Income tax returns (ITRs) and the taxation notice of assessment (NOA) 043-03070060

Item

Description

1

Personal Income Tax Return (Tax I Form)

What is it?

The Personal Income Tax Return is the form lodged with the Australian Taxation Office (ATO) to declare the taxable income of the person who may be a wage/salary earner.

It is also used to provide details relating to a business operated as a sole trader.

Why does Services Australia require it?

When assessing business income, the Personal Income Tax Return helps to identify the type of business run by the customer.

It provides details of all sources of income for the person and sole trader business, and a summary list of business expenses and deductions. Not all expenses are allowable deductions under Social Security Law.

It shows other types of income paid to the person by a private trust or private company that they may be involved in such as wages and Director's Fees.

2

Partnership Tax Return - (Tax Form P)

What is it?

The Partnership Income Tax Return is the form lodged with the Australian Taxation Office (ATO) to declare the taxable income of a partnership business.

Although partnerships lodge tax returns, the partnership itself does not pay any tax.

Why does Services Australia require it?

It provides details of all sources of income for the partnership and a summary list of business expenses and deductions. Not all expenses are allowable deductions under Social Security Law.

It shows how the profit or loss of a partnership is split amongst the partners.

3

Company Tax Return (Tax C Form)

What is it?

The Company Income Tax Return is the form lodged with the Australian Taxation Office (ATO) to declare the taxable income of a company.

Why does Services Australia require it?

It provides details of all sources of income for the company and a summary list of business expenses and deductions. Not all expenses are allowable deductions under Social Security Law.

It shows how the profit or loss of the company is distributed to shareholders in the form of a dividend. Company profits distributed as dividends are also included as taxable income of the customer.

It shows other types of income paid to shareholders by the company such as wages and Director's Fees.

4

Trust Income Tax Return (Tax Form T)

What is it?

The Trust Income Tax Return is the form lodged with the Australian Taxation Office (ATO) to declare the taxable income of a trust.

Generally, profits earned by a trust are distributed amongst beneficiaries or unit holders in the trust and taxed in the hands of the customer.

Where a trust retains some or all of its profit, the amount is taxable as income of the trust at the highest personal marginal tax rate, plus Medicare levy. A trust cannot distribute a loss to beneficiaries/unit holders.

Why does Services Australia require it?

It provides details of all sources of income for the trust and a summary list of business expenses and deductions. Not all expenses are allowable deductions under Social Security Law.

It shows how the profit or loss of the trust is distributed to beneficiaries and it lists all beneficiaries who receive distributions of income in the tax year.

It shows other types of income paid to beneficiaries by the trust such as wages and Director's Fees.