Senior Customer Experience Specialist
Overview of the Xero Tax form changes
As EOFY is approaching, we've prepared a list of changes made to 2019 tax forms as required by the ATO, as well as top five commonly asked questions when preparing/lodging a return form in Xero Tax.
Individual Tax Returns (ITR)
- Income tab: New labels R and S are added to Item 24 as Category 3 for First Home Super Scheme (FHSS)
- Estimated tab: New offsets for FHSS as well as Low and Middle Income Tax Offset
- Deduction tab: In accordance with the ATO specifications, we've removed the Dividend and Interest Deductions schedule. This is due to the ATO’s requirement for more specific data around deductions at label D1 through to D15. For more information on this please contact the ATO.
Company Tax Return (CTR)
- The Reportable Tax Position schedule can now be added like other schedules using the green ‘+New Schedule’ button located on the left panel
Self Managed Super Fund Returns (SMSF)
- Item 15 Assets – a new item is added as item 15C label N “Other Investments – Crypto-Currency"
- Member statements:
- Contributions section: New labels for H “Proceeds from primary residence disposal” and H1 for “Receipt Date”
- Other transactions section: A new label for Y “Outstanding Limited recourse borrowing arrangement”
There are no changes to trust and partnerships returns.
Top five questions
1. Why there’s no prefill data after doing the PLS prefill?
It’s important to note that while the 2019 pre-filling function will be available in-conjunction with the 2019 tax forms, data within the pre-fills is ultimately determined by what information the tax office holds.
If the 2019 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. Why do I get “Bad Request” errors when importing Xero 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 on 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.
3. Why do I receive the error "Unable to reset prefill" when trying to use the PLS prefill?
In order for the ATO prefill to populate, please ensure that a tax agent has been assigned to the client in the client's profile. If no agent is present, you will receive this error.
To assign an agent, you can go to the client's profile, click on Options > Edit > Expand the Tax and Company section then select an agent profile from the drop down list.
4. Why do I receive the CMN.ATO.AUTH.011 error on lodgement?
This error indicates that this client is not linked to your agent profile on the ATO portal, or the ABN entered for the client has been cancelled.
Please go onto the ATO portal and add this client to your agent number. If they are already added, please remove and re-add them back and you should be able to lodge the return.
5. How to amend a return where original was lodged outside of Xero Tax?
If you need to amend a tax return that was lodged through another tax application, you can enter the original tax return details into a tax return in Xero tax and then manually mark the return as Filed. You'll then be able to create an amendment from the filed return.
Please refer to the support articles below for more information on manually marking a return as Filed and amending a return in Xero Tax.