Foreign resident withholding tax
If you're a foreign resident find out more about reporting foreign resident withholding tax in your tax return for:
Gross interest
If you're a foreign resident for part of the income year, include at question 10 Gross interest any interest you receive in 2024–25 while you're an Australian resident.
Don't include at question 10 any interest paid or credited to you when you're a foreign resident if withholding tax is deducted.
If withholding tax isn't deducted, on a separate piece of paper:
- write Schedule of additional information – question 10
- write your name, address and TFN
- provide details of amounts of interest you receive while you're a foreign resident if withholding tax isn't deducted.
Attach your schedule to your tax return. Print X in the Yes box at Taxpayers' declaration – question 2 in your tax return.
We'll advise you of the amount of withholding tax you have to pay on this interest.
Dividends
Don't include at question 11 Dividends any dividend income you receive or are credited during the period you're a foreign resident, if either:
- the dividend is fully franked
- the dividend isn't fully franked, but either
- the dividend statement shows the unfranked amount to be conduit foreign income
- withholding tax is (or should be) withheld from the unfranked amount.
You need to provide details of any dividend, paid or credited to you while you're a foreign resident that:
- isn't fully franked and isn't declared to be conduit foreign income
- you haven't paid withholding tax.
On a separate piece of paper:
- write Schedule of additional information – question 11
- write your name, address and TFN
- provide details of the dividend.
Attach your schedule to your tax return. Print X in the Yes box at Taxpayers' declaration – question 2 in your tax return.
We'll work out the amount of withholding tax you have to pay on the dividends and advise you of the amount.
Foreign employment termination payments
The following is relevant for the purpose of question 4 Employment termination payments.
A foreign ETP is different from a foreign termination payment (FTP).
Instructions for foreign ETPs
You need to convert your foreign ETPs into Australian dollars before you can complete question 4.
For information about exchange rates and how to convert foreign payments, go to Foreign exchange rates or contact us.
- Then on a separate piece of paper
- write Schedule of additional information – question 4
- write your name, address and TFN
- for each foreign ETP, print the name of the payer and the foreign country that employed you, and write the amount of the payment
- for each foreign ETP, print the appropriate code letter (from those listed at step 4 in question 4). You must provide a valid code for each payment.
- Attach your schedule to your tax return.
- Print X in the Yes box at Taxpayers' declaration – question 2 in your tax return.
You'll need to include the total amount of these foreign ETPs in the amount you show at question 4 – label I in your tax return.
Go to step 1 in question 4.
Dividends and franking credits
Additional information for completing your tax return where special circumstances apply in:
- question 11 Dividends 2025
- question D8 Dividend deductions 2025.
The unfrankable dividend integrity rule prevents you from claiming franking credits from distributions made on or after 15 September 2022, that are funded from capital raising or the issue of equity interest by an entity that made the distribution.
Reporting for:
Dividend washing integrity rule
The dividend washing integrity rule prevents you from claiming franking credits where you receive a dividend as a result of dividend washing.
Dividend washing occurs where you, or an entity connected to you, claim 2 sets of franking credits by:
- selling shares that are held on the Australian Securities Exchange (ASX) and have become ‘ex-dividend’, and then
- purchasing some substantially identical shares using a special ASX trading market.
When the dividend washing integrity rule applies, you're not entitled to claim the franking credits for the second dividend. However, if your interest in the second parcel of shares exceeds the interest in the first parcel, you may be entitled to claim a portion of the franking credits for the additional shares. For more information, see Dividend washing rule.
The dividend washing integrity rule doesn't apply if both of the following apply:
- you're an individual
- you receive no more than $5,000 in franking credits during 2024–25.
However, the dividend washing integrity rule applies where dividends flow indirectly to you through your interest in a trust or partnership.
If you're claiming franking credits at question 11, certain rules apply. Read the following to check that you're entitled to claim the credits.
Qualified person or small shareholder exemption
You must be a 'qualified person' to be entitled to a franking credit for a dividend. To be a qualified person, you must satisfy the holding period rule and the related payments rule.
