For details click this link to Item H on the ATO website.
This schedule can be pre-filled (excluding the claim code field). For more information on pre-filling tax returns, see Pre-fill manager.
The Tax Pre-fill is dependant on available ATO data. Validate the Tax return by pressing [F3] before lodgment.
Details are keyed exactly as they appear on the Health Fund Statement. The only thing missing is the Tax Claim Code and this is your responsibility.
The private health insurance statement does not provide the Tax Claim Code.
A Tax Claim Code is required for both the ATO and MYOB to determine the correct adjusted taxable income (ATI) tier (for example if the taxpayer is partnered, the combined ATI is used).
The Benefit Code and the Tax Claim Code are both used to determine whether the taxpayer is entitled to a rebate or has a tax debt due to a reduced rebate being calculated. (A reduced rebate occurs when the government rebate given by the health fund exceeds the amount the Government had agreed to pay prior to the Government's changes).
You will need to confer with your client to determine their marital status and the type of health cover they have. If the taxpayer is single, the choice is easily made; if partnered, then each member on the policy may claim their share in the policy on their own tax return or the spouse may 'Agree' that the other spouse may claim their share.
MYOB provides a list of Codes and descriptions for the different PHI scenarios. This list has been devised from the lengthy descriptions provided by the ATO, ATO - Tax Claim Codes. If the scenario you require for your partnered clients is not listed, select a scenario currently assigned with tax claim code 'C' as 'C' refers to all partnered people claiming for themselves. Partnered people where one partner claims the other partner's rebate should use the Code 'C' for their share and Code 'D' for their partner's share.
Where tax claim code 'C' and 'D' are being used the number of dependent children must be entered at item M2 label D even if this number is zero (0) and the Spouse Details at item SD must be completed.
Both the ATO and MYOB use the Code and NOT the description to calculate the PHIR.
The list of codes will therefore be as follows: (the highlighted codes are the additional codes):
A - single at end of year with no dependants
B - Single parent paying the premium for a dependent child only policy
B - Single parent with dependent child/children
B - Single with a dependent sibling, half-sibling, Step- sibling, adopted child or foster child
C - Partnered and claiming only for yourself
C - Partnered and each has their own Health Fund policy
C - Partnered and you are claiming for a dependent child only policy
C - Partnered at end of year and covered under same policy
C - Spouse died during the year and there was no other spouse at end of year
D - Partnered at end of year, same policy, used claim code C your share and now claiming spouses share
D - Spouse died during year, no other spouse at end of year, same policy, used claim code C your share and now claiming spouses share
E - Partnered and your spouse is claiming your share of the rebate
F - You are a dependent child on the policy and not entitled to a rebate but are exempt from the Medicare levy surcharge.
If a return has up to 4 sets of Fund details all will print on the face of the return.If a return has 5 or more sets of Fund details, the first 3 sets will be printed on the face of the return and the remainder will be printed on an ‘Other Attachments’ schedule. This is an ATO requirement.