303                Parties not dealing at arm’s length 16.900
Oil rigs, employment on 24.805                            Partitioned land
One third of actual expenses method (car expense            NSW 27.400
 substantiation) 12.240, 12.280                             NT 27.200
Operating cost method (valuing car benefits) 24.380         Vic 27.300
   determining business percentage 24.381                   WA 27.700
   employee contributions 24.384                          Partnerships 7.000, 8.020
   log book year 24.383                                     CGT 7.400, 11.550
   operating costs 24.381                                        change of interest 11.550
Options see Shares, options and rights                           discount or indexation 11.550
Oral Rulings 3.150                                               Everett assignment 11.550
   applying for oral binding advice 3.150                        foreign resident partners 11.550
   Interpretive Decisions 3.155                                  and partnership assets 11.550
   non-Ruling advice 3.155                                       rollover relief 11.550
   Taxpayer Alerts 3.150                                    changes 7.300, 13.230, 20.460
Orchards 20.310                                                  partnership property 7.300
Ordinary income 16.210                                           varying entitlements 7.300
Ordinary time earnings 18.519                                    voluntary payments to retired partners 7.300
Organisations exempt from income tax 10.910                 combined ownership of investments 7.110
Other assets test 13.460                                    comparison of structures 8.000
Other services, effective life tables 14.160                debt forgiveness 13.400
Otherwise deductible rule 24.106, 24.455                    definition 7.100
   airline transport fringe benefits 24.885                 depreciating assets 14.060, 14.070
   for cars 24.826, 24.868                                  drawings 7.260
   entertainment 24.903                                     elections 7.270
   expense payment benefit 24.558                           existence of 7.120
   property benefits 24.868                                      partners have unequal shares 7.120
   residual fringe benefits 24.826                               requirements for valid partnership 7.120
Out-of-court settlements, taxable supply 22.125                  special situations 7.120
Outdoor workers 12.147                                      farm management deposits 20.800
Outward investing entities 21.720                           foreign hybrid limited partnerships 21.600
   ADI 21.740                                               general law partnership 7.100, 23.321, 23.323
   calculating adjusted average debt 21.720                      dissolution 23.324
   calculating safe harbour debt amount 21.720                   and margin scheme 23.325
   financial 21.720                                         GST 23.320–325
   general 21.720                                           income 3.70, 10.040
Overdraft, consideration 23.135                             interest on money borrowed to pay tax 13.180
Overpaid tax 2.003                                          interest paid to partners 7.250
   interest on 2.004, 3.265                                 investments and TFN 4.022
   refund and interest on 3.660                             jointly derived income 7.110
Overseas defence forces tax offset 2.170, 2.174             minors as partners 7.240
Overseas income 3.070, 3.640                                net income or loss of partnership 7.210
   business 21.020                                          partner penalties 3.600

                                  www.taxpayer.com.au • Phone 1300 657 572                                  1451
                                                        Index

  partnership with non-resident 7.230                                 quarterly instalments 4.720
  PAYG instalments 4.740, 7.280                                 PAYG withholding 4.200
  penalty tax 7.400                                               and ABN not quoted 4.130
  residency 10.020                                                Activity Statements 4.843
  salaries of partners 7.220                                      annual leave loading 4.301
  share of net income 7.210                                       back payments of income 4.301
  shareholder dividends 10.720                                    bonuses 4.301
  and supply of a going concern 22.460, 23.323                    calculating 4.690
  tax law partnerships 7.100, 23.321, 23.322                      common problems with Activity Statements 4.850
  tax offset for indirect distributions 5.800                     company directors 4.302
  tax returns 7.400                                               compensation, sickness or accident payment 4.314
  tax treatment 7.200–280                                         declarations and TFN 4.411
  tax-related deductions 12.905                                   departing Australia superannuation payment 4.321
  transfer of assets to a company 11.485                          dividend payments
  transfer of rights 13.170                                           to foreign residents 4.318
  transferor trusts 21.830                                            to overseas persons 4.317
  uncontrolled partnership income (UPI) 7.110                     employment termination payments 4.311
  Unincorporated Joint Venture (UJV) 7.110                        exceptions 4.140
Passive income 21.820, 21.840                                     exemptions 21.140
Patents 11.072                                                    and HELP debt 4.512, 4.620
Pattern of distributions test 6.900                               interest payments
Payers’ obligations 4.400, 4.420                                      derived by lender carrying on business through
  annual reports 4.423                                                 overseas permanent establishment 4.319
  payment summaries 4.422                                             to foreign resident 4.318
  registration 4.421                                                  to overseas persons 4.317
PAYG instalments 4.700                                            investments and TFN 4.022
  Activity Statements 4.844                                       and Low Income Tax Offset 4.661
  amount of 4.730                                                 non-cash benefits 4.320
      annual instalments 4.731                                    non-cash business benefits 10.060
      bare trusts 4.751                                           non-residents 4.640
      benchmark tax 4.736                                         office-holders 4.303
      corporate unit trusts 4.754                                 overtime 4.301
      GDP-adjusted notional tax method 4.734
                                                                  payer’s obligations 4.150
      implications for partnerships 4.740
                                                                  payers’ obligations 4.400, 4.420–426
      implications for trust beneficiaries 4.750
                                                                  payment specified by regulations 4.307
      implications for trustees 4.760
                                                                  payment summaries 4.422
      instalment rate method 4.737
                                                                  payment under a labour hire arrangement 4.306
      multi-rate trustees 4.762
      notional tax method 4.733                                   payment for unused annual leave and long service
                                                                    leave 4.312
      public trading trusts 4.754
      quarterly instalments 4.732                                 payments to employees 4.301
      reductions 4.770                                                control test 4.301
      resident unit trusts – distribution basis 4.752                 employee temporarily overseas 4.301
      single rate trustees 4.761                                      integration test 4.301
      variation of a GDP-adjusted notional tax                        other tests 4.301
       instalment/estimated benchmark tax 4.735                       payments excluded 4.301
  common problems with Activity Statements 4.850                  penalties 4.426
  and consolidated groups 5.570                                   personal services entity 15.550
  farm management deposits 20.800                                 personal services income 4.308
  HELP debt 4.512                                                 reducing the withholding amount 4.412
  investors 16.900                                                reduction in withholding amount 4.650
  key concepts                                                    refund of amount incorrectly withheld 4.425
      base assessment 4.711                                       registration 4.421
      base assessment instalment income 4.711                     remittances for non-residents 21.140
      base year 4.711                                             remitting PAYGW amount to the Tax Office 4.424
      instalment income 4.711                                     repayment of overpaid amounts 4.670
  liability to pay 4.710                                          return to work payments 4.304
  lodgement of returns 5.710                                      royalty payments
      annual instalments 5.710                                        to foreign resident 4.318
      dates for paying 5.710                                          to overseas persons 4.317
      quarterly instalments 5.710                                 seasonal workers 4.610
  partnerships 7.280                                              second job 4.301
  SFSS debt 4.522                                                 senior Australians 4.630
  when is an instalment due? 4.720                                SFSS debt 4.522, 4.620
      annual payers 4.720                                         social security or other benefit payments 4.313
      dual instalments 4.720                                      superannuation income stream or annuity 4.309,
      events that disqualify an entity from using an                4.412
       annual instalment 4.720                                    superannuation lump sum payments 4.310, 18.600

1452                                     Taxpayers Australia Inc 2011 & 2012
                                                     Index

  supplier fails to quote ABN in respect of supply 4.131,      non-working directors 25.010
     4.316                                                     objections and appeals 25.050
  tax offsets and family tax benefits 4.660                    paid parental leave 25.010, 25.350
  and TFN not provided 4.680                                   payments liable for 25.350
  and TFN quoted 4.022                                             explanatory notes 25.350
  TFN/ABN not quoted in respect of an investment               payments made by employer on behalf of an
     4.315                                                        employee 25.350
  types of withholding 4.300                                   prizes 25.350
  voluntary agreement to withhold 4.305                        professional advice 25.350
  withholding payments 4.210                                   rates and thresholds 25.300
PAYG withholding tax tables 4.600, 4.691                       reducing ‘amounts taken to be wages’ 25.160
Payment Summary mislaid or not received 3.070                  reimbursements 25.350
Payments made by employer on behalf of an                      relocation expenses 25.350
 employee 25.350                                               remote area FBT exemptions 25.350
Payments to associates 15.305                                  shares and options 25.010
Payments to contractors 25.100                                 study expenses 25.350
  employment agency arrangements and contracts                 superannuation contributions 25.350
     25.150                                                    taxing of employee benefits 25.010
  exclusions 25.130                                            termination payments 25.010, 25.350
  exempt occupations 25.110                                    trust distributions 25.350
  how the system works 25.120                                  volunteer emergency duties 25.010
  and liability 25.140                                         wages, definition 25.010
  payroll tax 25.350                                           which jurisdiction is payroll tax payable in? 25.040
Payments to employees 4.301                                        no overlap of tax liability 25.040
Payments to relatives 13.120                                       overseas work 25.040
Payments to shareholders (private companies) 5.100,                payroll tax nexus rules 25.040
 5.300, 5.310                                                      pre-1 July 2009 25.040
  as deemed dividends 5.310                                        rules from 1 July 2009 25.040
  definition 5.310
                                                                   services are performed wholly in one jurisdiction
  exceptions 5.310                                                  25.040
  use of company assets for private purposes by
                                                                   services performed in more than one Australian
     shareholders 5.310
                                                                    jurisdiction and/or partly overseas 25.040
Payments to shareholders (trusts) 5.335
                                                                   test to be applied 25.040
  exclusions 5.340
                                                                   where are the wages paid? 25.040
Payroll tax 25.000
                                                             Penalties 3.600
  accident/sickness pay 25.350
  allowances 25.020, 25.350                                    administrative penalty 3.650
  annual leave 25.010, 25.350                                  arising from statements 3.600
  annual thresholds 25.320                                     calculation of 3.650
  apprentice wages, rebates and grants 25.200–280              deductions denied for 13.115
  commissions 25.350                                           disregarding a Private Ruling 3.600
  compensation payments 25.350                                 employer obligations under superannuation fund
  contractors, payments to 25.100–150, 25.350                     choice 18.563
  deductions for interstate employers 25.345                   failure to provide documents 3.600
  defence force payments 25.010                                FBT 24.053
  directors’ fees and allowances 25.350                        fines 3.680
  discounted staff purchases 25.350                            hindering the Tax Office 3.600
  due date for returns 25.060                                  inaccurate advice given by the Tax Office 3.600
  employee housing 25.350                                      intentional disregard and deliberate evasion 3.600
  employee share plans or options 25.350                       interest penalty 3.650, 3.660, 17.200
  employer superannuation contributions 25.010,                land tax
     25.350                                                        ACT 26.100
  executive directors 25.010                                       Qld 26.400
  exemptions 25.010                                                SA 26.500
  gifts to employees 25.350                                        Vic 26.200
  on gross wages 25.010                                        late payment 3.260
  grouping of employers 25.070                                 new entrants to the tax system 3.600
  holidays: free or subsidised 25.350                          non-lodgement/late lodgement penalties 3.650
  information resources 25.350                                 obligations under new taxation laws 3.600
  long service leave 25.010, 25.350                            old taxation laws 3.600
  low interest loans 25.350                                    partners tax returns 7.400
  maternity/parental and adoption leave 25.010, 25.350         partners and trustees 3.600
  meals and sustenance 25.350                                  PAYG withholding 4.426
  monthly deductions 25.340                                    promoter penalties, tax avoidance schemes 3.600
  monthly reductions, exemption reduction factors              and prosecution 3.660
     25.330                                                    reasonable care 3.600
  motor vehicles 25.350                                        reasonably arguable position 3.040, 3.600
  non-work related expenses (otherwise deductible)             recklessness 3.600
     25.350                                                    relating to schemes 3.040