Holding period rule
To be able to claim the franking credits, the holding period rule requires you to hold shares 'at risk' for at least 45 days (90 days for certain preference shares).
When working out the number of days you held the shares at risk, don't count the day on which you acquire the shares and the day on which you dispose of the shares (or you enter into an arrangement to reduce the risk of making a loss on them).
This rule applies generally to shares bought on or after 1 July 1997.
Even if you don't hold the shares at risk for the required period, you may still be entitled to claim the franking credits if both of the following apply:
- your total direct and indirect franking credit entitlement for 2024–25, including any entitlement you may have had through a trust or partnership, isn't above $5,000 (the small shareholder exemption)
- the related payments rule doesn't apply to you.
In determining whether the holding period rule is satisfied for the prescribed minimum period, no account is taken of any days on which you entered into an arrangement to materially reduce the risk of making a loss on your shares, such as through derivatives, hedges, options and futures.
If you don't satisfy the holding period rule, add up all the franked dividend amounts from your statements and any other franked dividends you receive or that is credited to you. Write the total amount at question 11 – label T. Don't include any franking credit amount at question 11 – label U for that dividend.
Related payments rule
The related payments rule applies to arrangements you enter into after 7:30 pm (Australian Eastern Standard Time) on 13 May 1997. Broadly, it applies to you if you effectively have no interest in a dividend because you're under an obligation to make, or likely to make, a related payment to another party for the dividend and you don't hold your shares 'at risk' for at least 45 days (90 days for certain preference shares).
When working out the number of days you hold the shares 'at risk', don't count the day on which you acquire the shares and the day on which you dispose of the shares (or you enter into an arrangement to reduce the risk of making a loss on them).
A related payment includes you, or your associate, doing something under an arrangement that has the effect of passing the benefit of the dividend to someone else.
If either the holding period rule or related payments rule is likely to affect you, see You and your shares 2025.
Australian superannuation lump sum payments
Additional information for completing your tax return where special circumstances apply in question 8 Australian superannuation lump sum payments 2025.
Tables 1A and 2B set out the maximum tax rates that apply to super lump sum payments made by complying super funds. The Medicare levy is additional where applicable.
You may find this useful in completing questions 8, M1 and M2.
You must include any lump sum in arrears amounts in your assessable income regardless of the period the income stream payment relates to.
Tables 1A and 1B: Death benefit
Use Tables 1A and 2B to work out the maximum tax rates that apply to super lump sum payments made by complying super funds.
|
Element |
Amount |
Tax rate |
|---|---|---|
|
Tax-free component |
Whole |
Tax free |
|
Taxed element |
Whole |
Tax free |
|
Untaxed element |
Whole |
Tax free |
|
Element |
Amount |
Tax rate |
|---|---|---|
|
Tax-free component |
Whole |
Tax free |
|
Taxed element |
Whole |
15% |
|
Untaxed element |
Whole |
30% |
Tables 2A and 2B: Superannuation lump sum (other than death benefit)
|
Element |
Amount |
Tax rate |
|---|---|---|
|
Tax-free component |
Whole |
Tax free |
|
Taxed element |
Whole |
20% |
|
Untaxed element |
Up to the untaxed-plan cap amount, $1,780,000 (see Note 1) |
30% |
|
Untaxed element |
Over the untaxed-plan cap amount, $1,780,000 (see Note 1) |
45% |
Table 2B: 60 years of age or older at the time of payment
|
Element |
Amount |
Tax rate |
|---|---|---|
|
Tax-free component |
Whole |
Tax free |
|
Taxed element |
Whole |
Tax free |
|
Untaxed element |
Up to the untaxed-plan cap amount, $1,780,000 (see Note 1) |
15% |
|
Untaxed element |
Over the untaxed-plan cap amount, $1,780,000 (see Note 1) |
45% |
For more information on untaxed-plan cap amount, see Untaxed plan cap amount.
Leased luxury cars
If you lease a luxury car and want to claim a deduction at question D1 Work-related car expenses or question D2 Work-related travel expenses, the following information about luxury cars will help you.
