Real-time Reporting: Nothing to fear for SMSF Trustees

The Australian Taxation Office has recently announced they are proposing to introduce more regular incoming and outgoing reporting for all SMSFs commencing from 1 July 2018.

What this means is that SMSF trustees will soon be required to report on the SMSF asset value on a real-time basis. Currently you only report the fund’s transactions to the ATO in your annual accounts and taxation return.

As an ASC client you may already be taking full advantage of our real-time reporting service so these changes will not affect you, as all of your incomings and outgoings are reported as they happen with our ASC portal. But for those Trustees on the annual reporting package you may want to look at the advantages of real-time reporting for your fund.

These changes do present some opportunities for you as Trustees and Members to have real-time visibility of any contributions that employers make on your behalf and to know how you’re tracking in terms of contributions caps. The ATO is stating the changes are not about reporting on daily accounting by SMSFs or about daily calculation of earnings of member balances, it’s purely about the “transfer balance account”. A current summary of the transfer balance account incomings and outgoings that the ATO would like you to advise them on is below:

Pension Phase reporting

  • Commencing a Pension (excluding a Transitional to Retirement Pension)
  • Commutations (pension stops) – where you roll back amounts from your pension account into your accumulation account
  • Commutation (pension stops) of an existing pension and rollover to new fund
  • Reducing any excessive pension balance which is above the $1.6 Million cap.

CGT Relief

  • Utilising the CGT relief provisions if your fund was 100% pension phase at 30 June 2017 and you had excess above $1.6 million or had Transition to Retirement Pensions in place.

Rollover Forms

  • Reporting of any Rollover of death benefits to another superannuation fund.

Defined Benefit Pension (E.g. Term Allocated Pensions or Complying Pensions)

  • Defined Benefit Pensions where you annual required drawdown is above $100,000 per year.

Limited Recourse Borrowing Arrangement repayments

  • Certain Limited Recourse borrowing arrangements repayments on the loan that have been entered into by your SMSF post 1 July 2017.

These new proposed reporting requirements come into play from 1 July 2018. We are pleased that the ATO is looking at a phase in period where for the first two years you will be required to report the above events 28 days after the end of the quarter, which is exactly same time frame as the Business Activity Statements. But after the two year phase in period the reporting of incomings and outgoings will move to 10 days after the end of the month.

Contact ASC to discuss what plan might be best suited to your personal situation and take advantage of our special offer for free access to the ASC portal for 2 months to try the real-time reporting functionality out for yourself.

Real-time Reporting: Nothing to fear for SMSF Trustees
General Advice Warning
The content of this website is of a general nature only and has not been prepared to take into account any particular investor's objectives, financial situation or particular needs. Australian Superannuation & Compliance (ASC) does not provide financial product advice or recommend any financial products: This applies equally to those financial products which are established for your SMSF when you become a client of ASC. We recommend that you seek professional advice from a financial adviser before making any decision to purchase any financial product including establishing an SMSF.
While the sources for the material are considered reliable, responsibility is not accepted for any inaccuracies, errors or omissions. When establishing a SMSF it is important to understand that additional fees may apply that must be carefully considered prior to making a decision to setup a SMSF including an ATO Supervisory Levy , Company Trustee Setup Fee (where applicable) and Investment Fees .
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