Xero tax(AU) | ITR - Add estimate disclaimer
Add an additional dot point to the Individual Return tax calc disclaimer:
. This assessment does not include Division 293 tax that might apply to taxpayers where adjusted income exceeds the Division 293 threshold. Where applicable, Division 293 tax is charged at 15% of certain superannuation contributions.
Janelle Bartlett
shared this idea
Hey community, thanks for raising this as a Product Idea!
Earlier this year, we added in a warning for users affected by either Division 293 or excess super contribution tax.
This warning will appear on the print outs of estimates for returns from FY23 onwards.
You can read a little more about this on our Superannuation Contributions worksheet article over on Xero Central.
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James Dolahenty
commented
You should be putting in the likely figure too. I calculate manually every time. We have the data usually either SMSF or on ATO OSFA so we know, and it looks bad not being able to estimate. And the ATO process is bad as they give you refund, then give you assessment to pay, it causes a lot of back and forth. So rather than disclaimer only, include option to tick yes it is likely, and enter contributions, spits out the likely div293 figure. Seems fairly simply to be done and would be very helpful rather than mycurrent method of manually doing it, would save time
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Nicolas Morales
commented
When we prepare Australian tax returns high earners often salary sacrifice and it pushes them over the contributions limit.
A disclaimer like this brings to the forefront potential issues for clients and avoids potential client disputes
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Keith Marshall
commented
If we can’t provide an estimate through the software we need to be able to warn clients they could have additional tax.
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Janelle Bartlett
commented
I understand that the calculation of Div 293 tax might be complex, however this simple disclaimer will assist us in warning clients . Further including the Div 293 threshold in the wording might assist further, but would add to the maintenance needed where the threshold changes. The proposed wording should be easy to provide.