Error: 
Issue
This error occurs when the BSB number entered in the tax return cannot be validated against the Australian Taxation Office (ATO) master list of registered BSB numbers.
All Australian bank branches are assigned a unique BSB (Bank-State-Branch) number by the Australian Prudential Regulation Authority (APRA). The ATO verifies the BSB provided in the tax return against its official records.
If the BSB entered is not found in the ATO's master list, the return will fail validation and cannot be lodged.
Resolution
1. Review the BSB number entered in the tax return.
2. Verify that the BSB is correct by searching the official BSB register: http://www.bsbnumbers.com
3. Confirm the banking details with the client, including:
- BSB Number
- Account Name
- Account Number
4. Update the bank details if any information is incorrect and attempt to lodge the return again.
If the BSB Cannot Be Validated
If the client is unable to provide an alternative valid BSB number, the return may be lodged without bank account details. In this case, any refund due will be issued by the ATO via cheque.
Prevention
To avoid this error in future lodgments, ensure that the financial institution details recorded in the tax return match the details held by the ATO:
- BSB Number
- Account Name
- Account Number
Always verify bank account information with the client before lodging the return.