6. FBT Lodgment Program (ATO)
Automatic lodgment deferrals for eligible tax agents for the 2012 FBT return
Reason for review of deferrals
At the 11 November 2010 meeting of the NTLG FBT Sub-committee, a TTI (TIA) submission asked the ATO to extend the automatic June 25 lodgment deferral that previously had been made available to clients of the 'Big 4' firms with FBT obligations to all tax agents. This request resulted in a full review of the existing arrangements.
The issue was progressed at further NTLG FBT Sub-committee meetings and out of session discussions with the working group that included sub-committee members and representatives from accounting firms. At the most recent discussions with the working group, on 25 January 2012, the ATO agreed that an automatic lodgment deferral would be available to some tax agents for the 2012 FBT year.
Details of the 2012 arrangements
To be eligible for the automatic deferral tax agents must meet both the following criteria:
- have 25 or more FBT clients attached to their registered agent number (RAN)
- be appointed by 28 May 2012 as the tax agent for your clients' FBT role.
This deferral will only apply where there are 25 or more FBT clients listed under a single RAN, not a total of 25 or more clients listed under several RANs.
This deferral does not apply to payment. Payment, if required, must still be made by 28 May 2012.
If tax agents meet the criteria above, the ATO will update their clients' lodgment due dates after 28 May 2012. Agents do not need to apply for a deferral.
Agents cannot request a self-assessed deferral for those clients who are granted the automatic deferral to 25 June 2012.
Agents, who have less than 25 FBT clients and require further time to lodge beyond 28 May 2012, can make a self-assessed deferral request.
Returns lodged after 25 June 2012 may be subject to failure to lodge on time penalty.
Future years
This automatic lodgment deferral to 25 June for eligible tax agents will only be available in the Lodgment Program 2012-13 and future years for eligible tax agents who lodged at least 85% of FBT returns for their total client list by the due date.
The ATO will measure agents' performance for FBT lodgments shortly after 25 June. The performance measurement will be taken on the agents complete client list and if at least 85% of their clients' FBT returns are lodged by the due date, the agent will be eligible for the automatic deferral in the following year, subject to them meeting the '25 or more client test' for that year.
At the time the performance measure is conducted, any FBT returns which are not yet due as a result of a further lodgment deferral being granted will not adversely affect the agents' performance measurement.
If a client is added to an agent list after May 28 the lodgment of this return will be included in the test. Such returns will be considered late unless they are lodged in accordance with a deferral that has been granted by the ATO under the Lodgment deferral practice statement (PS LA 2011/15).
Communicating the deferral arrangement
In early/mid March the ATO will be sending a letter to tax agents who have clients with FBT obligations that provide information about the automatic lodgment deferral proposal. The letter will also include a list of the agent's FBT clients.
At the same time the ATO will be issuing a tax agent broadcast, and updating the lodgment program information on the website to include information about the proposed FBT lodgment deferral for eligible agents.
Reminder messages will also occur closer to the 28 May deadline for agents to add clients to the agents' registered number, to ensure that eligible agents or their clients don't miss out on the FBT lodgment.
Deferral. The ATO contact centre scripting will also be updated to deal with any questions that agents may have about the deferral.
A point of contact for the Big 5 firms
In the 25 January discussion, the members requested a co-ordinated point of contact for queries around this FBT deferral arrangement.
The ATO recognises the need for targeted assistance and will provide to the Big 5 firms a dedicated mailbox to escalate their issues. A key client manager will ensure a coordinated resolution to member's enquiries. The mailbox can also be used for 'eligible' tax practitioners i.e. those that have 25 or more clients. Please note this channel will only be available for enquiries in relation to the automatic FBT deferral arrangements and only open up to and including the FBT lodgment period.
The mailbox for such enquiries is: Lodgment Program Defferrals@ato.gov.au
A point of contact for tax professionals with less than 25 FBT clients
Where agents have less than 25 FBT clients, they are able to request a lodgment deferral through the normal channels. The deferral can be either self-assessed (up to 28 days for lodgment only) or an additional time to lodge (must provide sufficient reasons for request). Please refer to the information on the ATO web site Request for additional time to lodge (tax professionals)
Further information
Further and current information is available at:
Alternatively, you can phone 13 72 86 Fast Key Code 1 3 2.
Meeting discussion
The ATO thanked the members who provided their time and input into the working group.
The ATO listened to feedback that was provided by the representatives on the working group about circumstances that may affect tax agent's ability to lodge all of their clients' FBT returns by 28 May 2012. Undertaking this extensive consultation with the working group has ensured that the lodgment program for FBT now provides effectively targeted support for registered tax agents and supports a level playing field in the tax agent community.
The outcome that has been agreed on, which will assist tax agents with their FBT workloads, is the ATO will provide eligible tax agents with an automatic four-week lodgment deferral to 25 June 2012.
The ICAA asked for clarification of the registered agent number (RAN), as there was sometimes confusion as to whether a client list was attached to the first five digits or the full eight digits of the RAN. The ATO stated the full eight digit RAN is relevant for these purposes.
The ICAA also queried how and when the 85% target would be measured? As set out in the agenda item, the automatic lodgment deferral to 25 June for eligible tax agents will only be available in the Lodgment Program 2012-13 and future years for eligible tax agents who lodged at least 85% of FBT returns for their total client list by the due date.
Sections within Agenda items
Last Modified: Monday, 30 April 2012