The data used to submit the Annual Administration Return (Form 5602) online can be produced from the software using the Annual Administration Return (AAR) wizard.
To run the AAR Wizard, from the toolbar select:
Reports & Forms > Statutory Forms and Lodgements > Returns and Lodgements > Form 5602 - Annual Administration Return
The AAR Wizard appears.
Page 1: Dates and Company Name
If you have previously lodged a Form 524 in the job, the start date for the current R&P period will be defaulted based on the end date of that submission, otherwise the start date will default to the commencement date of the current job type.
Note: As of v2019.03 Forms 5602 and 5603 now support pooled group lodgement. If the pooled group option is selected at the start of the wizard, the data to be submitted to ASIC will be in the correct format and the information will be saved for the next R&P.
Note: The company name must match exactly with the name of the company held with ASIC.
Page 2: Bank Reconciliations.
This page will list all bank or cash accounts requiring reconciliation as at the end date of the R&P period. This functionality is identical to the Form 524 wizard. Please refer to this link for considerations relevant to account reconciliations.
Page 3: Details of Realisations.
*ASIC's position on reporting values as "Commercial In Confidence" in the past has been that the statutory obligation to report the asset values does not allow you to withhold the values of assets for this reason.
This page details the gross asset realisations on a cash basis to the end of the R&P period. Clicking the ellipsis button at the end of any of the input fields will run a report detailing the gross realisations to date and the estimated future realisations:
Where do these values come from?
The Form 5602 is integrated with the current position. The current position is based the estimated high and low ERV's entered against pre-appointment assets and the projected values entered against asset realisations revenue accounts and asset costs of realisations expense accounts.
In this simple example, a commercial property is has been estimated to realise between $120,000 and $110,000. A total of $60,000 has been realised at the R&P end date. This leaves estimated future realisations of between $50,000 and $60,000.
The practitioner has also estimated sundry receipts totalling $5,000 will be made. $4,000 have been received as at the R&P end date.
In this example, estimate future gross asset realisations are estimated between $51,000 and $61,000 and estimated total realisations are between $115,000 and $125,000.
The gross realisation values calculated by the system can be overwritten for submission to ASIC by typing values into the fields in the wizard, but will not be saved other than during the current run of the wizard.
Tip: If you need to process write-off you can do this through the wizard by clicking on the Assets tab.
From v2019.03 the system will present an adjustment (Write-Off) as-at date dialogue instead of defaulting to the current date. If you are entering a write-off during the F5602/5603 wizard the date will default to the end date of the reporting period being run however you can change this if required.
Pre v2019.03 the system will default to todays date. You will need to change the date of the Write-Off. Please refer to part 4. of How to record a Write Off for Accounts Receivable Pre Appointment on editing the date of a write-off.
The cash at bank transferred form VA to CVL should report as a gross realisation in the Form 5602 as these are assets available to the CVL. Otherwise the amounts do not appear in the total used when calculating returns to creditors. This was a change we made in 2019.07
Page 4: Details of Liabilities
This page details the estimated number and quantum of claims against the company. The values correspond to the system control values for creditors. For more information on creditor control values, see the links here and here. Note that, as per ASIC guidance, these values do not take into account any amounts distributed to creditors.
This is the ASIC guidance:
Tips on completing - Estimated Liabilities
• The estimated value of creditors’ claims is an estimate of the gross amount owed to creditors. Please do not net off amounts for dividend payments
Also note that claims for injury compensation are not submitted to ASIC and that contingent creditor claims are included with unsecured creditors.
The creditor values calculated by the system can be overwritten for submission to ASIC by typing values into the fields in the wizard, but will not be saved other than during the current run of the wizard.
Page 5: Fees and Costs
This page details the fees approved and paid and the costs (disbursements) paid during the current appointment type. All amounts include GST. If the job has transitioned from another job type eg: VA to DOCA to CVL, fields containing amounts relevant to each stage of the job will display and be reported to ASIC.
Updated in V2019.03 -Section 3 Details of Remuneration. Previously all fees drawn across all appointment types were reported in this section for the current appointment. ASIC has clarified that the amounts paid with respect to other appointment types only relates to amounts paid from the current appointment type. Amounts paid during other appointment types should not be included in this section for the current appointment type. EG VA fees paid from the CVL appointment will report as VA fees paid in this section. If all VA fees were paid during the VA appointment (before transition to CVL) then no VA fees will be reported in the CVL appointment type for Form 5602/5603.
