Business Services Wage Assessment Tool (BSWAT) payment scheme

What is the BSWAT Payment Scheme

The Business Services Wage Assessment Tool (BSWAT) Payment Scheme started on 1 July 2015 and ended on 31 December 2018.

The scheme provided a one-off lump sum payment to eligible employees. The payment was for employees whose pay was worked out using the tool while working for an Australian Disability Enterprise (ADE) between 1 January 2004 and 28 May 2014.

The scheme was administered by the Department of Social Services. To receive the payment, you must have registered for the scheme before 1 May 2017, and you must have applied for that payment by 30 November 2017.

Depending on when you applied, you may have received the payment in one of these 3 financial years: 2016–17, 2017–18 or 2018–19. The lump sum payment may have been for more than one year of your supported employment but you're taxed in the year you receive it.

If you received the BSWAT Payment Scheme lump sum, you may need to lodge a tax return. This will depend on how much income you received during the financial year. If you lodge you must include a copy of Attachment E from your Letter of Offer.

Register your authorised contact person

Your authorised contact person or nominated representative must be registered with us if you'd like someone to help you when speaking to our customer service representative.

This person must be someone you trust, a family member, friend or your tax agent.

You can register by phone, online or by post.

Do you need to lodge a tax return?

Most people need to lodge a tax return if their taxable income for the year is more than $18,200.

If you need to lodge a tax return, your BSWAT lump sum must NOT be included as salary and wages. The amount needs to be reported separately at another label (see Including BSWAT on your tax return).

To work out if you need to lodge a tax return, you can:

• use the tool Do I need to lodge a tax return?
• phone us, from mid-July on 13 28 69 between 8:00 am and 5:00 pm, Monday to Friday.

When you phone us, tell the operator you need to speak to someone about your BSWAT payment.

If you need to lodge a tax return, you must lodge it on time.

If you don't need to lodge a tax return, you must fill in and post a Non-lodgment advice. The Individual tax return instructions (NAT 2586) has a paper Non-lodgment advice (see page 7).

When to lodge your tax return

Tax returns cover the period 1 July to 30 June each year. This is known as the financial year.

When the financial year ends, you'll have until 31 October to lodge your tax return (unless you're lodging through a registered tax agent). Use the following table to work out when you need to lodge.

When to lodge you tax return

If you receive your payment between	You may need to lodge a tax return for	If so, you must lodge it by
1 July 2017 and 30 June 2018	2017–18	31 October 2018
1 July 2018 and 31 December 2018	2018–19	31 October 2019

If you're lodging through a tax agent most registered tax agents have special lodgment schedules. Check with your tax agent to find out what date you'll to lodge your tax return.

If you're not sure when you need to lodge, phone us from mid-July on 13 28 69 between 8:00 am and 5:00 pm, Monday to Friday.

How to lodge your tax return

If you received a BSWAT payment, there are a few different ways you can lodge a tax return:

• Get help from our Tax Help volunteers
• Complete a paper tax return
• Lodge using myTax
• Lodge with a tax agent
• Get help from family or friends.

Most people need to lodge their tax return by 31 October. If you don’t lodge on time, you may have to pay a penalty.

Get help from our Tax Help volunteers

At tax time, there's free tax help for people on low incomes. Our Tax Help volunteers are available in many community centres from July to October each year. If you earn around $60,000 or less, they can help you do your tax return.

You can ask your nominee, a family member or friend to go with you to the centre, if you wish.

To find your nearest tax help centre and make an appointment, from mid-July to October, phone us on 13 28 69. When you phone us it's important to say you've received a BSWAT payment and want the free Tax Help service. We can provide the details of your nearest tax help centre so you can make an appointment.

The Tax Help volunteers can help you:

• get or print the paper forms and instructions
• lodge a return
• claim a lump sum in arrears tax offset
• lodge a Non-lodgment advice (if you're not required to lodge a tax return).

Complete a paper tax return

You can complete a paper tax return and lodge it by mail. You'll need to complete both of the following forms:

• Tax return for individuals
• Tax return for individuals (supplementary section) – this is where you report your BSWAT payment under item 24 (other income Category 1).

