• Part J: Interest expenses within Australia

    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

    Did you incur interest as a business expense on money borrowed within Australia?

    No

    Go to Part K.

    Yes

    Read on.

    You need to know

    Include interest you incurred on money borrowed within Australia to acquire income-producing assets used in your business, to finance business operations or to meet current business expenses.

    Do not include interest expenses incurred in deriving rental income. Claim these expenses at item 20 on your tax return.

    Note

    If you include an amount of interest expense which is not allowable as a deduction, such as amounts denied by the thin capitalisation rules, you will need to add back the amount at H Expense reconciliation adjustments in the RECONCILIATION ITEMS section on your schedule. For more information see Thin capitalisation.

    Completing this part

    Step 1

    Write your total primary production interest expenses within Australia at Interest expenses within Australia, Primary production column, item P8 on your schedule. Do not show cents.

    Step 2

    Write your total non-primary production interest expenses within Australia at Interest expenses within Australia, Non-primary production column, item P8 on your schedule. Do not show cents.

    Step 3

    Add up your primary production and non-primary production interest expenses within Australia and write the total amount at Q item P8 on your schedule.

    Last modified: 28 May 2009QC 27547