• Part 3 - Resident of another country

    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

    Use this part if you were a resident of a country other than Australia or Timor-Leste for tax purposes during 2005-06.

    What you need

    • All your payment summaries for the 2005-06 income year
    • Details of your JPDA income - from your employer or your pay slips
    • TaxPack 2006 and TaxPack 2006 supplement if you are completing a paper tax return. See More information to find out how to get copies of these publications.

    You need to know

    Your net income earned in the JPDA is taxed in Australia. You can claim a rebate of 90% of Australian tax payable on that income. Your payer should have withheld Australian tax on 10% of your JPDA income.

    What you need to do

    Show all your Australian income (including all JPDA income) and deductions as instructed by TaxPack 2006 or e-tax.

    Use one of the following worksheets to calculate your rebate. Use worksheet 4 if the only Australian income you had was JPDA income; otherwise, use worksheet 5.

    Worksheet 4

    Your taxable income as shown on your tax return

    (a)

    $

    Calculate your tax using TaxPack 2006 (see table B2 on page 122) or e-tax*

    (b)

    $

    Multiply (b) by 90.

    (c)

    $

    Divide (c) by 100.

    (d)

    $

    The amount at (d) is your JPDA rebate. Include this amount at C item T15 Other tax offsets on your tax return (supplementary section).

    *  If using e-tax you must complete all your income, deductions and Medicare items first.

    Worksheet 5

     

    Gavin*

    You

    Your taxable income as shown on your tax return

    (a)

    $ 80,000

    (a)

    $

    Calculate your tax using TaxPack 2006 (see table B2 on page 122) or e-tax**.

    (b)

    $ 25,824

    (b)

    $

    Divide (b) by (a) (round to at least 3 decimal places).

    (c)

    0.323

    (c)

     

    Net JPDA income (after any allowable deductions relating to JPDA income)

    (d)

    $ 69,900

    (d)

    $

    Multiply (c) by (d).

    (e)

    $22,577.70

     

    $

    Multiply (e) by 90.

    (f)

    $ 2,031,993

     

    $

    Divide (f) by 100.

    (g)

    $ 20,319.93

     

    $

    The amount at (g) is your JPDA offset. Include this amount at C item T15 Other tax offsets on your tax return (supplementary section).

    *  See the example below
    ** If using e-tax you must complete all your income, deductions and Medicare items first.

    Example

    Gavin, a chef, was a resident of Malaysia for the whole year. His Australian taxable income was $80,000, of which $70,000 was JPDA income. Gavin had $100 of work-related expenses relating to his JPDA income. He has no other amount to show at item T15. Gavin uses worksheet 5 to calculate his JPDA offset.

    Gavin's JPDA tax offset is $20,320. He includes this amount at C item T15 on his tax return (supplementary section) and prints H in the claim type box at the right of C.

    Check that you have…

    • completed the labels on your tax return as shown in the relevant parts
    • attached your completed Schedule of additional information - item 19 - Joint Petroleum Development Area to page 3 of your tax return
    • attached your completed Schedule of additional information - item 19 - exempt foreign income to page 3 of your tax return if asked to in Part 1 - Resident of Australia.

    Check that you have printed X in the YES box at Taxpayer's declaration question 2a on page 8 of your tax return.

    Last modified: 14 Nov 2006QC 28035