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  • Government super contributions workbook 2013

    You can download this publication in Portable Document Format (PDF) – download Government super contributions workbook 2013 (NAT 73495, PDF, 395KB).

    When to use this workbook

    Attention

    Warning:

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

    End of attention

    Use this workbook only if question A3 Government super contributions in the Individual tax return instructions 2013 told you to.

    • This workbook will help you complete item A3 on page 7 of your 2013 tax return.
    • Do not use any of the worksheets in the Individual tax return instructions to complete A3.
    • Use this workbook only and keep it with your tax records.
    • Do not lodge this workbook with your 2013 tax return.

     Question A3 Government super contributions question from the Individual tax return instructions (NAT 71050)

    Throughout this workbook when we refer to ‘item X’ we mean the item numbered X on your 2013 tax return. This includes the Tax return for individuals 2013 and may also include the Tax return for individuals (supplementary section) 2013.

    See the glossary for the specific meaning of the following terms for the purposes of this workbook:

    • adjusted taxable income
    • business deductions
    • business income
    • eligible income
    • employment income
    • government super contribution
    • ineligible income
    • joint income
    • joint income group
    • low income super contribution
    • solely earned income
    • super co-contribution
    • temporary resident
    • total income.

    Why we need information at A3

    We use item A3 to ensure we correctly calculate your entitlement to a Government super contribution. We need to work out your eligible income and assessable income.

    For example, we will treat your partnership distributions shown at item 13 as ineligible income unless you tell us otherwise by completing item A3.

    How to use this workbook

    Attention

    Warning:

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

    End of attention

    Worksheets 1, 2, 3, 4 and 5 will help you complete the summary on worksheet 6 that shows what you need to write at F, G and H item A3 on your 2013 tax return.

    You must complete at least worksheets 1, 2 and 6.

    Foreign source income and foreign entities income

    If you deducted expenses when you worked out the net foreign source income at item 20, show:

    • the gross foreign income amounts from E and F item 20 in worksheet 1, column (b), row 6
    • the expenses amount you deducted for the amounts shown at T, L, D, R and M item 20 in worksheet 2, column (b), row 7.

    If part or all of your foreign source income or foreign entities income is from a partnership, and you included other income of that partnership at item 13, show:

    • the foreign income from the partnership in worksheet 3, row 3, (not in worksheet 1)
    • any related expenses in worksheet 4, row 4 (not in worksheet 2).

    Forestry managed investment scheme

    If you show amounts for forestry managed investment schemes (FMIS) at item 23 or item D14 of your 2013 tax return you need to establish whether:

    • you were an investor in the FMIS
    • you were carrying on a business
    • your investment was solely or jointly owned.

    If we issued a product ruling for the FMIS, it could state whether we consider that you are carrying on a business.

    Farm management deposits and repayments

    If you show amounts for farm management deposits and repayments at item 17, show:

    • the total repayments amount from C+N+R in worksheet 1, column (b), row 4.
    • the total deductible deposits amount from D in worksheet 2, column (b), row 6

    For each worksheet, apportion the total amount in column (b) into columns (c) and (d) depending on the original source of that primary production income. If the income came from:

    • a trust, show it in column (c)
    • you individually, show it in column (d)
    • a partnership, show it in column (d).

    Other income

    If you show an amount at item 24 you need to include it in worksheet 1. Some of that income might be eligible employment or business income.

    Read the definitions of business income, eligible income and employment income in the glossary.

    Completing the worksheets

    Read the definition of joint income group. Work out how many joint income groups you have. If you have more than three, you will need to duplicate the (e) and (f) columns on worksheets 1 and 2 for each extra joint income group.

    Worksheet 1: Working out your sole and joint income

    Attention

    Warning:

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

    End of attention

    Worksheet 1 will help you to complete:

    • F item A3 by separating joint income from solely earned income
    • G item A3 by separating employment or business income from non-employment or business income.

    Step 1 Complete column (b) in worksheet 1 by transferring the appropriate amount from your 2013 tax return for the items listed in column (a).

    Step 2 For each amount in column (b), write the amounts in columns (c), (d), (e) or (f).

