MYOB AE/AO release notes—2020.0 (Australia)

• A new section for COVID-19 Support for Business is provided in the CTR, IITR, PTR and TRT forms. We've updated Depreciation schedule (d) with the new rules. 
  Businesses with an aggregated turnover of less than $500 million for 2019–2020 can deduct the cost of depreciating assets at an accelerated rate, and immediately write off the cost of eligible assets.
  Businesses and assets need to meet certain conditions.

• The ATO has introduced a shortcut method to simplify how you calculate your deduction for working from home. This method is temporary and only available for the period 1 March to 30 June 2020. All employees working from home in this period can use this method.

COVID-19 Support Package: Changes to depreciation

There's a new Country by Country (CbC) reporting entity indicator. It's used to administer CbC and General Purpose Financial Statements (GPFS) obligations.

This brings Australia’s definition of a Significant Global Entity (SGE) in line with Organisation for Economic Co-operation and Development (OECD) model legislation. The Significant Global Entity (SGE) indicator continues to help determine certain tax law consequences. Learn more.

Company returns

Item 3 – Status of company has a new label, G2 – Country by country reporting entity. You must complete item 5 if at item 3 label G you indicate that the company is a country by country reporting entity.

Partnership and trust returns

Item 2 – Status of business has a new label, G2 – Country by country reporting entity.

Following an amendment to the Income Tax Assessment Act 1997 (ITAA 1997), we’ve made some minor wording changes to section G, and removed the following questions for company, partnership and trust returns:

• 37a – Did you choose to recognise an internally generated intangible item under section 820-683?
• 37b – Average value amount of the internally generated intangible item you recognised under section 820-683?
• 37c – Did you choose to revalue an intangible asset under section 820-684?

The ATO has introduced a mandatory Income Details schedule (INCDTLS) to report income details at a granular level in an individual tax return.

New or revised worksheets are provided at income labels to enter detailed line item information. These worksheets are lodged with the INCDTLS schedule to the ATO. You need to use the worksheets; you can't enter the amounts directly into the labels.

Different worksheets are affected in different ways:

• There are new worksheets, like Foreign employment income non-payment summary (fem), Foreign pensions and annuities (fpa) and Business income statements and payment summaries (bip).
• Some worksheets are decommissioned, like Payment summary (ps) and Overseas pension and salary (ove).
• Some worksheets are revised, like Salary or wages payment summary (egc) and Other income - Category 1, 2 and 4 (oix).

At item 20 Foreign tax paid – For calculation of estimate only, we've created new fields for you to enter the foreign tax paid for each of the worksheets you've used.

Income details schedule (INCDTLS).

The PLS Multi-property rental schedule (RNTLPRPTY) replaces the ATO Rental schedule (RS), and must be lodged for Individuals owning one or more rental properties.

The ATO has decommissioned the Rental schedule (RS) for the individual tax return, but it's available for partnership and trust tax returns.

In the 2020 Multi-Property Schedule, we've kept a similar but simpler layout to last year’s rental schedule (RS).

On lodgment, we send one schedule to the ATO. It'll have combined details from all the rental property schedules.

• We've renamed the Net amount column to Your share.
• We've added the following fields:
  • Name of rental property
  • Ownership % (mandatory)
  • Gross amount fields.
• Your share fields are automatically calculated as Gross amount x Ownership % (previously calculated when clicking Share).
• We've deleted columns the following columns because of the PLS requirement to lodge the gross amount and your share amount, and to calculate your share based on ownership percentage:
  • Private use %
  • Private use amount.
• We've changed the Share to other returns feature:
  • The name of the property is now shared to another tax return.
  • The ownership % entered in the source tax return populates the shared tax return.

Rental Schedules (ren, rep and RNTLPRPTY).

A1

• We've added three new fields at item A1 under 18:
  • Excepted non-primary production income.
  • Excepted primary production income.
  • Eligible primary production income.
• The study and training loan repayment section has six fields for calculation purposes.
  Item A1 - Under 18 (including HECS-HELP/TSL/SSL & ABSTUDY SSL/SFSS loan debts).

A2

• We’ve changed the A2–Part-year tax-free threshold item layout and the descriptions of the fields:

  

  If you are ceasing Australian residency, you must enter a start date. If that was before 1 July 2019, then enter 01/07/2019 in the start field.

   

  • Removed the Commenced/Stopped Residency drop-down.
  • Added a field for the residency start date.
  • Renamed the previous Date field to End date.
  • Renamed the Months field, label N to Months eligible for threshold.
  We've updated the Medicare levy - Part-Year Tax-free Threshold worksheet (mlv) to reflect these changes:
  
  • The Threshold category field is removed.
  • Australian residency start date field added
  • Enter relevant date changed to Australian residency end date.
  • Item A2 - Part-year tax-free threshold.

A4

• We've added two new fields at A4 Working holiday maker net income:
  • Working holiday maker gross income.
  • Working holiday maker related deductions and business losses.
• On the Working Holiday Maker (whm) worksheet, we've relabeled and added fields, and integrated gross income and total deductions to A4 in the IITR.
• Item A4 - Working holiday net income.

We've removed the net medical expenses tax offset item T5 from the tax return, and renumbered the remaining tax offsets accordingly. The government abolished the offset on 1 July 2019.

We've removed the work-related expenses schedule (schedule W) from the tax return. Now you should use the new deduction schedule introduced in 2019 to record most expenses data. The audit and review process will gather additional information if needed.