Section C: Deductions

Optionally complete the generic worksheet at this label for data entry and record keeping purposes. Refer to Generic Schedule / Worksheet.

Refer to Interest expenses within Australia on the ATO website.

Refer to Guide to the taxation of financial arrangements (TOFA) rules on the ATO website.

Refer to Interest expenses overseas on the ATO website.

The fund should generally withhold an amount of tax - withholding tax - from interest paid or payable to non-residents, and from interest which was derived by the resident through an overseas branch. The fund must remit these amounts to the ATO.

Even if the TOFA rules apply to the fund, show at label B all the interest incurred on money borrowed from overseas sources. This includes interest from financial arrangements subject to the TOFA rules.

If what you show at label B includes an amount brought to account under the TOFA rules, also complete item 16 Taxation of financial arrangements (TOFA).

Refer to Guide to the taxation of financial arrangements (TOFA) rules on the ATO website.

Refer to Salary and wage expense on the ATO website.

Show at label C the total salary, wage and other labour costs incurred in respect of employees employed by the trustee of the fund.

Refer to Capital works deductions on the ATO website.

Show at label D the deduction claimed for capital expenditure on special buildings, which includes eligible capital expenditure on extensions, alterations or improvements and structural improvements, such as fences, retaining walls and sealed drive ways.

Exclude capital expenditure for mining infrastructure buildings and timber milling buildings.

For more information on capital works deductions, refer to the ATO publication NAT71605 Fund Return Instructions Appendix 2: Capital works deductions, available on the ATO website.

Capital Works Deductions amounts integrate from the Capital works deductions worksheet (sbw). Integration from the sbw is either directly at label D or to the Rental Schedule. If you choose to integrate an entry in the sbw worksheet to 'rent', a Rental schedule must exist for this return.

Show at label E the deduction for decline in value of depreciating assets for taxation purposes.

Refer to Deduction for decline in value of depreciating assets on the ATO website.

The Depreciation worksheet is provided at this label to control the fund's assets. Refer to Depreciation worksheet (d).

To open a Depreciation worksheet:

1. Click label E.

2. Deduction for decline in value of depreciating assets amounts integrate from the assets values entered in the depreciation worksheet (d) where ‘Fund’ has been selected in the Integration tab of the depreciation worksheet.

The Depreciation (d) worksheet provides for an index of assets to be maintained including details of acquisition, disposal, Low Value Pool assets, private use and PC Effective life.

Show at label F the deduction for insurance premiums paid by a complying superannuation fund to provide benefits upon death or temporary or permanent disability of the member.

Refer to Death or disability premiums on the ATO website.

Show at label I the amount of investment expenses of a revenue nature incurred in the derivation of investment income, unless allowed by other specific income tax provisions. Do not include any amount that is shown at label J Management expenses and label Q Administration expenses.

Refer to Investment expenses on the ATO website.

Show at label J the amount of expenses of a revenue nature incurred in the management of the fund, unless the expense is more appropriately shown at another label.

Do NOT include investment management expenses. These expenses should be shown at label I Investment expenses.

Refer to Management expenses on the ATO website.

Show at label Q the amount of expenses of a revenue nature incurred in the administration of the fund, unless the expense is more appropriately shown at another label.

Refer to Administration expenses on the ATO website.

Refer to Forestry managed investment scheme deductions on the ATO website.

Show at label U the total amount of deductible payments made to an FMIS.

The amount at label U will integrate from the FMIS worksheet (fms) if used. Refer to Forestry managed investment scheme worksheet (fms).

Refer to Foreign exchange losses on the ATO website.

Show at label R deductible foreign exchange losses (from both foreign and domestic sources) made by the fund.

Show at label L the amount of all other deductions that do not fall into any of the other categories contained in Section C.

To open the Other deductions worksheet (otd):

1. Press [Alt+S] or click the label.

2. The Other Deductions (otd) worksheet contains repeatable Code, Description and Amount fields for other deductions not included in any worksheet. Press [Ctrl+Insert] to add lines.

3. To open one of the worksheets that make up other deductions, press [Tab] to the closed field and press [Alt+S]. The relevant worksheets are:

• The Distributions from partnerships worksheet (dfp)

• The Distributions from Trusts worksheet (dft)

• The Dividends schedule (div)

• Any Deductible balancing adjustments on disposal of a depreciating asset as calculated in the Depreciation worksheet (d).

If the fund claims exempt current pension income at item 10 label Y Exempt current pension income, expenses should be reduced to the extent that they are incurred in deriving the exempt current pension income.

Refer to Other Deductions on the ATO website.

Show at label M the tax losses the fund is claiming this year. The fund can only claim tax losses to the extent that its total assessable income exceeds total deductions (other than tax losses).

Refer to Tax losses deducted on the ATO website.

The fund may need to complete and attach a Losses schedule (BP) to its tax return.

Refer to Losses schedule on the ATO website.