    Apportion each amount in column (b) into columns (c), (d), (e) and (f) depending on the source of that income. If the income came from:

    • a trust, show it in column (c)
    • you individually, show it in column (c) or (d) as appropriate
    • a partnership, show it in Worksheet 3
    • a joint income group, show it in column (e) or (f) as appropriate.

    If you have more than three joint income groups, duplicate columns (e) and (f) on a separate sheet of paper.

    Worksheet 1: Working out your sole and joint income

       

    From (b) work out how much of your income is solely earned and jointly earned across these columns.

    Income group 1

    Income group 2

    Income group 3

    (a)

    (b)

    (c)

    (d)

    (e)

    (f)

    (e)

    (f)

    (e)

    (f)

    Income shown at the following labels:

    Gross amount of income on your tax return

    Solely earned income

    Jointly earned income

    Jointly earned income

    Jointly earned income

    that is not from employment or business

    from employment or business

    that is not from employment or business

    from business

    that is not from employment or business

    from business

    that is not from employment or business

    from business

    1.

    Interest (from L item 10)

     

     

     

         

     

     

     

    2.

    Dividends (from S, T and U item 11)

     

     

     

           

     

     

    3.

    Share of net income from trusts (from L, U and C item 13)

     

     

             

     

     

    4.

    Farm management repayments (from C, N and R item 17)

     

     

                 

    5.

    Foreign entities (from K and B item 19)

     

     

     

           

     

     

    6.

    Gross foreign source income (from E and F item 20)

     

     

     

           

     

     

    7.

    Gross rent (from P item 21)

     

     

             

     

     

    8.

    Bonuses from life insurance companies and friendly societies (from W item 22)

     

     

             

     

     

    9.

    Forestry managed investment scheme income (from A item 23)

     

     

     

         

     

     

     

    10.

    Other income (from Y and V item 24)

     

     

     

         

     

     

     

    Total gross income (Add up each column.)

     

     

                 

    Step 3 Transfer totals to:

     

    (a) on
    worksheet 6

    (b) and (c) on worksheet 6

    (j) on
    worksheet 2

    (k) on
    worksheet 2

    (j) on
    worksheet 2

    (k) on
    worksheet 2

    (j) on
    worksheet 2

    (k) on
    worksheet 2

    Worksheet 2: Working out your sole and joint deductions

    Attention

    Warning:

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

    End of attention

    Worksheet 2 will help you to complete F, G and H item A3 by separating out deductions from joint income and identifying business deductions.

    Step 1 Complete column (b) in worksheet 2 by transferring the appropriate amount from your 2013 tax return for the items listed in column (a).

    Step 2 For each amount in column (b), write the amounts in columns (c), (d), (e) or (f).

    Apportion each amount in column (b) into columns (c), (d), (e) and (f) depending on the source of the income to which the deduction applies. If the deduction relates to income that came from:

    • a trust, show the amount in column (c)
    • you individually, show the amount in column (c) or (d) as appropriate
    • a partnership, show the amount in Worksheet 4
    • a joint income group, show the amount in column (e) or (f) as appropriate.

    If you have more than three joint income groups, duplicate columns (e) and (f) on a separate sheet of paper.

    Worksheet 2: Working out your sole and joint deductions

       

    From (b) work out how much of that deduction relates to solely earned and jointly earned income across these columns.

    Income group 1

    Income group 2

    Income group 3

    (a)

    (b)

    (c)

    (d)

    (e)

    (f)

    (e)

    (f)

    (e)

    (f)

    Deductions shown at the following labels:

    Deductions shown on your tax return

    Deductions from solely earned

    Deductions from jointly earned

    Deductions from jointly earned

    Deductions from jointly earned

    Non-business income

    Business income

    Non-business income

    Business income

    Non-business income

    Business income

    Non-business income

    Business income

    1.

    Low value pool deduction (from K item D6)

     

     

                 

    2.

    Interest deductions eg bank fees (from I item D7)

     

     

                 

    3.

    Dividend deductions (from H item D8)

     

     

                 

    4.

    Cost of managing tax affairs (from M item D10)

     

     

                 

    5.

    Other deductions relating to distribution (amount from X and Y item 13 that relates to share of net income from trusts only)

     

     

                 

    6.

