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    Diesel Fuel Rebate Scheme (off-road scheme) and Diesel and Alternative Fuels Grants Scheme (on-road scheme)

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    The off-road Diesel Fuel Rebate Scheme and the on-road Diesel and Alternative Fuels Grant Scheme were extended to 30 June 2003. The Government intends to replace them with an Energy Grants (Credits) Scheme to commence on 1 July 2003. At the time of printing this publication, the proposed legislation had been introduced in Parliament, but not yet made law. For more information, phone the ATO on 1300 657 162 or visit the ATO website at www.ato.gov.au

    If you received a diesel fuel rebate and/ or a diesel and alternative fuels grant this year, you must include the amount in your assessable income.

    Personal services income

    Special rules for the tax treatment of personal services income apply from 1 July 2000. The exemption from the special rules which applied in 2000-01 and 2001-02 to certain holders of a prescribed payments system (PPS) payee declaration does not apply for 2002-03 and later income years. If you were the holder of such a PPS payee declaration, you may now be subject to the special rules and need to complete item P1 on your schedule.

    Simplified tax system (STS)

    The STS commenced on 1 July 2001 and applies to assessments for income years starting on or after that date. The STS is an alternative method of determining taxable income for eligible small businesses with straightforward financial affairs.

    There are new labels at item S1 Simplified tax system (STS) elections to show whether you are continuing in, or exiting from, the STS.

    If you are electing to enter the STS, you are continuing in the STS or you are exiting from the STS you must complete item S1 on your 2003 business and professional items schedule.

    For more information about the STS, refer to the ATO publication  The simplified tax system-a guide for tax agents and small businesses  (NAT 6459-6.2002), visit the ATO website at www.ato.gov.au or phone the Small Business Infoline on 13 28 66.

    Superannuation deductions

    If you are claiming a deduction for superannuation contributions made for yourself, you must NOT include the deduction on your 2003 business and professional items schedule. The deduction must be claimed at D13 on your tax return. See question D13 in TaxPack 2003 supplement (NAT 2677-6.2003).

    For 2002-03 and later income years, a tax deduction will not generally be available where a superannuation contribution is made in respect of a person aged 70 years or more, except where the contribution is required:

    • under a federal, state or territory award, or
    • to meet the employer's superannuation guarantee obligation on salary or wages paid to the employee before the employee's 70th birthday.

    A contribution to a complying superannuation fund or retirement savings account will continue to be an allowable tax deduction if it has been made in accordance with section 82AAC or section 82AAT of the Income Tax Assessment Act 1936 (ITAA 1936) for people aged less than 70 years.

    Last modified: 16 Jun 2006QC 27476