A leased luxury car is a leased car that at the time the lease began had a market value of more than the 'car limit' that applies in the relevant income year.
You can claim a deduction for the decline in value of a leased luxury car (but not for other leased cars). The car can be new or second-hand. You must use the logbook method, see Logbook method.
When claiming a deduction for decline in value, the initial value that you use for the car is the limit that applies in the income year that the lease begins. See, Table 3 for the car limit for this year and the past 10 income years.
|
Year |
Limit |
|---|---|
|
2024–25 |
$69,674 |
|
2023–24 |
$68,108 |
|
2022–23 |
$64,741 |
|
2021–22 |
$60,733 |
|
2020–21 |
$59,136 |
|
2019–20 |
$57,581 |
|
2018–19 |
$57,581 |
|
2017–18 |
$57,581 |
|
2016–17 |
$57,581 |
|
2015–16 |
$57,466 |
|
2014–15 |
$57,466 |
Work-related travel expenses
For work-related travel expenses you claim in question D2, tables 4 and 5 outline the evidence you need to keep for overnight travel expenses (accommodation, food and drink and incidental expenses).
Travel diary
Whether for domestic or overseas travel, a travel diary is a document you record the nature, places, dates, times and duration of your activities and travel.
|
Condition |
Written evidence |
Travel diary required |
|---|---|---|
|
You don't receive a travel allowance and the travel is less than 6 nights in a row. |
Yes |
No |
|
You don't receive a travel allowance and the travel is 6 or more nights in a row. |
Yes |
Yes |
|
You receive a travel allowance, your claim doesn't exceed the reasonable allowance amount and the travel is less than 6 nights in a row. |
No |
No |
|
You receive a travel allowance, your claim doesn't exceed the reasonable allowance amount and the travel is 6 or more nights in a row. |
No |
No |
|
You receive a travel allowance, your claim exceeds the reasonable allowance amount and the travel is less than 6 nights in a row. |
Yes |
No |
|
You receive a travel allowance, your claim exceeds the reasonable allowance amount and the travel is 6 or more nights in a row. |
Yes |
Yes |
Overseas travel
You need written evidence for all overseas accommodation expenses, regardless of the amount you claim and the length of the trip. You don't need written evidence for food, drink and incidentals in certain circumstances, see Table 5.
Members of international aircrews don't have to keep a travel diary if they limit their claim to the amount of the allowance received.
Rules for certain types of gifts or donations
The following information is about different types of gifts or donations that you may be able to claim a deduction for at question D9 Gifts or donations. If you obtain a valuation of a deductible donation of property, you may be able to claim a deduction for the cost of that valuation under question D10 Cost of managing tax affairs.
Find out more on the deduction rules for:
- Gifts of property
- Receiving a benefit
- Deductions for contributions relating to fund-raising events
- Gifts of shares valued at $5,000 or less
- Contributions and gifts to registered political parties and independent candidates and members
Gifts of property
You can claim a deduction for a gift of property (such as land, artwork or memorabilia) to an eligible organisation if either:
- you purchase the property within 12 months of making the gift
- you purchase the property more than 12 months before you made the gift and the Commissioner valued it at more than $5,000.
If you purchase the property within 12 months of making the gift, the amount deductible is the market value of the property at the time of the gift or the amount you pay for the property, whichever is less. If you purchase the property more than 12 months before you made the gift and the Commissioner values it at more than $5,000, the amount deductible is the value of the property the Commissioner determines.
You can't claim a deduction for a gift of property if you don't purchase it (for example, you inherit or win the property) unless the Commissioner values it at more than $5,000.
If you make a gift of property under the cultural gifts program the rules above don't apply to you.
For more information on working out whether you can claim a deduction for a gift under this program, see Donating under the Cultural Gifts Program.
For more information on property valuations, contact us.
Receiving a benefit
Generally, you can't claim a deduction for a donation if you receive something in return (for example, a raffle ticket, dinner or a reduction in your child's school fees) other than tokens like lapel badges and stickers that promote the organisation. This rule doesn't apply to certain fund-raising events, see Deductions for contributions relating to fundraising events.
