Notice of Requirement for Parents with a Child Support Assessment to Lodge a Return for the Income Year Ended 30 June 2022

This instrument rests on a small set of defined concepts and a three‑table structure determining who must lodge. The core definitional terms are: income year, year of income, adopted accounting period and approved form. Income year is expressly defined to mean the year of income ended 30 June 2022 or an adopted accounting period. Adopted accounting period is the accounting period that a person has been granted leave to adopt instead of the year of income ended 30 June 2022 under s 18 of the ITAA 1936. Approved form is defined by cross reference to s 388‑50 of Schedule 1 to the TAA. Year of income follows subsection 6(1) of the ITAA 1936 but excludes the adopted accounting period. These definitions determine who falls into the timing and lodgment buckets and whether the adopted accounting period rules apply.

The instrument’s Table structure is the central operational construct. Table A identifies the primary class required to lodge: every person who was either a liable parent or a recipient parent under a child support assessment. Table B operates as an exclusion, describing persons who, although covered by Table A, are not required to lodge if they meet two conjunctive tests: a combined income measure below $27,063 for the income year, and receipt of one or more payments listed in Table C for the whole of the income year. Table C enumerates those qualifying payments and allowances. The instrument therefore defines the mandatory lodgment class by reference to participation in the child support system and then narrows the requirement with an income and payment receipt test.

The combined income measure that feeds Table B is a specific aggregation. It comprises: (1) taxable income (excluding any assessable First home super saver released amount); (2) exempt Australian Government allowances, pensions and payments; (3) target foreign income; (4) reportable fringe benefits total; (5) total net investment loss; and (6) reportable superannuation contributions. The instrument requires summation of these components to test whether the total is less than $27,063 for the income year. The exclusion of any assessable First home super saver released amount from taxable income is an express carve‑out in the definition of the total.

Timing and procedural conditions are another key concept. For persons whose year of income ends 30 June 2022, the lodgment date is 31 October 2022. Persons who use an adopted accounting period must lodge no later than the last day of the fourth month after the end of their adopted accounting period. The instrument states that the return must be in the approved form.

Finally, the instrument embeds enforcement and administrative interaction concepts. It expressly preserves the Commissioner’s power to defer lodgment under s 388‑55 of the TAA. It preserves the power to issue notices under ss 162 and 163 of the ITAA 1936 that may require returns or further information from persons for any income year. It links non‑compliance to existing criminal and civil penalty regimes by reference to s 8C of the TAA (offence for failing to provide a return or other information) and by reference to Division 286 of Schedule 1 to the TAA (administrative penalties for failing to lodge or comply). Those cross references mean the instrument slots into the broader TAA/ITAA compliance architecture rather than creating a standalone enforcement regime.

The instrument singles out parents engaged by the child support administrative system. Table A defines the primary impacted group as every person who was either a liable parent or a recipient parent under a child support assessment for the income year ended 30 June 2022. That is the starting point: if a person was either of those types under a child support assessment in that income year, they fall within the class the Commissioner requires to lodge a return, subject to the Table B exception.

Table B creates a specified excluded subgroup. A person otherwise within Table A is excluded from the lodgment obligation if, for the income year, the sum of six specified income or tax items is less than $27,063, and if the person was in receipt of one or more of the Table C Australian Government pensions, allowances or payments for the whole of the income year. The six items to be aggregated are (1) taxable income (excluding any assessable First home super saver released amount), (2) exempt Australian Government allowances, pensions and payments, (3) target foreign income, (4) reportable fringe benefits total, (5) total net investment loss, and (6) reportable superannuation contributions. That arithmetic step will determine whether a parent who is in Table A is nevertheless not required to lodge.

The persons listed in Table C are relevant for assessing the “in receipt … for the whole of the income year” condition. Table C is specific and reasonably extensive. It includes JobSeeker payment, Austudy, Disaster income support allowance for subclass 444 visa holders, Disaster recovery allowance, Farm Household allowance, Parenting payment (partnered) and Parenting payment (single), Partner allowance, Special Benefit, Widow allowance, Youth allowance, Youth disability supplement component of ABSTUDY living allowance or Youth Allowance, ABSTUDY Living Allowance, MRCA Education Allowance, Veterans’ Children Education Scheme payments, several Commonwealth labour market program payments (CDEP income support component and participant supplement, New Enterprise Incentive Scheme allowance, Training for Employment Program allowance and other taxable Commonwealth education or training payments) and Australian Government pensions and allowances including Age pension, Age service pension, Carer payment, Defence Force Income Support Allowance and like payments from DVA, Disability Support Pension, Income support supplement, Invalidity service pension, Partner service pension, Veteran payment.