    Farm management deductible deposits (from D item 17)

     

     

                 

    7.

    Foreign source income deductions (you included when calculating the amount shown at T, L, D, R, and M item 20)

     

     

                 

    8.

    Rent (from Q, F and U item 21)

     

     

                 

    9.

    Forestry managed investment scheme deductions (from F item D14)

     

     

                 

    10.

    Other deductions (from J item D15)

     

     

                 

    11.

    Personal services income deductions (from K and L item P1)

     

     

                 

    Total deductions: add up each column except (c)

     

     

    (g)

    (h)

    (i)

    (h)

    (i)

    (h)

    (i)

    Total gross income for each joint income group (transfer amounts from Worksheet 1)

         

    (j)

    (k)

    (j)

    (k)

    (j)

    (k)

    Joint income; for each joint income group, take (h) away from (j) and (i) from (k)

     

     

    Transfer amount at (g) to (d) on worksheet 6

    (l)

    (m)

    (l)

    (m)

    (l)

    (m)

    (n) is the total net income for each income group: add (l) and (m)

     

     

     

    (n)

    (n)

    (n) 

    Step 3 For each separate joint income group, you will have an (n) on worksheet 2 that is either positive or negative. For each income group you need to separately translate the worksheet 2 results to worksheet 6 using the instructions in table 1 or table 2 below as appropriate.

    If the amount at (n) for a joint income group is positive use table 1, if the amount at (n) is negative use table 2.

    Table 1: Amount at (n) on worksheet 2 is positive

    Result

    Action 1

    Action 2

    Amount at (m) is negative or 0

    Transfer amount at (n) to (e) on worksheet 6 and write 0 at (g) on worksheet 6 next to the correct joint income group.

    Write 0 at (f) on worksheet 6, next to the correct joint income group.

    Amounts at (l) and (m) are positive

    Transfer amount at (n) to (e) on worksheet 6 and write 0 at (g) on worksheet 6 next to the correct joint income group.

    Transfer amount at (m) to (f) on worksheet 6, next to the correct joint income group.

    Amount at (l) is negative and (m) is positive

    Transfer amount at (n) to both (e) and (f) on worksheet 6 next to the correct joint income group.

    Write 0 at (g) on worksheet 6 next to the correct joint income group.

    Table 2: Amount at (n) on worksheet 2 is negative

    Result

    Action 1

    Action 2

    Amount at (m) is negative and (l) is 0

    Write 0 at the joint income group for both (e) and (f) on worksheet 6, next to the correct joint income group.

    Transfer as a positive figure the amount at (n) to (g) on worksheet 6, next to the correct joint income group.

    Amount at (l) is positive and (m) is negative

    Write 0 at both (e) and (f) on worksheet 6, next to the correct joint income group.

    Transfer as a positive figure the amount at (n) to (g) on worksheet 6, next to the correct joint income group.

    Amount at (l) is negative and (m) is positive or 0

    Write 0 at both (e) and (f) on worksheet 6, next to the correct joint income group.

    Write 0 at (g) on worksheet 6, next to the correct joint income group.

    Amount at (l) is negative and (m) is negative

    Write 0 at both (e) and (f) on worksheet 6, next to the correct joint income group.

    Transfer as a positive figure the amount at (m) to (g) on worksheet 6, next to the correct joint income group.

    Worksheet 3: Working out your partnerships distribution

    Attention

    Warning:

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

    End of attention

    If you show partnership income at items 13, 19 or 20, then you must complete worksheet 3 and you may have to complete worksheet 4. Otherwise do not complete worksheets 3 and 4 and go to working out your adjustments.

    Worksheet 3 will help you to complete G and H item A3 by splitting your partnership income into business income and investment income.

    Step 1 Complete column (b) in worksheet 3 by transferring the appropriate amount from your 2013 tax return for the items listed in column (a).

    Step 2 Write in columns (c), (d) and (e) the amounts derived from a partnership that you have shown at items 13, 19 and 20 in column (b). The sum of (c), (d) and (e) must equal (b).

    Worksheet 3: Working out your partnerships distribution

    (a)

    Gross income amounts

    (b)

    Amount shown

    (c)

    Partnership (1)

    (d)

    Partnership (2)

    (e)

    Partnership (3)

    1.

