1. Advanced Income Tax Law
Chapter 21
Electronic Lodgments
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About the ELS
The electronic lodgment service (ELS) is an electronic data exchange system that allows tax practitioners to transmit data to the ATO, and receive reports and electronic forms from the ATO.
The ELS allows participating agents to lodge their clients' tax returns and other tax forms with the ATO electronically.
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About the ELS
Advantages of ELS
immediate acknowledgment by the ATO of receipt of returns and notification of those not received.
24 hour/365 days a year access to the ATO.
faster turnaround - 95% of original individual assessments will be processed within 14 days.
access to a range of electronic reports from ATO business systems.
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About the ELS
Advantages of ELS
electronic lodgment of Business Activity Statements (BAS), Instalment Activity Statements (IAS) and Australian Business Number (ABN) applications.
reduction in paper usage.
accuracy - through edit checks within the tax software.
choice of software providers.
Privacy.
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ELS User types
Transmitter
A transmitter prepares client tax returns and then transmits them using the ELS registration number.
A transmitter can also transmit returns on behalf of preparer tax agents.
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ELS User types
Preparer
A preparer prepares client returns which are then lodged by a transmitter tax agent who will use their own ELS password and ELS approval number.
A preparer does not have an ELS password.
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ELS Transmission
There are currently two transmission options available to tax agents.
Dial IP - is a private network provided by Telstra
This network has no connection to the internet and is only used for ELS access.
Internet - allows the tax agent to connect to ELS via their internet service provider (ISP).
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ELS Software
The ELS allows participating agents to lodge their clients' tax returns and other tax forms with the ATO electronically, via modem.
The ATO provides a list of commercially available software for use by tax agents, all of which have undergone self-testing for the transmission of data.
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Electronic Lodgment
A taxpayer must provide the tax agent with a written declaration before the agent transmits the return.
This declaration serves two purposes:
it authorises the tax agent to lodge the taxpayer's return electronically, and
records the taxpayer's agreement with the information intended for transmission to the ATO.
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Electronic Lodgment
Lodgment limitations
Although all income tax return types can now be lodged electronically, there are some returns that may not necessarily be processed within 14 days.
These are:
deceased estates.
outstanding tax or child support debt cases.
cases where previous year returns are outstanding or unissued.
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Electronic Lodgment
Lodgment limitations
complex schedule leases.
excepted net income/capital gains cases.
exempt foreign salary and wages income cases,
Returns with invalid or missing tax file numbers cannot be lodged electronically.
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Electronic Lodgment
Tax agent responsibilities
When a tax agent is lodging an income tax return electronically on behalf of a client they must:
get the completed declaration from the client authorising them to lodge electronically, before transmitting the tax return (Part A of the declaration).
provide their agent's certificate electronically to the ATO where they are using their own facilities to transmit the return or amendment application.
give the client a copy, or the original, of the Notice of Assessment where the client's address for service of notice is the tax agent’s address.
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