Jodie Hurry provided an update on pre-filling.
Highlight of the update
Achievements
There have been more than 5.5 million downloads of the pre-filling report from the portal this year as compared to 3 million last year.
2008 issues
Reporting of superannuation payments to taxpayers aged 60 and over
Reporting specifications for super funds were provided too late for software providers for them to change their programs to facilitate the reporting changes. Whilst most super funds have reported correctly to their clients, that is, they have excluded the taxed element payments on the pay as you go (PAYG) payment summaries, a number of super funds have included the taxed element when reporting to the Tax Office.
The issue here is there are approximately 7,000 recipients turned 60 during the past financial year. There is no way of the Tax Office determining how much of the taxed element was paid prior to their 60th birthday versus the amount paid after it. Only the super funds can provide this information. Further, although it is possible to view tax returns for those who have included a figure in the taxed element, it is not easy to ascertain who used pre-filled information to obtain their figures versus who relied on their payment summaries.
Business rules/edit checks have been put in place by the Tax Office to ensure that these payments show as information only. A message will appear in the portal pre-filling report of a client who has received a taxed amount, and turns 60 during the 2009 year.
Super fund data
One of the superannuation data files reported in August 2008 contained incorrect data. The file was rejected by the Tax Office in September. The reporter lodged replacement data in October and it was found that the replacement data reported was also incorrect. Also, they have reported a separate payment summary for each payment received by a taxpayer. That is, if a taxpayer received 12 payments during the 2008 year, they reported 12 payment summaries. Automatic system processes within the Tax Office removed 11 of these payments as duplicates, leaving one payment summary for each taxpayer.
The files contained 50,000 records, and approximately 6,000 of these records were accepted for pre-filling. Therefore, a taxpayer may have more than one record if they had an amount that differed each month. The Tax Office had rejected the file containing the incorrect data on 13 March 2009 and a new file will be lodged when available.
Managed fund data
Legislative change allowed negative figures to be reported and offset against other income. However, the Tax office systems were not designed to facilitate this. In 2008, there were a large number of data files which were rejected because of what was considered 'bad data'. Amounts reported to the Tax Office did not match the amounts reported to clients of the funds.
The Tax Office is continuing to work with data providers in an effort to improve the quality of data reported for 2009, however, it is unlikely that this issue will be entirely resolved for the year 2009, due in part to the time required for software development.
Members were asked whether they still wanted to see this data. Members indicated that they would.
2008 administrative matters
Information from Medicare Australia (medical expenses offset data) will only be available for the current year. Access to 2008 information will not be available through the Tax Office after 1 June 2008 and each year thereafter.
From 1 July 2009, private health insurance information will be sourced directly from the funds and therefore available for the same period as the relevant pre-filling report.
2009 enhancements and 2010 scope items
The Tax office is working with data providers to improve the quality and timeliness of data provided.
A list of 2010 scope items was provided to members for discussion.
Meeting discussion
Members all agreed that pre-filling is advantageous as it acts as prompt for both tax agents and taxpayers when completing their returns.
Several members raised the issue that some taxpayers provide their own TFN in relation to bank accounts not in their own name and consequently interest accrued appears on various returns when using the pre-filling.
A member suggested the rental schedule be included as part of the 2009 enhancement and that the date of the commencement of the rental be included.
Another member asked if it is possible to obtain pay as you go payment summaries for the last five years. Jodie replied that this function may be possible in the future.
Several members expressed concern and indicated that tax practitioners should not complete the superannuation - lost members register portability form as the consideration of where to direct superannuation should be guided by a licensed financial planner, which they are not, although some practices do have financial planners on staff.
Sections within Agenda items
Last Modified: Monday, 19 April 2010