    Primary production amount (from N item 13)

     

     

     

     

    2.

    Non-primary production amount (from O item 13)

     

     

     

     

    3.

    Partnership related foreign income (from items 19 and 20)

     

     

     

     

    Total partnership distribution (Total each column.)

     

    (f)

    (f)

    (f)

    Step 3 You need to work out for each partnership (including distributions your partnership received from another partnership) whether the income earned by the partnership was:

    • all from carrying on a business, see table 3
    • all investment, see table 4
    • a mixture of both, see table 5.

    You have finished worksheet 3 when you have taken these actions for each partnership.

    Table 3: Income for a partnership is all business

    Result Action

    Amount at (f) for the partnership is positive

    Transfer amount at (f) to (h) and (i) on worksheet 6, next to the correct partnership.

    Amount at (f) for the partnership is negative

    • Write 0 at (h) and (i) on worksheet 6 for that partnership
    • Write as a positive figure the amount at (f) in worksheet 4, next to the correct partnership.
     

    Table 4: Income for a partnership is all investment

    Result Action

    Amount at (f) for the partnership is positive

    Transfer amount at (f) to (h) on worksheet 6 for that partnership.

    Write 0 at (i) and (j) on worksheet 6, next to the correct partnership.

    Amount at (f) for the partnership is negative

    Write 0 at (h), (i) and (j) on worksheet 6, next to the correct partnership.

    Table 5: Income for a partnership that is partly carrying on a business and partly non-business investments

    Result Action

    Amount at (f) for the partnership is positive

    Transfer amount at (f) to (h) in worksheet 6.

    Transfer that part of the positive amount that is attributable to the partnership carrying on a business to (i) on worksheet 6.

    The amount transferred to (i) should not exceed the amount at (f).

    Write it next to the correct partnership.

    Amount at (f) for the partnership is negative

    Write 0 at (h) and (i) in worksheet 6 for that partnership.

    Write as a positive figure that part of the partnership loss that is attributable to carrying on a business at (f) on worksheet 4.

    The amount transferred to (f) should not exceed the amount at (f) on worksheet 3.

    Write it next to the correct partnership.

    Worksheet 4: Working out your partnership business deductions

    Attention

    Warning:

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

    End of attention

    You must complete worksheet 4 if, on your 2013 tax return, you show:

    • a partnership loss, where the partnership is carrying on a business, at item 13, 19 or 20, or
    • business deductions from partnership income.

    Otherwise do not complete worksheet 4. Go to worksheet 5.

    Worksheet 4 will help you to complete H item A3 by identifying business deductions related to partnerships.

    Include expenses in this worksheet only to the extent that they are related to a partnership that is carrying on business. Do not include expenses already shown as business deductions in worksheet 2.

    Step 1 Complete column (b) in worksheet 4 by transferring the appropriate amount from your 2013 tax return for the items listed in column (a).

    Step 2 For each amount in column (b) write the amounts in columns (c), (d) or (e) for each partnership. The sum of (c), (d) and (e) must equal (b).

    Exclude any deductions that relate to trust distributions.

    Worksheet 4: Working out your partnership business deductions

    (a)

    (b)
    Amount shown that relates to business income

    (c)
    Partnership (1)

    (d)
    Partnership (2)

    (e)
    Partnership (3)

    1.

    Partnership loss (transferred from Table 3 and Table 5 if so instructed)

     

    (f)

    (f)

    (f)

    2.

    Partnership and trusts: landcare and water facilities (included in amount shown at I and J item 13)

     

     

     

     

    3.

    Partnership and trusts: other deductions relating to distributions (included in amount shown at X and Y item 13 relating to partnership distribution only).

     

     

     

     

    4.

    Other deductions relating to partnership distributions (that you have not shown as business deductions on worksheet 2).

     

     

     

     

    Total business expenses (Total each column.)

     

    (j)

    (j)

    (j)

    Step 3 Transfer the amounts at (j) to (j) worksheet 6, next to the correct partnership.

