Adjusted taxable income

Discussion in 'Accounting & Tax' started by bob shovel, 2nd Jul, 2016.

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  1. bob shovel

    bob shovel Well-Known Member

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    Gday experts

    I need some help with my friends at centrelink and "adjusted taxable income"

    Adjusted taxable income - Australian Government Department of Human Services

    Can someone explain/confirm this to a simple guy like me :oops:
    For paid parental leave the limit is 150k, now if income is say 155k, but have neg gearing of : 10k loss, does that take the adjusted taxable income to 145k?

    Thanks in advance :D
     
  2. legallyblonde

    legallyblonde Well-Known Member

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    For family assistance purposes... the loss is still assessed
     
  3. legallyblonde

    legallyblonde Well-Known Member

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    Investment losses, voluntary super contributions, fringe benefits ect are all included and do not reduce your income
     
  4. Owlet

    Owlet Well-Known Member

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    155k + 10k = 165k taxable income for assessment purposes
     
  5. York

    York Finance Broker Business Member

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    155k - 10k loss = 145k.

    145k add back 10k loss = 155k.

    Adjusted Taxable Income = 155k.
     
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  6. Marg4000

    Marg4000 Well-Known Member

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    Take your taxable income as per your tax return. Say $150K

    Add back the amounts specified - negative rental loss of $10K, salary sacrifice into super $10K plus any others on the list - FBT etc.

    If above figures, adjusted taxable income would be $170K.
    Marg
     
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  7. bob shovel

    bob shovel Well-Known Member

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    Now I'm more confused.

    155k job income
    10k loss through ips.

    What's the adjusted income? ?
     
  8. Owlet

    Owlet Well-Known Member

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    Yes this.



    I was on family leave. No income. 50% owner of IPS. So a loss of 10k. Centre-link assessed this 10k as income and as such reduced FTB payments. You can't receive a benefit twice. (Although I didn't actually receive a benefit at all). When I returned to work the next FY, PT income was under the threshold. 10k loss was carried forward and used. With no tax to pay nothing to offset. Yet that 10k loss was added to the 18k I earned to make 28k and therefore cut out FTB as a second income earner anyway (24k threshold at the time).
    I guess this could be added to one of the NG threads too.
     
  9. bob shovel

    bob shovel Well-Known Member

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    Man im confused. And a bit hangry :)

    But yep got it.

    I also read the link again
    What counts as adjusted taxable income
    Depending on which payments or services you claim, your adjusted taxable income can include:

    • taxable income
    • foreign income
    • tax-exempt foreign income
    • total net investment losses
    I assumed a loss was a loss. Silly me :oops:
     
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  10. legallyblonde

    legallyblonde Well-Known Member

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    The total loss is what gets added back on.
     
  11. Bran

    Bran Well-Known Member

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    I argued this with my accountant last year. It makes no friggin sense at all.
     
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  12. markson

    markson Well-Known Member

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    Wow I have a headache reading this thread :eek::eek:
     
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  13. bob shovel

    bob shovel Well-Known Member

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    Basically the negative is a positive so they positivly give you the negative end of the deal :D
     
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  14. Joynz

    Joynz Well-Known Member

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    Though Owlet's comment explains it well: not getting a benefit twice - which seems fair.
     
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  15. Daniel Taborsky

    Daniel Taborsky Well-Known Member

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    Think of it this way... If you've made a loss from your investment properties, when calculating your adjusted taxable income just don't count the loss. Or if you've already calculated your taxable income with the loss included you need to 'add it back'. The result is the same - an income amount which hasn't been reduced by an investment loss.
     
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  16. MikeLivingTheDream

    MikeLivingTheDream BCOM MCOM MTAX CPA CTA Registered Tax Agent Business Member

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    many things in tax law dont make sense.
     
  17. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Member

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    ATI is highly complex and often taxpayers incorrectly report it to the ATO. Hence Centrelink gets wrong data.

    ATI starts with taxable income and then adjusts for some stuff in the tax return. eg rental and investment losses, reportable FBT and reportable super contributions. Some items are non tax return related and can be missed eg Child maintenance you pay. FBT is also a curly one. 51% of "reportable FBT" shown on the PAYG Summary is counted.

    Adjusted taxable income (ATI) for you and your dependants 2016 | Australian Taxation Office
     
  18. Mcube

    Mcube Well-Known Member

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    Hi All,

    Just asking for a friend for the parental leave from DHS regarding this point:

    "have received an individual adjusted taxable income of $150,000 or less in the financial year either before the date of birth or adoption or the date you claim, whichever is earlier"

    She is a contractor who is expected to earn around $170k for this financial year but she will get much less in next financial year as she won't get paid when the baby is due in October 2018. She is planning to take about 6 months off with no pay. Does it mean that she can't get the DHS parental leave offer as her adjusted taxable income for financial year 2017-2018 will be more than $150k since all the rental investment loss and salary sacrificing into super will be added back? Her income might be around 60k in financial year 2018-2019 depending on getting the contract. Cheers!
     
  19. Scott No Mates

    Scott No Mates Well-Known Member

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    I am non-plussed. :confused:
     
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  20. Mcube

    Mcube Well-Known Member

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    @[email protected] Hi Paul, is my assumption correct for the above post regarding adjusted taxable income?