Taxpack confusion re super spouse rebate - taxpayers warned Source: ASFA 'Media Releases' 16th June 2000 This material is reproduced by permission but does not purport to be the official or authorised version. The accuracy of the content is not guaranteed. Please rely only on the authorised document. Taxpayers need to be aware of ambiguous instructions in Taxpack 2000 which could cause them to inadvertently over-claim the superannuation spouse contribution rebate, resulting in possible ATO penalties, according to ASFA – The Voice of Super. The ATO are now aware of the misleading instruction, but unfortunately too late to amend Taxpack 2000. Of the more than 1,000 erroneous spouse rebate claims (almost 7% of all such claims) made in 1997/98, the misleading instructions are likely to be a major factor. The Superannuation Contributions for Spouse Rebate' enables taxpayers to claim a rebate for super contributions they have made on behalf of a very low earning or non-working spouse. The confusion is caused by two separate instructions for the spouse contribution rebate, which request taxpayers to calculate their spouse’s assessable income and taxable income respectively: Rebate Item R6 asks the taxpayer to make a calculation based on the assessable income of their spouse; However, the taxpayer is then asked to complete a label (Label 0) with their spouse’s taxable income, which is different. Many taxpayers then go back and recalculate the spouse rebate based on their taxable income. "The result is that many taxpayers and their advisers are inadvertently claiming the rebate based on their spouse’s (generally lower) taxable income, which is incorrect," says Ms Smith. "There needs to be clarification that the spouse’s assessable income is the one to calculate. A clearer definition of assessable income would also be helpful for taxpayers," says Philippa Smith, CEO of ASFA – The Voice of Super. "Discrepancies like these have the potential to anger and frustrate taxpayers, and to erode public confidence in super," said Ms Smith. "There are a variety of ways the ATO could alert the taxpaying public to this. ASFA hopes that appropriate strategies will be in place to minimise the number of people who may otherwise mistakenly provide the wrong information, and that people will not be penalised for making an honest mistake." Further details: Association of Superannuation Funds of Australia Web site: www.asfa.asn.au Submit an Article to the Newsroom DISCLAIMER: Supercorp Australia Pty Ltd and its officers and employees, disclaim all and any liability and responsibility to any person for any act or consequence or omission in respect of the above information. No person should rely on the contents of this information without obtaining advice from a qualified professional. Copyright © 1999-2002 - Supercorp Australia Pty Ltd - ABN 92 063 307 700