2006/2007 Income Tax Return Checklist
2007 — Individual Tax Returns
- Income
Gross salary, wages, allowances, benefits, earnings, tips and director’s fees
Income from business activities
PAYG payment summary amounts
Any non-cash benefits received
Lump sum and termination payments [All documentation should be provided, including an ETP payment summary from the employer or fund]
Government social security payments, including pensions, unemployment and sickness benefits
Capital gains from CGT asset sales (e.g. shares and real estate) [Information relating to dates and costs associated with acquisition and disposal will be required to determine the capital gain (if any). Remember that individuals, companies, trusts and superannuation funds can save tax if they qualify for the various CGT concessions]
Annuities, including allocated pensions
Income from trusts and partnerships [Statements of distribution should be provided]
Rental income
Interest and dividends (franked or unfranked) including any tax deducted [Dividend distribution statement will be required to confirm the dividend received]
Foreign source (employment and pension) income [Details of any foreign tax paid will be required]
Personal services income [Individual contractors who operate through a company or trust can potentially be taxed personally on the income instead of income being taxed at the company or trust level]
- Deductions
Investment and property expenses [Carefully detail interest claims]
Professional subscriptions (not including sporting or social clubs)
Expenditure records related to a taxpayer’s employment, such as work-related motor vehicles, self-education, protective clothing, uniform expenses and home office expenses
Donations of $2 and over, depending on the recipient
Superannuation contributions made by self-employed persons and those without employer superannuation support
Tax agent’s fees and other accounting and tax audit fees associated with managing tax affairs
Special deductions (e.g. Australian films, investment shelters and forestry-type schemes)
Bank fees (where the credit or deposit represents assessable income)
Un-recouped prior year losses
Non-commercial losses [Individuals must satisfy one of four tests to offset losses from certain non-commercial business activities against other income. A prime example is an employee who seeks to offset hobby-type farming or other business losses against salary or investment income]
Sickness and accident insurance premiums, provided the premium incurred is against the loss of income
- Rebates
Details of private health insurance, unless the premium is net of the rebate [Statement from health insurance provider will be required to determine entitlement to rebate]
Details of superannuation contributions where no tax deduction can be claimed (maximum rebate of $540 for $3,000 superannuation spouse contribution)
Any changes in dependants [Income of spouse will be required]
Details of any income received in a lump sum which was accrued in earlier income years (e.g. assessable pensions)
Details of medical expenses where the total exceeds $1,500 [Tax offset of 20% available]
Superannuation co-contributions for contributions made by eligible employees [Assessable income must be less than $58,000]
Note: Low income taxpayers with a dependent child (under 21) or qualifying dependent student should check to see if they are eligible for Family Tax Assistance.
2007 — Companies, Partnerships, Trusts and Other Businesses
- Income
Trading income
Other income (e.g. rent, interest, royalties)
Stock on hand (and basis of valuation) — note any obsolete stock
Work in progress
Primary producer subsidies (if assessable)
Capital gains from CGT assets sold (e.g. real estate) [Documentation should include dates and costs associated with acquisition and disposal]
Dividends [Details of any franking credits will be required]
Income from foreign sources [Details of foreign tax paid will be required]
- Deductions
Losses can no longer be transferred between group companies
Repairs and maintenance (not capital)
Salaries, including fringe benefits
Fringe benefits tax paid
Rates, land taxes and insurance premiums
Advertising expenses
Interest on borrowed monies
Deductions relating to foreign-source income are only deductible against foreign income of a similar class
Prepayments are no longer immediately deductible, unless under $1,000 or required to be prepaid by law
Retirement payments and golden handshakes
Bad debts actually written off during the year
Donations of $2 and over, depending on the recipient
Commissions
Legal expenses (not capital)
Lease expenses for motor vehicles, premises and equipment
Losses from previous years
Superannuation contributions
Subscriptions
Car expenses [Remember to include petrol, repairs and parking and maintain a log book where necessary]
Tax agent’s fees and other accounting and tax audit fees
Royalties paid [Only deductible where withholding tax has been paid]
Travel expenses [Details of the purpose and destination of any interstate or overseas trip should be provided. Expenses must be fully documented where travel involves at least one night away from home. Travel diaries should be included where travel exceeds five nights]
Eligible research and development expenditure by registered R&D company
Bank fees (where the credit or deposit represents assessable income)
Borrowing costs which are deductible over the shorter of five years or the life of the loan/facility
Blackhole expenditure which may be deductible over five years
- Liabilities
New loans taken out during the year and their purpose, including any new lease or hire purchase agreements
Statements from the lending authority detailing the opening and closing balances of existing loans during the financial year
Provisions for long service leave and annual leave
Creditors on hand at the end of the financial year
Details of loan accounts to directors, shareholders, beneficiaries and partners
Accrued expenses (e.g. audit fees, interest payments and bonuses) and unearned revenue
Commercial debts forgiven
- Assets
Details of depreciable assets acquired and/or disposed of during this income year, including:
- type of asset
- date of acquisition/ disposal
- consideration received/paid
Details of CGT assets acquired, including the purchase price and other related costs
Lease commitments
Debtors on hand at the end of the financial year
Commercial debts forgiven
Division 7A interest and repayments made on any prior year loans to shareholders and associates
- Other Information Required
Franking account details/movements
Overseas transactions with related parties
Exchange gains/losses
Private companies — remuneration or loans to directors, shareholders and their relatives
Changes to the capital of the company
Whether family trust elections have been made in relation to trusts
Consider if a group of companies should consolidate for tax purposes
