If tax has been withheld from business income you should have received a payment summary.
You will need to complete the Individual PAYG payment summary schedule 2005–06 (NAT 3647) before completing the rest of item P1 if you received any of the following payment summaries:
- Payment summary - voluntary agreement
- Payment summary - withholding where ABN not quoted
- Payment summary - labour hire and other specified payments.
A payer may issue a receipt, remittance advice or similar document in place of the Payment summary - withholding where ABN not quoted. This document must contain the same details as a payment summary and be signed by the payer.
If you received income from which tax was withheld and you did not receive or have lost your payment summary, contact your payer and ask for a copy.
How to complete the Individual PAYG payment summary schedule 2006
Step 1 Write your tax file number (TFN) and name in the appropriate boxes at the top of the schedule.
Step 2 Nature of income - Print X in the Personal services income box.
Step 3 For each payment summary, transfer the following information to the schedule, the:
- type of withholding - look at your payment summary carefully to determine its type and complete the type box, using the following key:
- V voluntary agreement
- N withholding where ABN not quoted
- S labour hire or other specified payments
- payer's ABN or withholding payer number (WPN) and the payer's name in the appropriate boxes
- total tax withheld in the Tax withheld box
- gross payment in the Gross payment box.
Step 4 Check that you have recorded details from all relevant payment summaries on your payment summary schedule then attach the schedule to page 3 of your tax return.
Do not attach the payment summaries to your tax return. You must keep them for a period of five years.
Payers must report to the ATO details of payments where amounts of tax have been withheld. This information will be cross-checked with that on your tax return to ensure that you have declared the correct amount of income and the correct amount of tax withheld.
You may need two payment summary schedules
If you have both PSI (item P1) and business income (item P8), you will need to complete an individual PAYG payment summary schedule for each type of income.
Income
PSI - voluntary agreement
Did you receive any PSI that was subject to a PAYG voluntary agreement?
No, Go to PSI - Where Australian business number not quoted
Yes, Read on.
The amount you show at M is the total income you received that was subject to a PAYG voluntary agreement, including amounts of tax withheld. You will be able to calculate this amount from your completed payment summary schedule.
Completing this item
Add up all the Gross payment amounts on your completed payment summary schedule that have a V in the corresponding type box. Write the total at M item P1. Do not show cents.
If you complete M item P1 you must also complete G item 13 on page 9 of your tax return (supplementary section).