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  • Introduction



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

    End of attention

    Who this schedule is for

    If you complete items 13, 14 or 15 of your tax return (supplementary section), you must fill in the Business and professional items schedule 2004–05 (PDF 285KB)This link will download a file and send it in with your tax return. If the business or professional items that apply to you are not filled in, your tax return will be sent back to you. These instructions will help you to fill in the schedule.

    If your tax return and completed schedule are lodged late, you may be liable for a penalty. For information on the penalty for failing to lodge on time, see page 12 in TaxPack 2005.

    If you have a net loss from a business activity carried on in partnership with others, you may need to complete items P3 and P9 of the schedule. See the instructions for item 12 of your tax return (supplementary section). Do not include your partnership details at any other item on your schedule.

    You will also need to complete the Individual PAYG payment summary schedule 2005 if you received any of the following:

    These instructions will help you fill in that schedule.

    What's new

    Foreign resident withholding (FRW)

    A new measure has been introduced that extends the pay as you go (PAYG) withholding system to include certain payments made to foreign residents. Only payments described in the income tax regulations are subject to this new withholding measure.

    These payments are currently:

    • payments for promoting or operating casino gaming junkets
    • payments for entertainment and sports activities, and
    • payments under contract for the construction, installation and upgrading of buildings, plant and fixtures and for associated activities.

    The foreign resident withholding measure results in the inclusion of the following labels at item P8 on the Business and professional items schedule for individuals 2005:

    • B Gross payments subject to foreign resident withholding, and
    • U Foreign resident withholding expenses.

    Payers are required to withhold at the rate prescribed in the appropriate regulation. The Tax Office may grant a variation to the rate of withholding in special circumstances.

    Credit for tax withheld under foreign resident withholding should be claimed at item 14 and/or item 12 of the tax return (supplementary section).

    Existing withholding events will continue to apply - for example, a foreign resident employee would continue to have an amount withheld under the existing withholding provisions.

    The existing pay as you go (PAYG) machinery will apply to these new withholding obligations.

    This withholding is not a final tax. These new withholding requirements will not affect existing income tax obligations for foreign residents deriving assessable income in Australia, such as the requirement to lodge a tax return. Any amounts withheld will be available as a credit against the income tax assessment.

    Gross regulated income subject to foreign resident withholding will not be taken into account in determining the PAYG instalment rate.

    For more information about foreign resident withholding visit our website, or phone the Tax Reform Infoline (see More information).

    If you do not speak English and need help from the Tax Office, phone the Translating and Interpreting service (see More information).

    Last modified: 30 Mar 2020QC 27592