ATO locks in details, addresses panic on real-time reporting
The tax office has addressed several points of confusion with the new events-based reporting regime, locked in key deadlines, and outlined what will be included in a new position paper set to be released shortly for the SMSF community.
From 1 July 2018, SMSFs will be required to report those events which impact on a member’s transfer balance account on an events basis. For those who want to get on board early, SMSFs can voluntarily begin reporting from October this year, which is when APRA funds will start.
Speaking to SMSF Adviser to address some concerns about the breadth of the new regime, ATO assistant commissioner Kasey Macfarlane emphasised the events that are required to be reported on a more regular basis are confined to transfer balance cap events.
“SMSFs won’t be required to report investment earnings, investment gains, investment losses on a more regular basis. They won’t be required to report members’ account balance information on a more regular basis. And they won’t be required to report contribution or pension payments on a more regular basis under this model,” she said.
The more common items that will need to be reported include the dates and value of any pension that an SMSF member is entitled to or commences, the date of any commutation of one of those pensions, and any structured settlement payment that an SMSF member receives and contributes to their fund.
Further, LRBA payments that give rise to a transfer balance credit will need to be reported, following a bill that was introduced in June.
“Importantly SMSFs, only have to report something if there is an event that impacts on one of their member’s transfer balance. An SMSF with relatively straightforward events may only have one or two events per member to report over the life of the fund,” said Ms Macfarlane.
Further, and as foreshadowed by SMSF Adviser last week, the ATO will be releasing a position paper shortly which will look at adjusting the time frames for events-based reporting.
One of the options is that from 1 July 2018, SMSFs would only be required to report transfer balance cap events quarterly, with a view to have a generous transitional period — possibly two years — before moving to monthly reporting.
“The feedback has been that there are different reporting periods for different events, which may make the reporting requirements less clear, and make people less likely to report these events appropriately,” she said.
KATARINA TAURIAN
18 Aug 2017
smsfadviser.com
Hot Issues
- ATO encourages trustees to use voluntary disclosure service
- Beware of terminal illness payout time frame
- Capital losses can help reduce NALI
- Investment and economic outlook, August 2024
- What the Reserve Bank’s rates stance means for property borrowers
- How investing regularly can propel your returns
- Super sector in ASIC’s sights
- Most Popular Operating Systems 1999 - 2022
- Our investment and economic outlook, July 2024
- Striking a balance in the new financial year
- The five reasons why the $A is likely to rise further - if recession is avoided
- What super fund members should know when comparing returns
- Insurance inside super has tax advantages
- It’s never too early to start talking about aged care with clients
- Capacity doubts now more common
- Most Gold Medals in Summer Olympic Games (1896-2024)
- SMSF assets reach record levels amid share market rally
- Many Australians have a fear of running out
- How to get into the retirement comfort zone
- NALE bill passed by parliament
- Compliance focus impacts wind-ups
- LRBA interest rates increase for 2025
- Income-free areas set to increase from 1 July
- Most Spoken Languages in the World
- Middle-to-higher incomes boosting SMSF growth
- Investment and economic outlook, May 2024
- Transitioning into retirement: What you should know
- Plan now to take advantage of stage 3 tax cuts
- Deeming freeze a win for Age Pensioners
Article archive
- April - June 2024
- January - March 2024
- October - December 2023
- July - September 2023
- April - June 2023
- January - March 2023
- October - December 2022
- July - September 2022
- April - June 2022
- January - March 2022
- October - December 2021
- July - September 2021
- April - June 2021
- January - March 2021
- October - December 2020
- July - September 2020
- April - June 2020
- January - March 2020
- October - December 2019
- July - September 2019
- April - June 2019
- January - March 2019
- October - December 2018
- July - September 2018
- April - June 2018
- January - March 2018
- October - December 2017
- July - September 2017
- April - June 2017
- January - March 2017
- October - December 2016
- July - September 2016
- April - June 2016
- January - March 2016
- October - December 2015
- July - September 2015
- April - June 2015
- January - March 2015
- October - December 2014
July - September 2017 archive
- ATO to release further guidance on reserves
- A real-world benchmark for SMSF performance
- How is your super going, ready for retirement?
- Our 'hardest' SMSF tasks
- Lack of literacy promotes unrealistic goals
- Young investors: Time is on your side
- Is your SMSF retirement-ready?
- Key Economic Indicators, 2017 - updated
- Investors acting their age
- ATO locks in details, addresses panic on real-time reporting
- Government ‘undermines’ tax system in new moves on property expenses
- Multiple super accounts in a 'gig' society
- Why Australian retirees aren't happy and what we can do about it
- Doing a budget is a good idea but ....
- Technical expert flags estate planning strategies for 2017-18
- Government to shut down salary sacrifice loophole
- Items that heat up your depreciation deductions
- ‘Tens of thousands’ of SMSFs at risk with ECPI
- Do’s and don’ts of estate planning
- LISTO to help boost women’s super
- Smart ways to stretch retirement money
- Low economic growth likely for years
- Recorded Crime - Offenders, 2015-16
- Adequacy of savings still a concern among Australians