If the taxpayer's residency status changed during the 2022-23 financial year and they received Australian Government pensions or allowances reported at Item 5 or Item 6 (excluding the payments listed below), they may be entitled to the full tax-free threshold:
Youth Allowance
Newstart Allowance
Sickness Allowance
Special Benefit
Payments made under the Community Development Employment Projects (CDEP) Scheme
If the client has an amount recorded at Item 6, Australian Government pensions and allowances, this can impact the residency calculation. In these cases, you may remove the residency dates if required; however, the residency status should remain as 'Changed residency during the year'. Once updated, the validation should clear.
If there are no amounts entered at Item 5 or Item 6, and the return still has 'Changed residency during the year' selected with residency dates entered, the CMN.ATO.IITR.730507 validation error may continue to display.
The following workaround can be used to clear the error:
Navigate to Item 6 – Australian Government pensions and allowances.
Enter a temporary (dummy) amount.
Delete the amount.
Recalculate or validate the return.
The validation error should clear, and the Number of months eligible for the tax-free threshold should calculate correctly.