What’s new in Practice Compliance

• International Dealings schedule (IDS): We've added additional validation messages items 35a and 35b where all fields are mandatory for applicable taxpayers. Previously leaving a field blank that is marked as mandatory would generate a 400 error on validation.

• We've added the Number of dependent children field to M2 Medicare levy surcharge (MLS) label. This field shares the same value as IT8 and will be used to calculate the Medicare levy surcharge.

• Small business income worksheet in Partnership and trust tax returns
  You can now use the small business income worksheet to calculate the net small business income. In this worksheet, you can differentiate the business income and deductions, such as personal services income, capital gains, etc. This will also help with calculating the small business income tax offset.
  You can access the worksheet from Item 5 Label V or the worksheet drop-down on the left side.

• Fix for Status code 400 errors
  We've added validation errors to Partnership returns to fix the We've encountered an error. If the issue persists, contact MYOB support. Status Code: (400) error.

  • Partnership returns - Make sure there is

    • at least one partner in the statement of distribution

    • a name for non-individual partners

    • a family name for individual partners.

  • Trust returns

    • We've fixed the rounding error to prevent the Status code 400 error.

• New Foreign income section in Distribution received - managed fund schedule
  We have added a foreign income section to the Managed fund schedule and implemented the new ATO validation rules. We've also fixed ATO rejection errors (CMN.ATO.GEN.XBRL03), which was happening due to rounding issues.

• In field validations for business address
  Additional validation logic has been added to address fields on the front cover and item P6 Business address of main address. This will prevent ATO rejections (CMN.ATO.GEN.XBRL03, CMN.ATO.GEN.XBRL04) where the state was entered in mixed case instead of all in capitals like VIC, QLD etc.

• Subscribe to Income Tax Client Report (ITCRPT)
  You can now subscribe to the income tax client report in Practice Compliance and view all the due dates for your client's tax returns.
  Learn how to subscribe to ITCRPT

• Standalone Family trust election and Interposed entity election forms available
  2024 tax year onwards
  Tax now provides the following forms without the need to lodge a tax return:

  • Interposed entity election schedule

  • Family trust election schedule.

  You can select these forms when you create a tax return.

• 2025 tax compliance changes are here!
  You've got all the latest updates you need for the new tax year, including changes to:

  • rates

  • tax returns

  • worksheets and schedules.
    

  Learn more about 2025 tax compliance changes.

• Deductions schedules can pull in data from multiple sources
  2025 individual returns only

  Some of the labels in the Deductions schedule can now get data from multiple sources like rollover from prior year and ATO pre-fill.

  • The descriptions in D2 Work-related travel expenses and D5 Other work-related expenses will rollover from AE/AO

  • D5 Union fees will be pre-filled from ATO.

  We've enhanced the layout of the Deductions schedules for more clarity. The Motor vehicle expenses and Tax depreciation worksheets will only display when there is an amount.

• Rental schedule improvements to help with validation

  Trust and partnership returns only

  • An error message will be shown if any expense rows are calculated with net amount less than zero.

  • Negative amounts are displayed in brackets, not with a minus symbol.

• Foreign income worksheets are easier to work with and have better integration
  For 2025 partnership and trust returns
  We’ve redesigned the worksheet with a clearer, more modern layout that lets you enter and reconcile foreign income types in a structured, easy-to-read format.
  The worksheet now automatically totals and maps data to Items 22 and 23, saving time and improving compliance confidence. It also supports integrations from trust income schedules, ensuring consistency and reducing double handling.

FBT 2025 is available
You can now create FBT 2025 returns in Tax in Practice Compliance. Amending an FBT return is also available from 2025 onwards
You can also create FBT returns in Tax in Practice Compliance from within AE/AO. Make sure you've installed the latest version.

• Asset disposal amounts are now available in the tax depreciation worksheet
  You can now integrate the assessable or deductible balancing adjustment amounts into the Tax Depreciation Worksheet. You previously had to manually enter the disposal amounts from Assets into the tax return.

• Amending Partnership returns
  Following the trust return amendment, you can now amend a partnership return from the tax year 2023 onward.

• New worksheets in Company returns
  We've added four new worksheets to company tax returns so you can see a breakdown of the amounts shown in the return. The totals from these worksheets update the labels in the return.

  • Other income worksheet (Updates Item 6 Label R)

  • Other Expenses worksheet (Updates Item 6 Label S)

  • Other Assessable income worksheet (Updates Item 7 Label B)

  • Non deductible expenses worksheet (Updates Item 7 Label W)

  • Other income non assessable worksheet (Updates Item 7 Label Q)

  • Other deductible expenses worksheet (Updates Item 7 Label X)

• Amending Trust returns
  Following the company return amendment, you can now amend a trust return from tax year 2023 onwards.

• Tax returns PDFs have been redesigned for clarity and professionalism
  Based on your feedback, we’ve redesigned the tax return PDFs. When you open a tax return and select Preview (PDF), you’ll notice improved readability, enhanced layout and a revamped presentation for a professional look.
  This update applies to 2023 and 2024 individual, company, partnership and trust tax returns.
  Learn more about tax return PDFs.

• Amending company returns
  You can amend your company tax return if you have made a mistake, forgotten to add items, or if something has changed after you've lodged your tax return.

• Add rental property owners from your existing contacts or associations
  In a Rental property schedule, you can easily add an owner by selecting from a list of your contacts or associations. This means you don't need to fill in their details manually each time.
  You can still add the details manually if you like.

• View and download the ATO prefill report (Individual tax return)
  You can now view the ATO prefill data in a report. We'll save the ATO prefill report in your client's Documents folder for quick access. Note that we don't prefill all the data that is in the report.
  Each time you click Prefill from ATO, a new version of the report (including the date and time) will be saved in Documents. If the prefill is not successful, you can't see the report.

A better way to manage file access

You can give users access to client files all within Practice Compliance. You no longer need to go to my.myob to manage file access. This new method is faster, more reliable and gives you a more consistent experience all within Practice Compliance.

Integrate depreciating assets all from one place

Keep all the asset information in one place and integrate them into different worksheets/schedules in a tax return. Integrate the depreciating assets to company, trust and partnership tax returns.

Check out the new tax depreciation worksheet to allocate the amounts to the necessary schedules and worksheet fields.

Identify which tax return sections have data

The tax return navigation bar shows a purple indicator on which items have data. This gives you visibility on which sections have been completed when preparing or reviewing tax returns.

The indicators will appear if items have:

• yes or no default selected, such as the Australian resident question on the Front cover

• rolled over data from prior year such as tax agent details.

As you enter data into the return, the purple indicators will appear after you refresh the return or click Validate.