Practically, this affects several groups of people and intermediaries. Directly affected are individual parents who, during the 2021-22 income year, either paid or received child support via a formal assessment. Accountants and tax agents advising those parents must determine whether a client sits in Table A and, if so, whether they fall into Table B. Entities that administer child support matters, such as the Department of Human Services or Family Court practitioners, may be asked to provide evidence of assessments, dates and amounts. The ATO and tax practitioners must also handle adopted accounting periods where the individual has leave under s 18 of the ITAA 1936, and ensure lodgment uses the approved form per s 388‑50 of the TAA.

Who decides and who pays is straightforward. The Commissioner decides by issuing the instrument under s 161 ITAA 1936 and retains discretion to defer lodgment dates and to issue further notices under ss 162 and 163. The persons required to lodge the return pay the administrative cost of preparing and lodging the return, and may be subject to penalties for failure to comply as referenced in s 8C of the TAA or Division 286 of Schedule 1 to the TAA.

Primary duty: persons described in Table A , that is, every person who was a liable parent or a recipient parent under a child support assessment , must give the Commissioner a return for the income year ended 30 June 2022, unless they meet the Table B exclusion. That duty is founded on the Commissioner’s power under s 161 of the ITAA 1936, which the instrument invokes in clause 3.2. The lodgment must be in the approved form, a statutory requirement by cross reference to s 388‑50 of Schedule 1 to the TAA.

Timing duties: persons whose year of income ends on 30 June 2022 must lodge by 31 October 2022. Persons with an adopted accounting period must lodge no later than the last day of the fourth month after the end of their adopted accounting period. These deadlines are unqualified in the instrument except for the Commissioner’s power to defer lodgment under s 388‑55 of Schedule 1 to the TAA. That power is explicitly preserved in clause 4.1.

Information and further compliance duties: the instrument does not prevent the Commissioner or an authorised ATO person from issuing a notice under s 162 or s 163 of the ITAA 1936 requiring a person to give the Commissioner a return, further returns, or any information, statement or document about the person’s financial affairs for any income year. That preserves existing statutory powers to seek additional disclosures beyond the single return required by this notice.

Penalties and enforcement consequences: the instrument explicitly links failure to provide a return or other information under the ITAA 1936 or the Income Tax Assessment Act 1997 to an offence under s 8C of the TAA. It also notes that such a person may become liable to pay a penalty under Division 286 of Schedule 1 to the TAA. Those references connect non‑compliance with both criminal offence provisions and administrative penalty regimes already contained in the TAA. The instrument itself does not create new penalty types, rather it references the existing enforcement machinery.

Rights and procedural levers available to taxpayers are not set out in the instrument. The instrument does not detail review, objection, or merits review rights, nor does it specify a process for obtaining a deferral or for appealing a notice. Those matters are governed by other provisions of the TAA and ITAA 1936 and by general administrative law. What the instrument does provide is certainty about the lodgment requirement, the applicable deadlines, the composition of the income test used for the Table B exclusion, and the list of qualifying government payments that trigger the exemption when received for the whole year.

Recordkeeping duties are implied by the need to demonstrate totals (taxable income, exempt government payments, reportable fringe benefits, target foreign income, net investment loss, reportable superannuation contributions) and to prove receipt of Table C payments for the whole income year. The instrument’s repeated insistence that the return be in the approved form indicates that the ATO may require specific formats and supporting information consistent with normal lodgment practices under the TAA.

The instrument does not itself create novel penalties. Instead it references the TAA’s enforcement framework. It expressly states that any person who does not provide a return, or any other information under the ITAA 1936 or the Income Tax Assessment Act 1997, commits an offence under s 8C of the TAA. That citation ties failure to comply with the criminal offence provision in the TAA regarding provision of documents and information. The instrument also notes the alternative exposure to administrative penalties under Division 286 of Schedule 1 to the TAA. Division 286 contains the administrative penalty regime for failing to lodge, late lodgment, and related contraventions, although the instrument does not reproduce the detail of those penalties.

Enforcement mechanisms preserved by the instrument include the Commissioner’s ability to issue notices under ss 162 and 163 of the ITAA 1936 that require returns, further returns, or production of information, statements or documents about a person’s financial affairs for any income year. These notices can be used to secure compliance beyond the one return required by this instrument, including to verify information relevant to child support assessments and the income aggregation elements in Table B.