Detailed instructions on completing the forms are provided in Including BSWAT on your tax return.

Most refunds for paper tax returns are issued within 50 business days.

How to get the forms and instructions

You can get the paper forms and instructions by phoning us on 1300 720 092 or ordering online at ato.gov.au/onlineordering

When ordering, you need to ask for:

• Tax return for individuals (NAT 2541)
• Tax return for individuals (supplementary section) (NAT 2679)
• Individual tax return instructions (NAT 71050).

Lodge using myTax

To use myTax to lodge your return, your Attributed excess – recent year amount in your Attachment E BSWAT tax table must only show an amount for one or 2 years from 2008–09 up to 2014–15.

If your BSWAT tax table shows an amount for ANY financial year from 2003–04 up to 2007–08, you must lodge by paper or with a tax agent. This allows you to claim the lump sum in arrears tax offset which may reduce the tax you'll to pay.

If you're lodging through a tax agent

You can use a registered tax agent to prepare and lodge your tax return. Registered tax agents are the only people who can charge you a fee for doing your tax return.

Help from family or friends

You can ask a family member or friend to help you with your tax return. They cannot charge you a fee – only registered tax agents can charge for preparing tax returns.

If someone helps you, you must sign the tax return yourself as you're responsible for information in it.

You, or a person who is helping you, need to fill in a tax return. You can get the paper forms and instructions by phoning us on 1300 720 092 or ordering online at ato.gov.au/onlineordering

When ordering, you need to ask for all of the following:

• Tax return for individuals (NAT 2541)
• Tax return for individuals (supplementary section) (NAT 2679)
• Individual tax return instructions (NAT 71050).

Including BSWAT on your tax return

This section explains how to include the BSWAT lump sum on your tax return.

If you need to lodge a tax return, you must include your BSWAT lump sum in the relevant part of your tax return. The way to do this depends on the lodgment method you'll chosen.

In this section

• Before you start
• If you're lodging by paper
• If you're lodging by myTax
• If you're lodging through a tax agent
• If you're a trustee lodging on behalf of a beneficiary

Before you start

Before you start your tax return, you'll need:

• your Centrelink PAYG payment summary (Figure 1) – at the end of the financial year (30 June), your payment summary is available online to print or you can phone Centrelink and ask for it to be posted to you
• your BSWAT letter of offer from the Department of Social Services (Figure 2) which shows your eligibility for the payment and the offer made to you
• Attachment E: Important tax information which is part of your BSWAT letter of offer (Figure 3) – the table in Attachment E shows the years of employment your BSWAT lump sum relates to and the amount you'll been paid.

Figure 1: Example of a Centrelink PAYG payment summary

Figure 2: Example of letter of offer from the Department of Social Services

Figure 3: Example of Attachment E: Important tax information

If you're lodging by paper

If you're lodging a paper tax return, you need to complete both the Tax return for individuals and Tax return for individuals (supplementary section).

There are 3 main steps to take:

• Step 1: Report your BSWAT payment
• Step 2: Attach your Attachment E: important tax information
• Step 3: Complete your tax return.

Step 1: Report your BSWAT payment

You need to report your BSWAT lump sum under item 24 (Other income) on the Tax return for individuals (supplementary section), as follows:

• At item 24, in the box for Category 1, write 'BSWAT lump sum in arrears'.
• At label Y, write the value of the taxable amount of your BSWAT payment (this is shown on your Centrelink PAYG payment summary). Don't show cents.
• Do NOT write anything in the box for Category 2, Category 3 or labels X or V.
• Do NOT write anything in label E or Z.

The image below is a sample Centrelink PAYG payment summary. The Payment type and Taxable amount fields are important when completing BSWAT on a tax return.

 

The image below shows how this taxpayer would complete item 24, based on his Centrelink payment summary (above).

 

Step 2: Attach your Attachment E: Important tax information

The information in Attachment E is needed so we can calculate your lump sum payment in arrears tax offset.

