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  • Adjusted taxable income (ATI) for you and your dependants 2018

    We use ATI to work out if:

    • you can claim a tax offset for
      • net medical expenses for disability aids, attendant care or aged care (item T5)
      • invalid and invalid carer (item T6)
       
    • you can include a base amount in the zone or overseas forces tax offset (item T4)
    • your child is considered a dependant for Medicare levy purposes (item M1)
    • you are entitled to government super contributions (item A3).

    If you want to claim a tax offset at items T5 or T6, or T4 and you have dependants, you will need you and your dependant’s ATI for the relevant period to work out:

    • whether you are eligible for a tax offset, and
    • the amount of any tax offset you are entitled to.

    For the meaning of dependant and maintaining a dependant, see Special circumstances and glossary 2018.

    What is ATI?

    A person's ATI is the sum of the following amounts:

    • taxable income
    • adjusted fringe benefits total, which is the sum of
      • reportable fringe benefits amounts received from employers exempt from fringe benefits tax under section 57A of the Fringe Benefits Tax Assessment Act 1986 multiplied by 0.53, and
      • reportable fringe benefits amounts from employers not exempt from fringe benefits tax under section 57A of the Fringe Benefits Tax Assessment Act 1986
       
    • reportable employer superannuation contributions
    • deductible personal superannuation contributions
    • certain tax-free government pensions or benefits received by the person
    • target foreign income (income and certain other amounts from sources outside Australia not included in your taxable income or received as a fringe benefit)
    • net financial investment loss (the amount by which the person's deductions attributable to financial investments exceeded their total financial investment income)
    • net rental property loss (the amount by which the person's deductions attributable to rental property exceeded their rental property income)

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    How to work out ATI

    You can use either our Income tests calculator or worksheet 1a and 1b. If you use the calculator and have to either work out a dependant's ATI for part of the year or a deceased's ATI, you need to read the instructions below.

    Working out the ATI of a person for the whole year

    If you are working out the ATI of a person for the whole year, you can get the amounts for worksheet 1b from the person's tax return. Table 1 shows you where the relevant amounts are on the tax return.

    Table 1 – Working out ATI

    For Worksheet 1b

    The amount comes from

    a

    Taxable income or loss on page 4 of the tax return

    b

    The sum of:

    • N item IT1 on page 8 of the tax return, multiplied by 0.53 and rounded down to the nearest dollar, and
    • W item IT1 on page 8 of the tax return
     

    c

    T item IT2 on page 8 of the tax return

    d

    H item D12 on page 15 of the supplementary section of the tax return

    e

    U item IT3 on page 8 of the tax return

    f

    V item IT4 on page 8 of the tax return

    g

    X item IT5 on page 8 of the tax return

    h

    Y item IT6 on page 8 of the tax return

    j

    Z item IT7 on page 8 of the tax return.

    Working out a dependant's ATI for part of the year

    If you are working out a dependant's ATI for part of the year, you cannot use the figures from their tax return. Instead, you must work out the amounts for the relevant period and complete the calculator or worksheet using these figures. The instructions at each offset question will tell you what to do.

    Completing a tax return for a deceased person

    If you are completing a tax return for a deceased person, or your spouse died during the year and you need to know their ATI for the whole of 2017–18, their ATI is the amount in the calculator or at row k below:

    • divided by the number of days the person was alive in 2017–18, and
    • multiplied by 365.

    This is the deceased person's ATI for the whole of 2017–18.

    Working out a person's ATI for the relevant period

    Determine the period for which you need to work out the person's ATI (start date and end date).

    Worksheet 1a – Working out a person's ATI for the relevant period

     

    You

    Dependant
    1

    Dependant
    2

    Dependant
    3

    The start date for which you need to work out the person's ATI

    1/7/2017

     

     

     

    The end date for which you need to work out the person's ATI

    30/6/2018

     

     

     

    Worksheet 1b - Working out a person's ATI for the relevant period

    Row

    Calculation

    You

    Dependant
    1

    Dependant
    2

    Dependant
    3

    a

    The person's taxable income for the period. If taxable income is a loss, write 0

    $

    $

    $

    $

    b

    The person's adjusted fringe benefits for the period

    $

    $

    $

    $

    c

    The person's reportable employer superannuation contributions for the period

    $

    $

    $

    $

    d

    The person's deductible personal superannuation contributions for the period

    $

    $

    $

    $

    e

    The person's tax-free government pensions or benefits for the period

    $

    $

    $

    $

    f

    The person's target foreign income for the period

    $

    $

    $

    $

    g

    The person's net financial investment loss for the period

    $

    $

    $

    $

    h

    The person's net rental property loss for the period

    $

    $

    $

    $

    i

    Add all the amounts from rows a to h

    $

    $

    $

    $

    j

    Child support the person provided to a third party for the period

    $

    $

    $

    $

    k

    Take row j away from row i. This is the person's ATI for the period

    $

    $

    $

    $

      Last modified: 31 May 2018QC 54267