                                    www.taxpayer.com.au • Phone 1300 657 572                                      1453
                                                      Index

  remission of penalties 3.600                                   attribution rules 15.400
  Self Managed Super Funds 18.250                                cars supplied by 24.354
  Superannuation Guarantee breaches 18.540                       PAYG withholding obligations 15.550
  tax agents 3.600                                            Personal services income (PSI) 15.100
  tax avoidance – penalties arising from schemes 3.600           alienation rules 12.600
  tax records 3.770                                              associates definition 15.110
  taxable supplies 22.124                                        Australian government agencies 15.110
  useful Rulings and Practice Statements 3.660                   definition 15.100
  see also Fines; Reasonable care                                earned through PSEs 15.400
Pension bonus scheme 19.320                                      and entrepreneurs’ tax offset 9.800
Pension Supplement 19.410                                        FBT 24.004, 24.106
Pensioner Concession Card 19.523                                 and mature age worker tax offset 2.183
Pensioner tax offset 2.200                                       and PAYG withholding 4.308
  Australian government pensions and allowances               Personal services income (PSI) rules 15.000
     2.201                                                       deduction rules 15.305
  impact of other offsets 2.203                                  effect of 15.300
  income thresholds 2.202                                     Personal superannuation contributions 18.073
  for pensioners below age pension age 2.204                     see also Personal concessional superannuation
  transfer of unused 2.193                                          contributions; Personal deductible superannuation
Pensions                                                            contributions
  account based pensions 18.720, 19.120                       Personal use assets 11.060, 11.460, 11.650
  allocated pensions 18.720                                      investment in by SMSFs 18.206
  complying pensions 18.720                                   Petroleum resource rent tax 14.100
  as exempt income 10.900                                        United Kingdom agreement 21.220
  market linked pensions 18.720                               Plantation forestry expenditure prepayment 13.170
  Medicare levy concessions 2.055, 2.056                      Pooled Development Funds 8.200
  New Zealand agreement 21.220                                Pooled Superannuation Trusts (PSTs) 18.155
  received from overseas 21.010                               Portability (superannuation assets) 18.570
  United Kingdom agreement 21.220                                exceptions 18.570
  United States of America agreement 21.220                      ‘Portability form’ to transfer superannuation between
  see also Age pension benefits                                     accounts 18.572
Performers 2.071                                                 transfer to SMSFs 18.573
Permanent establishments 21.210                               Postal expenses 17.200
  controlled companies 21.210                                 Postal services, effective life tables 14.160
  exclusions 21.210                                           Practice Statements 1.660, 1.680, 3.180
  independent agent 21.210                                       on penalties 3.660
  pay as you go withholding 21.210                               what are they? 3.180
Personal concessional superannuation contributions            Precious metals 22.340
 18.026
                                                              Prepayment of expenses 13.170
  ‘10% rule’ 18.026
                                                                 deductions 16.655
  deduction limits 18.026
                                                                 deductions deferred 13.170
  intention to claim a deduction for personal contribution
     18.026                                                      discharge/transfer of rights 13.170
  made to complying superannuation fund 18.026                   exclusions 13.170
  notice received after lodgement of member’s tax                expenses not allowable 13.170
     return 18.026                                               flowchart 13.170
  superannuation contributions splitting 18.026                  individual taxpayers incurring non-business
  variation of the amount covered by previous notice                expenditure 13.170
     18.026                                                      insurance premiums 13.170
  what are RESCs? 18.026                                         interest payments 13.170
Personal deductible superannuation contributions                 other taxpayers 13.170
 18.065                                                          period service provided 13.170
Personal exertion income 6.500                                   plantation forestry expenditure 13.170
Personal income tax rates                                        rent or lease payments 13.170
  2011–12 2.010                                                  rental property 17.200
  2012–13 2.020                                                  small business entity taxpayers 9.700, 13.170
  trusts and trustees 2.010, 2.020                               tax shelters 13.170
Personal injury payments, and superannuation                     trading stock 13.170, 13.230
 contributions 18.079                                            transfer of partnership rights 13.170
Personal services business (PSB) 15.200                       Prescribed private funds, donations to 12.875
  80% test 15.210                                             Preservation age 4.311, 18.700, 18.710, 19.200
  anti-avoidance provisions 15.600                            Preserved benefits 18.165
  business premises test 15.230                                  conditions of release 18.165
  determinations 15.240                                       Primary producers 20.000
  employment test 15.225                                         assessable income 20.200–320, 20.400–460, 20.490
  results test 15.205                                                normal gross receipts 20.210
  special rules for agents 15.220                                averaging income 20.900
  unrelated clients test 15.215                                  ‘business-like’ manner 20.100
Personal services entity (PSE) 15.105                            capital improvements 20.600

1454                                     Taxpayers Australia Inc 2011 & 2012
                                                       Index

       landcare 20.630                                            non-commercial business losses 20.005
       restrictions on land use 20.630                         Prime cost method 14.060
       telephone lines and electricity connection 20.510,      Principal effect test 3.520
         20.650                                                Principal place of residence see Main residence
   Carbon Sequestration Rights 20.210                          Principle of mutuality 8.400
   carbon sink forests 20.210                                  Priority Private Binding Rulings 3.125
   crops, crop stools and trees 20.300                         Privacy Commissioner 3.460
   decline in value of depreciating assets 14.090                 disclosure of taxpayer information 3.460
   deductions 14.090, 20.500                                      disclosure of TFN 3.460
       animal expenses 20.500                                  Privacy rules, TFN 4.050
       decline in value 20.510                                 Private companies 5.100
       electricity 14.090, 20.510, 20.650                         company profits 8.050
       grapevines 14.090                                          comparison of structures 8.000
       horticultural plants 14.090                                date of effect of Division 7A 5.300
       insurance 20.510                                           debt forgiveness 5.100, 5.300, 5.310
       itinerant workers 20.510                                       exclusions 5.320, 5.340
       landcare 14.090                                            deemed dividends 5.310
       levies by commodity authorities 20.510                     distributable surplus
       livestock leasing 20.510                                       calculating 5.310
       memberships 20.510                                             definition 5.310
       no balancing adjustments 14.090                                definition of Division 7A amounts 5.310
       power, light and fuel 20.510                                   definition of non-commercial loans 5.310
       rent of property and implements 20.510                         present legal obligation 5.310
       repairs 20.510                                             excessive remuneration 5.100
       salary and wages 20.510                                    excluded loans and payments 5.310
       seeds, fodders and fertilisers 20.510                      loans to shareholders 5.100, 5.300, 5.310, 5.340,
       special deductions 14.090                                     5.345, 5.350
       telephone lines 14.090, 20.510, 20.650                     ‘net assets’ definition 5.310
       temporary investment allowance 20.510                      obligation to pay income tax 5.310
       travel expenses 20.510                                     payments to shareholders 5.100, 5.300, 5.310, 5.340
       trees 20.510                                               relief from overfranking penalty 5.800
       water facilities 14.090                                    sub-trust arrangement 5.310
   definition 20.000, 20.005                                      tax rates 8.050
   double wool clips 20.210                                       treated by Commissioner as public company 5.100
   farm management deposits 20.800                                unpaid present entitlement by trust to a corporate
   fuel tax credits 20.850                                           beneficiary 5.310
   grain growers 20.280                                        Private health insurance tax offset 2.220
   hobby or recreation? 20.100                                    claiming the rebate 2.221
   horses 20.490                                               Private Rulings 3.120
   and industry norms 20.100                                      application checklist 3.145
   intention of the taxpayer 20.100                               applying for a Ruling 3.125
   livestock 20.400–460                                           delays in giving 3.125
   and luxury car tax 28.150                                      denied applications 3.135
   managed investment schemes 20.700                              disregarding 3.600
   nurseries 20.290                                               if facts in a Ruling application vary 3.125
   orchards 20.310                                                if Private and Public Rulings conflict 3.125
   produce accounts 20.260, 20.320                                matters/entities involved in Ruling Application 3.125
   prospect of profit 20.100                                      objections against 3.200, 3.210, 3.220
   repetition and regularity of activity 20.100                   Priority Private Binding Rulings 3.125
   rollover relief for water entitlements 20.210                  Tax Office Interpretive Decisions 3.120
   sale of standing timber 20.210                                 which have no effect 3.125
   significant commercial purpose 20.100                          withdrawal of Ruling/revision of Ruling 3.140
   size and scale of activity 20.100                           Prizes, payroll tax 25.350
   subsidies 20.210                                            Produce accounts 20.260, 20.320
   tradable water rights 20.210                                Product and advertising launches 12.540
   trading stock 20.260                                        Product Rulings 3.160
       exclusions from 20.260                                     applying for 3.160
       gifts of 20.260                                            when a Ruling will not be issued 3.160
   what is a primary producer? 20.100                          Production assistants (artistic) 2.071
   wool growers 20.270                                         Professional advice, and payroll tax 25.350
Primary production 20.005                                      Professional practices 10.040
   beneficiary of a trust 20.005                               Professional services
       fixed trust 20.005                                         effective life tables 14.160
       non-fixed trust 20.005                                     United Kingdom agreement 21.220
   commencement of business 20.005                             Profit-making undertakings 10.770
   effective life tables 14.160                                Profits test 13.460
   land tax exemption 26.200, 26.300, 26.400, 26.500,          Progressive supplies
      26.700                                                      accruals basis 23.122

                                     www.taxpayer.com.au • Phone 1300 657 572                                      1455
                                                      Index

  and tax invoices 23.233
Project expenditure, deductions 14.110
                                                              R
Promotional rebates 23.261                                    Rates
Proof of identity 4.041                                         paid on purchase 13.125
Property                                                        rental property 17.200
  donation of 12.830, 12.880                                  Real estate services, effective life tables 14.160
  ordinary meaning 11.054                                     Real property
  statutory meaning 11.056                                      acquired GST-free 23.343, 23.344
  see also Commercial property; Dutiable property;              Australian 11.700
     Real property; Rental property; Residential property       buying and selling premises 23.342
Property benefits 3.740, 24.860–869                             calculating GST on taxable supply 23.343
  documentation 24.869                                          change in size of the land 23.342
  exempt property benefits 24.868                               conveyance and transfer see Conveyance and
  external fringe benefits 24.862                                 transfer of property
  in-house fringe benefits 24.862                               GST 23.340–344
  in-house property benefits 24.868                             income from, United States of America agreement
  key concepts 24.860                                             21.220
  otherwise deductible rule 24.868                              income from sale of, United States of America
  taxable value 24.862                                            agreement 21.220
      reduction in 24.868                                       indirect real property interest 11.700
Prospecting                                                     leasing, GST implications 23.341
  deductions 14.100                                             removal or replacement of all or substantially all of the
  entitlements 11.757                                             building 23.342
Protective clothing 12.310                                      sale of freehold interest using margin scheme 23.344
Public ambulance services 24.201                                substantial renovations 23.342
Public benevolent institutions 24.201                           see also Commercial property; New residential
Public companies 5.100                                            premises; Rental property; Residential property
  certain assurance companies and friendly society            Real property test 13.460
     dispensaries 5.100                                       Real risk of forfeiture test 10.850, 11.816
  co-operative companies 5.100                                Reasonable care 3.030, 3.600, 3.630
  non-profit companies 5.100                                    amounts in another person’s return 3.640
  semi-Government bodies 5.100                                  correcting GST mistakes 3.640
  stock exchange listing 5.100                                  increase/reduction of base penalty amount 3.640
  subsidiaries 5.100                                            non-material amounts 3.640
  tax rates 8.050                                               safe harbour provisions 3.630
Public hospitals, FBT exempt 24.201                             tax agents 3.630
Public offer superannuation funds 18.125                        temporary offer for voluntary disclosure of offshore
Public Rulings 3.110                                              income 3.640
  conflicting rulings 3.125, 13.110                             testing for 3.030
      taxpayer can choose the better Ruling 3.110               timing adjustments 3.640
  date of effect 3.110                                          voluntary disclosure 3.640
  disregarding 3.110                                          Reasonably arguable position 3.040, 3.600
  investments 16.900                                          Rebatable employers 24.005
  Tax Determinations 3.110                                      employee benefits of salary sacrificing 24.105
  TaxPack and Information Booklets 3.110                      Rebatable organisations 24.105
  withdrawal of part of a Public Ruling 3.110
                                                              Rebate income 2.104
Public sector superannuation funds 18.125
                                                              Rebates (apprentices and trainees) 25.200–280
Public trading trusts 4.754, 5.150
                                                              Rebates (trade rebates) 23.261
  CGT 11.640
                                                                adjustment events 23.261
  exempt entities 5.150
                                                                consideration for separate taxable supply of services
  general test 5.150
                                                                  23.261
  meaning of ‘eligible investment business’ 5.150
                                                              Receipt books 3.710
  tax rates 8.050
                                                              Receipts 3.720
  taxation 5.150
                                                              Receivership 18.275, 18.543, 23.213
Public unit trusts 6.000
                                                              Recognised professional adviser 12.905
  attributable taxpayer 21.830
                                                              Record keeping see Documentation; Substantiation of
  rules for taxing 5.150
                                                               expenses; Tax records
  taxed as companies 5.150
                                                              Recovery and oncharge 23.384
  see also Corporate unit trusts; Public trading trusts
                                                              Recreation services, effective life tables 14.160
Purchases snapshot method 23.365
                                                              Recreational entertainment 24.908, 24.964
Q                                                             Recreational facilities, in-house 12.550
                                                              Reduced cost base 11.102
Queensland                                                      special provisions
  apprentice wages, rebates and grants 25.210                       shares 11.120
  duties 27.500                                                     trusts 11.120
  land tax 26.400                                             Reduced tax-free threshold 2.030
     exemptions 26.400                                          becoming/ceasing to be a resident 2.032

