1.4 Income Tax Return
ITR data is used to prepare estimates for all types of income.
The relevant PLIDA table is the atoitrincloss table.
1.4.1 Employee income
Key data items used in preparing annual and current employee income are presented in the table below.
| Data item | Data item description | Data item purpose |
|---|---|---|
| GRS_PMT_TOTL_CALCD_AMT | Salary or wages | Determines income received |
| ALWNCERNGS_TIPSDRCTRSFEES_AMT | Allowances, earnings, tips, directors’ fees etc. | Determines income received |
| LSPS_AMT_A_TOTL_CALCD_AMT | Lump sum amount | Determines income received |
| LSPS_5_PCT_B_TOTL_CALCD_AMT | Lump sum amount | Determines income received |
| ETPS_OTHRTHN_EXCSVCMPNT_AMT | Employment termination payments | Determines income received |
| PRSNL_SRVCS_ATRBD_INCM_AMT | Attributed personal services income | Determines income received |
| TOTL_ASSBL_DSCNT_AMT | Employee share schemes total assessable discount | Determines income received |
| OTHR_NET_FORGN_EMPLT_INCM_AMT | Other net foreign employment income | Determines income received |
| EXMT_FORGN_EMPLT_INCM_AMT | Exempt foreign employment income | Determines income received |
| CFC_INCM_AMT | Controlled foreign company income | Determines income received |
| RFBS_TOTL_AMT | Reportable fringe benefits | Determines income received |
| NET_FORGN_EMPLT_INCM_PS_AMT | Net foreign employment income | Determines income received |
| RPRTBLEMPLR_SPNTN_CNTRBTNS_AMT | Reportable employer superannuation contributions | Determines income received |
Annual income (ITR_EMP_ANN)
Annual income for a person is estimated from the aggregate of their relevant items within a financial year.
Current income (ITR_EMP_CUR)
Like annual estimates, current income is estimated from the aggregate of relevant items for a person within a financial year. However, additional checks are applied to screen out estimates likely to be invalid for the reference date. This primarily includes checking for employment income in more recent STP data.
Amounts from lump sum payment/s are included in current income using a cut-off at the equivalent of 3 months’ pay, based on the greater of AWE and ITR income (excluding lump sums). This helps ITR income measures represent amounts of a lump sum payment that are intended to support current living standards.
1.4.2 Government pensions and allowances
Key data items used in preparing annual and current government pensions and allowances are presented in the table below.
| Data item | Data item description | Data item purpose |
|---|---|---|
| AUSNGOVTALWNC_AND_PMTS_AMT | Amount of Australian Government allowances and payments | Determines income received |
| AUSNGOVTPNSNS_AND_ALWNC_AMT | Amount of Australian Government pensions and allowances | Determines income received |
| TAX_FRE_GOVT_PNSN_AMT | Amount of tax-free government pensions | Determines income received |
| NETFORGNPNSNANNTY_WTHT_UPP_AMT | Net foreign pension or annuity income after tax withheld and undeducted purchase price | Determines income received |
In the calculation, the values associated with these items are restricted to include only those amounts of a government pension or allowance that are not present in DOMINO for the same reference period. (That is, inclusions here are not in DOM_GOV_ANN, as calculated for the same year as ITR data used). Inclusions reflect instances of government payments that cannot be found in DOMINO, such as overseas or state/territory administered government payments.
Annual income (ITR_GOV_ANN)
Annual income for a person is estimated from the aggregate of their relevant items within a financial year.
Current income (ITR_GOV_CUR)
Current income uses the annual government pensions and allowance income (ITR_GOV_ANN). This is a proxy for current income, given more timely data is not available.
1.4.3 Own unincorporated business income
Key data items used in preparing current and annual own unincorporated business income are presented in the table below.
| Data item | Data item description | Data item purpose |
|---|---|---|
| NET_INCM_OR_LSS_FRM_BUS_PP_AMT | Net income or loss from business activities with Pay-As-You-Go (PAYG) withholding | Determines income received |
| NETINCMORLSS_FRM_BUS_NPP_AMT | Net income or loss from business activities without PAYG withholding | Determines income received |
| TRSTS_PP_DSTBN_AMT | Taxable distributions received from trusts with PAYG withholding | Determines income received |
| PSI_NET_AMT | Net amount of personal services income after allowable deductions | Determines income received |
| PSHPS_NPP_LESS_FORGN_INCM_AMT | Net income from partnerships without PAYG withholding, excluding foreign income | Determines income received |
| PSHPS_PP_DSTBN_AMT | Taxable distributions received from partnerships with PAYG withholding | Determines income received |
Annual income (ITR_UBUS_ANN)
Annual income for a person is estimated from the aggregate of their relevant items within a financial year.