You need to:

• photocopy Attachment E: Important tax information from your BSWAT letter of offer
• you'll see your name, address, customer reference number (CRN) and a place for your tax file number (TFN). You can find your TFN on your Centrelink PAYG payment summary.
• next to TFN, write your tax file number.

Attach the photocopy of Attachment E: Important tax information to page 3 of your tax return. Then, at the Taxpayer's declaration on page 10 of your tax return, write X in the Yes box for question 2.

Step 3: Complete your tax return

Fill in the rest of your tax return using the Individual tax return instructions booklet.

Lodging by myTax

To use myTax to lodge your return, your Attributed excess - recent year amount in your Attachment E BSWAT tax table must only show an amount for one or 2 years from 2008–09 up to 2014–15.

If your BSWAT tax table shows an amount for ANY financial year from 2003–04 up to 2012–13, you must lodge by paper or with a tax agent. This allows you to claim the lump sum in arrears tax offset which may reduce the tax you'll to pay.

There are 3 main steps to take:

• Step 1: Report your BSWAT lump sum payment
• Step 2: Enter information from your BSWAT tax table
• Step 3: Complete your myTax return.

Step 1: Report your BSWAT lump sum payment

If the lump sum payment has been pre-filled in myTax, the Australian Government payments such as Newstart, Youth Allowance and Austudy box will be ticked on the Personalise return screen.

• You'll be able to review the pre-filled information or add new information by selecting add/edit in the payment summary panel on the Prepare your return screen.

If the payment has not been pre-filled, select:

• You received salary, wages or other income on a payment summary, or Australian Government payments, and then
• Australian Government payments such as Newstart, Youth Allowance and Austudy box.
• On the payment summaries fly-out, locate the Australian Government special payments; select add/ edit and enter your BSWAT payment summary information into the corresponding fields.
• At the Benefit description field, type 'BSWAT lump sum in arrears'.
• At the Taxable amount field, enter your taxable lump sum amount received. Enter whole dollars only, don't enter cents
• Answer Yes to the payment summary question: Is this a BSWAT lump sum in arrears payment?

Step 2: Enter information from your BSWAT tax table

You now need to enter your BSWAT tax table information. We need this information to calculate your lump sum tax offset entitlement.

We use the 2 years and amounts for Attributed excess – recent years from your BSWAT tax table (Attachment E: Important tax information).

• Select from the Year drop-down list your first Financial year
• Enter the income amount shown under Attributed excess – recent years paid for that income year, into Amount in your return.
• Select Save.
• Select Add (to add another row).
• Select from the Year drop-down list your second Financial year.
• Enter the income amount shown under Attributed excess – recent years paid for that income year, into Amount in your return.
• Select Save.

Step 3: Complete your myTax return

• Select Save and continue.

You've now completed entering your BSWAT payment details.

Fill in the rest of your return using myTax and then lodge your return.

If you're lodging through a tax agent

If you're lodging your tax return through a registered tax agent, you'll need to provide your tax agent with:

• your Centrelink PAYG payment summary
• your Attachment E: Important tax information.

At the end of the financial year (30 June), your Centrelink payment summary is available online to print, or you can phone Centrelink and ask for it to be posted to you.

Attachment E is part of your letter of offer from the Department of Social Services.

Your tax agent will need to enter your BSWAT tax table information. We need this information to calculate your lump sum tax offset entitlement.

If you're a trustee lodging on behalf of a beneficiary

If you're a trustee lodging on behalf of a beneficiary, you'll need to complete a Trust tax return.

There are 3 main steps to complete:

• Step 1: Report the BSWAT lump sum
• Step 2: Attach your Schedule of additional information
• Step 3: Complete the tax return.

Step 1: Report the BSWAT lump sum

The BSWAT lump sum is not salary and wages or an Australian government pension or allowance. You need to report the payment on the Trust tax return at item 14 (Other Australian income), as follows:

• at Type of Income, write 'BSWAT lump sum in arrears'
• at label O, write the value of the taxable amount for the BSWAT lump sum in arrears. Don't show cents.

The taxable amount is shown on the individual’s Centrelink PAYG payment summary. No tax is withheld by Centrelink when they pay the BSWAT lump sum in arrears.

