How your statement is checked¶

Before the Australian Taxation Office (ATO) accepts your Activity Statement — the form you use to report amounts like GST and wage tax — it is checked for errors. The good news is that this happens in more than one place, so most problems are caught early, before they can cause you trouble.

This lesson gives you the big picture. The lessons that follow it walk through each kind of check on its own.

In one line

Your statement is checked twice — first by your software as you prepare it, then by the ATO when it arrives — so errors are caught before or just after you send.

Why this matters¶

Nobody wants to lodge the wrong figures to the ATO. Because your statement is checked as you go, and again when it arrives, a simple slip — a missing box, a figure that doesn't add up — is usually spotted and can be fixed on the spot. Understanding that there are two moments of checking helps you make sense of any message you see.

What you will learn¶

That your statement is checked before it is accepted
The two moments checks happen — in your software, and at the ATO
Why an error can be caught before or just after you send

Understanding the concept¶

Think of it like posting an important letter. You read it over yourself before sealing the envelope. Then, when it reaches the other end, the office there opens it and checks it makes sense before acting on it. Your Activity Statement gets the same two rounds of attention.

Round one — in your software, as you prepare. While you fill in your statement, your software checks the everyday things: that required boxes aren't left blank, that figures are entered in a sensible form, and that the totals add up the way they should. These checks happen right in front of you, so you can fix a problem before you send anything.

Round two — at the ATO, when it arrives. Once you send your statement, it reaches the ATO, which runs its own checks against what it knows about your business. If everything lines up, the statement is accepted. If something doesn't, the ATO sends back a message explaining what needs attention.

Because there are two rounds, an error can be caught in either place. Most are caught in round one, before you send. A few are only caught in round two, just after you send — and if that happens, you simply fix the point raised and lodge again.

For accountants & bookkeepers

The two rounds are commonly described as checks performed within the lodging software before submission, and checks performed by the ATO on receipt. The software checks tend to cover format and completeness; the ATO's checks compare the statement against the registration and account details it holds. A statement is only accepted once it passes the ATO's checks.

Example¶

Sam owns a hair salon and lodges her own quarterly statement. As she fills it in, her software flags that she's left a required box empty — that's round one, caught before she sends. She fills it in and lodges. Moments later the ATO replies that everything is in order and the statement is accepted — that's round two, passed. Had the ATO instead raised a point, Sam would have seen a short message telling her what to fix, corrected it, and lodged again.

Common mistakes¶

Thinking the only check happens at the ATO — your software checks as you prepare too.
Assuming a message just after sending means something is broken — it's the second round of checking doing its job, and it tells you exactly what to fix.
Treating "no errors shown yet" as "accepted" — acceptance comes after the ATO's check.

How this works in myaccountant¶

In the app — myaccountant checks your statement as you prepare it, pointing out missing or unusual entries before you send. When you lodge, it passes the statement to the ATO, which runs its own checks and replies. myaccountant shows you the result, so you know whether the statement was accepted or whether something needs your attention.

Key points¶

Your statement is checked before it can be accepted.
The first round of checks happens in your software, as you prepare.
The second round happens at the ATO, when your statement arrives.
Most errors are caught in the first round, before you send.
Some are only caught in the second round, just after you send.
If a point is raised, you fix it and lodge again.

Learn next¶

General information only — not tax, super or financial advice.

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