Timing enforcement: the instrument sets lodgment deadlines (31 October 2022 or, for adopted accounting periods, four months after the end of the adopted accounting period). The Commissioner also retains the power to defer lodgment under s 388‑55 of Schedule 1 to the TAA. A deferral may be granted by administrative act, which changes the enforceable date for lodgment and thus postpones potential penalty accrual under the TAA and Division 286. The instrument does not state criteria for the Commissioner’s exercise of deferral under s 388‑55, merely records the power.

Who enforces: the Australian Taxation Office (ATO), through the Commissioner and authorised persons, enforces the lodgment requirement and may use the s 162/163 notice powers and the TAA penalty and offence provisions. The instrument’s linkages mean that enforcement will follow established ATO procedures and penalty scales rather than a bespoke enforcement regime created by the instrument.

Practical enforcement consequences for affected persons include criminal exposure under s 8C and administrative monetary penalties under Division 286 if lodgment obligations are not met. Additionally, issuance of a s 162 or s 163 notice may expand the information the ATO can demand, and failure to comply with such a notice is subject to the same TAA offence and penalty framework. The instrument does not address prosecutorial discretion, penalty remission, or dispute resolution procedures, which remain governed by the TAA and general administrative law.

This instrument is expressly framed as an exercise of power under s 161 of the ITAA 1936. It interacts with the ITAA 1936 and the Taxation Administration Act 1953 (TAA) in multiple ways by cross reference. The definitions in the instrument refer to s 18 of the ITAA 1936 for leave to adopt an accounting period, and to subsection 6(1) of the ITAA 1936 for the meaning of year of income. The instrument cross references Schedule 1 to the TAA for approved form (s 388‑50) and for the Commissioner’s power to defer lodgment (s 388‑55). It also references ss 162 and 163 of the ITAA 1936, preservation of the Commissioner’s notice powers to require returns and information. Penalties are connected to s 8C of the TAA and to Division 286 of Schedule 1 to the TAA. The instrument also mentions the Income Tax Assessment Act 1997 when describing the scope of obligation to provide information or documents.

Operationally, that means this notice sits within the established tax administration framework. The requirement to lodge is an additional, targeted use of the Commissioner’s power under the ITAA 1936 to require returns from a specified class. The instrument therefore does not displace the broader obligations or enforcement pathways in the TAA; rather, it triggers those existing mechanisms. For example, a failure to lodge as required by this instrument is actionable under the TAA offence and penalty provisions, and the Commissioner may defer deadlines or issue additional information notices under statutory powers that form part of the TAA/ITAA architecture.

The reference to adopted accounting periods links taxpayers who use an accounting period that differs from the standard year of income to s 18 of the ITAA 1936. That cross reference means that taxpayers who have been granted leave to adopt different periods must apply the lodgment timing rule specified in this instrument for adopted accounting periods, consistent with the existing statutory mechanism for adopting accounting periods.

The approved form cross reference (s 388‑50 TAA) means the ATO’s forms regime governs the manner and content of lodgment. The instrument therefore interacts with the administrative law governing forms, information standards and electronic lodgment methods administered under the TAA.

Finally, the instrument’s Table C list of Australian Government payments and allowances interacts functionally with social security and veterans’ law, insofar as it uses receipt of specified government payments as a criterion for exclusion. That creates a dependency on administrative records or other evidence of receipt of those payments for the whole income year. The instrument does not alter entitlement to those payments, but it uses receipt status under those other regimes as a threshold condition for tax lodgment obligations.

The instrument is self‑contained and the text records its date of signature as 30 March 2022 by Chris Jordan AO, Commissioner of Taxation. It commences on the day after registration on the Federal Register of Legislation. The instrument as provided contains repeated and duplicated sections, but there is no text indicating any prior versions, rescissions, or amendments within the instrument itself. No amending instruments, amendment dates, or transitional provisions are included in the text supplied.

Because the instrument is a notice under s 161 of the ITAA 1936 rather than an Act of Parliament, its life and any variation would typically be effected by replacement notices or subsequent instruments published by the Commissioner. The instrument does not state an expiry date and therefore remains in effect until revoked or replaced, subject to any statutory limits inherent in s 161. The instrument’s commencement stated as “the day after it is registered on the Federal Register of Legislation” means its operational start depends on the registration date. The instrument text records signature on 30 March 2022, but the actual legal commencement is the day after registration.

The instrument does not record any modifications to its content or reference any earlier instrument that it replaces. It likewise does not indicate whether it was preceded by a similar notice for prior or subsequent income years; the text simply sets the lodgment requirement for the income year ended 30 June 2022. Any practitioner relying on the instrument should check the Federal Register of Legislation for the instrument’s registration details, and for any subsequent instruments that supersede or revoke it, since amendment, replacement or revocation will be reflected on the Register rather than in the body of this instrument.

