Processing Manual Follow-up (MFU) tax activities for benefit transfers 107-19061235
Expand allExample - Actioning a Tax MFU when 2 or more benefits have been paid in the same benefit transfer period
Note: the Tax Payment Summary (TXGS) screen must reflect the negative adjustment amount for each benefit type. Unless specified, different payments must be recorded separately.
System limitation
Benefit transfers occur when customers transfer between payments. A manual tax MFU may generate. When 2 or more (losing) benefits were paid in the benefit transfer period, the system only reduces 1 benefit type on the customers’ Payment Summary and TXGS screens. This results in a negative adjustment for 1 payment and a positive adjustment for any subsequent payment(s). The Payment Summary Information below highlights this type of scenario. A negative adjustment to TXGS is required for both NSA and JSP.
Table 1: This table describes the Payment Summary Information.
Working out the benefit transfer period and negative adjustment amount
Example 1: NSA and JSP (including Coronavirus supplement (CVS)) transfer to DSP
The customer was in receipt of NSA from 20 February 2020 to 19 March 2020. They transferred to JSP, receiving payment from 20 March 2020 to 24 June 2020. On 27 April 2020, the customer commenced receiving CVS.
In late June 2020, the customer transfers to DSP with payment retrospectively from 20 February 2020.
The benefit transfer periods and negative adjustment amounts respectively for NSA and JSP/CVS are:
- 20 February 2020 to 19 March 2020 - all NSA paid, and
- 20 March 2020 to 24 June 2020 - all JSP and CVS paid
Example 2: YAL and YDS (Youth Disability Supplement) transfer to DSP
The customer was in receipt of YAL from 20 February 2020 to 24 June 2020. The customer commenced receiving YDS on 1 April 2020 until 24 June 2020.
In late June 2020, the customer transfers to DSP with payment retrospectively from 20 February 2020.
The benefit transfer periods and negative adjustment amounts respectively for YAL and YDS are:
- 20 February 2020 to 24 June 2020 - all YAL paid, and
- 1 April 2020 to 24 June 2020 - all YDS paid
See the Resources page of Taxable and non-taxable (tax exempt) payments for Centrelink Payment Summary for a list of payments reportable to the ATO. The component amount will be included with the main payment in the 'Taxable' amount column on the Centrelink payment summary, unless specified.