The ATO has released a roadmap for implementing a streamlined process to amend tax assessments for the 2020 and earlier years, of those veterans affected by the Federal Court decision. The changes may affect up to 16 thousand injured veterans. More information on this will be published by ATO in April.
For the current financial year, CSC will report all payments as lump sum payments so that correct tax can be applied in this year’s tax returns.
The ATO will also act to that ensure that payments which are lump sum payments, no longer count towards the individual’s transfer balance cap, and adjust super balances as required.