Step 2: Attach Attachment E: Important tax information (Schedule of additional information)

So we can calculate the lump sum payment in arrears tax offset, you need to attach a Schedule of additional information. To do this, you need to:

• photocopy Attachment E: Important tax information from the beneficiary's BSWAT letter of offer
• write 'BSWAT schedule of additional information – item 14' as a heading at the top of the photocopy, and then list the following
  • trust name
  • trust tax file number (TFN)
  • beneficiary's TFN.
   

Attach the Schedule of additional information to page 1 of the Trust tax return. At the question Have you attached any other attachments? at the top of page 1, print X in the Yes box.

Step 3: Complete the tax return

Complete the rest of the Trust tax return, including the declaration on page 16.

Claiming a tax offset

You may be eligible for a lump sum payment in arrears tax offset to help reduce the tax you'll to pay.

You don’t have to calculate the offset. We will do this for you using your BSWAT tax table information (from Attachment E) that you provide with your tax return.

Medicare levy

The Medicare levy is 2% of your taxable income. As taxable income includes a BSWAT lump sum in arrears amount, you'll pay the Medicare levy on your BSWAT payment

The tax supplement included with your BSWAT payment includes an amount to help pay the Medicare levy.

PAYG Instalment

If your tax return reports $4,000 or more from investment income, you may need to pay PAYG instalments. We will tell you if you'll to pay these instalments.

If you receive PAYG instalment correspondence, contact us for help and more information.

You can phone us on 13 28 69 between 8:00 am and 6:00 pm, Monday to Friday.

Tell the person you reported a BSWAT lump sum in your income tax return and have received PAYG instalment correspondence which you need to speak about.

Easy Read format

This information is written in an easy-to-read way.

It has been written by the Australian Tax Office (or ATO). When you see the word ‘we’, it means the ATO.

Some words are written in bold. We explain what these words mean in the Word list.

You can ask for help to read this document. A friend, family member or support person may be able to help you.

You can learn about the BSWAT Payment Scheme by reading the information below.

Or, you can open the Tax and the BSWAT Payment Scheme – Easy Read version (PDF 5.41MB)This link will download a file.

In this section  

• What is this document about?
• What is the BSWAT Payment Scheme?
• What is a tax return?
• Do you need to lodge a tax return?
• How will your tax be worked out?
• How do you fill your tax return?
• Who can help you with your tax return?
• When do you need to lodge your tax return?
• Where can you find more information?
• Word list

What is this document about?

This document is about tax and the BSWAT Payment Scheme.

The BSWAT Payment Scheme is a one-off payment from the Australian Government. The scheme started on 1 July 2015 and ended on 31 December 2018.

The payment is for some people who work, or have worked, in Australian Disability Enterprises – which are usually called ADEs.

If you get any money from the payment scheme, you may need to pay tax.

This document explains:

• what a tax return is
• how to do your tax return
• how to include information about the payment scheme in your tax return
• when you need to do your tax return.

What is the BSWAT Payment Scheme?

The BSWAT Payment Scheme was set up by the Australian Government to provide eligible people with a one-off payment.

The payment is for some people who work, or have worked, in ADEs.

Your supported workplace might be an ADE.

The payment is only for people who had their wages worked out using the Business Services Wage Assessment Tool.

This tool is usually called the BSWAT.

Your workplace may have used a different tool to work out your wages. You can ask your manager about this.

You can find out more about the payment scheme on the Department of Social Services website at dss.gov.auExternal Link

Or, you can phone the BSWAT Hotline on 1800 799 515.

What is a tax return?

A tax return is a form you fill in for us each year.

The form tells us how much money you'll earned.

It also tells us how much tax you may have already paid.

Do you need to lodge a tax return?

You need to lodge a tax return if:

• tax has been taken out of your salary or wages
• you'll earned more than $18,200 in the financial year.

You can ask your employer if you’re not sure.

The financial year starts on 1 July and ends on 30 June, which is different to the calendar year.

The $18,200 includes your salary or wages and any money you're paid from the payment scheme.

You don’t pay tax on your disability pension. So you don’t need to include your disability pension when you work out how much you earn.

