The changes to the 2018 Xero Tax forms

Overview of the Xero Tax form changes

Adrielli Gonzales
Xero

 

It’s EOFY and the last thing you need is a whole lot of text to read through. So, we’ve made a quick and easy list of the changes you should know about.

Individual Tax Returns (ITR)

  • Item 7 Australian annuities and superannuation income streams - label M Assessable amount from capped defined benefit income stream
  • Item 24 Other income - label X ATO interest
  • D10 Cost of managing tax affairs - split into 3 labels (ATO Interest, Litigation expenses, Other)
  • D12 Personal super contributions - new Yes/No option for notice of intent to claim a deduction
  • T2 Tax Offset - Australian super income stream - maximum offset $10,000 on untaxed elements
  • T3 Spouse Super Contributions Offset - change in spouse income test threshold ranges from $10,300 - $13,300 to $37,000 - $40,000
  • T8 Early stage venture capital limited partnership
  • T9 Early stage investor - fields for carried forward offsets

Company Tax Returns (CTR)

  • Item 3 Status of company - F2 Base rate entity
  • Item 22 Early stage venture capital limited partnership tax offset (ESVCLP)
  • Item 23 Early stage investor company (ESIC) tax offset - fields for carried forward offsets

Partnership Tax Returns (PTR)

  • No changes.

Trust Tax Returns (TRT)

  • Item 52 Non-refundable carry forward tax offsets - split into 2 labels for ESVCLP & ESIC offsets
  • Item 55 Statement of distribution - Non-refundable carry forward tax offsets split into 2 labels for ESVCLP & ESIC offsets
  • Item 55 Beneficiary not entitled - Non-refundable carry forward tax offsets split into 2 labels for ESVCLP & ESIC offsets

Self Managed Super Fund Returns (SMSF)

  • Item 11 M - Section B Income - CGT exemption/rollover codes for ESVCLP & ESIC
  • Item 13 D1 & D2 - Section D Income tax calculation statement - Non-refundable carry forward tax offsets - split into extra labels for ESVCLP & ESIC offsets
  • Member statements - fields for balances in accumulated phase, retirement phase
    S1, S2, S3, Transition Retirement Income Stream count, X1, X2

Top five questions

1. What if the prefill data isn’t there?

It’s important to note that while the 2018 pre-filling function will be available in-conjunction with the 2018 tax forms, data within the pre-fills is ultimately determined by what information the tax office holds. If the 2018 pre-fills appear to be empty, or missing certain data – it simply means the tax office have not included this information in the pre-fills just yet. We expect most information to be available by September, as with pre-fills in the past.

 

2. Should you manually enter Activity Statements without using the ATO pre-fill?

Short answer is no. That’s because whenever an activity statement is created manually, a “statement type” must be selected upon creation. This statement type will dictate what fields are present and available within the activity statement, and selecting the incorrect one will always result in a lodgement error for the activity statement. Unfortunately, selecting the correct one isn’t always easy as it will need to match the information the ATO are expecting.

We always recommend using the ATO pre-fill for activity statements to avoid lodgement issues, and if you encounter any errors attempting this, contact support immediately.

 

3. Why did you get a “D01 error” for 2014-2016 Individual tax return lodgements?

Xero Tax uses both PLS and ELS to lodge tax forms. We use ELS to lodge 2014-2016 Individual forms and CU forms, and PLS to lodge other form types, activity statements, and most recently 2017 individual returns.

This is why some users may ask why they’re receiving the D01 lodgement error for 2014-2016 individual tax returns, when they just lodged a 2017 individual return not long ago. To get around the D01 error, please request for a new temporary password from the ATO.

 

4. What does  “SBR.CommunicationError” mean?

This error on lodgement usually means the ATO PLS servers are under heavy load, and have rejected the lodgement based on this. We recommend re-lodging the form, and if you still receive the error there are a few things you can check before contacting support for assistance.

If it was an activity statement created manually
This is the most common cause of the communication error when it was manually created and the ATO pre-fill wasn’t used. We recommend deleting the activity statement and recreating it using the ATO pre-fill.

If it was created using the ATO pre-fill
Please attempt to retry lodging it again, and if it fails, let us know so we can investigate.

If it’s not an activity statement
Try re-lodging the form. If you still get the same error, contact support and we’ll be happy to investigate.

 

5. Why do you get “Bad Request” errors when importing Xero Blue data into Xero Tax?

We have seen that it’s often a mismatch between the accounting method (ie. cash or accrual) in the Xero organisation’s financial settings and the GST accounting method selected on the activity statement in Xero Tax.

If there is a mismatch, change the accounting method in Xero, re-publish the activity statement and then re-import it into Xero Tax.

If the accounting method is the same in both Xero organisation and Xero Tax, ensure that both are either in the Simpler BAS method or Full BAS method.

An easy way to check this is to see whether the available GST labels in Xero Tax are appearing on the finalised/published activity statement.

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