Part 1 - Use this Part if you are resident of Australia

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

What you need

• All your payment summaries.
• Details of your JPDA income and any foreign tax paid-from your employer, your pay slips or foreign tax assessments.
• The publications How to claim a foreign tax credit (NAT 2338), TaxPack 2004 (NAT 0976) and TaxPack 2003 supplement (NAT 2677).

You need to know

All of your income earned for work or services performed in the JPDA is taxed in Australia-with 90% of this income also subject to tax in East Timor. You can claim a foreign tax credit for the tax you have paid in East Timor on your Australian tax return.

What you need to do

1. Complete steps 1 to 3 as instructed by question 1 in TaxPack 2004.
   
   Important
   
   Include 10% of your JPDA income at item 1 on your tax return and 90% of your JPDA income at item 19 on your tax return (supplementary section). Use Worksheet 1 to calculate JPDA income amounts to be shown at item 1 and item 19.

The amount at (e) is the amount you need at step 4 of question 1 for this payment summary.

Include the amount at (f) at E and M item 19 on your tax return (supplementary section).

2. If you have any payment summaries that do not include JPDA income follow step 4 of question 1 in TaxPack 2004, otherwise go to Check that you have . . . at the end of question 1.
3. Use the publication How to claim a foreign tax credit to calculate your foreign tax credit. Include each amount at (f) from worksheet 1 when calculating your foreign net income for foreign tax credit purposes.
   
   To calculate your net foreign income only, deduct 90% of expenses directly related to your JPDA income. Write your foreign tax credit at O item 19 on your tax return (supplementary section).

Note: You will not be able to calculate your foreign tax credit if you have included exempt foreign employment income or net capital gains in your tax return - the Tax Office will calculate this credit for you. Include details of your JPDA income, other foreign income and foreign tax paid on a separate schedule and attach it to page 3 of your tax return.

4. Remember to complete the schedule of additional informationThis link will download a file attach it to your tax return.