• Worksheet 5: Working out your adjustments

    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 2015–16 (for example, because you ceased work for that employer before 1 July 2015)
    • 2015–16 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 2016
       
    • deductions in relation to business income that are not shown at items P8 in your Business and professional items schedule for individuals 2016, 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 2016 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 2015–16 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 2016, 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 2015–16 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 2016.

    This includes income from employment that ceased before 1 July 2015.

    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 2016, 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.

      Last modified: 26 May 2016QC 48114