1456                                     Taxpayers Australia Inc 2011 & 2012
                                                      Index

  re-instatement of full tax-free threshold for students            gross rent 17.100
     2.031                                                          rental income from overseas 17.100
Redundancy, genuine 10.240, 10.260, 10.270                      borrowing expenses 17.200
Refunds                                                         capital losses/capital gains 10.100
  GST 23.240                                                    capital works 17.300
  overpaid tax 3.660                                            costs of obtaining finance 17.200
  tax-related expenses 12.905                                   deductions 17.200
  see also Tax refunds                                              interest 17.200
Registered entities 22.160, 23.264                                  when to claim a deduction 17.200
Registration (GST) 23.000, 23.210                               depreciating asset, decline in value 17.350
  cancellation 23.213, 23.264                                   drawing up leases 17.200
  procedures 23.212                                             and FBT 17.500
Regulated Superannuation Fund (RSF) 18.100                      GST 17.600
  trustee breach of duty 18.213                                 holiday houses and family arrangements 17.400
Regulatory return 18.100                                        insurance 17.200
Reimbursements 22.232, 23.413, 25.350                           interest 17.200
  and agency relationship 23.334                                    partial claims 17.200
  to employee for expense payment benefit 24.106                    penalty interest payments 17.200
Related companies 24.002, 25.070                                    prior to rent being received 17.200
  debt forgiveness 13.400                                       joint ownership 17.200
  land tax                                                      legal costs 17.200
      NSW 26.300                                                letting residence while on tranfer of employment
      Vic 26.200                                                   17.200
Related parties of a fund 18.202                                management fees 17.200
  acquiring assets from 18.205                                  non-deductible expenses 17.200
Related party ‘at-call’ loans 5.200                             owners corporation fees 17.200
Related payments rule 5.800                                     part year deductions 17.200
Religious institutions 24.201                                   prepayment of expenses 17.200
Religious services 22.470                                       primary production 20.510
Relocation 24.202                                               property inspection and rent collection 17.200
  and payroll tax 25.350                                        rates and land tax 17.200
  and recruitment costs 24.202                                  repairs, maintenance and improvements 13.150,
  temporary accommodation associated with 24.202                   17.200
  versus living away from home allowance 24.841                 residential rental property assets 17.360
Remittances                                                     sundry costs 17.200
  GST 23.240                                                    telephone, stationary and postal expenses 17.200
  non-residents 21.140                                          travelling expenses 17.200
Remitting PAYGW amount to the Tax Office 4.424                Repairs 13.150
  amount withheld 4.424                                         assets used partly to produce income 13.150
  deferred BAS payer 4.424                                      definition 13.150
  gazetted public holidays 4.424                                initial repairs 13.150
  large withholders 4.424                                       primary producers 20.510
  medium withholders 4.424                                      rental property 13.150, 17.200
  small withholders 4.424                                       to property not owned by taxpayer 13.150
Remote area employees 24.800                                    to property previously used for non-income producing
  assistance to buy housing 24.807                                 purposes 13.150
  FBT exemptions 25.350                                         use of different materials 13.150
  ‘fly-in/fly-out’ arrangements 24.805                        Replacement asset rollovers 11.450
  holiday travel from a remote area 24.806                    Replacement assets
Remote area holiday travel benefits 3.740                       as compensation 11.455
Remote area housing benefits 24.654                             definition 11.455
Remote area housing rental 24.655                             Reportable employer superannuation contributions
Remuneration benefits 23.414                                   (RESCs) 2.104, 10.050, 18.065
Renewable Energy Rebate, SA 25.220                              what are they? 18.026
Renewal notices 23.233                                        Reportable fringe benefits 24.300
Rent, prepayment 13.170                                         amendment of 24.308
Rent assistance 19.524                                          amounts 10.050, 24.303
  recipients with dependant children 19.524                     employer aggregates fringe benefits 24.304
Rent of property and implements, primary producers              excluded fringe benefits 24.305
 20.510                                                         individual fringe benefits amount 24.301
Rental business                                                 part-year employment 24.307
  defined 17.150                                                shared fringe benefits 24.306
  SA 27.600                                                     total 24.304
Rental and hiring services, effective life tables 14.160      Reportable superannuation contributions (RSCs)
Rental property 17.000                                         2.104, 18.065
  assessable income 10.500, 17.100                              how employees are affected 18.065
      bond money lodged by tenant 17.100                        meaning of ‘capacity to influence’ 18.065
      CGT tips 17.100                                           payment summaries 18.065

                                     www.taxpayer.com.au • Phone 1300 657 572                                  1457
                                                    Index

  personal deductible contributions 18.065                        ACT 27.100
  reportable employer superannuation contributions                Vic 27.300
     2.104, 10.050, 18.026, 18.065                            previously sold as commercial residential premises/
RESCs see Reportable employer superannuation                     commercial property 23.342
 contributions                                                relocated on the same land 23.342
Research and development 14.500                               sale of 22.330, 23.342
  adjustments 14.550                                          subdivision of apartments into strata title units 23.342
      clawback adjustments 14.550                             subjective versus objective test 23.342
      feedstock adjustments 14.550                            tenants in common 23.342
  eligibility 14.520                                          see also Commercial residential property
      eligible entities 14.520                              Residential rental property assets 17.360
      for whom the activities are being conducted 14.520    Residential rents
  eligible activities 14.530                                  GST 22.320
      core R&D activities 14.530                              input tax supplies 22.320
      supporting R&D activities 14.530                      Residents
  eligible notional deductions 14.540                         becoming/ceasing to be a resident 2.032
      eligible expenditure 14.540                             need to include all income in returns 3.070
      ineligible expenditure 14.540                           taxation of foreign income derived by 21.000
      total notional deductions less that $20,000 14.540      temporary 10.020
  record keeping 14.560                                     Residual fringe benefits 24.820
      business records 14.560                                 documentation 24.828
      specific R&D records 14.560                             exemptions 24.827
  registration 14.520                                         external residual benefits 24.821
  tax incentive – overview 14.510                             GST taxable value 24.823
Residence                                                     in-house residual benefits 24.821
  CFC change of 11.840                                        otherwise deductible rule 24.826
  employee’s usual place of residence 24.840                  road toll and e-tag expenses 24.602
  and PSI rules 15.305                                        taxable value of motor vehicles other than ‘cars’
  purchase by a family trust 17.400                              24.825
  see also Main residence                                     types of residual benefits 24.821
Residency 10.020                                              valuation rules 24.824
  the 183-day test 2.172, 10.020                              when is a benefit received? 24.822
  age pension benefits 19.410                               Restricted non-preserved benefits 18.165
  and assessable income 10.005, 10.020                      Results test (PSB) 15.205
  Australian residency ends 11.035                          Retail trade, effective life tables 14.160
  certificates 21.230                                       Retirement 19.000
  and Commonwealth superannuation scheme 10.020               age pension age limits 19.420
  companies 10.020                                            age pension age to increase 19.425
  controlled foreign companies 11.840, 21.820                 age pension benefits 19.000, 19.410
  domicile in Australia 10.020                                assets test 19.435
  individuals 10.020                                          Centrelink age benefits 19.400
  partnerships 10.020                                         Commonwealth Seniors Health Card 19.516, 19.520,
  resident for part of an income year 10.020                     19.526
  ‘resides in Australia’ test 10.020                          coverage 19.000
  and senior Australian tax offset 2.191                      Department of Veterans’ Affairs Gold Card 19.516
  superannuation funds 18.100                                 government incentives 19.300
  and tax offsets 5.800                                       income test 19.437
  temporary residents 10.020                                  mature age worker tax offset 19.310
  tie-breakers 21.210                                         means test 19.430
  trusts 10.020                                               Medicare safety net 19.526
  see also Non-residents                                      pension bonus scheme 19.320
Resident agents acting for non-residents 23.352               Pension Supplement 19.410
Resident companies, franked distributions to 10.730           Pensioner Concession Card 19.523
Resident Regulated Superannuation Fund (RRSF)                 rent assistance 19.524
 18.100                                                       salary sacrifice to superannuation 19.330
Resident unit trusts – distribution basis 4.752               self funding 19.000
  broadly held trusts 4.752                                   Seniors Supplement 19.516, 19.526
  non-broadly held trusts 4.752                               superannuation 19.000
Residential care services and accommodation,                  tax-free threshold 19.000
 GST-free 22.435                                              telephone allowance 19.520
Residential care workers, live-in 24.201                      three-pillar structure 19.000
Residential fuel expenses 24.657                              transition to retirement 19.120, 19.200
Residential property                                          utilities allowance 19.522
  chattels 23.342                                             see also Superannuation
  company title converted to strata title 23.342            Retirement income streams, transition to see
  leasing, GST implications 23.341                           Transition to retirement
  new residential premises 22.330, 23.263, 23.342           Retirement savings accounts (RSAs) 18.590
  ‘off the plan’ purchases                                    account holders 18.590

1458                                         Taxpayers Australia Inc 2012 & 2013
                                                         Index

