Error: CMN.ATO.IITR.000222 Tax withheld from Australian Government allowances and payments.
This error means the ATO will not accept a return where tax withheld is greater than the reported income amount. It cannot be bypassed in LodgeiT.
Illustration: A client had their JobSeeker reclassified as a Disability Support Pension and an amended payment summary issued. The summary now shows $0 income from JobSeeker but $3,600 tax withheld. LodgeiT is not allowing $0 taxable income to be lodged. Is there no specific withholding label within LodgeiT for this $3,600?
Guidance: CMN.ATO.IITR.000222 is an ATO validation error and cannot be bypassed in LodgeiT. It means the ATO system will not accept tax withheld that exceeds the reported payment amount. If this cannot be resolved through data entry, the best option is to contact the ATO directly, as they can assist with correcting the record.
In terms of where to enter the withholding:
A. Enter under Government Pensions (Label 6)
Try reporting it under Australian Government pensions and allowances – Label 6.
B. Option 2 – Enter via PAYG Schedule
Alternatively, you may input the $3,600 tax withheld under Income > PAYG > Salary or wages – “Tax Withheld” field, with $0 in the Income field.
inside the PAYG schedule.
For Disability Pension exempt amount, you do not need to input it in the tax form. Learn more from the ATO
If the ATO still rejects the lodgement with CMN.ATO.IITR.000222, this cannot be fixed within LodgeiT. The ATO will need to correct the reporting at their end. In this case, advise the client to contact the ATO directly for assistance.