The instrument itself does not record litigation. There are no cases named or referred to in the text. As a departmental legislative instrument imposing a procedural lodgment requirement, it is a candidate for administrative law challenges in theory, for example seeking judicial review of the Commissioner’s exercise of power under s 161 of the ITAA 1936. However the instrument does not refer to, cite, or discuss any litigation or case law, and no litigation history is contained within the instrument’s text.

Because the instrument relies on powers and penalty provisions in the ITAA 1936 and TAA, disputes arising from compliance, notices, penalty assessments or deferral decisions would ordinarily be determined under the dispute resolution, objection and merits review frameworks provided by the TAA and by general administrative law. The instrument does not set out dispute mechanisms, nor does it preclude the application of judicial review in respect of any decision to issue a notice, to require a return, to issue a penalty, or to prosecute under s 8C. The instrument also does not preclude persons from seeking administrative remedies related to the Commissioner’s exercise of delegated powers, including deferral under s 388‑55 of Schedule 1 to the TAA or the issuance of s 162/163 notices.

Practitioners should therefore be aware that while the instrument does not refer to any litigation, compliance actions taken under it would be subject to the typical challenge routes available under the TAA and ITAA 1936, and under administrative law. The absence of litigation references in the instrument means that any case law directly interpreting this particular notice is not available in the text provided; one must consult court and tribunal records to determine whether this instrument has been the subject of litigation since its registration.

Several practical pitfalls and points of legal nuance arise from the instrument’s wording and cross‑references.

1. Table B is conjunctive. The exclusion from lodgment only applies where both the aggregated income total is less than $27,063 and the person was in receipt of one or more Table C payments for the whole of the income year. If either limb fails, the person remains required to lodge under Table A. Practically, taxpayers and advisers must check both conditions carefully rather than treating the test as alternative.

2. The income aggregation components are specific and include both taxable and non‑taxable elements. The list requires summation of taxable income (with an express exclusion for any assessable First home super saver released amount), exempt Australian Government allowances, target foreign income, reportable fringe benefits total, total net investment loss and reportable superannuation contributions. Some of these items are reported in different places on tax forms or informational statements, and they derive from different regimes (e.g. fringe benefits reporting, foreign income attribution). Calculating the aggregation may require pulling data from PAYG summaries, income statements, Centrelink payment records, superannuation reports and foreign income schedules.

3. The “for the whole of the income year” condition for Table C receipt can be operationally strict. The instrument requires that the person was in receipt of one or more specified payments for the whole income year. Partial‑year receipt of a Table C payment appears not to satisfy that limb. Taxpayers who commenced or ceased receipt during the year may be excluded from the exemption, and therefore required to lodge. Evidentiary documentation proving continuous receipt for the full year will be important.

4. The instrument excludes assessable First home super saver released amounts from taxable income for the purposes of the Table B aggregation. Practitioners must be alert to this express carve‑out as it alters the taxable income component. The instrument does not otherwise alter other statutory definitions, so standard tax reporting rules apply for most items.

5. Adopted accounting periods change the lodgment deadline. Taxpayers with leave under s 18 of the ITAA 1936 to adopt a non‑standard accounting period must lodge by the last day of the fourth month after that period’s end. That timing may differ materially from the 31 October 2022 deadline and could create confusion or missed deadlines if not properly noted.

6. Approved form requirement. The instrument requires returns to be in the approved form under s 388‑50 of Schedule 1 to the TAA. Failure to use the approved form can cause technical non‑compliance even where the substantive information is provided. Tax agents and payers should verify the ATO’s current approved form formats and electronic lodgment requirements.

7. Commissioner may still issue notices. The instrument does not prevent issuance of notices under ss 162 and 163 of the ITAA 1936. A person who believes they are exempt under Table B might nonetheless be served with a notice requiring production of returns or documents for any income year. Non‑compliance with those notices carries the same enforcement consequences referenced in the instrument.

8. Penalty and offence routes differ. The instrument references both s 8C of the TAA (an offence) and Division 286 of Schedule 1 to the TAA (administrative penalties). The practical consequences differ: an offence can involve criminal prosecution, whereas Division 286 penalties are administrative and monetary. Advisers should ensure clients understand both potential exposure types.

