What are lump sum payments from foreign non-complying superannuation funds?
These lump sum payments included in assessable income under section 27CAA are treated as a separate class of income. What is other income? Other income is income that does not belong to any of the other classes of income. For instance, it would include income from commercial activities, salary or wages and most pensions. Working out the amount of assessable foreign income for creditable foreign taxes Your assessable foreign income for each class is ‘grossed up’ by the amount of foreign tax credit you can claim for that class of income. A company must also include an amount equal to any credit allowable for foreign underlying tax. Example 1 Creditable foreign taxes A company resident in New Zealand pays a dividend of $100 to an Australian resident individual. As New Zealand deducts $15 withholding tax, the taxpayer actually received $85. The taxpayer’s assessable foreign income for that dividend will be $100—that is, the amount of the dividend before the payment of withholding tax. What