   prudential standards 18.590                                     change in relation to replacement asset or improved
   prudential supervision 18.590                                      asset after a rollover under Subdivision 152-E
   tax treatment 18.590                                               11.038
Return to work payments, and PAYG withholding 4.304                company ceasing to be a member of wholly-owned
Revenue, versus capital 10.005, 16.100                                group after rollover 11.038
Revenue losses                                                     cost of acquisition of replacement asset or amount of
   group deductible 13.400                                            fourth element expenditure, or both, not sufficient to
   prior year 13.400                                                  cover disregarded capital gain 11.038
Review of self-assessment 3.510                                    failure to acquire replacement asset or to incur
Reviews and appeals 3.300                                             fourth element expenditure after a rollover under
   AAT 3.320, 3.330                                                   Subdivision 152-E 11.038
   costs of lodging an appeal 3.320, 3.330                         trust failing to cease to exist after rollover under
   FBT 24.054                                                         Subdivision 124-N 11.038
   Federal Court 3.305, 3.320, 3.330                             Rollovers
   grounds for review or appeal 3.310                              superannuation benefits 18.600, 18.660
   High Court 3.330                                                    record keeping 18.660
   legal representation 3.340                                          taxation implications 18.660
   payroll tax 25.050                                              superannuation contributions splitting 18.075
   refund of fees/costs 3.350                                      transitional termination payments to super fund
   settlement of taxation disputes 3.380                              10.220
   Small Taxation Claims Tribunal 3.330, 3.360                   Royalties
   taxpayer must prove case 3.320                                  foreign residents, PAYG withholding 4.318
   Test Case Litigation program 3.325                              foreign source income 21.010
Rewards programs 10.100                                            income from 10.600
                                                                   New Zealand agreement 21.220
Rights see Shares, options and rights
                                                                   overseas persons, PAYG withholding 4.317
Road toll expenses 12.220, 12.295, 24.600
                                                                   United Kingdom agreement 21.220
   exemptions 24.603
                                                                   United States of America agreement 21.220
   expense payments 24.601
                                                                   withholding tax rate 21.140
   residual fringe benefits 24.602
                                                                 Rulings 1.600, 3.100
   valuation options available 24.605
                                                                   Class Rulings 3.170
Rollover provisions see Rollover relief
                                                                   GST 1.650
Rollover relief 11.190, 11.450
                                                                   GST literature 3.100
   asset transfers between certain group companies                 inconsistent 3.100
      11.510
                                                                   Miscellaneous Tax rulings 1.630
   Australian Property Trusts and stapled securities
                                                                   objections against 3.100, 3.200
      11.489
                                                                   Oral Rulings 3.150
   balancing adjustment event 14.080
                                                                   on penalties 3.660
   business reorganisation 11.475–501
                                                                   and Practice Statements 3.180
   compensation payments 11.987
                                                                   Precedential Tax Office view 3.100
   controlled foreign companies 11.840
                                                                   Private Rulings 3.120, 3.125, 3.200, 3.600
   conversion by a body to an incorporated company
                                                                   Product Rulings 3.160
      11.490
                                                                   Public Rulings 3.110, 3.125, 16.900
   Crown leases 11.755
                                                                   reviews and appeals 3.300–380
   demerger relief 11.470
                                                                   Self Managed Super Funds 1.620
   and demergers 11.470
                                                                   self-amendment within two to four years 3.100
   demutualisation 11.472
                                                                   status of 3.100
   depreciating assets 11.758                                      Tax Determinations 3.110
   depreciation 14.060                                             TaxPack and Information Booklets 3.110
   exchange of shares between two companies 11.500                 withdrawal of 3.100
   exchange of shares, units, rights or options 11.495           Running Balance Account (RBA) 3.660
   exchange of units in an unit trust for shares in a
      company 11.501
   fixed trust to company transfers 11.487
                                                                 S
   involuntary disposals 11.455                                  Safe harbour provisions 3.630
   marriage breakdown 11.460, 18.260                             Salary sacrifice 24.980
   partnership to company transfers 11.485                         depreciating asset 14.060
   partnerships 11.550                                             deriving income 24.981
   prospecting and mining entitlements 11.757                      employee benefits, rebatable employers 24.105
   rollover for the disposal of assets to, or the creation of      employee contribution method 24.986
      assets in, a wholly-owned company 11.190                     ESS interest acquired under 10.850
   scrip for scrip rollover 11.468                                 prospective arrangements 24.983
   small businesses 9.670, 11.525                                  retrospective arrangements 24.982
   sole trader or trustee to company transfers 11.480              to superannuation 19.330
   statutory licences 11.900                                     Salary and wages
   strata title conversions 11.465                                 primary producers 20.510
   superannuation funds 11.466–467, 18.320                         and TFN 4.010
   water entitlements 20.210                                       wages, definition 25.010
Rollover reversal 11.038                                           see also Apprentice wages, rebates and grants

                                             www.taxpayer.com.au • Phone 1300 657 572                                 1459
                                                  Index

Sale of assets, taxing profits on 3.070                     new registration measures to combat illegal schemes
Sale of freehold interest using margin scheme 23.344           18.100
   calculating the ‘margin’ 23.344                          notice of non-compliance issued to 18.100
   eligibility 23.344                                       with one member 18.100
   guide 23.344                                             PAYG withholding requirements 18.600
   impact of margin scheme on purchaser 23.344              penalties 18.250
   real property acquired GST-free 23.344                       civil liability 18.250
   special rules of the margin scheme 23.344                    civil penalty 18.250
Sale of livestock, Vic 27.300                                   fault liability 18.250
Sale of real property                                           strict liability 18.250
   buying and selling premises 23.342                       personal guarantees and contributions to 18.213
   change in size of the land 23.342                        Product Disclosure Statements 18.140
   residential property 22.330, 23.342                      Product Ruling system 18.157
       chattels 23.342                                      prudential rules and licensing 18.130
       new residential premises 22.330, 23.263, 23.342      regulatory return 18.100
       subjective versus objective test 23.342              revised Guidance Statement ‘GS 009 (Aug 2011)’
Sales percentage method 23.364                                 18.110
Same asset rollovers 11.450                                 Rulings 1.620
Same Business Test 5.430, 5.620                             supervisory levy 18.100
Same-sex relationships, and superannuation 18.265           Tax Determinations 1.610
‘Savings rule’ 5.410                                        tax return lodgements 18.310
Scholarship trusts 6.000                                    tax returns 18.100
School and college building funds, donations to             timing of audit certificates 18.110
  12.860                                                    transfers to 18.573
Schoolkids Bonus 2.150                                      trustee declaration 18.100, 18.150
Scientific services, effective life tables 14.160           trustees 18.100
Scrip for scrip rollover 11.468                             with two, three or four members 18.100
   choice to apply rollover 11.468                          valuation of assets 18.207
   cost base rules for acquiring entity 11.468              winding up a fund 18.195
Scrip lending 5.900                                       Self-amendments 3.270
Seasonal workers, PAYG withholding 4.610                  Self-assessment 3.000
Second-hand goods 23.381                                    issues to be addressed by taxpayers 3.020
Second job, and PAYG withholding 4.301                      ‘reasonable care’ 3.030
Security deposits 22.124, 23.382                            reasonably arguable position 3.040
   definition 23.382                                        review of 3.510
   when is a ‘security deposit’ consideration for a         self-amendments and Tax Office amendments 3.270
      supply? 23.382                                        tax shortfall/shortfall amount 3.025
Seeds 20.510                                              Self-education expenses 12.700
Self Managed Superannuation Fund Product Rulings            education expenses against Youth Allowance
  (SMSFPRs) 18.157                                             payments 12.700
   applicants 18.157                                        non tax-deductible expenses 12.700
   challenging SMSFPRs 18.157                               tax-deductible expenses 12.700
   participants 18.157                                      travel expenses 12.700
   products 18.157                                          work-related education programs 12.700
   PS LA 2009/5 18.157                                    Self-employed, and superannuation 18.004
   roles 18.157                                           Self-funded retirees
   SMSFPR 2009/1 18.157                                     Commonwealth Seniors Health Card 19.516, 19.520,
   Tax Office                                                  19.526
       expectation of applicants 18.157                     Seniors Supplement 19.516, 19.526
       powers and functions 18.157                          telephone allowance 19.520
   unfavourable SMSFPRs 18.157                            Selling on a ‘sale or return’ basis 23.331
Self Managed Superannuation Funds 18.125                  Semi-government bodies 5.100
   acquiring assets from related parties 18.205           Seminars and conferences 12.530
   approved auditors 18.110                               Senior Australian Tax Offset (SATO) 2.190
       and PS LA 2010/2 18.110                              eligibility 2.191
   audit of annual return 18.100                                age test 2.191
   audit contravention reporting 18.110                         Government pension test 2.191
   binding death benefit nominations 18.165                     income test 2.191
   compliance test 18.100                                       residency test 2.191
   and Enduring Power of Attorneys 18.100                   options for claiming 2.191
   eSAT audit tool 18.110                                   tax offset for trustees of a trust 2.192
   financial assistance 18.210                              transfer of unused 2.193
   Government proposal for registration of SMSF           Senior Australians
      auditors 18.110                                       Medicare levy concessions 2.056
   Government proposal for SMSF trustees to rectify         PAYG withholding 4.630
      conventions 18.110                                  Seniors Supplement 19.516, 19.526
   investments in collectables and personal use assets    Separate net income (SNI) 2.103
      18.206                                                deductions that reduce 2.103

1460                                       Taxpayers Australia Inc 2012 & 2013
                                                      Index

  income included 2.103                                          payroll tax 25.010
  items excluded 2.103                                           ‘position’ in relation to shares 10.745
Service entities, presently existing obligation 13.105           position of a trust beneficiary 10.745
Service trusts 6.000, 6.400                                      pre-CGT shares 11.040
  service fee deductibility 6.400                                purchase of 16.425
Settlement of taxation disputes 3.380                            put option exercised/not exercised (capital protected
  requests for settlement 3.380                                     borrowings) 13.600
  settlement in later years 3.380                                qualification period 10.745
  settlement of widely-based tax disputes 3.380                  reduced cost base 11.120
  taxpayer’s ability to pay 3.380                                rights 11.815
  what are settlements? 3.380                                        in a unit trust 11.835
SFSS see Student Financial Supplement Scheme                     ‘risk diminished’ days 10.745
Shack sites, SA 26.500                                           sale of 11.805, 16.425
Share buy-backs 16.425                                           ‘scheme’ for disposition of shares or an interest in
  calculation of tax value 16.425                                   shares 5.900
  limit on availability of franking credits 16.425               share buy-backs 16.425
  tax implications of an off-market share buy back               share capital tainting 5.950
      capital component of buy back price 16.425                 shares acquired and sold (other than bonus shares or
      dividend component of buy back price 16.425                   employee shares) 11.810
Share capital tainting 5.950                                     shares purchased ‘cum-dividend’ 5.900
  accounts transferred under debt/equity swaps 5.950             shifts in share values 11.032
  amounts transferred from option premium reserves               short position 10.745
     5.950                                                       trading stock versus capital asset 16.425
  consequences of tainting share capital account 5.950        Shipping
  untainting a share capital account 5.950                       New Zealand agreement 21.220
Share traders, versus investors 16.425                           United Kingdom agreement 21.220
Shareholders                                                     United States of America agreement 21.220
  comparison of structures 8.000                              Short-term traveller accommodation 14.210
  death of 5.410                                              Shorter Period of Review (SPOR) taxpayers 3.225,
                                                                3.270
  debt forgiveness 5.100, 5.310
                                                              Shortfall amount 3.025
  FBT 24.003
                                                              Shortfall Interest Charge (SIC) 3.660
  loans to 5.100, 5.300, 5.310, 24.003
                                                              Sickness pay 4.314, 10.050, 25.350
  payments to 5.300, 5.310                                    Significant individual test 11.525
      private companies 5.100                                    direct small business participation percentage 11.525
  receiving dividends 10.720                                     indirect small business participation percentage
  rights or options if covered by GST 11.815                        11.525
  transfer of shares, and rollover 11.500                     Simplified accounting methods (GST) 23.360
Shares, options and rights                                       business norms method 23.363
  Australian shares 16.420                                       purchases snapshot method 23.365
  bonus shares issue 11.820, 16.425                              sales percentage method 23.364
  bonus units issue 11.830                                       snapshot method 23.361
  capital payment for shares 11.032                              stock purchases method 23.362
  CGT 11.032, 11.040, 11.124, 11.800–837                         useful resources 23.366
  conversion of shares 11.826                                    who can use the various methods? 23.360
  convertible interest in a unit trust 11.836                 Single person
  dividend reinvestment plans 16.425                             Medicare levy surcharge 2.062
  dividends 16.425                                               see also Individuals
  donated for fundraising events 12.822                       Single rate trustees 4.761
  donation of 12.830                                          Small APRA Funds (SAFs) 18.125
  Employee Share Schemes see Employee Share                      trustees 18.100
     Schemes                                                  Small business CGT concessions 9.300, 11.525
  end of an option to acquire shares 11.024                      15-year exemption 11.525
  exchange of shares between two companies 11.500                50% reduction 11.525
  exchange of shares, units, rights or options 11.495            $6 million net asset value threshold 11.525
  exchangeable interests 11.837                                  active asset test 11.525
  exercise of rights or options 16.425                           additional conditions for CGT events involving share
  expiry of rights or options 16.425                                or trust interest 11.525
  holding an interest in shares 10.745                           affiliate 11.525
  holding period rule 10.745                                     basic conditions 11.525
  issue of rights or options 10.800, 11.815, 16.425              CGT concession stakeholder 11.525
  liquidator or administrator declares shares or financial       connected entity 11.525
     instruments worthless 11.032                                foreign residents 11.732
  long position 10.745                                           retirement exemption 11.525
  losses on unexercised options can be claimed against           rollover relief 11.525
     other capital profits 11.800                                significant individual test 11.525
  minors 2.046                                                   small business entity 11.525
  ‘net’ position 10.745                                          superannuation contributions from small business
  options 11.800, 11.815                                            events – the CGT cap 18.079

                                           www.taxpayer.com.au • Phone 1300 657 572                              1461
                                                     Index

