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Adjusting amounts on a payment summary 103-07020000

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This document outlines when to adjust amounts on a customer's payment summary.

On this page:

Manual adjustments to payment summaries

Tax adjustments for debt periods within the past 5 years

Tax adjustments for debt periods before 1 July 2003

Manual adjustments to payment summaries

Table 1

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Step

Action

1

Tax adjustments and debts

Check the period of debt. If the debt relates to a period:

  • within the last 5 years, see Table 2
  • before 1 July 2003 and the customer has made a repayment on the debt, see Table 3
  • after 1 July 2003 that is more than 5 years ago and the customer has made a repayment on the debt, go to Step 2
  • within the current payment summary period, no adjustment is required. Procedure ends here

Tax withheld can only be recovered in the current financial year, via the Tax Withheld Recovery (PIDR) screen.

If unable to access the Tax Adjustment Details (TXAJ) screen, refer to ICT. Complete a mySupport request (using the generic payment specific form). The Resources page contains a link to mySupport.

2

Debt/s raised for periods after 1 July 2003 (older than 5 years)

Adjust and issue the payment summary:

In Process Direct:
  • Go to the Tax payment summary (TXGS) screen:
    • Expand the tax year to be adjusted
    • Select Edit from the Tax payment details (TXGD) table
    • Adjust the required fields
    • Select Save
    • Update Receipt Date and Channel fields, select Save
    • Select Assess and address any errors and warnings
    • Select Assess again, then select Finish
    • Record details of the update on the Finalise screen
  • Issue the payment summary
In Customer First:
  • Go to the Tax Payment Summary (TXGS) screen:
    • Select the tax year to be adjusted
    • Select Correction
    • Adjust the required fields
    • Select Continue
  • Issue the payment summary

Tax adjustments for debt periods within the past 5 years

Table 2

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Item

Description

1

Debt/s raised for periods after 1 July 2003

Tax processing will automatically update the Tax Payment Summary (TXGS) screen. An amended payment summary will be issued if there is a change to the payment amount, when:

  • the payment summaries are within the past 5 years
  • the customer has made a repayment on the debt, and
  • the debt is classed as a Standard debt

For Parental Leave Pay (PPL) purposes

When a customer receives PPL through their employer and a debt occurs, the employer must amend their payment summary.

The employer has not issued a payment summary:

  • The employer must adjust their payroll record. This is to ensure the overpaid amount is not reported as income on the employee's payment summary

The employer has issued a payment summary:

  • Within 28 days of becoming aware of the overpayment, the employer must give the employee:
    • an amending payment summary, or
    • a letter containing details of the overpayment for the employee to provide to the ATO

2

Negative amounts adjusted to zero on the Rate Components (RAC) screen

If a negative amount is manually adjusted on the RAC screen, no further adjustment is required.

Adjusting this amount on the system will add the amount back onto the customer's tax details.


Tax adjustments for debt periods before 1 July 2003

Table 3

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Item

Description

1

Tax adjustments and debts for periods before 1 July 2003 - ESAS payments

If a debt is raised for a payment made via the Education Student Assistance System (ESAS), the payment summary will not issue.

Manually prepare and send a payment summary to the customer for that financial year.

2

Debt/s for periods before 1 July 2003

If a debt is raised:

  • before that year's end of financial year processing, the debt will be included in the payment summary
  • after that year's end of financial processing, manually amend and send the payment summary to the customer

3

Debt raised for a different amount than the 'estimated debt' for periods before 1 July 2003

Use the actual debt amount to calculate the amended payment summary.

Do not include any non-reportable components in:

  • the calculations of the payment summary, and
  • any tax adjustments

4

Debts finalised 'no debt' for periods before 1 July 2003

There are no adjustments for debts finalised no debt (FND) from an undetermined status.

5

Debts waived for periods before 1 July 2003

There are no tax adjustments for debts waived before 1 July 2003.

6

Debts created through NSRS for periods before 1 July 2003

Debts created in the National Selection Review System (NSRS):

  • an adjustment must be made to the payment summary
  • relating to the debt period

Do not include any non-reportable components in:

  • the calculations of the payment summary, or
  • any tax adjustments

7

Use of RAC screen to determine if adjustment required for periods before 1 July 2003

The Rate Components (RAC) screen will help work out what adjustments have been made to the tax details, when the payment system created the debt.

The RAC screen shows:

  • the total of the original debt
  • the old and new rate components which form part of the debt

This allows calculation of the effect of the estimated debt on the customer's tax record. The adjustment is the difference between the estimated debt and the final debt amount that has been calculated and raised.

8

Add debt to the Debt Management Information system (DMIS) for periods prior to 1 July 2003

If manually adding a debt, no automatic adjustment is made to the tax system.

  • Update the Tax payment summary (TXGS) screen
  • Amend and issue the payment summary to the customer