The components of adjusted taxable income are as follows:
> Taxable income
Add:
> Adjusted Reportable Fringe Benefits (1)
> Net rental property losses
> Certain tax free Centrelink or DVA payments (2)
> Target foreign income (3)
> Reportable employer superannuation contributions (From 1 July 2009)
> Deductible personal superannuation contributions (From 1 July 2009)
> Net financial investment losses (From 1 July 2009)
Subtract: deductible child maintenance expenditure.
Notes:
(1) Reportable fringe benefits are ‘grossed down’ using the following formula:
Adjusted fringe benefits = reportable fringe benefits amount x 53.5% (1/4/2006 to 30 June 2017)
From 1 July 2017 they won't be grossed down anymore, except for FBT Concessional Bodies.
(2) These are the amounts of any of the following payments that you receive through:
Centrelink
> disability support pension paid to a person who is not old enough to receive the age pension
> carer payment where both the carer and the person being cared for are not old enough to receive the age pension
> wife pension where both the recipient and spouse, if applicable, are not old enough to receive the age pension.
Department of Veterans' Affairs
> invalidity service pension where the recipient is not old enough to receive the age pension
> disability pension, war widow's and war widower's pension
> partner service pension where both partners are under age pension age and the veteran receives an invalidity service pension, or the veteran has died and received an invalidity service pension at the time of death
> income support supplement paid on the grounds of invalidity if the person has not reached age pension age.
Bereavement payment, pharmaceutical allowance, rent assistance; remote area allowance or language, literacy and numeracy supplement are not included.
(3) Target foreign income is income:
> any income earned, derived or received from sources outside Australia
> a periodical payment by way of gifts or allowances from a source outside Australia
> a periodical benefit by way of gifts or allowances from a source outside Australia
provided that the amount has neither been included in your taxable income, nor received in the form of a fringe benefit.
Types of target foreign income include:
> regular receipts of money and gifts from relatives living overseas which are exempt from Australian tax
> income from foreign business interests and investments, which are exempt from Australian tax, including income received by migrants with business interests in their country of origin
> foreign source income received while you were a temporary resident that is exempt from Australian tax