Small business entities (SBE) 11.525                            non-pool software 14.050
  2012–13 small business measures 9.100                         rate of deduction 14.050
  accounting methods and transitional measures 9.400         Sole or dominant purpose test (GST anti-avoidance
  aggregated turnover 9.220                                    rules) 3.520
  annual turnover 9.220                                      Sole parent, notional tax offset 2.114
  assessable income 10.035                                   Sole purpose test (superannuation funds) 18.100,
  car parking benefits exemption 24.403                        18.210
  carrying on a business 9.210                                  ancillary purpose 18.100
  concessions 9.300                                             contraventions 18.100
  eligibility 9.200                                             core purpose 18.100
  entrepreneurs’ tax offset abolished 9.800                     penalties for contraventions 18.100
  FBT record keeping exemption 24.252                        Sole traders 8.020
      aggregate FBT amount 24.252                               comparison of structures 8.000
      base year 24.252                                          transfer of assets to a company 11.480
      car benefits 24.252                                    Solicitors, investments and TFN 4.022
      ceasing business during the year 24.252                South Australia
      consequences of qualifying for RKEA 24.252                apprentice wages, rebates and grants 25.220
      records 24.252                                            duties 27.600
      statutory documents 24.252                                land tax 26.500
      when FBT increases 24.252                                     exemptions 26.500
  framework from 1 July 2007 9.000                           Sovereign instruments, tax treatment (government
      overview 9.100                                           proposal) 21.810
  grouping provisions 9.230                                  Special capital receipts
      affiliates 9.231                                          CGT 11.034
      connected entities 9.232                                  forfeiture of deposit 11.034
      control tests 9.233                                       receipt for an event relating to a CGT asset 11.034
  prepayment of expenses 9.700, 13.170                       Special disability trusts 6.000
  rollover relief 9.670                                         asset passes to SDT from a deceased person’s
  simplified depreciation rules 9.600                              estate 11.250
      assets acquired or constructed from 1 July 2001           asset transferred directly to 11.250
       9.610                                                    CGT concessions 11.250
      ceasing to use 9.660                                      and death of the principal beneficiary 11.300
      change in asset’s business use 9.631                      dwelling disposed of by either a trustee of the SDT or
      deduction prohibited by another provision 9.650              a trustee of the implied trust with proceeds given to
      disposals of assets in small business pools 9.640            the beneficiary 11.300
      exceptions 9.620                                          dwelling owned by 11.300
      immediate write-off of depreciating assets 9.605       Special professionals (artistic and sportspeople)
      low-cost assets 9.605                                    2.070–071
      reduction factors for general pool 9.631               Split assets, depreciation 14.060
      small business pools 9.610, 9.630, 9.631, 9.640        Split loans
      special motor vehicle rules (from 1 July 2012)            interest 16.645, 17.200
       9.615                                                    negative gearing 13.190
  simplified trading stock rules 9.500                       Sporting bodies
  temporary investment allowance deduction 9.750,               land tax concession, Tas 26.700
     20.510                                                     land tax exemption, NSW 26.300
Small business pools 9.610                                   Sportspersons 2.071
  assets held at the time of choosing the simplified            New Zealand agreement 21.220
     depreciation rules 9.610                                   United Kingdom agreement 21.220
  ceasing to use the simplified depreciation rules 9.660        United States of America agreement 21.220
  change in asset’s business use 9.631                       Spotless case 3.510
  disposal of assets 9.640                                   Spouse superannuation contributions 18.074
  general and long-life pools 9.610                          Spouse tax offset 2.113, 18.074
  method statement 9.630                                        calculating 2.113
  newly acquired assets 9.610                                Spouse’s parent tax offset 2.118
  pool balance falls below asset write-off threshold         Stamp duty 16.670
     9.610                                                      concessions, NT 27.200
  single general pools (from 1 July 2012) 9.610                 exemptions, SA 27.600
  transition to general pool 9.610                           Standard employer sponsored superannuation funds
Small business rollover 11.450                                 18.125
Small Taxation Claims Tribunal (STCT) 3.360                  Standby travel 24.882
  cost of lodging an appeal 3.330, 3.360                     Standing timber, sale of 20.210
  how the STCT works 3.360                                   Stapled securities 11.489, 16.520
SMSFs see Self Managed Superannuation Funds                     ACT 27.100
Snapshot method 23.361                                          tax issues 16.525
Social assistance, effective life tables 14.160              Stationary, deductions 17.200
Social security or other benefit payments 4.313              Statutory formula method (valuing car benefits)
  see also Pensions                                            24.370
Societies see Clubs, societies and associations                 base value after four years 24.373
Software development pool 14.050                                base value of car 24.371

1462                                          Taxpayers Australia Inc 2012 & 2013
                                                        Index

   days available for private use 24.375                          relief from substantiation 12.100
   election to use statutory formula 24.372                       rules 3.720
   employee contributions 24.375                                  small expenses 12.120
   employee’s costs 24.377                                        written evidence 12.120
   reducing the taxable value 24.375                              see also Tax records
   statutory fraction – commitments entered into prior to       Super Fund Lookup (SFLU) 18.215
      10 May 2011 24.374                                        Superannuation 19.000
Statutory income 10.005, 16.210                                   access non-mandatory 19.130
Statutory licences                                                account based pension 19.120
   renewal/disposal 11.900                                        and bankruptcy 18.270, 18.275
   rollover relief 11.900                                         bring forward rule for those under 65 19.120
Stock purchases method 23.362                                     co-contributions 18.015, 19.110
   5% GST-free stock estimation basis 23.362                      for contractors 18.524
Stolen takings 22.123                                             contribution and access phase (age 55 to less than
Strata title                                                         75) 19.120
   company title converted to 23.342                              contributions see Superannuation contributions
   conversions, and rollover relief 11.465                        contributions phase 19.110
   subdivision of apartments into strata title units 23.342       death benefits see Superannuation death benefits
Streaming see Anti-streaming rules                                deductions 12.400
Streaming trust income 6.700                                      departing Australia superannuation payment 4.321,
   application of Division 6E 6.700                                  18.670
   avoid wasting tax credits/offsets 6.700                        duty, NSW 27.400
   implementing a streamed income 6.700                           estate planning issues 19.130
   key terms 6.700                                                and FBT 24.003, 24.750
   need for ‘accounting’ income 6.700                             Federal Budget 2012–13 measures 18.040
   requirements for streaming 6.700                               funds see Superannuation funds
Stronger Super, MySuper 18.285                                    income streams see Superannuation income streams
Structural improvements 14.250                                    and insolvency administrations 18.275, 18.543
Structures see Business structures                                lump sum payments see Superannuation lump sums
Student Financial Supplement Scheme (SFSS) 4.500,                 MySuper 18.285
  4.520                                                           no further contributions allowed 19.130
   compulsory repayments 4.522                                    non-contribution phase 19.130
   indexation of debt 4.522                                       overview 18.000–008
   PAYG instalments 4.522                                         phases of 19.100
   PAYG withholding 4.522, 4.620                                  portability 18.570–574
   relief for low income families 4.522                           quick guide 18.004
   voluntary repayments 4.521                                     re-contribution strategy 19.130
Students                                                          salary sacrifice to 19.330
   re-instatement of full tax-free threshold 2.031                and same-sex relationships 18.265
   see also Visiting students                                     and separation reforms 11.467
Study expenses 25.350                                             splitting and family law 18.260
Sub trusts 6.000                                                  tax-free earnings 19.130
Subscriptions 23.233, 24.202                                      and TFN 4.030, 18.015, 18.060
Subsidiaries of public companies 5.100                            thresholds 8.002
Subsidiary members 5.520                                          transition to retirement access 19.120
   trusts as 5.520                                              Superannuation benefits
Substantial renovations (buildings)                               binding death benefit nominations 18.165
   need to affect the building as a whole 23.342                  death benefits see Superannuation death benefits
   new residential premises created through 23.342                less than $200 18.600
   removal or replacement of all of substantially all of the      minimum benefit standards 18.165
      building 23.342                                             negative investment returns 18.165
Substantiation of expenses 12.100                                 paid in breach of payment rules 18.600
   car expenses see Car expense substantiation                    portability 18.165
   decline in value 12.120                                        preservation 18.165
   domestic travel 3.720, 12.180, 12.185, 12.210                  preserved benefits 18.165
   exceptions 12.120                                              restricted non-preserved benefits 18.165
   expense payment fringe benefit 24.555                          rollovers 18.600, 18.660
   flowchart 12.100                                               and terminal illness 18.600, 18.680
   fuel and oil 12.242                                            unrestricted non-preserved benefits 18.165
   investments 16.900                                           Superannuation benefits taxation 18.600
   laundry expenses 12.150                                        applying the proportioning rule when paying a benefit
   log books 12.245, 12.260                                          18.600
   minor work expenses 3.720, 12.145                              calculating the tax-free component of a
   outdoor workers 12.147                                            superannuation interest 18.600
   overseas travel 3.720, 12.190, 12.210                              contributions segment 18.600
   overtime meal allowances 12.140                                    crystallised segment 18.600
   phone, computer and internet 12.155                            calculating the taxable component of a
   receipts and other written evidence 3.720                         superannuation interest 18.600
   records 12.100                                                 components 18.600

                                            www.taxpayer.com.au • Phone 1300 657 572                              1463
                                                    Index

  Government proposal on the taxation of illegally            contribution cap impact 18.075
     released superannuation 18.600                           deductibility of splittable amounts 18.075
  PAYG withholding requirements 18.600                        funds which can offer 18.075
  proportioning rule 18.600                                   limits on splitting 18.075
Superannuation Clearing House Facility (SCHF)                 making a SCSA application 18.075
 18.565                                                       parties to 18.075
Superannuation Complaints Tribunal (SCT), functions           rollovers 18.075
 18.185                                                       timing 18.075
Superannuation contributions 18.010                           treatment of split contributions 18.075
  acceptance of contributions 18.015                          types of splittable contributions 18.075
  age-based tests 18.008, 18.022                            Superannuation Contributions Splitting Application
  arising from personal injury payments 18.079               (SCSA) 18.075
  arising from small business events – the CGT cap          Superannuation death benefits 18.600, 18.720, 19.130
     18.079                                                   Binding Death Benefit Nominations 18.165
  co-contributions 18.015, 19.110                             death benefits dependant 18.600
  concessional (before-tax) contributions 18.020              income streams 18.600
      employer contributions 18.022                           lump sums 18.600
      personal concessional contributions 18.026              paid to dependants 18.720
  contributing to more than one entity 18.015                 paid to non-dependants 18.720
  contribution acceptance and deductibility table 18.008      payment summary 18.600
  contribution caps 11.526, 18.040, 18.075                    taxation 18.720
      concessional caps 18.041                              Superannuation entities 18.100
      non-concessional caps 18.042                            approved auditors 18.110
      transitional concessional cap ends after 2011–12        audit of annual return 18.110
        19.120                                                audit certificates 18.110
  contributions made after the relevant period 18.015         compliance test for SMSFs 18.100
  employer contributions 18.022, 18.072, 25.010               election to be regulated 18.100
  excess concessional contributions tax 18.052
                                                              financial reporting 18.145
      allocation of concessional contributions 18.052
                                                              information to be provided 18.100
      assessment 18.055
                                                              investment managers and others 18.155
      refund of excess concessional contributions 18.058
                                                              member representation 18.160
      voluntary release authority 18.055
  excess contributions tax 18.050–057                         notice of non-compliance issued to SMSFs 18.100
      assessment processes 18.057                             notification of significant adverse event 18.100
      refund of excess concessional contributions 18.050      power to dismiss trustees 18.160
  excess non-concessional contributions tax 18.053,           prohibited actions 18.151
     18.056                                                   protection of small superannuation account balances
      assessment 18.056                                          18.580
      compulsory release authority 18.056                     prudential rules and licensing 18.130
      defined benefit interest 18.056                         registering for an ABN, GST and TFN 18.100
      defined benefit interests 18.055                        regulation 18.100
  form of contribution 18.085                                 regulators 18.100
  from small business events 11.526                               powers 18.115
  fund-capped contribution limits 18.015                      regulatory return 18.100
  and gainful employment test 18.015                          removal of trustees 18.152
  Government Co-contribution Scheme 18.076                    requirement to give information 18.100
  in-specie contributions 18.085                              residency 18.100
  low income superannuation contribution 18.077               SMSF Product Ruling System 18.157
  mandated contributions 18.015                               sole purpose test 18.100
  monitoring of 19.112                                        standards for trustees 18.135
  non-complying superannuation funds 18.080, 18.800           supervisory levy 18.100
  non-concessional (after-tax) contributions 18.030           tax payable 18.320
  Non-Concessional Contributions (NCCS) 19.110                    calculating 18.300
  non-mandated contributions 18.015                           tax return 18.100
  other contributions 18.079                                  taxation 18.300
  payroll tax 25.350                                          timing of audit certificates 18.110
  personal concessional contributions 18.026                  trust deeds 18.150
  personal contributions 18.073                               trustees 18.100
  personal deductible contributions 18.065                        responsibilities 18.140
  quotation of TFN 18.015                                         standards for 18.135
  reportable employer superannuation contributions          Superannuation fund members, comparison of
     2.104, 10.050, 18.026, 18.065                           structures 8.000
  reportable superannuation contributions 18.065            Superannuation funds
  spouse contributions 18.074                                 ABN 18.100
  and third party fund expense payments 18.085                acquiring assets from related parties 18.205
  transitional arrangements – ‘Directed termination           actuarial certificates for funds paying pensions 18.240,
     payments’ 18.090                                            18.300
  types of contributions 18.070                               actuarial reports 18.235
Superannuation contributions splitting 18.026, 18.075         approved deposit funds see Approved deposit funds

