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  • Expenses



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    Do not include the following expense items on your schedule:

    • non-business interest and dividend income expenses - claim deductible expenses at item D7 on your tax return
    • farm management deposits - take them into account as required at item 16 on your tax return (supplementary section)
    • non-business rental expenses - claim deductible expenses at item 20 on your tax return (supplementary section)
    • expenses and losses relating to foreign source income - take them into account as required at item 19 or, in the case of certain debt deductions, claim them at item D15 on your tax return (supplementary section)
    • expenses relating to your personal services income shown at item P1 on your schedule
    • low-value pool deduction where the pool contains assets used for work-related, self-education or rental purposes - read question D6 in TaxPack 2006.

    You need to complete all items that relate to your business or businesses. You can deduct business expenses if the expenses were necessary to carry on your business for the purpose of earning assessable income.

    If you are a primary producer you will need a primary production worksheet to help you work out some of the amounts in this section. This worksheet is included in the publication Information for primary producers 2006. Complete the worksheet before proceeding.

    Goods and services tax

    If you are registered or required to be registered for GST, exclude from the deductions any input tax credit entitlements that arise in relation to outgoings. If you pay GST by instalments and incurred a penalty for underestimating a varied GST instalment, you can claim a deduction for the penalty at item D10 on your tax return. Do not show the penalty on your Business and professional items schedule for individuals 2006 (PDF 113KB)This link will download a file. For more information, see TaxPack 2006.

    Last modified: 01 Sep 2006QC 18499