The eligible payments included in the scheme include those made on 13 March 2022, in which the ATO said it would be paying IEP entitlements generally within two weeks of the due date of the liability.
It will also include payments made between 1 July 2021 and 13 March 2022, and IEP entitlements will be delivered from 14 March 2022.
The office has advised tax agents that if a client has nominated a personal bank account for the payment of ATO refunds their IEP entitlement will be paid directly into their nominated bank account and agents should ensure their financial institution details are up to date in Online services for agents.
If a client has nominated a trust account for the payment of ATO refunds their IEP entitlement will be paid into that trust account.
Tax agents can access an EFT reconciliation report to view any IEP entitlements paid to that trust account on behalf of a client.
If a client has an existing tax debt, their IEP entitlement will be offset against the debt and any excess IEP amount will be paid to their nominated bank account.
Clients will receive a statement of account that tax agents can access in Online services for agents under communication history.
Interest on early payments is assessable income and needs to be included in your client’s tax return in either the income year a client receives the interest or the income year it is offset against a client’s tax debt.
For individual clients, IEP amounts will be prefilled in their income tax returns and shown in the income tax prefill reports.
