• Recurring data issues

    These issues are common to pre-filling reports for multiple years:

    Calculating ATO interest

    ATO interest amounts are sourced from the income tax and integrated client accounts on our systems.

    Interest on overpayments (IOP) and delayed refund interest (DRI) paid to non-residents and reported on their integrated client account may be included in the interest amounts reported to item 10 Gross interest. As tax has already been withheld, the IOP and DRI amounts do not need to be declared and should be excluded from the interest declared at this item to avoid being taxed twice. Refer to your statement of account.

    2016 and later income years

    We simplified our data capture process for pre-filling. This helps reduce the complexities which affected the calculation of ATO interest in prior years. You may need to make adjustments to the 2016 pre-fill data, as this was the transition year for the new process.

    If you choose not to rely on the new pre-fill reporting method you will need to manually calculate your interest amounts using your statement of account.

    In some circumstances we may not provide pre-fill data but will display a message that the client has interest. In this case you will need to manually calculate the deductions or income amounts, using either the new or previous reporting method.

    See also:

    The portal Year to date interest summary report cannot be used as an alternative source of information as it does not accurately capture ATO interest data for the purpose of declaring deductions or interest income.

    2015 income year and prior

    ATO interest totals will not be provided in the pre-fill reports for the 2013 and prior income years. A message will display advising that the client has ATO interest on their account.

    There will be circumstances when interest data will not be provided for other years (for example, where we have determined the interest data will not be correct). Your client may receive a message that they have interest.

    In both cases, you will need to refer to your client’s statements of account and other source documents to manually calculate ATO interest.

    In certain circumstances the business rules for the pre-fill reports do not correctly capture the interest data. (For example, where your client has not claimed a GIC deduction in an earlier year and there is a later year remission that does not have to be declared. We report the remission on the basis that a deduction has been or can be claimed.) You should check your clients' statements of account to ensure the accuracy of the pre-fill data before lodging their tax returns.

    The 2015 pre-fill report was changed to a static report from 9 November 2015. This means any interest transactions processed on your client’s accounts after 9 November 2015 that impact interest totals in 2015 or an earlier year, will not be included in the interest reports for those years. This means you may need to make adjustments to the pre-fill data. Refer to ATO interest - calculating and reporting for information about how to account for any discrepancies between the interest reports.

    Interest from non-formal trust accounts

    This affects years 2008 to 2017 inclusive.

    Interest from non-formal trust accounts, such as children's bank accounts, may be matched to the trustee (parent).

    Non-formal trust accounts with entity type 'I' (for individuals) are included for the pre-filling service. If the parent name forms part of the account name the record may be matched to the parent name. This is regardless of whether the parent TFN is attached to the account or not. The provision of this income allows you to work out whether the income needs to be declared in your client's tax return.

    Exclusions

    For discrepancy identification purposes, non-formal trust accounts with the following words are excluded:

    • '<Trustee name> ATF <beneficiary name>' if single trustee
    • '<Trustee name and Trustee name> ITF <beneficiary name>' where multiple trustees.

    Letters should not be sent to trustees of children's bank accounts where these name formats are used, although it may sometimes happen.

    Non-individual investment income

    This affects years 2008 to 2017 inclusive.

    An individual client's pre-filling report may show an amount of investment income that belongs to a linked non-individual, such as a superannuation or trust fund.

    This normally occurs if the entity's investment account has been established incorrectly. The interest or dividend income from these accounts will be incorrectly mapped to the individual client's record in our systems if their linked entity account has been established with either of the following:

    • the individual's personal TFN quoted
    • an entity type 'I' that is for an individual account.

    Correct the record for the future

    To prevent these records showing on future reports, ask your client to contact their financial institution to ensure the correct:

    • TFN is quoted on the account
    • entity type is listed on the account, for example, the correct entity type for a formal trust account is 'T', and for super accounts is 'S'.

    This will not change what currently appears in the report unless the information provider sends us a replacement report.

    Managed fund data reporting discrepancies

    This affects years 2008 to 2017 inclusive.

    Your client's pre-filled managed fund data may be different to the statement they receive from their managed fund.

    We have found discrepancies between the information fund administrators send to their clients and the information they report to us for pre-filling.

    This is an issue due to ongoing inconsistencies between:

    • the standard distribution statement
    • the tax return and the reporting specifications.

    The lead times that funds and software developers need to make changes to their systems can also contribute.

    Tax agents have advised that even if this data is incorrect, they prefer to see it in the pre-filling report because it prompts them to closely check their clients' statements.

    Which amount to use

    If the pre-filled information doesn't match your client's statement, use the information the managed fund provided to your client. Contact the managed fund if you have any questions.

    Multiple or duplicated payment summaries

    This affects years 2008 to 2017 inclusive.

    Multiple payment summaries may display in the pre-filling report, for example if your client has worked for the same employer for multiple periods during the year.

    If the employer/payer has reported amended payment summaries to the ATO and has provided your client with an amended payment summary or letter, our processing systems for post-lodgment data matching should identify the correct payment summary.

    However, the pre-filling report may show both the original and amended payment summaries.

    This can occur when:

    • an employer or payer has lodged a subsequent payment summary, such as an amendment, and not reported it correctly
    • the pre-filling system has been unable to accurately match the replacement record against the original record. This may also be the result of some accounting software.

    The pre-filling report displays the dates of all records to assist you to identify the correct record.

    What your client should do

    If your client disputes the records displayed in the pre-filling report, they will need to query this with their employer/payer.

    Reportable employer super contributions on payment summaries

    This affects years 2008 to 2017 inclusive.

    Employers may incorrectly include other amounts, such as super guarantee payments, as reportable employer super contributions (RESC) in the payment summary.

    Reportable employer super contribution amounts can impact eligibility for some tax offsets. It can also result in Medicare levy surcharge being applied, affect eligibility for Centrelink benefits, and alter child support assessments.

    Before lodging your client's tax return, you or your client should contact the employer to check that the payment summary figure is correct if both the following apply:

    • your client's paper or pre-filled payment summary information includes an amount for RESC
    • your client does not salary sacrifice super.

    If the amount is incorrect, the employer must issue an amended payment summary to your client and any other affected employees. If they have already lodged their payment summary annual report with us, they must also lodge an amended annual report.

    Last modified: 08 Jun 2017QC 44696