This worksheet records the details of interest received from all sources.
Where that interest is co-owned with another taxpayer, a Sharing function is provided.
What do you need to be able to fill in this worksheet?
Statements detailing the amount of interest paid or credited to you from any source in Australia. This includes accounts and term deposits held with financial institutions in Australia.
It also includes:
- Interest from your children's accounts
- Interest you may have received from Australian Taxation Office.
Non-residents are those taxpayers who, while they live in Australia, are not Australian residents for tax purposes.
You don't include interest where tax was deducted at source by the financial institution. No further tax is payable on this income in Australia.
If withholding tax was not deducted, then enter that interest at this item. We'll include the withholding amount taxed at 10% on the dollar in your F4 estimate.
When completing the $ amount fields:
- All the $ fields accept cents, you must enter the decimal point before the cents
We'll only round the interest received amounts
TFN amounts are shown in dollars and cents and the total isn't rounded
We'll filter the amounts to the relevant labels in the income tax return.
You can use the Pre-fill Manager functionality for importing details and amounts of interest earned by your individual taxpayers. Details and amounts pre-filled are shown in the Tax Office Pre-filled Report Data fields.
You can view these reports in PDF format. The information contained in them can pre-fill into your client's income tax return. See Pre-fill Manager.
Pre-fill is dependent on ATO data available at the time of download. Once pre-filled:
- Press F3 to validate the return
- Review the list of imported values and agree those values pre-filled in the return
- Correct any validation errors prior to completion and lodgment.
As the pre-fill file contains only the taxpayer's share of interest, you'd only use that functionality if:
- you were not using the ATO Pre-fill, or
- the taxpayer had earned interest not yet reported to the ATO.
|Financial institution, branch and account number|
You need these details for record keeping purposes.
Three sets of fields are provided. Press Ctrl+Insert to create additional sets of fields or Ctrl+Delete to delete unwanted inserted groups.
This is the amount of tax withheld for failure to quote a tax file number (TFN).
We'll include the total TFN amount withheld in the taxpayer's F4 estimate of tax payable/refundable.
|Gross: This is the full amount of the interest income received from financial institutions or loan repayments.|
Apportioned: This is the amount earned by the taxpayer. If not shared, you'll see the full amount.
If you hold a joint account with another taxpayer, entering Y opens the Index of Joint Owners (the Sharees). See Sharing interest income example below.
|Early payment interest credit|
This is the total amount of interest received from the ATO when you pay various tax liabilities ten or more days before the due date for payment.
We'll store this amount from the previous year and then roll it forward into the int for inclusion in taxable income in the current year.
|Total share for this return|
This field shows the amount for the taxpayer's return.
We'll filter this amount to the labels in the relevant return and include it in taxable income.
|Interest deductions||This is to enter a description for the type of deduction and its amount.|
|Total interest deductions|
This is the total of all interest deduction transactions.
If the total interest and dividend deductions are greater than $4,999, you must complete and lodge the ATO schedule BJ–Interest and dividend deductions.
The ATO is decommissioning the BJ–Interest and dividend deductions schedule as at 30 June 2018. Therefore, the above instruction remains valid for interest and dividend deductions >$4,999 claimed before 1 July 2018.
If you select Y at the Share Account? field follow these steps to create the share transaction details:
- From the Index of Joint Owners window, click New. The Share details window opens
- In the General tab, press F10 in Share toor click the ellipsis ... to open the Select return index
- Select the return to receive the share
- Enter the percentage share for the taxpayer receiving the share (the Sharee)
- Press F6 to save the entry, then click Cancel to return to the index
- Click Close if there are no other joint owners. Otherwise select New and repeat steps 2 to 5
- We'll filter the taxpayer's share through to the labels in the relevant income tax return
- We've created a Received from: interest transaction in the Sharee's return.
Joint Owner: We'll display this description only when Share account? is Y
See Index of Joint Owners to learn how to Edit or Delete Shared transaction entries.
- The return of the taxpayer receiving the share must be at a status of In progress AND have a tax number (TFN).
- If you've shared a transaction you can't edit it in the Sharee's return. You'll need to make any required change in the return of the taxpayer making the share (the host).
The printed worksheet shows the details of the transaction for the Host return and the identifying details of the return shared to—the Sharee.
The Sharee's return shows the details of the transaction and the identifying details of the return shared from—the Host return.
If withholding tax was not deducted from the interest earned, the F4 estimate calculates tax on the interest amount at 10 cents in the dollar.
If the financial institution deducted tax at source, then no further tax is payable on this income in Australia, and you should not enter that interest here.
Early payment interest credit
The ATO term for this credit is Interest on early payments. It is a credit received from the ATO for the taxes you owed to the ATO but paid before the due date.
We'll roll this interest amount over and include it in the following year's income.
Total share for this return
The total of all entries is filtered through to labels L and M. The label L amount is truncated on integration per ATO specifications.
Quick access to Deductions
Type Y and press Enter to open the item D7 worksheet Interest Deductions worksheet (idd).