9. Repetition in instrument text. The instrument as provided contains duplicated sections and repeated language. While this does not change substantive obligations, it can create uncertainty for a non‑specialist reader. Practitioners should rely on the operative clauses (requirement under s 161, definition clauses and Tables A to C, lodgment dates and deferral and notices clauses) and check the registered instrument on the Federal Register for any cleaned or updated versions.

10. Interaction with other reporting obligations. The instrument requires a return for the income year but does not explicitly address how this lodgment obligation interfaces with other reporting regimes, such as child support enforcement information sharing, Centrelink reporting obligations or state‑level administrative reporting. Practitioners should consider coordination of information sources and timing to ensure consistent answers and to avoid conflicting lodgments.

Step 1, identify whether the client is captured. Confirm whether the person was a liable parent or a recipient parent under a child support assessment for the income year ended 30 June 2022. The instrument’s Table A makes that the primary inclusion criterion.

Step 2, test the Table B exclusion. If the person was in Table A, calculate the aggregate total for the income year comprising: (a) taxable income (but exclude any assessable First home super saver released amount), (b) exempt Australian Government allowances, pensions and payments, (c) target foreign income, (d) reportable fringe benefits total, (e) total net investment loss, and (f) reportable superannuation contributions. If that total is less than $27,063, confirm whether the person was in receipt of one or more of the payments listed in Table C for the whole income year. If both conditions are satisfied, the person is not required to lodge under this instrument. Maintain documentary evidence supporting both the aggregation and continuous receipt of Table C payments.

Step 3, observe lodgment format and deadlines. If the person is required to lodge, ensure the return is in the approved form (s 388‑50 Schedule 1 TAA). For persons whose year of income ends 30 June 2022 the lodgment due date is 31 October 2022. For persons with an adopted accounting period, lodge no later than the last day of the fourth month after the end of the adopted accounting period. Confirm the client’s financial year end and any adopted accounting period leave granted under s 18 ITAA 1936.

Step 4, gather supporting records. Compile PAYG summaries or income statements, Centrelink or DVA payment statements evidencing receipt of Table C payments, superannuation reports showing reportable contributions, fringe benefits declarations, records of target foreign income, and schedules demonstrating net investment loss. For the “whole of the income year” test, obtain payment histories, service records or income statements that show continuous receipt across the entire period.

Step 5, manage notices and deferral options. Be prepared to respond to an ATO notice issued under s 162 or s 163 of the ITAA 1936. If a client requires additional time to prepare the return, seek deferral by application to the Commissioner, relying on the Commissioner’s power under s 388‑55 of Schedule 1 to the TAA. File any deferral request in a timely manner and keep contemporaneous communications showing the application and any grant of deferral.

Step 6, address possible penalties. If lodgment cannot be completed by the due date, apply for deferral or otherwise contact the ATO. Understand that failure to comply may lead to an offence under s 8C of the TAA or an administrative penalty under Division 286 of Schedule 1 to the TAA. Advise clients on record preservation and on engaging tax agent assistance as early as possible to reduce the risk of late lodgment.

Step 7, use tax agent channels if eligible. If the taxpayer uses a registered tax agent, ensure the agent’s lodgment program and client authorisations are in place and that the agent is aware of any adopted accounting period. Tax agents typically have different lodgment schedules, but the instrument sets the legal lodgment dates; check whether tax agent conformance applies in the specific circumstances.

Step 8, document decisions. Maintain a compliance file showing the decision tree used to determine whether the person was in Table A, whether Table B exclusion applied, how the income aggregation was calculated, what Table C payments were relied upon and the evidence of their continuous receipt. Keep copies of the lodged return in the approved form and any correspondence with the ATO, including deferral approvals or s 162/163 notices and responses.

Step 9, prepare for verification. The Commissioner may use s 162/163 notices to seek corroborating information. Ensure that documentation is readily accessible and consistent across sources. Where foreign income or fringe benefits are material to the aggregation, prepare supporting schedules and statements that reconcile to the amounts reported elsewhere.

Step 10, review local records and the Federal Register. Before finalising compliance steps, confirm the instrument’s registration details and any subsequent amendments on the Federal Register of Legislation. If in doubt about the interpretation of a component of the aggregation or the status of a payment listed in Table C, seek clarification from the ATO or consider obtaining written advice from a specialist adviser.

Following these steps aligns preparation with the instrument’s express requirements: the lodgment duty under s 161 ITAA 1936, the approved form requirement under s 388‑50 TAA, the lodgment timing rules, the adopted accounting period rule (s 18 ITAA 1936), deferral power under s 388‑55 TAA, and the potential enforcement consequences under s 8C TAA and Division 286 Schedule 1 TAA.