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Future Year Returns 

A future year return is a taxform that is lodged before the end of the current reporting period. For example, a 2020–2021 tax return lodged before the end of the 2021 financial year.

A future year lodgement must be made no later than the 15th June 2021. Alternatively, the lodgement can be made as normal after 1st July 2021.

For future year FBT returns, the lodgement must be made no later than the 31st March 2021.

For further information on how this works, refer to KA-04342.

ATO Updates

  • The accelerated personal income tax cuts have been incorporated into the 2020 PAYG instalment calculations for individuals. Specifically, these include:
    • Changing the individual tax rates for 2021 and 2022 for residents, non-residents, and working holiday makers;
    • Changing the tax rates that apply to trustees taxed on income to which no beneficiary is presently entitled under section 99;
    • Altering the calculation of the low income tax offset for 2021; and
    • Removing the low and middle income tax offset from the 2021 PAYG instalments calculation (that is, for the 2022 PAYG estimate).
  • The interest rate for overpayments and early payments for the period 1st October 2020 to 31st December 2020 has been released by the ATO (0.10%) and has been incorporated.

  • The APS errors and warnings have been updated to reflect the temporary full expensing of the full cost of eligible depreciating assets (and improvements to these assets) that are first held, and first used or installed ready for use for a taxable purpose, after 2020 budget time (6th October 2020) and on or before 30th June 2022. Further, for taxpayers with years ending on or after 7th October 2020 and on or before 30th June 2022, the deduction for the decline in value of the SBE pool is the full balance of that pool.

  • For 2021 future year returns, the ability to pay PAYG instalments based on GDP-adjusted notional tax applies to entities that would be small business entities based on an increased threshold of $50m rather than $10m.

  • On 26th August, the ATO released TD 2020/7 which contains its view regarding the 'source' of capital gains where no foreign tax has been paid. For 2019 and 2020 returns, APS Tax will now issue a warning where a capital gain is marked as being foreign but no foreign tax has been paid.

  • For Individual and Partnership returns, the business use percentage is set to 0% for cars that have been included in the SBE pool where the deduction is calculated using the cents per kilometre rate. This is in accordance with the ATO instructions. Further, for 2020 Individual and Partnership returns, the effect of any potential pool adjustments (for cars pooled in prior years) or the potential taxable use portion of the cost (for new cars) is taken into account in determining whether to use the cents per kilometre method or the log book method.

  • For 2019 and 2020 Trust returns where the trustee has elected to be taxed on one or more capital gains and at least one of those gains has had the CGT discount and/or the small business active asset reduction applied, these returns can now be lodged via SBR (that is, error TRT.432179 will no longer apply). Per ATO advice, we will transmit the value before the addition of the additional amount pursuant to section 115-222(4) and include an "Other attachment" that lists the gains so that the correct assessment of the tax payable by the trustee can be made.

  • For 2020 Individual returns, where there is a lump sum payments of exempt foreign employment income in arrears, this is now included in exempt foreign employment income on the income schedule. This will prevent SBR error IITR.730086 from being raised where the lump sum payments of exempt foreign employment income in arrears is entered via a payment summary at item 1.

  • Updates to ATO specifications. Specifically, these include:
    • Removal of the rule that prohibits " - " in non-individual names in the Return not necessary form (CURNN);
    • Expanding the list of valid characters for the interest account number, dividend reference number and the managed fund reference number in the income details schedule (INCDTLS);
    • Fixing of rules IITR.730488 and IITR.730057 to allow lodgement of valid individual returns (IITR);
    • Changing the threshold of warning IITR.630003 to match the legislation (IITR); and
    • Changing the rules IITR.310004 and IITR.310005 to allow 0 as a value for CFC and transferor trust amounts where the respective questions are answered 'No' in the individual return (IITR).
  • The designation infrastructure project tax uplift factor has been updated. This is used to uplift the tax losses of designated infrastructure project entities. The uplift factor for 2020 is 1.03%.

  • Click here to find an overview of all the key changes for tax time 2020.

 


 

Fixes

Description Reference 

For 2020 Individual returns where foreign tax paid on foreign capital gains has been entered, the return will no longer be rejected with SBR error CMN.ATO.IITR.730096.

KA-04355

2020 Individual returns that contain franking credit from New Zealand franking companies that have been distributed by a managed fund or other trust will no longer receive an SBR error reported as INCDTLS222.

