From HandiTax 2020 version 1.00 (June 2020), all fields where data exists at item 24 transmit to the ATO. Existing income codes S and N have been removed from category 1 and replaced with the following.
Other income
Enter the type of income: W, F, S, B, P or R
W Winnings - Benefits or prizes from investment-related lotteries and some game-show winnings. You must include at this item the value of benefits or prizes you received from an investment-related lottery offered by an investment body such as a bank, building society or credit union. Prizes can include cash, low-interest or interest-free loans, holidays or cars. Do not include prizes won in ordinary lotteries, for example, lotto draws, caskets and raffles. Do not include prizes won in game shows unless you regularly receive appearance fees or game-show winnings.
F Foreign exchange - Unless you carried on a business and have included all your foreign exchange gains (forex gains) in calculating your business net income or loss at item 15, your forex gains must be shown at this item (except any foreign source forex gains that you have included at item 20).
S Traditional securities - Gains, on the disposal or the redemption of traditional securities, that are assessable under section 26BB of the ITAA 1936.
B Assessable balancing adjustment - You must include at this item any assessable balancing adjustment when you stop holding a depreciating asset (for example, when it is sold, lost or destroyed) for which you have claimed a deduction for depreciation or decline in value in previous years. You may be entitled to a deduction if an employee or agent misappropriates some or all of the amount that you received, or were entitled to receive, as a result of you no longer holding the depreciating asset. Note: Low value invest/ rental is only applicable to ‘Assessable balancing adjustment’. For more information please see, ATO website - 24 Other Income.
P Working Progress - work-in-progress amounts assessable under section 15-50 of the Income Tax Assessment Act 1997 that you received and have not included at item 15 Net income or loss from a business.
R Reimbursements - reimbursements of tax-related expenses (including amounts imposed by us as an interest charge) or election expenses which you have claimed as a deduction
Note: Lump sum payments in arrears will automatically transfer to item 24 category 1, click here for more information on lump sum payments in arrears.
Category 2 (ATO interest)
Remissions of the ATO interest charge that you can claim or have claimed as a deduction.
Category 3 (FHSS) Assessable First home super saver released amount
You must include the assessable FHSS released amount shown on your payment summary as assessable income in your tax return for the year in which you request the ATO to issue a release authority. You will also need to include the tax withheld amount so that you pay the correct amount of tax. Complete the tax withheld - assessable FHSS released amount at label S.
Category 4
Type of income must be selected. Select from the following:
S - Australian government Payment
O - Other
I - Investment income
Category 4 descriptions include:
Any income not described in category 1, 2 or 3.
lump sum payments in arrears of Australian pensions or annuities referred to in item 7 and foreign pensions or annuities which have or had an undeducted purchase price
a non-qualifying component of an eligible termination payment.
benefits from an employee share scheme.
royalties
taxable scholarships, bursaries, grants or other educational awards.
balancing adjustment profit from the disposal, loss or destruction of the taxpayer's car payments under a sickness or accident insurance policy, except for payments already shown at items 1 or 2.
interest from infrastructure borrowings.
jury duty fees, unless these payments have been reimbursed to the taxpayer's employer.
any other assessable income.
Taxable professional income
If you are a special professional, you must include your taxable professional income at this item. A special professional is an author of a literary, dramatic, musical or artistic work, an inventor, a performing artist, a production associate or an active sportsperson. As a special professional, you may be entitled to a concessional rate of tax where your taxable income includes certain amounts of professional income which, when added to your other income, moves you into a higher tax bracket.
You are entitled to this concession in 2019–20 if:
you were an Australian resident
you were a special professional, and
your taxable professional income was more than $2,500 in the first year that this concession applied.
To work out your taxable professional income, see ATO website: Income averaging for special professionals .
Example: Taxpayers professional income:
Enter the Taxable professional income: Description.
Enter the Taxable professional income - Amount.
Income already included - Enter special professional taxable income already included elsewhere on this return
Deductible expenses - Enter deductible expenses for special professional taxable income
Expenses already included - Deductible expenses for special professional taxable income included elsewhere on this return.
Note: The following information is of a general nature. Please contact the ATO for advice specific to your client's circumstances.