Frequently asked questions about clients.
What happens when I lodge overdue prior-year tax returns for a client?
Only current year returns are included in your lodgment program performance.
Prior years do not form part of the calculation.
Will my on-time lodgment performance be affected if I am assisting a taxpayer with overdue returns to get up to date?
If you take on new clients with overdue prior year returns, your on-time lodgment performance will only be affected if you lodge the current year’s return after the due date or deferred date.
You can request a lodgment deferral for the current year return, to give you time to prepare and lodge the overdue returns.
Example 1:
In January 2023, Stephen is approached by a new client with overdue prior year tax returns for 2019, 2020 and 2021.
Stephen requests a deferral for lodgment of the 2022 income year tax return until 31 March 2023 to allow him time to complete and lodge the overdue prior year returns.
When Stephen’s deferral is granted for the 2022 return, he can bring the client up to date, and lodge the current year return on time.
Stephen’s client is also granted suspensions of lodgment compliance action for the 2019, 2020 and 2021 returns. They are still liable for any failure to lodge on time penalty or interest that is applicable for their overdue prior year returns.
End of exampleWhat happens if I remove a client from my client list after I have lodged their current year tax return on time?
This will still count towards your on-time performance.
If I take on a new client who has already lodged their current year tax return on time, will this tax return count towards my total number of returns lodged on time?
If the new client lodged their current year tax return with another tax agent, the lodgment will be counted towards that agent's performance figure.
Why is the ATO continuing to contact me for clients I have previously removed from my client list?
This can occur when you have removed a client from your client list but your registered agent number is still attached to one of the client’s accounts, or the client's address was not updated. You can add and remove clients through Online services for agents or the practitioner lodgment service.
For more information on updating client details, see:
- Online services for agents – add client
- Online services for agents – remove client
- Practitioner lodgment service – Client Update (CU)
Why are return not necessary (RNN) or further return not necessary (FRNN) clients calculated as lodged on-time in my lodgment performance percentage?
When you submit a current year non-lodgment advice, including further returns not necessary (FRNN) or return not necessary (RNN) advice, you have met the lodgment requirement for that return, and we use this information when calculating your lodged-on-time percentage.
If there is no requirement to keep clients with a 'further return not necessary indicator' on your client list, then you should remove them.
What if I have recently transferred my client base?
All registered agents with an active client list will be measured and receive a performance summary, including newly registered agents or RANs undergoing client base transfers.
We understand that your performance may be affected while transferring clients between RANs and will take this into account prior to applying any support strategies.
Where to find answers about the lodgment program framework and how it affects registered tax agents.