H1 – Credit for interest on early payments – amount of interest
Write at H1 only the calculated interest amount of 50 cents or more for early payment. Do not show actual payments.
Interest may be payable where an actual payment is made on account of certain tax liabilities more than 14 days before the due date of payment. Amounts that may attract early payment interest include payments of:
- income tax
- shortfall interest charge
- interest payable under section 102AAM of the ITAA 1936.
Amounts that are not directly paid to us, but are reduced by the crediting or applying of an amount do not attract early payment interest. These amounts include:
- credit for instalments payable under the PAYG instalment regime
- credit for amounts withheld from withholding payments under the PAYG withholding regime
- an overpayment of other income tax liabilities
- a running balance account (RBA) surplus
- any other credit entitlement arising under a taxation law.
Early payment interest is also not payable on any part of the payment that:
- exceeds the amount due
- attracts interest on overpayment under Part IIIA of the Taxation (Interest On Overpayments And Early Payments) Act 1983.
Early payment interest is calculated from the date the early payment is made to the date the amount becomes due and payable. However, where an amount that is paid early is refunded before the day it becomes due and payable, interest does not accrue for any period after the day it is refunded.
Date of payment is the date:
- shown on the receipt
- the payment is posted to us, plus three business days, or
- shown on the taxpayer’s bank statement where payment is made through direct debit; that is, electronic funds transfer (EFT).
|
Quarter |
Interest rate (pa) |
|---|---|
|
Jul–Sep 2021 |
0.04% |
|
Oct–Dec 2021 |
0.01% |
|
Jan–Mar 2022 |
0.04% |
|
Apr-Jun 2022 |
0.07% |
If the early payment extends over two or more interest periods, calculate the interest for the number of days in each period.
Interest is calculated as follows:
Keep a record of the amount of early payment interest claimed. This interest is assessable income in the income year it is paid or credited against another liability.
H2 – Credit for tax withheld – foreign resident withholding (excluding capital gains)
Only complete H2 if the amount was withheld in Australia and remitted to the ATO.
Write at H2 the total tax withheld from payments made to the company that were subject to foreign resident withholding (excluding capital gains).
This includes any share of credits received by the company from a partnership or trust.
If an amount of tax withheld is shown at H2, ensure that you include the corresponding gross payment at Income, B Gross payments subject to foreign resident withholding item 6, or the corresponding gross distribution from a partnership or trust at Income, D or E item 6.
Only complete H2 if the company is a foreign resident. An Australian resident should not claim at H2 a foreign income tax offset (FITO) for foreign tax paid on foreign source income.
Do not include credits for foreign resident capital gains withholding at H2. Include these at H8 Credit for foreign resident capital gains withholding amounts.
H3 – Credit for tax withheld where ABN is not quoted
Write at H3 the total tax withheld from payments made to the company that were subject to withholding where an ABN was not quoted.
This amount equals the sum of the amounts shown in the relevant ‘tax withheld’ boxes on the Non-individual PAYG payment summary schedule 2022. For instructions on completing the schedule, see Non-individual PAYG payment summary schedule 2022.
Do not include any share of tax withheld from a partnership or trust distribution where an ABN was not quoted. This is shown at H7 Other credits.
If an amount of tax withheld is reported at H3, declare the corresponding gross payment at Income, A Gross payments where ABN not quoted item 6.
H4 – Tax withheld from interest or investments
Write at H4 any amounts withheld from investment income by an investment body because the company did not provide a TFN or ABN and that have not been refunded already to the company.
Keep the following details of credits for amounts withheld from investments:
- all documentation issued by the investment body detailing payments of income and any amounts withheld from those payments
- details of any amounts withheld from an income payment made to the company and subsequently refunded by the investment body.
Keep the following details of refund receipts:
- amount of refund
- date of refund
- investment reference number; for example, the bank account number of the investment relating to the refund.
H5 – Credit for TFN amounts withheld from payments from closely held trusts
Write at H5 the total amounts withheld from payments where a TFN has not been provided to a trustee of a closely held trust.
If amounts have been withheld from distributions to the company under these rules, the company is required to receive a payment summary in the approved form from the trustee.
For more information, see TFN withholding for closely held trusts.
H7 – Other credits
Write at H7:
- the company’s share of credit from a partnership or trust for tax withheld where an ABN was not quoted
- the company’s share of credit for tax paid by a trustee on net income
- for RSA providers, interest on no-TFN tax offset. Write on a schedule of additional information the amount of interest on no-TFN tax offset that you included at H7. Attach the schedule to your tax return.
For more information, see Interest on no-TFN quoted tax offset.
Do not include at H7 those credits included at J Foreign income tax offset item 20. Also, do not include at H7 any amounts that relate to PAYG instalments. Include these at K PAYG instalments raised.
Do not include credits for foreign resident capital gains withholding at H7. Include these at H8 Credit for foreign resident capital gains withholding amounts.
H8 – Credit for foreign resident capital gains withholding amounts
Write at H8 the total amount of tax withheld from payments to the company that were subject to foreign resident capital gains withholding in Australia.
You should only claim at H8 a credit equal to the amount of foreign resident capital gains withholding paid by a purchaser to the ATO on your behalf. The ATO would have issued you with confirmation of this amount.
Do not include credits for other foreign resident withholding at H8. Include these at H2 Credit for tax withheld – foreign resident withholding.
Continue to: Calculation statement labels I, K and S