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  • Reconciliation statement

    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 Reconciliation statement refers to Assessable balancing adjustment amounts on disposal of depreciating assets, Deduction for decline in value of depreciating assets and Deductible balancing adjustment amounts on disposal of depreciating assets.

    All these terms are explained in the publication Guide to depreciating assets 2003-04 (NAT 1996 - 6.2004).

    Completing this part

    Step 1

    Fill in the Reconciliation statement using the explanations provided in Part E above.

    Step 2

    Write your total primary production income reconciliation adjustments and total primary production expense reconciliation adjustments at Income reconciliation adjustments and Expense reconciliation adjustments, Primary production column, item P8 on your schedule. Do not show cents.

    Step 3

    If either of the total primary production reconciliation adjustments is a negative amount, print L in the box at the right of the amount.

    Step 4

    Write your total non-primary production income reconciliation adjustments and total non-primary production expense reconciliation adjustments at Income reconciliation adjustments and Expense reconciliation adjustments, Non-primary production column, item P8 on your schedule. Do not show cents.

    Step 5

    If either of the total non-primary production reconciliation adjustments is a negative amount, print L in the box at the right of the amount.

    Step 6

    Add up your primary production and non-primary production Income reconciliation adjustments and write the total amount at X item P8 on your schedule.

    Step 7

    Add up your primary production and non-primary production Expense reconciliation adjustments and write the total amount at H item P8 on your schedule.

    Step 8

    If either of the total reconciliation adjustments is a negative amount, print L in the box at the right of the amount at X or H item P8 on your schedule.

    In the Reconciliation statement do not include in the amount at (t):

    • environmental protection expenditure
    • section 40-880 deductions
    • business deductions for project pools
    • deductions for landcare operations and water facilities.

    Reconciliation adjustments for these amounts are shown separately at V, A, L and W item P8 on your schedule.

    Reconciliation statement

    A separate reconciliation should be done for primary production and for non-primary production items.

    Income reconciliation adjustments

    Primary production

    Non-primary production

    Additions

    Assessable balancing adjustment amounts on disposal of depreciating assets

    (a)

    $

    $

    Assessable business income not included in the profit and loss statement

    (b)

    $

    $

    Subtotal-add amounts at (a) and (b)

    (c)

    $

    $

    Subtractions

    Net exempt income-gross exempt income less expenses relating to that exempt income

    (d)

    $

    $

    Profit on sale of depreciating assets included in accounts

    (e)

    $

    $

    Other non-assessable income included in the profit and loss statement

    (f)

    $

    $

    Subtotal-add amounts at (d), (e) and (f)

    (g)

    $

    $

    Income reconciliation adjustment-take (g) away from (c)

    $        /

    $        /

    Expense reconciliation adjustments

    Primary production

    Non-primary production

    Additions

    Depreciation charged in accounts*

    (h)

    $

    $

    Lease payments for luxury cars

    (i)

    $

    $

    Loss on sale of depreciating assets included in accounts

    (j)

    $

    $

    Part of prepaid expenses not deductible this year

    (k)

    $

    $

    Items not allowable as deductions:

    • capital expenditure

     

    (l)

    $

    $

    • additions to provisions and reserves

     

    (m)

    $

    $

    • other non-deductible items, including income tax

     

    (n)

    $

    $

    Subtotal-add all amounts from (h) to (n)

    (o)

    $

    $

    Subtractions

    Accrual amount deduction for lessee of luxury cars

    (p)

    $

    $

    Deductible balancing adjustment amounts on disposal of depreciating assets

    (q)

    $

    $

    Deduction for decline in value of depreciating assets (non-STS taxpayers only)

    (r)

    $

    $

    Part of prepaid expenses deductible this year but not included at any other label

    (s)

    $

    $

    Other items deductible for tax purposes not included in the profit and loss statement

    (t)

    $

    $

    Subtotal-add all amounts from (p) to (t)

    (u)

    $

    $

    Expense reconciliation adjustment-take (u) away from (o)

    $        /

    $        /

    *only include amounts at (h) if you are not an STS taxpayer. However, exclude any STS pool deductions which you have included at M item P8.

    Last modified: 28 May 2009QC 27547