Prior to opening the new income year’s Tax Ledger, ensure that you've prepared the previous year’s ledger so that, among other things, you don't roll forward returns for clients for whom you no longer act for. These returns can be excluded from the Year End routine by flagging them in the previous year ledger. To flag these returns, refer to Exclude tax returns from roll-over.
When you first enter Tax for the new financial year, you'll be prompted to run the Year End Routine to balance forward the lodgment details of returns (except those excluded from rollover). In detail, the Year End Routine:
carries forward the Front cover details to the subsequent year's front cover.
sets Overseas pension and salary income dates to the next financial year.
brings locked returns into the new Tax ledger and keeps them locked.
resets lodgment levels and due dates according to the options you select.
updates Primary Production Averaging Income dropping off the earliest and adding the previous year.
updates Special Professional Eligible Income for Averaging dropping off the earliest and adding the previous year.
provides a checkbox to Clear Invoice amounts.
- Open Tax for the 2018 financial year. The Year End Routine window appears.
Select the options appropriate to your practice:
Option Description Reset Tax Levels to Blank
By selecting this option the ATO lodgment level of every return transferred from the previous ledger will be reset to blank. If the Reset Tax Levels to Blank option is not selected, the ATO lodgment levels for the return:
will be based on the previous year's assessment details, or
if no assessment details were keyed in, will be based on the previous estimate details, or
if no estimate was produced, will be based on the previous lodgment level.
Company and Superfund Classifications This option clears the Company or Fund classification field on rollover. The Company and Superfund classification field is found by selecting Return Properties > PAYG/Lodge) Clear invoice amounts:
If you do not want last year's invoice amounts to roll over, you must tick this box. If you leave this option unticked, a Message dialog will be presented to check that you have not overlooked it. If you answer:
Yes, the amount you billed last year will roll into the amount field in the Return properties, Invoice tab.
No, focus will return to the Year End screen so that you can tick that box to prevent last year’s amount from rolling forward.
Select the from one of the four Return Due Date options. The most commonly used Return Date Due option is Reset using ATO Tax Level/Classification. The selected option will be effective for all returns brought forward.
Option Description No Change Required The return retains its previous due date. Reset to Blank The new due date is set to blank. Reset using ATO tax level The due date is determined by the new year's lodgment level of the return, as determined by the ATO. For companies, the company classification and likely tax payable are also calculated. Increase By One Year The due date is advanced by one year. For example, if a date due field was 15/05/2017 it will become 15/05/2018.
Once you've selected the appropriate options, click OK to begin the Year-End routine.If the Clear invoice amounts is not selected, you'll be prompted to confirm that the invoice details should roll forward: - Click Yes to roll the invoice amounts into the amount fields of the Return properties > Invoice tab and set the dates to blank.
- Click No to return to the Year End Routine window and deselect the checkbox to stop all invoice details from rolling forward.
Once the Year End routine is completed, Tax opens. If you want to process 2018 returns immediately, the next step is to perform the Retain Schedule Data (RSD) routine to transfer text contained in the 2017 worksheets and schedules into corresponding worksheets and schedules for the 2018 tax year.