Deductions for contributions relating to fundraising events
You can claim a deduction for contributions to approved organisations that relate to fundraising events where you receive a minor benefit for your contribution, if both of the following apply:
- the contribution meets certain conditions
- the benefit you receive doesn't exceed a specified limit.
A fundraising event includes a fete, ball, gala show, dinner, performance or similar event.
You can claim a deduction if one of the following applies:
- you make a contribution of money or property to attend or participate in (or for the right to attend or participate in) a fund-raising event
- you make a contribution of money to purchase goods or services at a charitable auction.
Your contribution must meet the following conditions:
- It's made to an approved organisation.
- If it's money, it is more than $150.
- If it's property, you either
- purchase it within 12 months of making a contribution, and both the market value on the day of the contribution and the purchase price are more than $150
- own it for more than 12 months and the Commissioner values it at more than $5,000.
- If it's publicly listed shares, the value is more than $150 and less than or equal to $5,000.
- The fundraising event is held in Australia.
- The GST-inclusive market value of the minor benefit you receive for your contribution must be worth no more than $150 or 20% of the value of the contribution, whichever is less. The receipt from the approved organisation will show the market value of the minor benefit you receive.
Your deduction is the value of your contribution that satisfies the conditions set out above less the GST-inclusive market value of the minor benefit you receive. Both of these amounts appear on your receipt.
There is no limit to the number of deductions you can claim for successful bids to purchase goods or services at a charitable auction, where the conditions are met.
Gifts of shares valued at $5,000 or less
You can claim a deduction for a gift of shares to an approved organisation if:
- the shares are held in a company that is listed on an approved Australian stock exchange on the day the gift is made
- you acquire the shares at least 12 months before making the gift ('acquired' includes purchased, inherited, won or received as a gift or a bonus)
- the parcel of shares have a market value of $5,000 or less on the day you make the gift
- the parcel of shares is valued at $2 or more.
You can't claim a deduction for shares that are suspended from trading (other than a mere trading halt).
Gifts of shares held in different companies are separate gifts even if given at the same time.
A deduction is also available to you where you contribute the shares in return for a right permitting you or another individual to attend or participate in a particular fundraising event in Australia. The gift must satisfy the rules for contributions to fundraising events:
- the market value of the shares on the day they are contributed must be more than $150 but less than or equal to $5,000
- the market value of the right to attend or participate in the fund-raising event must not exceed 20% of the value of the shares or $150, whichever is less.
Be aware that capital gains tax applies when you make a gift of shares.
Contributions to registered political parties, candidates and members
You can claim a deduction for contributions or gifts to registered political parties, independent members of parliament (state or Commonwealth) or independent candidates in an election for parliament. Contributions must be $2 or more. The contribution or gift must be of money or property that you purchased during the 12 months before making the contribution or gift. If it is property, the amount deductible is the market value of the property at the time of the donation or the amount you paid for the property, whichever is less.
If the total of all your contributions and gifts to political parties during the income year is greater than $1,500, the maximum amount you can deduct is $1,500. A separate deduction limit of $1,500 applies if the total of all your contributions and gifts to independent candidates or independent members of parliament for the income year exceeds $1,500.
You can't claim a deduction for a political gift or contribution of $2 or more (including membership fees) to registered political parties, independent candidates and members of an Australian legislature if you make the gift or contribution in the course of carrying on a business.
The contribution must be to a political party that is registered under Commonwealth, state or territory electoral laws.
The contribution to an independent candidate or independent members must be to a candidate for election to, or member of, the Commonwealth Parliament, a state or territory parliament.
An independent candidate is an individual whose candidature in an election for parliament isn't endorsed by a registered political party. An independent member is a member of parliament who isn't a member of a registered political party.
Australian super income stream tax offset
To complete question T2 Australian superannuation income stream 2025 when your payment summary doesn't show the tax offset amount:
- follow the steps if you're both
- under 60 years old
- don't have a death benefit income stream where the deceased was 60 years old or older.
