If you're lodging by paper
If you're lodging a paper tax return, you need to complete both the Tax return for individuals and Tax return for individuals (supplementary section).
There are three main steps to take:
Step 1: Report your BSWAT payment
You need to report your BSWAT lump sum under item 24 (Other income) on the Tax return for individuals (supplementary section), as follows:
- At item 24, in the box for Category 1, write 'BSWAT lump sum in arrears'. Do not write anything in the box for Category 2 or label V.
- At label Y, write the value of the taxable amount of your BSWAT payment (this is shown on your Centrelink PAYG payment summary). Do not show cents.
- Do not write anything in label E or Z.
The image below is a sample Centrelink payment summary. The 'Payment type' and 'Taxable' amount fields are important when completing BSWAT on a tax return.
The image below how this taxpayer would complete item 24, based on his Centrelink payment summary (above).
Step 2: Attach your Schedule of additional information
So we can calculate the lump sum payment in arrears tax offset, you need to attach a Schedule of additional information. To do this, you need to:
- photocopy 'Attachment E: Important tax information' from your BSWAT letter of offer
- write 'BSWAT schedule of additional information – item 24' as a heading at the top of the photocopy, and then write the following:
- your name
- your address
- your tax file number (TFN)
Attach the Schedule of additional information to page 3 of your tax return. Then, at the Taxpayer's declaration on page 10 of your tax return, write X in the box for question 2.
Step 3: Complete your tax return
Fill in the rest of your tax return using the Individual tax return instructions booklet.