Age Pension - no tax withheld

[#1]

Hi there, my dad earned $42,000 ($6000 tax withheld) from working full time. He is 71 so he also recieved $10,000 from centrelink for the age pension (they did not withhold any tax from this). He also supports my mum (55) who is out of work (she earned $6000). When we went to lodge his tax it said he owed $2000. Would this be correct? He is on minimum wage at 71. Is he eligible for SAPTO?

[#2]

Hi @Chelle77 

The ATO systems automicially caculate SAPTO eligibilty from the information provided in ones income tax return, and the only reason I can think of that may have led to no offest was that your father may not have completed his return correctly by accidently leaving out your mum as his spouse.

So my suggestion is for you or your father to have a look at the income tax return they lodged and see if they have included your mum as their spouse (along with income earnt).  If your dad has left out your mum as a spouse this would then explain why he has not received SAPTO, simply because the ATO systems would have treated him as single person without a spouse and his taxable income is above the maximum amount that would attract the offest.

If they have left out their spouses information all they need to do is lodge an amended income tax return which they can do online.  The ATO systems should then pick up that he does have a spouse and then he would be eligible for SAPTO as his taxable income would be well under the maximum amount for couples.

Let us know how you go with this ..

[#3]

Thank you so soo much for your thorough response. We just checked, and my mums details and taxable income are on there under spouse details
In the sapto section, we have selected option E (as my mum is 55). However,
when I press more details on the $2000 owing, it doesnt show anything about sapto. If you can think of anything else it would be so greatly appreciated. Thank you again for your help. I hope to hear back.

[#4]

@macfanboy 

You have a lot of experience with SAPTO ..... any guidance appreciated 

[#5]

Hi @Chelle77 

As you can see I have asked @macfanboy  for his expert advice ...

In the meantime it may be helpfull if you go through all the steps that you must follow when completeing an income tax return if you want to get SAPTO. You may not have completed some steps so please go through each step carefully.

https://www.ato.gov.au/Individuals/Tax-return/2019/Tax-return/Tax-offset-questions-T1-T2/T1-Seniors-...

In particular have a look at Step 4 = You must read Income tests 2019 and complete all income tests items.  

One of the important steps which you may have missed is the " Income Test " labels, which are required to be filled in even if the amount is " 0 " .   If they do not apply you must write " 0 " otherwise the ATO systems may not work out the SAPTO.

The income test labels in the return are as follows:

IT1 = Reportable Fringe Benefits Amounts

IT2 = Reportable Employer Super Contributions

IT3 = Tax Free Government Pension

IT4 = Target Foreign Income

IT5 = Net Financial Investment Loss

IT6 = Net Rental Property Loss

IT7 = Child Support you paid

IT8 = Number of dependant children

As stated before if you have missed a step and accidently left something out you will have to amend the return

let us all know how you get on with this

[#6]

Thanks so much for looking into this 🙏
Sucks about the outcome, but thank you for all of your help!!!!

[#7]

@macfanboy   wake up ... 

[#8]

@Anonymous 

zzzzzzzzzzzzz

Awake now 

[#9 · Accepted solution]

@Anonymous @Chelle77 

Looks about right.

He is not eligible to claim the beneficiary tax offset or seniors and pensioners tax offset.

His income exceeded the upper threshold for 'E' of $41,790.

Assuming no deductions at all, a $2,187 tax payable.

I even checked using the Calc on ATO.

@Anonymous 

Some of us have to work sometimes...

[#10]

Thanks so much for looking into this 🙏
Sucks about the outcome, but thank you for all of your help!!!!