KA-04330

For 2019 and 2020 returns, PAYG instalment credits can now be entered as a negative for the second to twelfth monthly instalments. Reckon error AE9454 has been added to ensure that the total monthly instalments are not negative.

KA-04306

For 2020 Individual returns where a WPN has been entered for a payment summary other than an individual non-business or an employment termination payment, then SBR error INCDTLS.000332 will be displayed.

KA-04288

There were three overlapping fields at the FITO label, one each for rental, financial investment and other. The “other” field was in the ANZ credit field and the ANZ credit was in the “other” field. This has now been corrected.

KA-04291

For 2020 Individual returns, the allocation of foreign tax paid on foreign income by partnerships is now correctly allocated between foreign financial investment income, foreign rental property income, and other foreign income. This will prevent SBR error IITR.730359 from being raised on lodgement and pre-lodge.

KA-04267

Corrected errors CMN.ATO.INCDTLS.000186, CMN.ATO.INCDTLS.000188, CMN.ATO.INCDTLS.000220. You need to unintegrate and then reintegrate the prefill information to include all prefill items into the return. The net capital gains and total capital gains are now flowing through to the income schedule from the managed fund distribution prefill.

KA-04254

In 2020 Individual returns, foreign tax paid on foreign capital gains distributed by managed funds are now disclosed in accordance with ATO requirements.

KA-04232

The share of net income for beneficiaries of trusts and managed funds is no longer copied to the income details schedule unless the beneficiary has had tax withheld by the trustee. This will prevent SBR errors INCDTLS.000392 and INCDTLS.000255 from being raised.

KA-04225

Employment termination payments that are entered on the employment termination payments worksheet with no taxable component (empty or $0) and no PAYG withheld (empty or $0) and are no longer copied to the main form. SBR error IITR.EM001213 should no longer be raised by the ATO on pre-lodge or lodge. If either of these amounts exist and are greater than $0, then the ETP will be copied to the main form. In order to avoid SBR error IITR.EM001213 being raised by the ATO on pre-lodge or lodge, ensure that both amounts are entered.

KA-04066

Where there are more than 20 items of interest reported at item 10 for a 2020 individual return (or more than 50 dividends reported at item 11), the country of residence is no longer being set to Australia for the consolidation entry. This will prevent SBR errors IITR.730377 and IITR.730376 from being raised on lodge and pre-lodge.

KA-04222

The ATO have resolved an issue in relation to the truncation of cents for negative values. This means that error IITR.730095 should no longer be raised.

KA-04206

The deletion of empty rental properties for 2020 Individual returns has been fixed. Existing returns must first refresh validations before attempting to delete the empty rental property.

KA-04158

Incorrect printing for multiple partnership distributions in the Income Schedule has now been resolved.

KA-04320

For 2020 Individual returns, the assessable foreign income disclosed on the main form now includes the net foreign income distributed by partnerships and trusts (rather than the gross foreign income advised by the partnerships and trusts). This will prevent SBR error IITR.730088 from firing on lodgement and pre-lodge.

KA-04345

For 2020 Partnership returns, the net financial investment loss is being calculated correctly.

KA-04297

For 2020 Company, Trust, and Partnership returns where the entity's income includes personal services income that must be attributed to an individual, the total amount of PSI (label A) no longer includes any income that is exempt or non-assessable non-exempt.

KA-04281

Where a lump sum payment of income in arrears has been entered without the year to which it relates being entered (or vice-versa), an SBR error is now displayed. Previously, these entries were not copied to the income details schedule unless both the year and amount existed, which would result in an error (such as INCDTLS.000318) being returned on lodgement or pre-lodge.

TAX-370

For 2020 Individual returns, the Joint petroleum development area tax offset is now always set in the income details schedule for all residents of countries other than Australia and Timor-Leste who have derived income from the Joint petroleum development area, even where the offset calculates to $0. This should prevent SBR error INCDTLS.000351.

TAX-365

The number of account holders and the reference number for dividends are now shared among co-owners. This will prevent SBR error INCDTLS347 from being raised.

TAX-334

CMN.ATO.GEN.XML01 error displays on prelodge for distributions. This has now been corrected.

TAX-500

For 2020 Individual returns, entering an amount at "Other taxable allowances from Services Australia that are not included at items 5 or 6" (which are entered at item 24) will no longer cause SBR error IITR.730295 to be raised.

TAX-368

Printing the 2020 'Review Summary' will now display Item 24 Other Australian Incomes Category 3 and Category 4 amounts in the 'Last year' column correctly.

