• Substituted accounting periods

    The lodgment due date for a taxpayer with a substituted accounting period (SAP) depends on the type of entity and the closing date of the accounting period adopted.

    On this page:

    How a SAP works

    Taxpayers who have been granted leave to adopt a SAP must meet the following lodgment requirements:

    • individuals, partnerships and trusts – due date for lodgment is the last day of the fourth month after the close of the accounting period adopted
    • companies and super funds (excluding NFSA) – due date for payment is the first day of the sixth month after the close of the accounting period adopted
    • companies and super funds (excluding NFSA) – due date for lodgment is the fifteenth day of the seventh month after the close of the accounting period adopted.

    The lodgment concession available to SAPs does not apply where the SAP entity is not a full self-assessment taxpayer.

    Agent assessed deferral requests can now be made for individual, partnership and trust SAPs. Companies and super funds should use the ATO assessed deferral request form.

    You can identify clients operating under approved SAP on income tax client listings from the codes shown in the SAP column.

    Table: Codes shown in the SAP column converted to balance dates

    SAP code

    Approved balance date

    Term used in lodgment program

    A

    31 Dec 2016

    Early December balancer

    Note: For information about the availability of a lodgment concession to 31 July, see early December balancing company and super fund clients

    B

    31 Jan 2017

    January balancer

    C

    28 Feb 2017

    February balancer

    D

    31 Mar 2017

    March balancer

    E

    30 Apr 2017

    April balancer

    F

    31 May 2017

    May balancer

    G

    31 July 2017

    July balancer

    H

    31 Aug 2017

    August balancer

    I

    30 Sep 2017

    September balancer

    J

    31 Oct 2017

    October balancer

    K

    30 Nov 2017

    November balancer

    L

    31 Dec 2017

    Late December balancer

    Regardless of the actual date the entity balances, it is deemed to have a financial year ending on the last day of the relevant month.

    Concession for an early December balancing company and super fund client

    A lodgment concession is available to 31 July for early balancing December SAP clients. A full self-assessment company or super fund that is an early December balancer must lodge a tax return no later than the fifteenth day of the seventh month after the end of their year of income. The due date for lodgment for these entities is 15 July.

    We will grant a lodgment concession to 31 July if you lodge your client’s tax return by 31 July. We have granted this concession in response to feedback from tax practitioners that tax time software availability makes it difficult to meet the lodgment due date of 15 July. This is particularly the case if firms create their own software.

    This is a lodgment concession only. Payment, if required, is still due on the first day of the sixth month after their year of income, which is 1 June. We will not apply a FTL penalty to early December balancing SAP clients when their tax return is lodged by 31 July.

    What tax return form to use

    Tax returns for taxpayers using a SAP should be made on the tax return form for the year in lieu of which the accounting period has been adopted – for example, you should prepare an early balancing 2017 tax return on 2017 tax return form.

    While we make every effort to release tax time stationery as early as possible, if the relevant form has not been produced by the date the taxpayer must lodge using the 2016 tax return form. In these cases, you:

    • cannot lodge the tax return electronically
    • must write the year of income that the SAP replaces on page one of the tax return – failure to do so may result in us rejecting the lodged tax return
    • must provide us with the information requested under any new labels on the 2017 return form – you must do this shortly after we release the 2017 form.
    Last modified: 30 Jun 2017QC 34569