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Reconciliation statement

Last updated 17 February 2020

The Reconciliation statement refers to Assessable balancing adjustment amounts on disposal of depreciating assets, Deduction for decline in value of depreciating assets and Deductible balancing adjustment amounts on disposal of depreciating assets.

All these terms are explained in the publication Guide to depreciating assets 2003–04 (NAT 1996–6.2004).

Completing this part

Step 1

Fill in the Reconciliation statement using the explanations provided in Part E above.

Step 2

Write your total primary production income reconciliation adjustments and total primary production expense reconciliation adjustments at Income reconciliation adjustments and Expense reconciliation adjustments, Primary production column, item P8 on your schedule. Do not show cents.

Step 3

If either of the total primary production reconciliation adjustments is a negative amount, print L in the box at the right of the amount.

Step 4

Write your total non-primary production income reconciliation adjustments and total non-primary production expense reconciliation adjustments at Income reconciliation adjustments and Expense reconciliation adjustments, Non-primary production column, item P8 on your schedule. Do not show cents.

Step 5

If either of the total non-primary production reconciliation adjustments is a negative amount, print L in the box at the right of the amount.

Step 6

Add up your primary production and non-primary production Income reconciliation adjustments and write the total amount at X item P8 on your schedule.

Step 7

Add up your primary production and non-primary production Expense reconciliation adjustments and write the total amount at H item P8 on your schedule.

Step 8

If either of the total reconciliation adjustments is a negative amount, print L in the box at the right of the amount at X or H item P8 on your schedule.

In the Reconciliation statement do not include in the amount at (t):

  • environmental protection expenditure
  • section 40-880 deductions
  • business deductions for project pools
  • deductions for landcare operations and water facilities.

Reconciliation adjustments for these amounts are shown separately at V, A, L and W item P8 on your schedule.

Reconcile your primary production and non-primary production items separately. Part 1a: Income reconciliation adjustments – Additions

Row

Calculation elements

Primary production

Non-primary production

a

Assessable balancing adjustment amounts on disposal of depreciating assets

$

$

b

Assessable business income not included in the profit and loss statement

$

$

c

Subtotal-add amounts at a and b

$

$

Part 1b: Income reconciliation adjustments – Subtractions

Row

Calculation elements

Primary production

Non-primary production

d

Net exempt income-gross exempt income less expenses relating to that exempt income

$

$

e

Profit on sale of depreciating assets included in accounts

$

$

f

Other non-assessable income included in the profit and loss statement

$

$

g

Subtotal-add amounts at d, e and f

$

$

-

Income reconciliation adjustment-take g away from c

$

$

Part 2a: Expense reconciliation adjustments – Additions

Row

Calculation elements

Primary production

Non-primary production

h

Depreciation charged in accounts (see note)

$

$

i

Lease payments for luxury cars

$

$

j

Loss on sale of depreciating assets included in accounts

$

$

k

Part of prepaid expenses not deductible this year

$

$

l

Items not allowable as deductions:

  • capital expenditure
 

$

$

m

Items not allowable as deductions:

  • additions to provisions and reserves
 

$

$

n

Items not allowable as deductions:

  • other non-deductible items, including income tax
 

$

$

o

Subtotal-add all amounts from h to n

$

$

Part 2b: Expense reconciliation adjustments – Subtractions

Row

Calculation elements

Primary production

Non-primary production

p

Accrual amount deduction for lessee of luxury cars

$

$

q

Deductible balancing adjustment amounts on disposal of depreciating assets

$

$

r

Deduction for decline in value of depreciating assets (non-STS taxpayers only)

$

$

s

Part of prepaid expenses deductible this year but not included at any other label

$

$

t

Other items deductible for tax purposes not included in the profit and loss statement

$

$

u

Subtotal-add all amounts from p to t

$

$

-

Expense reconciliation adjustment-take u away from o

$

$

Note: only include amounts at h if you are not an STS taxpayer. However, exclude any STS pool deductions which you have included at M item P8.

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