TAX-478

The Quick Access Toolbar now stays underneath the Ribbon if it has been previously set there.

TAX-312

Corrected the Tax Data Extractor exception error on misformed 00001-01-1 ATO due date.

TAX-174

A blank 'General Small Business Pool' page is printing when it should not be. This has now been corrected.

TAX-142

 


 

Improvements

Description Reference 

For 2020 returns, dividends and interest disclosed on the company return will flow through to the investor's return where such flow-through has been selected (this will be the default where the selector has been used in the Dividends and Interest Paid schedule). However, for existing investors, you will need to clear the selected investor and re-select him/her/it in order for the ability to distribute to become available.

KA-04307

For 2020 returns, where some information for a capital gains tax asset is entered without all of the required information, a Reckon error (AE9457) will be displayed. For the short-form entry of capital gains and losses, the required information is the description, asset type, calculation method, and the amount of the gain or loss.

KA-04333

For 2020 Individual returns, the "Other Attachment" for interest and dividend withholding tax has been restored for paper returns (both display and printing). The direct entry NRAS grid is no longer read-only.

TAX-376

There is now a new client copy report available for Other Attachments.

TAX-390

The tax estimate for trustees being assessed on income to which no beneficiary is presently entitled now takes the residency status of the trust from the assessment calculation code used rather than the residency of the trust. This is per ATO practice. For 2019 and 2020 trust returns, new Reckon errors (AE9455 and AE9456) are displayed where the assessment calculation code does not match the residency of the trust. Also, assessment calculation codes 15 and 16 have had the word 'resident' added as these codes only apply to resident trust estates.

TAX-412
The tax offset for lump sum payments in arrears is now calculated for 2020 Individual returns. The calculated offset covers the majority of 'standard' situations. The calculation assumes that:
  • the taxpayer's residency and excepted income status has remained the same as the current year for the accrual years;
  • the taxpayer did not derive special professional income, primary production income, exempt foreign employment income, or income while a working holiday maker during the accrual years;
  • if the taxpayer was entitled to a lump sum rebate in an accrual year (in respect of ETPs, superannuation lump sums, and/or employer lump sum payments), that the rebate will not change as a result of adding the portion of the lump sum payment in arrears that accrued during that year;
  • the taxpayer did not have a superannuation remainder or employment termination remainder for the accrual years; and
  • the taxpayer did not receive any lump sum payments in arrears in the accrual years, or another year that had one or more accrual years that includes the accrual years for the current lump sum payment in arrears.
In addition, there are some limitations on the calculation:
  • lump sum payments in arrears of exempt foreign employment income are not taken into account; and
  • the calculation only caters for accrual years from 2008 onward.

Note: any amount that has been entered will not be updated on version upgrade. The taxform is not able to determine if any of the exceptions and/or limitations affect the calculation. If you wish to have the calculation updated, toggle an income amount and select to override the manual calculation.

TAX-305

For 2021 returns, it is now possible to share deductions incurred in deriving interest and/or dividend income between individual taxpayers.

TAX-503

For 2021 returns, it is now possible to share work-related travel expenses (D2) and other work-related deductions (D5) between individual taxpayers. 

Note: if one or more of the taxpayers have incurred these shared expenses in deriving foreign employment income reported on a payment summary, this will be taken to be same for all individuals with whom the expenses are shared. Therefore, it is not advisable to share such expenses where one or more of the taxpayers have incurred these shared expenses in deriving foreign employment income reported on a payment summary unless it is same for all individuals with whom the expenses are shared - SBR errors may occur for the owners that have not derived foreign employment income reported on a payment summary.

TAX-510

Updated all forms with the latest Reckon APS logos.

TAX-204

Removed the '0 Return/s selected status' for the Lodgement Due Date from the Tax Data Extractor.

TAX-205

The mainform fields in all forms have been enabled for extraction via the Tax Data Extractor. These fields can be reported via the Tax List Customiser and Tax Lists consoles.

TAX-82

The first five rows for the Payer Name is now available for extraction via the Tax Data Extractor.

TAX-352

Removed the Direct Debit (DD) from Tax Manager.

TAX-456

 


Stay Informed with Known Issues

Please refer to the knowledge base article KA-03782 for any known issues related to this release. We recommend reviewing this article on a regular basis to ensure you’re aware of any issues and their solutions.  

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Click the download button below to check the prerequisites for this release and to download the software.  Please note you have to be signed in to MyAPS to access the download page. if you having any difficulty access this page, please let us know how we can help. 

 

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