- read question T2 if either
- you're 60 years old or older
- you have a death benefit income stream where the deceased was 60 years old or older.
Completing your tax return
For each PAYG payment summary – superannuation income stream that doesn't show a tax offset amount, you can work out your tax offset amount by multiplying the taxed element and the untaxed element of the taxable component on each of those payment summaries by the relevant percentage in tables 6A to 6C.
|
Row |
Calculation |
Amount |
|---|---|---|
|
a |
The amount of any taxed element of your super income stream benefit paid to you for which you're entitled to a tax offset |
$ |
|
b |
Relevant percentage from Tables 6A to 6C |
% |
|
c |
Multiply row a by row b. |
$ |
Your Australian super income stream tax offset percentages
|
Age of the deceased |
Your age at date of each payment |
Taxed element |
Untaxed element |
|---|---|---|---|
|
Under 60 years old |
Under 60 years old |
15% |
0% |
|
Under 60 years old |
60 years old or older |
Not applicable |
Limited – read question T2. |
|
60 years old or older |
Any age |
Not applicable |
Limited – read question T2. |
|
Your age at date of each payment |
Taxed element |
Untaxed element |
|---|---|---|
|
Under 60 years old |
15% |
0% |
|
60 years old or older |
Not applicable |
Limited – read question T2. |
|
Your age at date of each payment |
Taxed element |
Untaxed element |
|---|---|---|
|
Under preservation age |
0% |
0% |
|
|
|
|
|
60 years or older |
Not applicable |
Limited – read question T2. |
If your circumstances in the above tables change during 2024–25, for example, because you turn 60 years old during the year, then a different percentage of tax offset may apply to the amounts of the super income stream you receive before and after your birthday; read question T2.
If you have any PAYG payment summary – superannuation income stream that shows tax offset amounts, and you're under 60 years old on 30 June 2025, add up these amounts and the amount from question T2 in worksheet 1 – row h . Write the total amount at question T2 – label S in your tax return. Don't show cents.
Tax-free government pensions or benefits and the income tests
If you receive any of the government pensions or benefits in the following list, you must include at question IT3 the part of those pensions and benefits that are exempt from tax. In some cases, all of your pension or benefit could be exempt from tax, and in other cases only part of it might be.
Don't include any part of the following pensions and benefits that is a bereavement payment, pharmaceutical allowance, rent assistance or remote area allowance, or language, literacy and numeracy supplement.
Government benefits or payments you may receive are:
- Disability support pension paid by Centrelink to a person who is under age-pension age.
- Youth disability supplement if you receive a disability support pension.
- Carer payment under Part 2.5 of the Social Security Act 1991 (this isn't the carer allowance under Part 2.19 of the Social Security Act 1991).
- Pension for defence, peacekeeping or war-caused death or incapacity, or any other pension granted under Part II or Part IV of the Veterans' Entitlement Act 1986.
- Invalidity service pension where the veteran is under age-pension age.
- Partner service pension where either
- the partner and the veteran are under the age-pension age and the veteran is receiving an invalidity service pension
- the partner is under age-pension age, the veteran has died and was receiving an invalidity service pension at the time of death.
- Income support supplement paid under Part IIIA of the Veterans' Entitlements Act 1986.
- A veteran payment under an instrument made under Part IIIAA of the Veterans' Entitlements Act 1986.
- Special rate disability pension under Part 6 of Chapter 4 of the Military Rehabilitation and Compensation Act 2004.
- A payment of compensation under section 68, 71 or 75 of the Military Rehabilitation and Compensation Act 2004.
- A payment of the weekly amount mentioned in paragraph 234(1)(b) of the Military Rehabilitation and Compensation Act 2004 (including a reduced weekly amount because of a choice under section 236 of that Act) or of a lump sum mentioned in subsection 236(5) of that Act.
If you're not sure, for the purpose of this question, whether a government pension or benefit you receive is tax-free, contact us.
To help you understand terms we use in the tax return instructions, Tax time definitions.
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