    Worksheet 5: Working out your adjustments

    Attention

    Warning:

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

    End of attention

    You must complete worksheet 5 if you show any of the following amounts:

    • income at items 1, 2, 3, 4 (other than death benefits), B at item 12, IT1 or IT2 that is not attributable to employment in 2012–13 (for example, because you ceased work for that employer before 1 July 2012)
    • 2012–13 employment income or business income on your tax return, which you do not show at
      • worksheets 1 or 3
      • items 1, 2, 3, 4 (other than death benefits)
      • B at item 12, IT1 or IT2 of your tax return, or
      • P1 or P8 in your Business and professional items schedule for individuals 2013
       
    • deductions in relation to business income that are not shown at items P8 in your Business and professional items schedule for individuals 2013, and that you do not show in worksheets 2 or 4
    • personal services income at item P1 of your Business and professional items schedule for individuals 2013 which is not related to your employment or the carrying on of a business, or income at P8 that is not related to you carrying on a business.

    If you do not need to complete worksheet 5 continue to complete worksheet 6: Summary.

    Step 1 Additional eligible income

    Calculate the total of any employment income from 2012–13 or business income that you do not show:

    • at items 1, 2, 3, 4 (other than death benefits), B at item 12, IT1 or IT2 or
    • as income on your Business and professional items schedule for individuals 2013, or
    • on worksheets 1 or 3.

    Write the total at (k) on worksheet 5 and at (k) on worksheet 6.

    Step 2 Ineligible income

    Calculate the total of any income that was not from employment in 2012–13 or from business, which you show:

    • at items 1, 2, 3, 4 (other than death benefits), B at item 12, IT1 or IT2, or
    • as income in your Business and professional items schedule for individuals 2013.

    This includes income from employment that ceased before 1 July 2012.

    Write the total at (q) on worksheet 5 and at (q) on worksheet 6.

    Step 3

    Calculate any other adjustments that are needed to accurately reflect your total income, eligible income or business deductions.

    For example, if you have any business deductions other than those you included in the deduction items at item P8 in the Business and professional items schedule for individuals 2013, or which are taken into account as business deductions in worksheets 2 or 4, these should be added at (n) on worksheet 5 and at (n) on worksheet 6.

    An adjustment may also be appropriate if at an income item you have shown an amount that is net of deductible expenses, rather than recording your full assessable income, or if you have recorded an expense at a deduction item that is net of assessable income, rather than recording your full deduction.

    If this is the case, you will need to include these amounts at (l), (m), or (n) on worksheet 5 and worksheet 6 to make adjustments to item A3 for:

    • F (to adjust for assessable income)
    • G (to adjust for eligible income)
    • H (to adjust for business deductions).

    Worksheet 5: Working out your adjustments

    Additional eligible income

    (k)

    Ineligible income

    (q)

    Amount to include in total income

    (l)

    Amount to include in eligible income

    (m)

    Amount to include in business deductions

    (n)

    Transfer the amounts at (k), (q), (l), (m) and (n) from here to (k), (q), (l), (m) and (n) on worksheet 6.

    Worksheet 6: Summary

    Attention

    Warning:

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

    End of attention

    You must complete worksheet 6. It will show the amounts you need to enter at F, G and H item A3.

    Completing G item A3 Income from employment or business will ensure our super co-contribution and low income super contribution systems correctly calculate your employment income or income earned from carrying on a business.

    Worksheet 6: Summary

     

    Amount to include in total income

    Amount to include in eligible income

    Amount to include in business deductions

    Solely earned income that is not from employment or business

    (a)

       

    Solely earned employment or business income

    (b)

    (c)

    (d)

    Joint income group 1

    (e)

    (f)

    (g)

    Joint income group 2

    (e)

    (f)

    (g)

    Joint income group 3

    (e)

    (f)

    (g)

    Partnership 1

    (h)

    (i)

    (j)

    Partnership 2

    (h)

    (i)

    (j)

    Partnership 3

    (h)

    (i)

    (j)

    Additional eligible income from worksheet 5

     

    (k)

     

    Adjustments from worksheet 5

    (l)

    (m)

    (n)

    Total each column

    (x)

    (p)

    (z)

    Ineligible income from worksheet 5

     

    (q)

     

    Take (q) away from (p).

