15 - Net income or loss from business 2012

Did you derive income or incur a loss from any business?

NO	Go to question 16 - Deferred non-commercial business losses, or   return to main menu Individual tax return instructions
YES	Read below.

This question covers:

• income or a loss from a primary production business
• income under a pay as you go (PAYG) voluntary agreement
• income from which an amount was withheld because you did not quote your Australian business number (ABN)
• income you derived as a foreign resident from which an amount was withheld because it was subject to foreign resident withholding
• income of an independent contractor working under a labour hire arrangement
• income from the following specified payments 
  
  • payment for tutorial services provided for the Indigenous Tutorial Assistance Scheme of the Department of Education, Employment and Workplace Relations
  • payment for translation and interpretation services provided for the Translating and Interpreting Service National of the Department of Immigration and Citizenship
  • income as a performing artist in a promotional activity
   
• any other business income, such as income from being a sole trader.

A specified payment is a payment specified in tax law for PAYG withholding purposes.

You need to know

You carry on a primary production business if you carry on a business in any of the following:

• cultivating or propagating plants, fungi or their products or parts (including seeds, spores, bulbs and similar things) in any physical environment
• maintaining animals for the purpose of selling them or their bodily produce (including natural increase)
• manufacturing dairy produce from raw material you produced
• conducting operations relating directly to taking or catching fish, turtles, dugong, b che-de-mer, crustaceans or aquatic molluscs
• conducting operations relating directly to taking or culturing pearls or pearl shell
• planting or tending trees in a plantation or forest that are intended to be felled
• felling trees in a plantation or forest
• transporting trees, or parts of trees, that you felled in a plantation or forest to the place
  
  • where they are first to be milled or processed, or
  • from which they are to be transported to the place where they are first to be milled or processed.
   

What you may need

These publications may help you to correctly complete this item:

• Taxation Ruling TR 92/18 - Income tax: bad debts
• Taxation Ruling TR 93/30 - Income tax: deductions for home office expenses
• Taxation Ruling TR 96/7 - Income tax: record keeping - section 262A - general principles
• Taxation Ruling TR 96/11 - Income tax: record keeping - taxi industry - guidelines for recording taxi takings
• Taxation Ruling TR 97/11 - Income tax: am I carrying on a business of primary production?
• Taxation Ruling TR 97/23 - Income tax: deductions for repairs
• Taxation Ruling TR 2005/9 - Income tax: record keeping - electronic records
• Guide to depreciating assets 2012 (NAT 1996)
• Concessions for small business entities (NAT 71874).

Completing this item

Part A

Business and professional items schedule for individuals 2012 and Individual PAYG payment summary schedule 2012

Step 1

Complete the Business and professional items schedule for individuals 2012, and attach it to page 3 of your tax return. If you do not attach your schedule, we will send your tax return back to you and will not consider that you have lodged it until it is returned with all schedules attached. We may apply the failure to lodge on time penalties if this results in your tax return being lodged after the due date. Do not include any of your calculations on your tax return. When you attach your schedule to page 3 of your tax return, print X in the Yes box at Taxpayer's declaration question 2b on page 12 of your tax return.

Step 2

If you received business income from which tax was withheld, complete the Individual PAYG payment summary schedule 2012 and attach it to page 3 of your tax return. Print X in the Yes box at Taxpayer's declaration question 2a on page 12 of your tax return.

Part B

Did you derive income or incur a loss from a primary production business?

NO	Go to part C.
YES	Read below.

Step 1

Transfer your net income or loss from a primary production business shown at Y item P8 on your Business and professional items schedule for individuals 2012 to B item 15 on page 14 of your tax return. Do not show cents.

Step 2

If you made a loss, print L in the LOSS box at the right of B item 15.

Step 3

If you made a loss in 2011-12 from one or more business activities, check that you have completed items P3 and P9 in the Business and professional items schedule for individuals 2012.

Part C

Did you derive income or incur a loss from any non-primary production business?

NO	Go to part D.
YES	Read below.

Step 1

Transfer your net income or loss from a non primary production business shown at Z item P8 on your Business and professional items schedule for individuals 2012 to C item 15 on page 14 of your tax return. Do not show cents.

Step 2

If you made a loss, print L in the LOSS box at the right of C.

Step 3

If you made a loss in 2011-12 from one or more business activities, check that you have completed items P3 and P9 in the Business and professional items schedule for individuals 2012.

Part D

In your calculation of total business income in the Business and professional items schedule for individuals 2012, did you include income from which an amount of tax was withheld at A, B, C, D, E, F, N or O item P8?

NO	Go to Check that you have ...
YES	Read below.

1 Did you have any amounts of tax withheld under a pay as you go (PAYG) voluntary agreement?

NO	Go to 2 below.
YES	Read below.

Add up all the amounts on your Individual PAYG payment summary schedule 2012 shown in the Tax withheld boxes where you have printed V in the TYPE box. These amounts must correspond with the payments shown at E and F item P8 on the Business and professional items schedule for individuals 2012. Write this total at D item 15. Do not show cents.

2 Did you have any amounts of tax withheld because you did not quote your Australian business number (ABN)?

NO	Go to 3 below.
YES	Read below.

Add up all the amounts on your Individual PAYG payment summary schedule 2012 shown in the Tax withheld boxes where you have printed N in the Type box. These amounts must correspond with the payments shown at C and D item P8 on the Business and professional items schedule for individuals 2012. Write this total at W item 15. Show cents.

3 Did you, a foreign resident, have any amounts of tax withheld because your income was subject to foreign resident withholding?

NO	Go to 4 below.
YES	Read below.

Add up all the amounts on your Individual PAYG payment summary schedule 2012 shown in the Tax withheld boxes where you have printed F in the Type box. These amounts must correspond with the payments shown at A and B item P8 on the Business and professional items schedule for individuals 2012. Write this amount at E item 15. Show cents.

4 Did you have any amounts of tax withheld because you received income:

• working under a labour hire arrangement, or
• from a specified payment?

NO	Go to Check that you have ... below.
YES	Read below.

Add up all the amounts on your Individual PAYG payment summary schedule 2012 shown in the Tax withheld boxes where you have printed S in the Type box. These amounts must correspond with the payments shown at N and O item P8 on the Business and professional items schedule for individuals 2012. Write this amount at F item 15. Do not show cents.

Check that you have ...

• read the publication Business and professional items 2012
• completed the Business and professional items schedule for individuals 2012 and attached it to page 3 of your tax return
• transferred the amounts from Y and Z item P8 on your Business and professional items schedule for individuals 2012 to B and C item 15 respectively on your tax return (if these amounts are losses then check that you have printed L in the LOSS boxes at the right of B and C).
• printed X in the Yes box at Taxpayer's declaration question 2b on page 12 of your tax return.

If you received business income from which tax was withheld also check that you have:

• completed the Individual PAYG payment summary schedule 2012 and attached it to page 3 of your tax return
• written amounts at D, W, E and F item 15, if required
• printed X in the Yes box at Taxpayer's declaration question 2a on page 12 of your tax return.

Where to go next go to question 16 - Deferred non-commercial business losses.   return to main menu Individual tax return instructions   go back to 14 - Personal services income (PSI)