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The ATO requires that expenses incurred in earning Interest income be declared separately. In addition, where the expenses are greater than $4,999 an Interest and Dividend Schedule BJ must be completed and lodged with the return.

Do not show losses you have made on financial arrangements that are subject to tax under the TOFA rules at this item. These are shown at item D15 on your tax return.

If you have elected to have the TOFA rules apply to your affairs, before you complete your return and this question you must refer to Completing the tax return for individuals where the TOFA rules apply available on the ATO website, www.ato.gov.au/tofa

Values entered in this worksheet may need to be included in the Net financial investment income or loss worksheet at Income Test item IT5. Therefore, if you have interest expenses this year use the idd worksheet.

As the entire amount entered in this worksheet may not relate to Managed Investment Fund distributions, a question has been introduced to ascertain this information. When the answer to this question is Yes, the entire amount will be integrated to the worksheet at IT5; if the answer is No, then the preparer is required to enter the amount that does so apply. If none of the amount applies, you need to key a zero.

The Interest Deductions worksheet (idd) is provided at item D7. This worksheet provides dissection capability and provides integration from both the depreciation worksheet and the motor vehicle worksheet.

Description: For Interest deductions less than $5000, provide a description and amount for each. For example, these expenses would include Debits Tax on personal Accounts and investment related advice costs. To add extra entries, select [Ctrl+Insert]. The amounts entered are totalled and returned at item D7 of the individual return only.

Integration Points

Integration is provided for:

  • Deductions from the motor vehicles worksheet (mve)

  • Deductions from Depreciation worksheet

  • Deductions from Schedule BJ (ATO Interest and dividend deduction schedule)

Total Interest Deduction: This amount integrates to itemD7.