     

    (y)

     

    Transfer the amount at

    • (x) to F item A3 on your 2013 tax return and if 0 write C in the code box
    • (y) to G item A3 on your 2013 tax return; if this amount is negative write L in the loss box
    • (z) to H item A3 on your 2013 tax return.

    Glossary

    Attention

    Warning:

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

    End of attention

    Adjusted taxable income (ATI)

    The following amounts are included in the calculation of your ATI for determining eligibility for a low income super contribution:

    • your taxable income
    • your reportable employer superannuation contributions
    • your deductible personal superannuation contributions
    • your adjusted fringe benefits
    • certain tax-free government pensions or benefits you received
    • your target foreign income
    • your net financial investment loss
    • your net rental property loss

    less

    • any child support payments you provided to another.

    Business deductions

    Business deductions are all deductions which relate to a business that you carry on, your share of a loss from carrying on a business in a partnership, and deductions relating to expenses that you incur in relation to a distribution from a business partnership.

    Business income

    Business income is income you earn from carrying on a business either solely or in partnership. For the purposes of determining eligible income for Government super contributions purposes, distributions of business income from a trust or from a company in which you hold shares are not regarded as your business income.

    Most business income is included in the Business and professional items schedule for individuals 2013 at P8. However, that schedule instructs that some types of income should be included in other items in your tax return. In order to determine eligibility for Government super contributions we need to know your total business income, not just the amounts included at P8. Accordingly, we ask you to calculate these amounts in worksheets 1, 3 and 5.

    Eligible income

    To be eligible for Government super contributions, 10% or more of your total income (without a reduction for allowable business deductions) must be from eligible income, which is income from running a business, eligible employment or a combination of both.

    To get a Government super contribution for 2012–13, you must be an employee or in business during 2012–13. Common examples of eligible income are salary, allowances, lump sum payments, employment termination payments, reportable fringe benefits and reportable employer super contributions.

    Personal services income you show at item P1 of your Business and professional items schedule for individuals 2013 is treated as eligible income if the income is attributed to employment or business. However, if your personal services income does not relate to employment or the carrying on of a business, then it is ineligible income.

    Employment income

    To be eligible for Government super contributions, 10% or more of your total income (without a reduction for allowable business deductions) must be from eligible income. Eligible income is income that is attributable to employment that you carry on in 2012–13.

    For the purposes of working out your employment income for A3, an employee, in addition to its ordinary meaning, also includes a person who:

    • works under a contract that is wholly or principally for their labour
    • is paid as a member of an executive body of a company (for example, a director of the company)
    • is paid to perform or present, or to participate in the performance or presentation of, any music, play, dance, entertainment, sport, display or promotional activity or any similar activity involving the exercise of intellectual, artistic, musical, physical or other personal skills, or provides services in connection with such activities
    • is paid to perform services in, or in connection with, the making of any film, tape or disc or of any television or radio broadcast
    • holds an appointment, office or position under a Commonwealth, state or territory law, or under the Constitution
    • is in the service of the Commonwealth, or a state or territory (including members of the defence forces, or police force)
    • is a member of parliament (Commonwealth, state or territory).

    A person who holds office as a member of a local government council is not necessarily regarded as an employee of the council. They are only regarded as an employee if the local government council has decided that the salary of its members should be subject to pay as you go (PAYG) withholding.

    For the purposes of determining eligibility for Government super contributions, income that is attributable to employment is included as eligible income. This means that eligible income can include amounts that are compensatory (for example, for lost earnings) or Government incentives (for example, paid parental leave), where there is a connection between the employment activities and the payment. However, such payments are only eligible income for 2012–13 if the person remains an employee of the relevant employer for at least some part of 2012–13.

    Government super contributions

    Government super contributions include both super co-contributions and low income super contributions.

    Ineligible income

    To be eligible for Government super contributions, 10% or more of your total income (without a reduction for allowable business deductions) must be from eligible income, which is income from running a business, eligible employment or a combination of both. For the purposes of filling out A3, income is either eligible or ineligible. Ineligible income includes income from your investments.

    Joint income

    Joint income is any income you earned in conjunction with another person or entity. This may be interest from a jointly held bank account, dividends from jointly owned shares or rental income from a jointly owned rental property.

