Did you receive assessable government industry assistance?
No |
Go to Other business income. |
|---|---|
Yes |
Read on. |
You need to know
Generally, government credits, grants, rebates, bounties and subsidies are assessable income in the hands of the recipient if they are received in, or in relation to, the carrying on of a business. This generally includes amounts of a capital nature. However, amounts relating to the commencement or cessation of a business may not be assessable income but may give rise to a capital gain.
Examples of assessable government industry assistance are:
- bounties
- cleaner fuel grants
- drought relief
- employee subsidies
- export incentive grants
- fuel grant under the energy grants credits scheme
- fuel tax credits
- industry restructuring and adjustment payments
- producer rebate (wine equalisation tax), and
- product stewardship (oil) benefit.
For more information, see Taxation Ruling TR 2006/3: Income tax: government payments to industry to assist entities (including individuals) to continue, commence or cease business.
Stop
Do not show 'Medicare payments received by medical practices' at this item. Show them at Other business income.
Completing this item
Step 1 Write your total primary production government industry payments received by each business at G item P8 on page 2 of your schedule. Do not show cents.
Note: If you have completed the Gross income from primary production worksheet in Information for primary producers 2007 (NAT 1712-6.2007), include at G the amount at PP11 on the worksheet.
Step 2 If your assessable primary production government industry payments include a fuel grant under the energy grants credits scheme or fuel tax credits, print D in the TYPE box at the right of the amount at G.
Step 3 Write your total non-primary production government industry payments received by each business at H. Do not show cents.
Step 4 If your assessable non-primary production government industry payments include a fuel grant under the energy grants credits scheme or fuel tax credits, print D in the TYPE box at the right of the amount at H.
Step 5 Add up the amounts you have written at G and H and write the total in the adjacent Totals box.
Other business income
Did you receive any other business income?
No |
Go to Total business income. |
|---|---|
Yes |
Read on. |
You need to know
Other business income includes:
- gross sales of trading stock
- gross sales from produce
- goods taken from stock for your own use
- value of livestock killed for rations
- value of livestock exchanged for other goods or services
- gross earnings from services
- taxi driver earnings (income you earned as a non-employee taxi driver if it is not shown at item P1)
- amounts received as recoupment of expenses
- bad debts recovered
- profit on sale of depreciating assets
- royalties
- insurance recoveries
- subsidies
- employee contributions for fringe benefits
- assessable non-government assistance from all sources, and
- foreign exchange (forex) gains - for more information about forex gains, visit our website or see question 22 in TaxPack 2007 supplement.
Your 'other business income' excludes amounts shown at C, D, B, E, F, O, G and H on your schedule.
If you are a primary producer, you must add the amounts shown at PP1, PP2, PP6, PP7 and PP10 on your Gross income from primary production worksheet. This worksheet is included in the publication Information for primary producers 2007 (NAT 1712-6.2007). You must add the total to any other income from a business of primary production referred to above. You show the total of all other income from the business of primary production at I item P8 on page 2 of your schedule.
Completing this item
Step 1 Write your total amount of 'other' primary production business income or loss at I item P8 on page 2 of your schedule. Do not show cents.
Step 2 If you made a loss, print L in the box at the right of the amount at I.
Step 3 Write your total amount of 'other' non-primary production business income or loss at J. Do not show cents.
Step 4 If you made a loss, print L in the box at the right of the amount at J.
Step 5 Add up your 'other' primary production and non-primary production business income or loss and write the total in the adjacent Totals box.
Step 6 If you made a loss, print L in the box at the right of the Totals box.