1464                                         Taxpayers Australia Inc 2012 & 2013
                                                   Index

  binding death benefit nomination 18.165                    quarterly SG contributions required from 1 July 2003
  borrowing, lending, financial assistance and giving a         18.506
     charge 18.210                                           rate 18.502
  CGT 11.466                                                 recent changes 18.501
  choice of fund 18.560–565                                  record keeping 18.539
  collectables and personal use assets 18.206                satisfying SG requirements 18.504
  complying see Complying superannuation funds               SG contributions belong to employees 18.509
  credits and tax offsets 18.300                             SG deductibility
  disclosure of information to members 18.180                    for deceased employees 18.522
  disclosure of information to third parties 18.215              for former employees 18.513
  exempt income 18.300                                           for tax purposes 18.512
  and First Home Saver Accounts 18.280                       superannuation double coverage 18.523
  funding and solvency certificates 18.245                   who is an ‘employee’? 18.516
  funds with four or less members 18.125                     who is an ‘employer’? 18.515
  GST 18.100, 22.316                                       Superannuation Guarantee Charge 18.530
  in-house assets 18.200, 18.212, 18.213, 18.260             additional penalties and charges 18.540
  industry funds 18.125                                      and bankruptcy 18.270, 18.543
  instalment warrants (applies 24 September 2007 to 6        calculating 18.537
     July 2010) 18.212, 18.213                                   SGC component 1 – SG shortfall 18.537
  limited recourse borrowing arrangements (applies from          SGC component 2 – administrative fee 18.537
     7 July 2010) 18.213                                         SGC component 3 – nominal interest 18.537
  lodgement of tax returns 18.310                            determining if there is a SG shortfall 18.536
  Lost Members Register 18.175                               Late Payment Offset 18.534
  member statements 18.180                                   lodging SGC statement 18.538
  mergers of funds 18.190                                    making default SGC assessments 18.542
  non-arm’s length income 18.300                             recovery of superannuation entitlements 18.543
  non-complying see Non-complying superannuation             what are SGC components 18.535
     funds                                                   what is it? 18.532
  protecting unclaimed benefits 18.175                       when is SGC incurred? 18.533
  prudential rules and licensing 18.130                      where does the shortfall go? 18.541
  public offer funds 18.125                                Superannuation income streams 18.600, 18.700,
  public sector funds 18.125                                18.720
  reduced credit acquisitions 22.316                         compulsory drawdown rescinded 18.700
  related party 18.202                                       death benefits 18.720
  residency 18.100                                           from 1 July 2007 18.700
  rights of members 18.170                                   minimum standards for account based pensions
  rollover relief 11.466–467, 18.320                            18.720
  Self Managed Superannuation Funds see Self                 minimum standards for allocated pensions 18.720
     Managed Superannuation Funds                            minimum standards for complying pensions 18.720
  shareholder dividends 10.720                               minimum standards for market linked pensions 18.720
  sole purpose test 18.100, 18.210                               flexibility of draw downs 18.720
  standard employer sponsored funds 18.125                   and PAYG withholding 4.309, 4.412
  Super Fund Lookup 18.215                                   payment summary 18.600
  tax payable 18.320                                         pension drawdown relief 18.720
      calculating 18.300                                     preservation age 18.700
  taxable income 18.300                                      previous rules for superannuation benefit 18.700
      components 18.300                                      SIS payees turning 60 18.600
  taxation 18.300                                            standards 18.720
  TFN 18.100                                                 stopping and starting 18.700
  types of 18.125                                            transition to retirement income streams 18.710,
  unclaimed monies 18.176, 18.670                               19.120, 19.200
  valuation of assets 18.207                               Superannuation lump sum pre-payment statement
  winding up a fund 18.195                                  18.600
Superannuation Guarantee 18.500                              how to complete Part 1 of the statement – provider
  accepting mandated employer contributions 18.508              section 18.600
  and contractors 18.524                                     how to complete Part 2 of the statement – member
  defined benefit schemes 18.521                                section 18.600
  and Director Penalty Regime 18.525                         what parts need completing? 18.600
  disclosure of information relating to SG complaints      Superannuation lump sums 18.600
     18.514                                                  and PAYG withholding 4.310, 18.600
  earnings base 18.503                                       payment summary 18.600
  employee SG reporting 18.507                               tax treatment for members 18.600
  employee’s earnings base 18.518                            tax-free component 18.600
  exceptions 18.517                                          taxable component 18.600
  how much is payable? 18.511                              Supervisory levy (SMSFs) 18.100
  opt out provisions 18.505                                Supply see Taxable supply
  ordinary time earnings 18.519                            Supply of a going concern 22.460
  Practice Statement on late SG payments 18.510              and general law partnership 23.323
  quarterly contributions requirement 18.520                 and partnership 22.460

                                        www.taxpayer.com.au • Phone 1300 657 572                            1465
                                                      Index

  supply of a leasing enterprise 22.460                              in respect of an investment 4.315
  supply of a single enterprise to two recipients 22.460        Privacy Commissioner guidelines 3.460
  supply of two enterprises to one recipient 22.460             privacy rules 4.050
Supply of goods on approval, attribution 23.134                      collecting TFN information 4.051
Support services, effective life tables 14.160                       limited use of 4.052
Surrogacy leave 25.350                                               obligations on Tax Office and other government
                                                                       agencies 4.053
T                                                                    staff must know rules 4.055
                                                                     storage, security and disposal 4.054
Tainted income ratio 21.820                                     quoted 4.010
Tainted sales income 21.820                                     and salary/wages 4.010
Tainted services income 21.820                                  and superannuation 4.030, 18.015, 18.060
Tangible property 24.860
                                                                     funds will have to pay extra income tax 18.060
Tasmania
                                                                     inability to make certain contributions 18.060
   apprentice wages, rebates and grants 25.230
                                                                     tax offsets available 18.060
   duties 27.800
                                                                     TFN not quoted 18.015, 18.060
   land tax 26.700
                                                                     TFN quoted 18.060
       exemptions 26.700
                                                                and superannuation funds 18.100
Tax advice 16.675
Tax advice privilege 3.485                                      time for requests 3.430
Tax agents                                                      to locate lost superannuation member accounts 18.176
   client didn’t use agent in prior year 3.070                Tax file number (TFN) withholding 4.680, 16.900
   client transfer to another tax agent 3.070                   declarations 4.411
   early lodgement for targeted taxpayers 3.070                 payments not subject to withholding 6.350
   lodgement of DASP applications 18.670                        rules, trusts 6.350
   lodgement of returns 3.070                                 Tax Funding Agreement 5.575
   penalties for taxpayer’s shortfalls 3.600                  Tax invoices 23.230–6
   reasonable care 3.630                                        Commissioner’s discretion to treat a document as
Tax audits 3.400                                                   23.236
   and access 3.405, 3.410                                      corporate credit card statements 23.233
   answering queries 3.410                                      differences from ‘invoices’ 23.220
   audit plan 3.410                                             documents qualifying as 23.233
   audit strategies 3.400                                       GST records 3.715
   check auditor’s identity 3.410                               issued by the trustee of a trust 23.230
   commonly sought records 3.410                                not always required 23.234
   handing over books and documents 3.410                       offer documents 23.233
   know your rights 3.410                                       progressive supplies 23.233
   legal professional privilege 3.405                           suppliers’ obligation to provide 23.235
   notification of decision 3.430                             Tax law partnerships 7.100, 23.321, 23.322
   questioning of staff members 3.410                           enterprise carried on by partners 23.322
   rights and entitlements during Tax Office enquiries/         enterprise carried on by the partnership 23.322
      audits 3.410                                              supply of an interest made by co-owners in their own
   your rights and entitlements 3.410                              right 23.322
Tax avoidance                                                   supply of an interest made by enterprise partnership
   penalties arising from schemes 3.600                            23.322
   promoter penalties 3.600                                     termination of an enterprise partnership 23.322
   see also Anti-avoidance rules                              Tax liability
Tax Breaks for Green Buildings scheme 14.900                    EFT payment 3.070
Tax calendar 1.700                                              taxpayer’s ability to pay 3.380
Tax consolidation see Consolidated groups                     Tax Office(s) 3.060, 18.100
Tax debt, due date for payment of 3.660                         access to accounting working and advice papers 3.465
Tax Determinations 1.500, 3.110                                 amendments to assessments 3.270
   GST 1.640                                                    appointments 3.060
   Self Managed Super Funds 1.610                               audits see Tax audits
Tax-exempt body entertainment fringe benefit 24.960             complaints against 3.430–440
   taxable value 24.963                                         contact details 13.060
   what is it? 24.961                                           direct debit and direct refund 3.070
Tax-exempt organisations 8.400                                  elections and notifications which must still be lodged
   definition 24.962                                               3.080
   and entertainment expenses 24.202, 24.960–967                Interpretive Decisions 3.120, 3.155
   reporting requirements 24.966                                lodging a complaint against the 3.430
Tax file number (TFN) 4.000                                     mailing addresses 3.060
   applying for 4.040                                           objections to Rulings by see Objections
       proof of identity 4.041                                  penalties for hindering 3.600
   disclosure 3.460                                             postal lodgement of returns 3.060
   and investments 4.020, 4.022, 4.315, 16.900                  Practice Statements see Practice Statements
   investors exempt from quoting TFN 4.021                      Precedential ATO view 3.100
   not quoted 4.010                                             processing of tax returns 3.060, 3.430
       and PAYG withholding 4.680                               remitting PAYGW amount to 4.424

