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Re: Effective date

Newbie

Views 667

Replies 6

Hi 

 

recently I amended my tax return from last year.

it is currently says balancing account but the effective date says 23rd March 2020.

Can anyone please explain how this can be as that is 8 months ago.

thanks

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Enthusiast

Replies 2

Hi @Ken81

 

The earlier effective date you mentioned could be calculated based on the due date of the original return you lodged, even though that date may have passed. This is so the ATO can calculate whether since that time, there is interest due. The ATO might owe you some interest if the amendment results in a refund, or alternately if the result of the amendment is that you owe the ATO some money, then the ATO might ask you to pay interest or GIC. The interest is calculated from the original date the money should have been received (effective date), up to the present.

 

There is information on this page Individuals and trusts showing how the date in March might have been calculated. Here is a related post about effective date.

 

Hope this helps.

 

This is my personal view. I'm an ATO employee who chooses to help out in my own time.

6 REPLIES 6

Most helpful response

Enthusiast

Replies 2

Hi @Ken81

 

The earlier effective date you mentioned could be calculated based on the due date of the original return you lodged, even though that date may have passed. This is so the ATO can calculate whether since that time, there is interest due. The ATO might owe you some interest if the amendment results in a refund, or alternately if the result of the amendment is that you owe the ATO some money, then the ATO might ask you to pay interest or GIC. The interest is calculated from the original date the money should have been received (effective date), up to the present.

 

There is information on this page Individuals and trusts showing how the date in March might have been calculated. Here is a related post about effective date.

 

Hope this helps.

 

This is my personal view. I'm an ATO employee who chooses to help out in my own time.

Newbie

Replies 1

Hi Teejay

 

thanks for your reply and your thoughts.

The effective date isn't close by 7 months to the original tax return date so it has me confused.

23rd march 2020 isn't close to anything I've done with the ato.

 Thanks 

Enthusiast

Replies 0

Hi @Ken81 

 

Ahh. I thought perhaps when you said your return from last year - that might be your 2019 individual income tax return which, if lodged through a tax agent by up to around 12 February 2020, might have resulted in an effective date of mid March 2020 (from the link supplied above for calculating the dates). It is hard for me to know when I can't see the statement.

 

Or, if you are looking at the account statement within myGov, might the effective date you see relate to the original return you lodged? You can filter the statement to show a longer range of dates.

 

You will receive an amended notice of assessment when your amendment is fully processed, showing a calculation and a final amount.

 

Hope I've assisted you

 

This is my personal view; I'm an ATO employee who chooses to help out here in my own time.

Devotee

Replies 2

@Ken81I think you better check that you have amended the right return. This date would be correct if you amended the 2018 to 2019 return - that was lodged by a tax agent. It reverts back to the date it would have been due even if its in the past.

Newbie

Replies 1

That's correct it was for that financial year.

 I've amended the year 2018-19 which was what I needed to amend.

Still doesn't make sense for the effective date.

Affective date has always been when it will  be finalised and put into my bank account.

I'm confused still!

Enthusiast

Replies 0

Hi @Ken81

Yes, correct - for a tax return resulting in a refund, you will be given an effective date for the money to reach your bank account. Calculation of that date is based on the return finishing its processing, plus a few days.

 

On the other hand, you are given the prescribed effective date (see Prepare and lodge - individuals and trusts) if the result of your tax return were to be a payment due; eg that mid March date. Amendments use this prescribed date, too.

 

Hope I've helped.

This is my personal view; I'm an ATO employee who chooses to help out in my own time