ATO Changes to tax-pre-payments

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  • April 15, 2016

To make it easier for your clients to manage their tax, they can now pre-pay their activity statement before the due date. They can make a pre-payment at a time that suits them, using any payment method.
In the past, the ATO would automatically refund credits from early payment (https://www.ato.gov.au/…/interest-on-early-payments-and-o…/…). Now, a pre-payment made towards a tax liability before its due will remain on your client’s account unless a refund request is made through the Tax or BAS Agent Portal. They may use a pre-payment to offset debts.
Some tax liabilities qualify for early payment interest if your client makes a payment 14 days before the due date. You can estimate the interest your client would receive using the credit for interest on early payments calculator (https://www.ato.gov.au/…/credit-for-interest-on-early-payents/)

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