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  • Remediation process

    The information below outlines the remediation process and timeframes for income years before 2020–21.

    The length of time it takes to process and finalise amendments will depend on how complex your case is. If we don’t have your up-to-date information or you have outstanding tax return lodgments, it may cause delays.

    The amendment to your income tax assessment may not result in a credit or refund and the process needs to be applied to your specific circumstances before the precise outcome can be determined.

    Our planned implementation for this process is outlined below for:

    Income tax amendments for the 2010–11 to 2019–20 income years

    For income tax returns lodged for the 2010–11 to 2019–20 income years, invalidity benefits have been taxed as super income stream benefits, regardless of when the invalidity pension commenced. The Full Federal Court has ruled that where the invalidity pension commenced on or after 20 September 2007, these benefits should have been taxed as super lump sums.

    We will use data we have received from CSC to identify affected individuals and streamline the amendment and objection process. This means individuals do not need to obtain information from CSC for the amendments.

    Individuals who opted-in before 31 May 2021 including objections

    • From 28 April 2021 to 31 May 2021, affected individuals were able to opt-in to the streamlined amendment process for the 2010–11 to 2019–20 income years. This opt-in period has now closed.
    • If you have opted-in, we are working through your amendments as quickly as possible and you do not need to call us for an update.
    • If you have an existing objection that was lodged before 15 March 2021, it will be progressed as part of the streamlined amendment process. You do not need to take any further action. We will contact you once your income tax amendments have been processed.

    Individuals who are affected but did not initially opt-in

    • While we have postponed the mailout, you can now opt-in to the process if you:
      • have received your disability superannuation benefit determination, or if you are not eligible to have your invalidity benefit treated as a disability superannuation benefit
      • have lodged all overdue income tax returns
       
    • Before you take part, make sure you consider seeking tax and financial advice in relation to your personal circumstances.
    • If you believe that you are impacted, you should review the specific details of your invalidity benefit and read the step-by-step information before considering whether to opt-in. Once you have opted-in, you do not need to contact us. If we require more information, we may contact you. If your contact details change, please update them.
    • The time taken to amend your income tax assessment will depend on your circumstances. If your assessments are more complex, it is likely to take us longer to process. Complex circumstances include individuals who:  
      • receive disability superannuation benefits
      • received a lump sum payment in arrears
      • have multiple super schemes
      • have been party to a family law split
      • declared bankruptcy or
      • have multiple income years to amend. 
       

    Note: If you opted-in for the streamlined amendment process, we are able to amend your income tax assessments for the 2010–11 to 2019–20 income years based on data we have obtained from CSC.

    You can still seek to amend your income tax assessments for the 2007–08 to 2009–10 income years through the normal objection process.

    If you would like to amend your income tax assessments for the 2007–08 to 2009–10 income years, lodge an objection. In lodging your objection, please be aware of the requirement to include a written request for an extension of time if the tax periods you are objecting to are outside the period of review.

    If you do object, you may need to provide the necessary evidence that will support any amendments being made to your assessments for these years.

    Super remediation

    For individuals who have been identified as being affected by the court decision, we have used the information from CSC to:

    • ensure that payments which are now super lump sum payments are no longer counted towards your transfer balance cap, and
    • adjust your total super balance as required.

    When we adjust your total super balance, we will also consider if the change means you have no longer exceeded your contributions caps, and if you are now entitled to co-contributions or the low income super tax offset.

    Streamlined amendment process

    If you are affected, the streamlined amendment process will make it easier for you to have previous years' income tax assessments amended.

    You don't need to seek an amendment, private ruling or lodge an objection, as the streamlined amendment process is simpler than an ordinary objection.

    We have obtained the necessary information from CSC and in most cases, you will not have to provide any additional information. The streamlined amendment process also streamlines the request for an extension of time to object for income tax returns that are outside the two (or four) year period of review.

    .

    If you are affected by the Full Federal Court decision and do not choose to participate in the streamlined amendment process, you still retain all your rights to have income tax assessments reviewed under our ordinary processes.

    Before you start the streamlined amendment process

    Before you start the streamlined amendment process:

    • read the step-by-step information to determine whether you are affected
    • contact CSC for a disability superannuation benefit determination if you believe you are eligible
    • understand the process and timeframes
    • consider seeking financial advice based on your individual circumstances.
    • ensure your income tax return lodgments are up to date.

    If your income tax lodgments are not up to date you will not be able to start the streamlined amendment process. If you are unsure you should check and rectify any outstanding returns before starting the amendment process.

    It's important to understand that any amendment may result in any of the following:

    • A credit or refund.
    • A debit where you will have to pay money.
    • A neutral outcome with no change overall.
    • Additional financial impacts to other government payments and obligations.

    Your outcome will depend on your personal circumstances. If the amendment process results in a credit, the credit will be used to offset any existing debt before any remaining refund is issued to you. If you get a debit outcome, we can offer payment arrangements with favourable terms around the repayment period and interest charges.

    Amendments that result in a change to your taxable income may have financial impacts to other payments and obligations, such as:

    • Family Tax Benefits
    • Child Care Subsidy
    • Paid Parental leave payments
    • Child support payments
    • Other government support payments that take into account your taxable income.

    Timeframes and outcomes

    We are committed to finalising amendments as quickly as possible. While simple amendments may take around two months, complex cases can take longer to finalise.

    Amendments for those who opted-in before 31 May have taken longer than anticipated as we received a high number of complex cases. We appreciate your patience as we work through the backlog this has created.

    If your amendments have taken more than two months to be processed, it is likely due to the complexity of your circumstances.

    We are working through the amendments for the remaining cases as quickly as possible and you do not need to call us for an update or to provide further information.

    Once the streamlined amendment process is complete, we will send you your amended income tax notice of assessment. In most cases this will be sent to your myGov inbox.

    If the outcome of your amendments is a credit assessment, the credit will be used to offset any existing debt before any remaining refund is issued to you as soon as possible.

    If the outcome of your amendments is a debit assessment, we will contact you to discuss your options including setting up a payment arrangement with favourable terms.

      Last modified: 15 Dec 2021QC 62497