No action needs to be taken with respect to any previous returns lodged that included fees paid during other appointment types.
The fee and costs values generated by the system can be overwritten for submission to ASIC by typing values into the fields in the wizard, but will not be saved other than during the current run of the wizard.
Page 6: Summary of Receipts and Payments
This page details current and prior period receipt and payments against the balance of money on hand. This functionality is unchanged from the Form 524.
Note that R&P values cannot be overwritten by the user for submission to ASIC.
ASIC are not currently able to accept electronic F5602 submissions with an overdrawn (negative) balance. They are aware of this issue.
At present the only way to lodge F5602s where the bank account is in negative balance is to lodge manually. There is an Excel Template available on the ASIC website that you can complete for manual lodgements.
Page 7: Details of FEG payments and Details of Dividends.
This page details the amounts paid to employee creditors with respect to FEG as well as the amount and rates or dividend already paid to other creditors and the estimated total rate they will ultimately receive. Note that the details of dividends section is only required to be submitted for creditors voluntary liquidations, official (court) liquidations and deeds of company arrangement. The section will be greyed out for all other job types.
The FEG amounts are all amounts paid to employee creditors under the FEG scheme, whether paid directly by FEG or by the appointee.
The total amounts paid to creditors are based on all dividends or other payments made to creditors with respect to their claims.
The cumulative rate actually paid is based on the total amount paid to creditors, divided by the creditor control value. This includes all unadmitted or unfinalised creditor claims. If a creditor does not have a claim which should be included in the control value, it will be necessary to mark the creditor as having no claim via the right hand click popup menu option on the creditor register.
The rate of dividends paid to secured creditors is not required to be reported to ASIC.
As of V2019.03 this screen has been updated to only report FEG payments for the period of this return and not for the period commencing on the date of the appointment. ASIC has advised that no action need to be taken with respect to any previous returns lodged.
Details of Dividends paid to Date. Heading has been updated for clarity.
Where do these numbers come from?
The estimated rate to be paid is derived from the current position. In this example an amount of $104,000 is estimated to be available to creditors. The amount highlighted in yellow with a red arrow pointing at it is a clickable link which will run the current position report as at the R&P end date. The report has the estimated funds available for preferred creditors highlighted in yellow:
Note that this figure is net of estimates that have been entered into the projections and actual amounts paid. In this example the appointee has estimated total fees of $10,000. $6,000 of these have been paid to date. Appointee disbursements were not entered as estimated, but a total of $1,000 in disbursements has been paid to date.
On page 3 of the wizard, an estimated total (low) of $115,000 was estimated to be available to creditors. Estimated total fees and costs of $11,000 are deducted from this value to arrive att he figure of $104,000 being available to creditors
To calculate the estimated rate to each class of creditor, the estimated total available to each class of creditor is divided by the control value for the class.
Page 8: Estimated completion and reasons delaying completion.
This page details the estimated month and year of completion as well as the details of any causes which may delay the completion of the administration.
Page 9: Preview of summary report
This pages allows preview of the Form 5602 summary report. This functionality is unchanged from the existing Form 524 wizard.
Page 10: Authorisation (If enabled)
This page allows the user to authorise the Form 5602 for lodgement or request authorisation from another user. This page will only appear in the wizard if document authorisations are enabled. This functionality is unchanged from the existing Form 524 wizard.
Page 11: Finalisation.
This functionality is unchanged from the existing Form 524 wizard. Upon finalisation a pdf report summarising the data submitted to ASIC as well as a pdf report containing the detailed R&P will be produced and placed under document management. The reports will previewed in document management if the preview option is ticked.
NB - Wages transactions
As from v2020.03 when wages are paid to employees, each payment transaction will now report in the receipts and payments detail listing (eg F5602 Detailed R&P) as the net amount paid to the employee rather than the previous situation where the gross wages were reported as a payment with the withholding amounts reporting as a negative payment. This change was made so that wages payments report consistently with employee dividend payments. This change will only apply to new payments entered after the version is upgraded. For further information please see this article.
See instructions on how to lodge the completed Form 5602 on the ASIC liquidators portal here.