Adjusted taxable income

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
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

 

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

 

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

 

155k + 10k = 165k taxable income for assessment purposes

 

155k - 10k loss = 145k.

145k add back 10k loss = 155k.

Adjusted Taxable Income = 155k.

 

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

 

Now I'm more confused.

155k job income
10k loss through ips.

What's the adjusted income? ?

 

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.

 

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

 

The total loss is what gets added back on.

 

I argued this with my accountant last year. It makes no ******* sense at all.

 

Wow I have a headache reading this thread

 

Basically the negative is a positive so they positivly give you the negative end of the deal

 

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

 

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.

 

many things in tax law dont make sense.

 

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

 

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!

 

I am non-plussed.

 

@Paul@PFI Hi Paul, is my assumption correct for the above post regarding adjusted taxable income?