Other Information
With the return open, click the Other information tab to complete the remaining information labels:
- Item 9 - Capital allowances Depreciating assets first deducted in this income year
- Item 10 - Small business entity simplified depreciation
- Item 11 - Consolidation deductions
- Item 12 - National rental affordability scheme
- Item 13 - Losses information
- Item 14 - Personal services income
- Item 15 - Licensed Clubs only
- Item 16 - Life insurance companies and friendly societies only
- Item 18 - Pooled development funds
- Item 19 - Retirement savings accounts (RSAs) providers only
- Item 20 - Label J - Foreign income tax offset
- Item 21 - Research and Development tax incentive
- Item 22 - Early stage venture capital limited partnership (ESVCLP) tax offset
- Item 23 - Early stage investor tax offset
- Item 24 - Internet trading
- Item 25 - Reportable tax position
Overseas transactions or interests/Thin capitalisation
Changes to the thin capitalisation rules to prevent double gearing structures
On 5 April 2019, legislation was enacted to improve the integrity of the income tax law by modifying the thin capitalisation rules to prevent double gearing structures. Double gearing structures involve the use of multiple layers of ‘flow-through’ entities (such as trusts and partnerships) to issue debt against the same underlying asset.
These changes apply to income years starting on or after 1 July 2018.
The changes will affect entities with interests in trusts (other than public trading trusts) and partnerships, as the threshold for the purposes of the associate entity debt, associate entity equity, and the associate entity excess amounts has been reduced from 50% to 10%.
The changes also affect how the arm’s length debt amount is calculated. To determine both the independent lender and independent borrower amounts of the test, an entity must consider the debt-to-equity ratios of any other entity in which it has an interest.
These are mandatory questions and must be answered even if you do not have any overseas transactions or interests. Tax will roll over the answer from the previous year and where that is N, you must review the answers each year.
If the answer to questions 27, 28 or 29 is Y, then you must complete and lodge via PLS a current income year International dealings schedule (IDS):
- Item 26 - Label X - International related party dealings/transfer pricing
- Item 27 - Label Y - International dealings greater than $2 million
- Item 28 - Label Z - Overseas interests
- Item 28 - Label Z - Overseas interests
- Item 30 - Label I - Transactions with specified countries
Where the appropriate information is reported in the Company tax return you must complete an International dealings schedule 2018 (NAT 73345). The International dealings schedule may be completed in MYOB Tax and lodged with the Company return via PLS.
Overseas branch operations include:
- Business operations carried on by an Australian resident entity at or through a fixed place of business in another country.
- Business operations carried on by a foreign resident entity at or through a fixed place of business in Australia.
See for further information on the ATO website:
- International dealings schedule
- Foreign income return form guide (NAT 1840)
- Losses schedule instructions for the current income year.
CCH references
8-600 International aspects of consolidated groups
22.580 Overview of transfer pricing
22-700 Thin capitalisation - Overview