1466                                          Taxpayers Australia Inc 2012 & 2013
                                                     Index

  right of access 3.410                                        deceased estates 6.950
  Rulings see Rulings                                          life insurance companies, friendly societies and credit
  SMSF Product Ruling system 18.157                               unions 8.050
  Tax Determinations see Tax Determinations                    non-profit bodies 8.050
  Taxpayer Alerts 3.150                                        private, public companies and public trading trusts
  and Taxpayers’ Charter 3.420                                    8.050
  and TFN privacy information 4.053                          Tax records 3.700
Tax Office(s) service standards 3.430                          business records 3.710
  audit decisions 3.430                                        capital gains/losses records 3.730
  correspondence 3.430                                         capital works 14.280
  general and phone enquiries 3.430                            car parking benefits records 24.415
  mistakes and complaints 3.430                                CGT 11.200
  objections and requests for amendment 3.430                  choice of superannuation fund records 18.563
  processing of returns 3.430                                  commonly sought for tax audits 3.140
  registrations and TFNs 3.430                                 controlled foreign companies 3.750, 21.820
Tax offsets                                                    debt/equity interests 5.200
  adjustments for non-residents 5.800                          FBT records 3.740, 24.250
  Baby Bonus 2.120–121                                             record keeping exemption for small business 24.252
  beneficiary tax offset 2.210–211                                 relief from record keeping 24.251
  child care tax offset 2.130                                  foreign investment funds 3.760
  child-housekeeper tax offset 2.116                           GST records 3.715
  conversions into losses for corporate tax entities 5.800     investments 16.900
  delayed income tax offset 2.230–232                          marriage breakdown and asset transfer 11.460
  dependant tax offsets 2.110                                  penalties 3.770
  direct distributions from a company 5.800                    research and development 14.560
  entrepreneurs’ tax offset 2.250–253                          rollover superannuation benefit 18.660
      abolition 9.800                                          substantiation rules 3.720
  foreign income tax offset 5.545, 16.450, 21.400–430          Superannuation Guarantee 18.539
  franking 5.440                                               thin capitalisation 21.770
  gross-up and offset rules 5.800                              transferor trusts 21.830
  housekeeper tax offset 2.115                                 see also Documentation; Substantiation of expenses
  indirect distributions through partnerships and trusts     Tax refunds, EFT payment 3.070
     5.800                                                   Tax-related deductions 12.900
  for individuals & family benefits 2.100                      allowable expenses 12.905
      2012–13 Federal Budget announcements 2.101               CGT cost base 12.930
      new definition of income 2.104                           claims not allowable 12.905
      separate net income 2.103                                offences against law 12.905
  invalid relative tax offset 2.117                            partnerships and trusts 12.905
  life policy bonuses 10.800                                   recognised professional adviser 12.905
  low income tax offset 2.011, 2.012, 2.021, 2.022             refunds of tax-related expenses 12.905
  mature age worker tax offset 2.180–185, 19.310               taxpayer dies during year 12.905
  medical expenses tax offset 2.160–163                      Tax returns (income tax)
  Medicare levy surcharge lump sum in arrears tax offset       common mistakes by investors 16.700
     2.240–233                                                 keep a copy of the return 3.070
  no offset with family tax benefit part B 2.112               lodgement see Lodgement of income tax returns
  no offset if distribution exempt income 5.800                Payment Summary mislaid or not received 3.070
  no offset if the imputation system has been                  processing by Tax Office 3.060, 3.430
     manipulated 5.800                                         self-amendments 3.270
  non-complying superannuation funds 18.800                    superannuation funds 18.100
  notional sole parent tax offset 2.114                        Tax Office amendments 3.270
  notional tax offsets for children 2.111                    Tax Rulings see Rulings
  overseas defence forces tax offset 2.170, 2.174            Tax Sharing Agreement (TSA) 5.575
  parent or spouse’s parent tax offset 2.118                 Tax shelters, prepaid expenditure 13.170
  PAYG withholding 4.660, 4.661                              Tax shortfall 3.025
  pensioner tax offset 2.200–204                             Taxable income 10.010
  private health insurance tax offset 2.220–221                calculating tax payable 10.010
  and provision of TFN 18.060                                  calculation of tax payable 10.010
  refund for individuals 5.800                                 superannuation funds 18.300
  residency requirements 5.800                               Taxable professional income
  senior Australian tax offset 2.190–193                       calculating 2.073
  spouse tax offset 2.113, 18.074                              calculating average 2.074
  in year loss incurred 12.950                               Taxable supply 22.100
  zone tax offset 2.170–173                                    accruals basis 23.122
Tax periods 23.110                                             book entries 22.121
  concluding 23.111                                            cancellation fees 22.124
Tax rates 8.050                                                cash basis 23.121
  bodies corporate 8.500                                       compulsory acquisition of land 22.111
  clubs and associations 8.400                                 connected with Australia 22.140

                                          www.taxpayer.com.au • Phone 1300 657 572                              1467
                                                     Index

   consideration 22.120–9, 23.135                            TFN see Tax file number
   court orders and out-of-court settlements 22.125          Thin capitalisation 21.700
   enterprise 22.130                                            ADI inward and outward investing entities 21.740
   entities 22.150                                              debt deductions disallowed 21.750
   government taxes, fees and charges 22.129                    interaction with CGT 21.760
   GST on 22.170                                                non-ADI inward investing entity 21.730
       composite supplies 22.174                                outward investing entities 21.720
       determining GST payable 22.173                           record keeping 21.770
       GST liability 22.172                                     rules, key features 21.710
       mixed supplies 22.174                                    when thin capitalisation rules do not apply 21.700
       when is GST payable? 22.171                           Third party payments 23.264
   liabilities assumed by purchaser of enterprise 22.122     Third party providers 24.002
   non-monetary consideration 22.126                         Timber sales, standing timber 20.210
   penalties and fines 22.124                                Time sharing arrangements, Qld 26.400
   registered entities 22.160                                Tooling 22.415
   security deposits 22.124                                  Total net investment loss, definition 2.104
   stolen takings 22.123                                     Tourism operators, and luxury car tax 28.150
   supplies to associates 22.128                             Tourist Refund Scheme (TRS) 22.423
   vouchers 22.127                                           Tractors 20.510
   what is a ‘supply’? 22.110                                Tradable water rights 20.210
Taxation disputes                                            Trade rebates 23.261
   settlement of 3.370                                       Traded-in goods 22.126
   see also Objections                                       Traders (investments) 16.100
Taxi travel 24.202                                           Trading stock 13.200, 20.260
Taxis 24.357                                                    business is ‘wound up’ 13.230
Taxpack and Information Booklets 3.110                          CGT asset becomes 11.040
Taxpayer Alerts 3.150                                           cost of acquiring trees 13.230
Taxpayer information, disclosure 3.460                          and death of taxpayer 13.230
Taxpayers’ Charter 3.420                                        definition 13.200
   Tax Office information on rights and entitlements 3.420      disposal not made in the ordinary course of business
   what you can expect from the Tax Office 3.420                   13.230
Technical services, effective life tables 14.160                donations to tax deductible body 13.230
Telecommunications, effective life tables 14.160                exclusions from (primary producers) 20.260
Telephone, deductions 12.155, 12.600, 16.680, 17.200            gifts of 12.845
Telephone allowance 19.520                                          by primary producers 20.260
Telephone lines, primary producers 14.090, 20.510,              horses 20.490
  20.650                                                        items become trading stock 13.230
Temporary accommodation when relocating 24.202                  livestock 20.400–460
Temporary flood levy 2.064, 18.600                              lost or destroyed 13.230
Temporary investment allowance deduction 9.750,                 not included in 13.200
  14.180, 20.510                                                partnership changes 13.230
Temporary residents of Australia 10.020                         prepayment 13.170, 13.230
   changes to unclaimed superannuation 18.670                   purchased with foreign currency 13.200
Tenants                                                         purchases at non-arm’s length 13.230
   capital improvements 14.205                                  simplified rules for SBEs 9.500
   eviction 13.115                                              stock taken for private use 13.280
Tenants in common 23.342                                        stocktaking 13.200
   assets owned by 11.350                                       in transit 13.200
Terminal illness, and superannuation benefit 18.600,            valuation methods 13.200
  18.680                                                            cost price 13.200
Termination of leases                                               market selling value 13.200
   GST 23.373                                                       replacement value 13.200
   luxury cars 14.088                                               special valuation method 13.200
Termination payments                                            valuing 13.200
   directed termination payments 10.230, 18.090                     as cost for entities with $10 million or more turnover
   eligible termination payments 10.200                              13.230
   employment termination payments 4.311, 10.200–30,                under special conditions 13.230
      10.255                                                    versus capital asset, shares 16.425
   and PAYG withholding 4.311                                Trading trusts 6.000, 6.500
   payroll tax 25.010, 25.350                                   distribution or business income 6.500
   preservation age 4.311                                       personal exertion income 6.500
   transitional termination payments 4.311, 10.220,             unit trust v company 6.500
      18.090                                                 Traditional securities 16.530
Test Case Litigation program 3.325                              gain or loss on disposal 16.535
Testamentary trusts                                             interest 16.535
   and interest in shares 10.745                                removal of taxing point on conversion or exchange
   life tenants, and franking credits 10.745                       16.535
Testamentary ‘will’ trusts 6.000                                tax issues 16.535

1468                                          Taxpayers Australia Inc 2012 & 2013
                                                      Index

Trainee wages see Apprentice wages, rebates and                  travel claims within Australia 2012–13 12.180
  grants                                                         travel diary 24.885
Training, effective life tables 14.160                           verification of reasonable claims 12.185
Trans-Tasman imputation 5.800, 21.220                         Traveller’s cheques 23.135
Transfer pricing 21.900                                       Trees 20.300, 20.510
   advanced pricing arrangements 21.900                          cost of acquiring 13.230
   arm’s length consideration 21.900                          Trust deeds 18.150, 18.213
   contemporaneous documentation and transfer pricing            duty, NT 27.200
      policies 21.900                                            prohibited actions 18.151
   double taxation agreements 21.900                             services 18.150
   review of rules 21.910                                     Trustee Beneficiary Non-disclosure Tax (TBNT) 6.300
Transfer of property see Conveyance and transfer of              liability for 6.300
  property                                                    Trustee beneficiary reporting 6.300
Transferor trusts 21.830                                         closely held trusts 6.300
   attributable income of non-resident trust 21.830              correct trustee beneficiary statement 6.300
   attributable taxpayer 21.830                                  excluded trusts 6.300
       assessable income 21.830                                  liability for trustee beneficiary non-disclosure tax 6.300
   and CFC measures 21.830                                       relief for trustees 6.300
   de minimis exemption 21.830                                   tax-preferred amount 6.300
   deemed rate of return 21.830                                  trustee beneficiary, definition 6.300
   discretionary trusts 21.830                                   untaxed amount 6.300
   non-discretionary trusts and public unit trusts 21.830     Trustees
   record keeping 21.830                                         distribution resolutions must be made by 30 June
   transferators which are individuals 21.830                       6.170
   transferors which are partnerships and trust estates              sample resolution (including streaming) 6.170
      21.830                                                     investments held by 4.022
Transition to retirement 19.200                                  Medicare levy on 2.054
   access 19.120                                                 multi-rate trustees 4.762
   flexibility 19.200                                            PAYG instalments 4.760–762
   income streams 18.710, 19.200                                 paying medical expenses 2.161
   preservation age 18.710, 19.200                               penalties 3.600
Transitional Concessional Contribution Cap (TCCC)                power to dismiss 18.160
  18.041                                                         removal 18.152
Transitional termination payments 4.311, 10.220                  responsibilities 18.140
   concessional thresholds 10.220                                senior Australian tax offset 2.192
   directed termination payments 10.230, 18.090                  single rate trustees 4.761
   roll over into a superannuation fund 10.220, 18.090           SMSFs 18.100
   tax treatment 10.220                                          standards for 18.135
Transport, effective life tables 14.160                          superannuation funds 18.100
Travel                                                           tax rates 2.010, 2.020
   airline transport fringe benefits 24.880                      transfer of assets to a company 11.480
   domestic air fares 24.881                                  Trusts 6.000, 8.020
   Frequent Flyers 10.100, 24.883                                accumulating income 6.700
   GST 22.420, 24.881                                            bad debts 6.900, 13.160
   international transportation 22.421                           bare trusts 4.751
   inward duty free purchases 22.422                             becomes a company 6.870
   Tourist Refund Scheme 22.423                                  beneficiaries
Travel allowances 10.050, 12.520, 25.350                             averaging income (primary production) 20.900
   domestic 12.180, 12.185                                           become entitled to a trust asset 11.028
   long distance truck drivers 12.187                                farm management deposits 20.800
   overseas 12.190                                                   legal disability 6.700
   versus living away from home allowance 24.841                     non-resident beneficiaries 6.700
Travel expenses 12.160–210                                           PAYG instalments 4.750
   allowances not declared 12.160                                    penalties 3.600
   business travel – domestic and overseas 12.160                    position 10.745
   claims by long distance truck drivers 12.187                      present entitlement 6.700
   employee domestic travel 12.160                                   primary production 20.005
   employee overseas travel 12.160, 12.190                           tax rates 2.010, 2.020
   overseas travel claims                                            taxation 6.700
       2011–12 12.205                                                under 18 years of age 6.700
       2012–13 12.200                                                withholding for Managed Investment Trusts 6.700
   primary producers 20.510                                      calculating trust income 6.600
   rental property 17.200                                            aligning trust income with net income 6.600
   self-education 12.700                                             income of the trust estate 6.600
   substantiation 3.720, 12.180, 12.185, 12.190, 12.210              net income of the trust 6.600
   tax return treatment 12.185                                       notional income amounts 6.600
   travel between home and work 12.160                               share of net income 6.600
   travel claims within Australia 2011–12 12.185                 capital gains 11.165, 11.600

