How to record Income as Non-Assessable for Individuals

Solution

Transactions to Income accounts where the "SMSF tax label" of these accounts are set as Not Applicable - Permanent Difference will not be calculated as taxable for individual entities. 

To change a tax return label of an account:

From the Main Toolbar, go to Accounting.
Select Chart of accounts from the list.

1. Locate the income account
 

2. Once the account is selected, from the edit screen, select More Details >>. 

3. Under the Tax Label field, select Not Applicable - Permanent Difference from the drop-down list. 

5. Select Save.