Part J: Interest expenses within Australia

Did you incur interest as a business expense on money borrowed within Australia?

No	Go to Part K.
Yes	Read on.

You need to know

Include interest you incurred on money borrowed within Australia to acquire income-producing assets used in your business, to finance business operations or to meet current business expenses.

Do not include interest expenses incurred in deriving rental income. Claim these expenses at item 20 on your tax return.

Note

If you include an amount of interest expense which is not allowable as a deduction, such as amounts denied by the thin capitalisation rules, you will need to add back the amount at H Expense reconciliation adjustments in the RECONCILIATION ITEMS section on your schedule. For more information see Thin capitalisation.

Completing this part

Step 1	Write your total primary production interest expenses within Australia at Interest expenses within Australia, Primary production column, item P8 on your schedule. Do not show cents.
Step 2	Write your total non-primary production interest expenses within Australia at Interest expenses within Australia, Non-primary production column, item P8 on your schedule. Do not show cents.
Step 3	Add up your primary production and non-primary production interest expenses within Australia and write the total amount at Q item P8 on your schedule.