A tool on our website helps you work out if you need to lodge a tax return. You can open the tool by clicking on this link Do I need to lodge a tax return?

How will your tax be worked out?

If you receive money from the payment scheme, you may need to tell us about it.

The way to do this is by completing a tax return.

We look at the form and work out if you have paid the right amount of tax.

If you have paid too much, we will give you some back.

If you have not paid enough, we will ask you to pay some more.

When you tell us about your BSWAT payment, we will see that you were paid a large amount of money all in one go.

We will make sure you don’t pay too much tax on any money paid to you by the payment scheme.

You'll get an amount called a ‘lump sum in arrears tax offset’.

How do you fill your tax return?

You, or a person who is helping you, need to fill in a tax return.

You can fill in a paper form.

To get your paper forms and instructions, phone us from mid-July on 1300 720 092, between 8:00 am and 6:00 pm, Monday to Friday. Ask for the following:

• Tax return for individuals (NAT 2541)
• Tax return for individuals (supplementary section) (NAT 2679), and
• Individual tax return instructions (NAT 71050).

You need to keep a copy of the letter of offer you received from the payment scheme, to fill in your tax return.

We use the Attachment E information to make sure you pay the right amount of tax.

You also need to keep your Centrelink pay as you go (PAYG) summary, to fill in your tax return. It explains how much Centrelink has paid you during the financial year. Keep it in a safe place in case we need to see it.

Who can help you with your tax return?

You can ask someone to help you fill in your tax return form.

A family member or friend can help you.

A Tax Help volunteer can help you. A Tax Help volunteer is someone who has the tax return forms and can help people fill them in. We train the volunteers. They help people in their community for free.

You can find out more about Tax Help volunteers by clicking on this link Get help from our Tax Help volunteers.

A registered tax agent can help you. A registered tax agent is a person who can give advice and prepare your tax return for you. You can find a registered tax agent on this website tpb.gov.auExternal Link

When do you need to lodge your tax return?

You need to send your tax return to us between 1 July and 31 October each year.

When you need to tell us about your money from the payment scheme depends on when you get the payment.

The payment scheme started on 1 July 2015 and ended on 31 December 2018.

The table below explains when you should tell us about your payment

If you receive your payment between:	You need to include it in your tax return after:
1 July 2015 and 30 June 2016	1 July 2016
1 July 2016 and 30 June 2017	1 July 2017
1 July 2017 and 30 June 2018	1 July 2018
1 July 2018 and 31 December 2018	1 July 2019

Where can you find more information?

If you want more information, you can:

• phone us from mid-July on 13 28 69 between 8:00 am and 5:00 pm, Monday to Friday.

If you have a hearing or speech impairment, you can phone us through the National Relay Service.

Phone one of these numbers and ask for the ATO number you need:

• TTY 13 36 77
• Speak and Listen 1300 555 727

For Internet relay users, see National Relay ServiceExternal Link.

Word list

Australian Disability Enterprise (ADE)

Australian Disability Enterprises provide work and support for people with disability. They are often called ADEs.

Business Services Wage Assessment Tool

A tool for working out wages. This tool is usually called the BSWAT.

BSWAT Payment Scheme

A scheme that the Australian Government set up to provide a one-off payment to people if they are eligible.

Sometimes we call this the ‘payment scheme’.

Community

Your community is the place where you live. It's not just your home. It's outside your home as well. It includes the people who live in your area.

Financial year

The financial year starts on 1 July and ends on 30 June, which is different to the calendar year.

Letter of offer

A letter from the government that tells you how much money you will get from the BSWAT Payment Scheme.

Lump sum in arrears tax offset

This tax offset makes sure you pay the right amount of tax when you're paid a large amount of money that accrued more than 12 months from the date this payment was made. The tax offset is designed to address the problem of more tax being payable in the year of receipt of the lump sum arrears than would have been payable if the lump sum had been taxed in each of the years in which it accrued.

Tax return

A form you fill in for us each year.

The form tells us how much money you have earned and how much tax you may have already paid.

Find out about the BSWAT payment scheme for employees who worked in supported employment.