                                          www.taxpayer.com.au • Phone 1300 657 572                                    1469
                                                       Index

      taxation 6.700                                              reductions of unit trust capital 11.605
  capital payment for trust interest 11.028                       renouncement of a trust interest 11.605
      non-assessable part 11.028                                  renouncing interest in 6.700
  categories 6.000                                                resettlement 6.850
  CGT consequences 6.700, 6.800–870, 11.028, 11.038,              residency 10.020
     11.600–640, 16.445                                           resident unit trusts – distribution basis 4.752
  cloning trusts 6.820                                            sale of units 16.445
  closely held trusts 6.000, 6.300, 10.745                        scholarship trusts 6.000
  concessionally taxed ‘deed’ trusts 6.000                        service trusts 6.000, 6.400
  concessionally taxed ‘will’ trusts 6.000                        shareholder dividends 10.720
  converting a trust to a unit trust 11.028                       special disability trusts 6.000
  corporate unit trusts 4.754, 11.640                             streaming trust income 6.700
  creating a trust over a CGT asset 11.028                        structure comparison 6.150
      administrative treatment 11.028                             sub trusts 6.000
  creating a trust over future property 11.028                    as subsidiary members of consolidated groups 5.520
  debt forgiveness 5.335, 5.340                                   tax invoice issued by trustee 23.230
  deceased estates 6.000, 6.950, 10.745                           tax offset for indirect distributions 5.800
  declarations                                                    tax rates 8.050
      NSW 27.400                                                  tax-related deductions 12.905
      WA 27.700                                                   taxation 6.700
  declarations/settlements 11.615                                 testamentary trusts 10.745
  derives a net income in prior year 4.753                        testamentary ‘will’ trusts 6.000
  discrepancies between distributed and taxable net               TFN withholding rules 6.350
     income 11.605                                                trading trusts 6.000, 6.500
  discretionary trusts 6.000, 6.150, 6.170, 6.700, 10.745,        transfer of assets to company 11.487
     11.605                                                       transfer duty, Qld 27.400
  disposal by beneficiary of capital interest 11.028              transferor trusts 21.830
  disposal to beneficiary to end capital interest 11.028          transferring a CGT asset to a trust 11.028
  disposal to beneficiary to end income right 11.028              trust deeds 18.150
  distributions 10.040, 16.700                                    trust loss rules 6.900
      CGT component 16.445                                        trustee beneficiary reporting 6.300
      deductibility of interest expenses 6.700                    trustee distribution resolutions 6.170
      non-residents 21.550                                        unit trusts see Fixed trusts
      payroll tax 25.350                                          units in unit trusts 11.600
      tax treatment 16.445                                        widely held trusts 10.745
      to companies 6.700                                       12% of original value method (car expense
      to a resident company 10.730                               substantiation) 12.235, 12.280
  dwelling acquired by trustee under a will 11.310             12 month rule (CGT event) 11.165
  dwelling owned by 11.300                                     12 week register method (entertainment FBT) 24.906
  employee benefits trusts 6.000
  entitlements to trust income through interposed trusts
     – s109XI 5.335
                                                               U
  establishment, Vic 27.300                                    Unclaimed superannuation monies 18.176
  failing to cease to exist after rollover under Subdivision      changes for former temporary residents 18.670
     124-N 11.038                                                 contact information 18.176
  family trusts 6.000, 6.200, 17.400                              payment of small and insoluble lost member accounts
  fixed trusts see Fixed trusts                                     to Tax Office 18.176
  franked distributions from 10.730                               reporting and remittance 18.176
  hybrid trusts 6.000, 6.150                                      Tax Office contact information for fund members
  income 3.070                                                      18.176
  incurs overall loss in prior year 4.753                         use of TFNs 18.176
  interposed entities subject to subdivision EA – s109XF       Uncontrolled partnership income (UPI) 7.110
     and s109XG 5.335                                          Unfranked distribution 5.850
  land tax surcharge, Vic 26.200                               Unfranked dividends 10.710
  loan accounts, Veteran Affairs and Centrelink 6.700          Uniform Capital Allowance (UCA) system, depreciation
  loans 5.335, 5.340, 5.345                                     flow chart 14.020
  losses 6.900                                                 Uniforms
  Managed Investment Trusts 6.000                                 compulsory 12.340
  negative gearing 13.190                                         non-compulsory 12.350
  non-fixed trusts see Non-fixed trusts                        Unincorporated Joint Venture (UJV) 7.110
  PAYG instalment amount 4.750–762                             Unincorporated joint venture members, comparison of
      implications for trustees 4.760–762                       structures 8.000
  payments 5.335, 5.340, 5.345                                 Unit trusts see Fixed trusts
  personal income tax rates                                    United Kingdom agreement 21.220
      2011–12 2.010                                            United Nations payments, as exempt income 10.900
      2012–13 2.020                                            United States of America agreement 21.220
  public trading trusts 4.754, 11.640                          Unitholders
  public unit trusts 6.000                                        comparison of structures 8.000
  reduced cost base 11.120                                        see also Fixed trusts

1470                                           Taxpayers Australia Inc 2012 & 2013
                                                       Index

Unpaid present entitlements 5.310                                taxable values 28.230
Unrealised loss rules 5.450                                      WET-related beverages 28.210
Unrelated clients test (PSB) 15.215                              wine equalisation tax credits 28.240
Unrestricted non-preserved benefits 18.165                       wine producer rebate 28.250
Unused annual leave 10.260                                     Withholding tax
   death 10.260                                                  managed investment trusts 6.700
   ordinary termination of employment 10.260                     non-residents 10.020, 16.900, 21.140
   PAYG withholding 4.312
                                                                    2012–13 Federal Budget announcement:
   redundancy, early retirement or invalidity 10.260
                                                                     concessional WHT increase 21.550
Unused long service leave 10.270
   calculating LSL components 10.270                             payer’s deductibility rules 21.140
   death 10.270                                                  rates 21.140
   ordinary termination of employment 10.270                     timing 21.140
   PAYG withholding 4.312                                        who must withhold? 21.140
   redundancy, early retirement or invalidity 10.270             see also PAYG withholding
Utilities allowance 19.522                                     Wool growers 20.270
Utilities (Network Facilities) Tax (ACT) 27.100                  double wool clips 20.210
                                                               Work benefits 23.414
V                                                              Work in progress 10.040
Valuation expenses 13.115                                      Work-related clothing 12.300
Value shifting 11.515                                            compulsory uniforms 12.340
   consequences 11.515                                           conventional clothing 12.330
   direct value shifts 11.040, 11.515                            FBT consequences 12.300, 12.360
   indirect value shifts 11.515                                  laundry expenses 12.150
VCE case 3.520                                                   non-compulsory uniforms 12.350
Victoria                                                         occupation specific clothing 12.320
   apprentice wages, rebates and grants 25.240                   protective clothing 12.310
   duties 27.300                                                 taxation ruling 12.300
   land tax 26.200                                             Work-related education programs 12.700
       2012 changes 26.200                                     Work-related health care 24.202
       exemptions 26.200                                       Work-related items, FBT exempt 24.202
Visiting medical officers 18.518
Visiting students
   New Zealand agreement 21.220
                                                               Y
   United Kingdom agreement 21.220                             Youth Allowance payments, education expenses
   United States of America agreement 21.220                    against 12.700
Volunteers 24.002
   emergency duties 25.010                                     Z
Vouchers 22.127, 23.135
                                                               Zone tax offset 2.170, 2.173
W                                                                description of the zones 2.171
                                                                 residential requirements 2.172
Wages see Salary and wages
Warehousing, effective life tables 14.160
Warrants 16.540
  CGT issues 16.545
  deductibility of interest 16.545
Wash sales 16.900
Waste services, effective life tables 14.160
Water, effective life tables 14.160
Water entitlements, CGT rollover 20.210
Water facilities, primary producers 14.090
Water rights, tradable 20.210
Western Australia
  apprentice wages, rebates and grants 25.260
  duties 27.700
  land tax 26.600
     exemptions 26.600
Wholesale trade, effective life tables 14.160
Wholly exempt employers, and FBT 24.005
Widely held companies
  definition 5.420
  modified COT rules 5.420
Widely held trusts 10.745
Winding up a company 10.755, 13.230
Wine equalisation tax (WET) 28.200
  assessable dealings 28.220
  exemptions 28.220

                                           www.taxpayer.com.au • Phone 1300 657 572                           1471
                                   2012 & 2013
‘An	essential	reference	
book,	the	Tax
Summary’s	clear	
                                   Tax Summary
presentation	of	complex	       The Tax Summary	 is	 your	 complete	 guide	 to	 the	 operation	 of	 the	 tax	 system,	 which	
                               includes	 tax	 saving	 strategies	 and	 traps	 to	 be	 avoided.	 It	 will	 prove	 an	 invaluable	
taxation	issues	is	of	great	
                               addition	to	any	financial	library.		
benefit	when	face-to-
                               This	is	the	93rd	edition	of	the	Tax Summary,	one	of	the	most	informative	and	practical	
face	with	clients.’
                               books	on	taxation	published	in	Australia.	Its	trademark	plain-English	approach	makes	it	
ROB	HURRELL		                  essential	reading	for	all	taxpayers	seeking	information	and	tools	to	ensure	they	pay	the	
RDL.ACCOUNTANTS                right	amount	of	tax	and	not	a	cent	more.

                               The	2012	&	2013	edition	is	your	complete	guide	to:

                               INCOME TAX RATES	–	the	rates,	thresholds	and	tax	offsets	including	the	flood	levy
‘The	Tax Summary	is	           INDIVIDUALS & CONTRACTORS	–	comprehensive	list	of	eligible	deductions
an	excellent	reference	        SUPERANNUATION	–	the	contribution	rules,	how	benefits	are	taxed,	the	latest	on	
for	solving	most	tax	          limited	recourse	borrowings	and	the	draft	tax	ruling	regarding	pensions	

questions	as	well	             CAPITAL GAINS	–	capital	gains	tax	explained,	including	the	Small	Business	CGT	Concessions

as	providing	useful	           INVESTMENT PROPERTY	–	tax	implications	of	owning	rental	property

summaries	on	complex	          RETIREMENT	–	planning	for	retirement,	including	the	age	pension

matters	requiring	further	     INVESTORS	–	the	income	and	deductions	affecting	investors

research.’                     SMALL BUSINESS ENTITIES	–	a	complete	chapter	devoted	to	small	business	entities	
                               and	tax	concessions	unique	to	them
MICHAEL	GRASSO	
                               BUSINESS DEDUCTIONS	–	comprehensive	guide	to	business	deductions
MICHAEL	GRASSO	PTY	LTD
                               TRUSTS –	an	explanation	of	the	tax	considerations	specific	to	trust	structures,	including	
                               the	new	‘streaming’	amendments	and	sample	trustee	distribution	resolutions
                               PERSONAL SERVICES INCOME	–	entire	chapter	explaining	the	PSI	rules	and	how	they	
                               interact	with	other	tax	provisions
‘The	Tax Summary	
                               FRINGE BENEFITS TAX	–	a	comprehensive	guide	to	all	aspects	of	FBT	and	salary	
provides	a	detailed	
                               sacrifice	arrangements
and	clear	overview	of	
                               GST	–	an	overview	of	the	GST	system	and	detailed	commentary	on	specific	topics
Australian	tax	law	as	well	
                               DEDUCTIONS FOR CAPITAL EXPENDITURE	–	depreciation	strategies	and	the	latest	
as	practical	examples	         effective	life	tables
and	strategies.’               PAYROLL TAX	–	practical	state-by-state	guide
NOEL	RONAN	                    The Tax Summary	has	been	researched	and	written	by	the	team	of	tax	and	
MOR	ACCOUNTANTS                superannuation	experts	at	Taxpayers	Australia	Inc.




                                                             www.taxpayer.com.au

				
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posted:1/30/2013
language:English
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