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From 1 July 2017, the ATO needs you to separate your client's costs in managing their tax affairs into three components:

  • Interest charged by the ATO
  • Litigation costs
  • Other expenses incurred in managing your tax affairs.

We've provided a new worksheet for you. You can record the details and amounts or have it pre-filled from the ATO pre-fill report. See Pre-fill Manager.

Click any of the D10 labels to open the worksheet.

Cost of managing tax affairs example

Each section comprises a:

  • free data entry row, and
  • closed section for pre-filling data from the ATO Pre-fill report you've downloaded.

You insert lines by pressing Ctrl+Insert. You delete lines by pressing Ctrl+Delete.

Totals will be filtered through to the relevant label when you close the worksheet.

Label N: Interest charged by the ATO comprises

  • General interest charge (GIC)
  • Shortfall interest charge (SIC)
  • Late payment interest (LPI)

Label L: Litigation costs include:

  • Court and Administrative Appeals Tribunal fees,
  • Solicitor, barrister and other legal costs incurred in managing your tax affairs

Label M: Other expenses incurred in managing your tax affairs include:

  • tax agent fees for preparing and lodging your tax return and activity statements
  • travel to get tax advice from a recognised tax adviser
  • obtaining a valuation needed for a deductible donation of property.
  • Fees paid to a recognised tax adviser are deductible in the year they are incurred.
  • You cannot claim for the cost of tax advice given by a person who is not a recognised tax adviser.
Interaction with other tax worksheets

Data can integrate to the cmt from:

  • the depreciation worksheet (d)

  • the motor vehicle worksheet (mve).

You can't edit these fields. We'll display amounts you've integrated from a depreciating asset or from a share of motor vehicle expenses.

Press Enter at Amounts from the depreciation worksheet or Amounts from the motor vehicle worksheet to open that worksheet.

ATO Pre-fill from PLS

If you are using Pre-fill Manager, we'll pre-fill:

  • any ATO GIC /SIC/LPI debit amounts at D10: label N
  • credit amounts at the item 24 labels Y, X and V.