    Income you earn jointly with another person is treated as partnership income for income tax purposes. In many cases, a partnership return should be lodged, and individuals should return the partnership income less deductions at item 13 as partnership income or a partnership loss. However, if you were not in a partnership carrying on a business, you show your share of the income and expenses at the appropriate item on your own tax return. This would be the case if the only income derived jointly (or in common) with another person was:

    • rent from a jointly owned property
    • interest from a jointly held account
    • dividends from jointly held shares.

    For practical purposes, worksheets 1 and 2 also allow for the identification of joint income or deductions in relation to some other joint investments which you may have shown at other items.

    Joint income group

    You are in a joint income group if you owned income-producing assets with another person or persons. For example, you are in two joint income groups if:

    • your parents and you have a joint bank account, and
    • your spouse and you co-own rental properties.

    Low income super contribution

    This is a government measure to boost super savings. If your ATI does not exceed $37,000 and concessional contributions are made to your super account, you may be able to receive a low income super contribution. The payment will be 15% of the sum of your concessional contributions up to a maximum of $500.

    Concessional contributions include:

    • employer (super guarantee) contributions
    • other family and friends' contributions
    • salary sacrifice contributions
    • personal contribution amounts where you have been allowed a deduction
    • notional taxed contributions for individuals with a defined benefit interest

    but do not include:

    • contributions to constitutionally protected funds.

    For further information on 'concessional' contributions, see Super contributions – too much super can mean extra tax.

    You will be eligible for a low income super contribution if all of the following apply:

    • a concessional contribution is made by you or on your behalf, to a complying super fund or retirement savings account after 1 July 2012 (concessional contribution is as defined in the Income Tax Assessment Act 1997)
    • your adjusted taxable income is $37,000 or less
    • 10% or more of your total income (without a reduction for allowable business deductions) is from employment income, carrying on a business or a combination of both
    • you do not hold an eligible temporary resident visa at any time during the year, unless you are a New Zealand resident or holder of a prescribed visa

    Solely earned income

    Income you earned that was not joint income.

    Super co-contribution

    A government measure to boost super savings. If your total income is below $46,920 you may be able to receive the government super co-contribution by making eligible personal super contributions to your fund.

    Personal super contributions are amounts you choose to contribute to your super fund from your after-tax income. This is in addition to any employer contributions and does not include contributions made through a salary sacrifice arrangement.

    You will be eligible for the super co-contribution if all of the following apply:

    • you make a personal super contribution by 30 June 2013 into a complying super fund or retirement savings account (RSA) and don't claim a deduction for all of it
    • your total income is lower than $46,920
    • 10% or more of your total income (without a reduction for allowable business deductions) is from employment income, carrying on a business or a combination of both
    • you are less than 71 years old on 30 June 2013
    • you do not hold an eligible temporary resident visa at any time during the year, unless you are a New Zealand resident or holder of a prescribed visa
    • you lodge your 2013 tax return.

    Temporary resident

    You are eligible for super co-contributions and low income super contributions only if you do not hold an eligible temporary resident visa at any time during the year, unless you are a New Zealand resident or holder of a prescribed visa.

    If you are a non-resident, the income attributable to employment outside Australia will not be counted as eligible income.

    Total income

    Total income for the purposes of super co-contribution equals:

    • your assessable income plus
    • your reportable fringe benefits total plus
    • the total of your reportable employer super contributions for the income year less
    • any allowable business deductions.

    More information

    Attention

    Warning:

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

    End of attention

    Website

    Go to ato.gov.au for general tax information and to download publications and taxation rulings.

    Other services

    If you do not speak English well and need help from the ATO, phone the Translating and Interpreting Service (TIS) on 13 14 50.

    If you are deaf or have a hearing or speech impairment, you can phone the ATO through the National Relay Service (NRS) on the numbers listed below, and ask for the ATO number you need:

    • TTY users, phone 13 36 77. For ATO 1800 free call numbers, phone 1800 555 677.
    • Speak and Listen users, phone 1300 555 727. For ATO 1800 free call numbers, phone 1800 555 727.
    • Internet relay users, connect to the NRS at www.relayservice.com.auExternal Link
      Last modified: 04 Jul 2013QC 35242