The foreign income worksheet was modified in HandiTax 2021 to align with the ATO specifications requiring granular data to be transmitted to the ATO. All fields where data exists are now transmitted to ATO as part of the income schedule.
New fields included in the foreign income worksheet will transfer to item 20 in the Main form.
For more information on Foreign source income visit the ATO 's website.
Part A: Foreign employment income not shown on a PAYG payment summary
Foreign employment income or Exempt foreign income.
Gross amount/Exempt foreign income - Enter the Gross amount of foreign income received before tax (leave blank if using country conversion below). This is the amount of the assessable income derived from foreign sources, grossed up by the amount of the foreign tax.
Deductible expenses - Amount of foreign deductions claimed against this income. This the amount of deductions claimed by the entity for foreign income.
Foreign tax paid - Amount of foreign tax withheld. This is the value, for the tax offset credit for foreign tax paid on income, profits or gains that are included in the Australian assessable income.
Lump sum in arrears Year and Amount - Enter the foreign employment income non-payment summary lump sum in arrears amount. This is the calendar year in which a financial year ends.
Part B: Foreign entities Pension or annuity income without a UPP or Pension or annuity income with a UPP
Gross amount - Gross amount of foreign income received before tax (leave blank if using country conversion below).
Deductible expenses - Amount of foreign deductions claimed against this income.
Undeducted purchase price - Amount of foreign undeducted expenses against this income.
Foreign tax paid - Amount of foreign tax withheld.
Lump sum in arrears: Year and Amount - Lump-sum in arrears received.
Part C: Other foreign income
Gross rental amount - Amount of foreign rent income received before tax.
Deductible expenses - Amount of foreign deductions claimed against this income.
Foreign tax paid - Amount of foreign tax withheld.
Foreign financial investment details
Gross amount - Gross amount of foreign income received before tax.
Deductible expenses- Amount of foreign deductions claimed against this income.
Aust franking credits NZ - Amount of Aust franking credits from NZ company.
Foreign tax paid (excl NZ) - Amount of foreign tax paid excl. NZ.
Other foreign income details
Gross amount - Gross amount of foreign income received before tax.
Deductible expenses - Amount of foreign deductions claimed against this income.
Foreign tax paid - Amount of foreign tax withheld.
Country - Rate
If using the conversion, enter the country and rate, then complete the amounts on the second line only.
Country - Country code (Press F5 for a list).
Rate - Exchange rate for 1 AU dollar at time of transfer (max 4 digits before/after decimal point).
Example: Taxpayer has a foreign pension and is using the country rate conversion
Foreign tax offset - total foreign tax paid is $1,000 or less
If the total foreign tax paid is less than or equal to $1,000 after converting to Australian dollars, this can be entered without having to calculate the tax offset cap amount, but is limited to $1,000. The Foreign income offset is equal to the tax paid.
Foreign tax offset - total foreign tax is more than $1,000
If the foreign income tax paid is greater than $1,000 the claim can be limited to $1,000, and any excess will be lost.
Alternatively, the foreign income tax offset needs to be calculated, and the offset will be limited to the lesser of:
foreign income tax paid
foreign income tax offset limit
The limit is the difference between tax payable, including Medicare and Medicare levy surcharge, while disregarding other offsets on:
Australian taxable income including Medicare, less, Australian taxable income after excluding foreign exclusions.
Example: Taxpayer has Australian and assessable foreign income to include in his tax return.
Note: The Foreign Income Tax Offset is capped at $4,545, which is the limited to the full amount of the foreign income tax actually paid. If the taxpayer in the example had paid more than $4,830 in foreign tax (the capped amount) the additional amount of foreign tax paid would be capped at $4,830 and cannot be carried forward to claim in the future.
Interest in foreign assets valued at AUD$50,000 or more
At any time during the year, did you own, or have an interest in assets located outside Australia that had a total value of A$50,000 or more?
You need to type Y for N.