AUSTRALIAN TAXATION NON-ASSESSABLE NON-EXEMPT INCOME (NANE)

- Income from hobbies

: Employee Share Schemes
- Employee share schemes provide employees with
benefits such as:
o Shares in the company for which they work
at a discount
o The opportunity to buy shares in the
company in the future (this is called a right
or option)
o In most cases, employees will be eligible for
special tax treatment, known as tax
concessions.
NOTE:
Exemption Concessions
- Provides for tax-free discounts of up to $1000to be
given to an employee or service provider per income
year
o Under employee share scheme
o Ordinary shares
o At least 75% employees are entitled
o Employee must not be in a position to
control 5% of the votes
Deferral Concession
- Provides for the deferral of tax on the discount for
up to ten years
- Gambling wins
- Gifts unrelated to services rendered (e.g. birthday
gifts)
- Lottery wins ( unless investment related lottery)
- Bequest under a will
- Repayment of loan
- Increases in the value of property, without any
realization through conversion into money or other
property (excluding trading stocks)
NOTE:
Competition Prizes is not an income unless:
- The price is directly related to the taxpayer’s
business
- Directly related to the taxpayer’s employment
- Extensive personal exertion and skills are involved
NOTE:
- Pension for Seniors is not part of the assessable
income.
INDIVIDUAL INCOME TAX – DEDUCTIBLE EXPENSES
 Any item or expenditure deducted from assessable
income in order to minimize the amount of income
tax payable.

: Deferred Non-commercial business losses POSITIVE LIMBS (ALLOWED DEDUCTIONS)

- This item is losses incurred while carrying on a - The goal is to increase or produce your taxable
business (as a sole proprietor or as an individual revenue
partner in partnership)
NEGATIVE LIMBS (DENIED DEDUCTIONS)
STATUTORY INCOME (SPECIFIC TAX LEGISLATION) - Capital in nature
- Net Capital Gains - Private or domestic
- Trust Income - Incurred in relation to exempt or NANE income
- Partnership Income - Law prevents you from deducting it
- Dividends
- Employment Allowance (e.g, car) 3 GOLDEN RULES AS TO DEDUCTIBILLITY
- Leave Payment (e.g. holiday) - Not reimbursable by the employer
- Directly related to earning the income (not including
EXEMPT INCOME private expenses)
- Government superannuation co-contribution - Substantiated (>$300)
- Family Tax Assistance, Childcare benefits
- Some overseas employment income
- Payment to ADF personnel in war zones
- Exempt fringe benefits
- Payments to part time ADF member
- Some social security payments (e.g. disability, carers)
- Welfare (e.g, rent assistance and maintenance
payments)