Current income (ITR_UBUS_CUR)
Current income uses the annual own unincorporated business income (ITR_UBUS_ANN). This is a proxy for current income, given more timely data is not available.
1.4.4 Investment income
Key data items used in preparing current and annual investment income are presented in the table below.
| Data item | Data item description | Data item purpose |
|---|---|---|
| NET_FORGN_RNT_AMT | Net foreign rental income amount – income from rental properties located outside Australia, after expenses | Determines income received |
| RNTL_NET_RNT_AMT | Net rental income from Australian properties – total rental income minus allowable rental deductions | Determines income received |
| AUSN_FCRS_FRM_NZC_AMT | Net foreign source income from New Zealand companies – typically includes dividends or distributions | Determines income received |
| GRS_INTST_AMT | Gross interest income – total interest earned from financial institutions and other sources | Determines income received |
| DIVS_FRNKD_AMT | Franked dividend amount – dividends paid by Australian companies with a franking credit attached | Determines income received |
| DIVS_UNFRNKD_AMT | Unfranked dividend amount – dividends paid without franking credits | Determines income received |
| DIVS_FCR_AMT | Dividend franking credit – the tax credit associated with franked dividends | Determines income received |
| TRST_NPP_LESS_CGFORGNINCM_AMT | Net non-primary production income from trusts, excluding capital gains and foreign income | Determines income received |
| NONPPFRNKDDSTBNSFRMTRSTSAMT | Non-primary production franked distributions from trusts | Determines income received |
| TFRR_TRST_INCM | Total trust income reported – includes all income types distributed from trusts | Determines income received |
ITR excludes investment incomes for people not required to lodge a tax return. ITR also excludes notional income from offset accounts, which is the estimate of the amount households saved in interest on their loans.
Annual income (ITR_INV_ANN)
Annual income for a person is estimated from the aggregate of their relevant items within a financial year.
Current income (ITR_INV_CUR)
Current income uses the annual investment income (ITR_INV_ANN). This is a proxy for current income, given more timely data is not available.
1.4.5 Superannuation pensions and annuities
Key data items used in preparing current and annual superannuation pensions and annuities income are presented in the table below.
| Data item | Data item description | Data item purpose |
|---|---|---|
| AASIS_TXBL_CMPNT_TXD_ELMNT_AMT | Taxable component of income with taxed elements (e.g., pensions, annuities) | Determines income received |
| AASIS_TXBLCMPNT_UTAXDELMNT_AMT | Taxable component of income with untaxed elements (e.g., superannuation) | Determines income received |
| AASISLSINARRSTAXPRTTXDELMNTAMT | Australian annuities/superannuation income streams lump sum in arrears taxable component taxed element | Determines income received |
| AASISLSARRSTAXPRTUTAXDELMNTAMT | Australian annuities/superannuation income streams lump sum in arrears taxable component untaxed element | Determines income received |
| NETFORGNPNSNANNTY_WITH_UPP_AMT | Net foreign pension/annuity income with an undeducted purchase price | Determines income received |
ITR excludes superannuation pension and annuity income for individuals who are not required to lodge a tax return, e.g. due to tax reporting exemptions. For this reason, the data is particularly limited.
Annual income (ITR_SUP_ANN)
Annual income for a person is estimated from the aggregate of their relevant items within a financial year.
Current income (ITR_SUP_CUR)
Current income uses the annual superannuation pension and annuity income (ITR_SUP_ANN). This is a proxy for current income, given more timely data is not available.
1.4.6 Other regular transfers
Key data items used in preparing current and annual other regular transfer income are presented in the table below.
| Data item | Data item description | Data item purpose |
|---|---|---|
| OTHR_NET_FSI_AMT | Net amount of other foreign source income not elsewhere classified | Determines income received |
| TOTL_OI_CTGRY_1_AMT | Total other income from Category 1 sources (e.g. non-standard income such as benefits or prizes with taxable components) | Determines income received |
| TOTL_OI_CTGRY_2_AMT | Total other income from Category 2 sources (e.g. ATO interest charge remissions) | Determines income received |
| TOTL_OI_CTGRY_4_AMT | Total other income from Category 4 sources (e.g. any other income not described in category 1 or 2) | Determines income received |
Annual income (ITR_OTH_ANN)
Annual income for a person is estimated from the aggregate of their relevant items within a financial year.
Current income (ITR_OTH_CUR)
Current income uses the annual other regular transfers income (ITR_OTH_ANN). This is a proxy for current income, given more timely data is not available.