Ceasing Australian Taxation Office (ATO) tax deductions 103-08030020

If the customer wishes to cease tax deductions from:

• Income support payments, process in either:
• Process Direct, go to Step 2
• Customer First, go to Step 3
• Parental Leave Pay (PPL), see Customer notifies a change of circumstances for Parental Leave Pay (PPL). Note: if the customer receives payments from their employer, they will need to contact their employer to discuss their tax rate. Procedure ends here

Go to the Tax Instruction (PITX) screen.

Select Add and update the fields in the Create Tax Instruction screen:

• Start Date – key the date of effect to cease the tax deductions. This date cannot be earlier than today's date and must be within the next 28 days. If left blank, the date will default to the first available payday after the request is made
• End Date – defaults to 31/12/9999. Do not update this field
• Requested Deduction P.F.$ – defaults to ‘0’ (zero)
• Requested Deduction P.F.% – defaults to ‘0’ (zero)
• Benefit Group – select from the dropdown menu
• Select Save
• Update the 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. Include the following:
• Australian Taxation Office (ATO) tax deduction has ceased
• the date of effect
• the source of the request
• Select Finalise to complete the transaction

Procedure end here.

Action the cancellation request on the customer's record.

Go to the Payment Instruction Summary (PINS) screen.

Select the tax deduction line to go to the Tax Instruction (PITX) screen.

Note: the system that the PITX instruction has been made against must be selected before coding can be actioned.

• Code '0' (zero) in the Requested Deduction P.F. $: or P.F. % field.
• Enter the date of effect in the Effect Date: field.
• Code the Source: field with a valid code:
• PHO if advised over the phone
• COS if advised over the counter
• LET if advised by letter
• Code the DOR: field.
• Press [Enter].
• Type 'Y' in the Confirm: field, press [Enter]. The PINS screen is displayed.
• Type 'Y' in the Finished: field, press [Enter].

Record the details on a DOC, including the following:

• Australian Taxation Office (ATO) tax deduction has ceased
• the date of effect
• the source of the request