The ATO has published a position paper for industry consultation to consider two options in respect to a SMSFs reporting obligations for events that impact a member’s transfer balance account.
These two options include:
- Option 1 – Following a transition period until 1 July 2018, the ATO would require SMSFs to report 10 days after the end of each month where an event occurs. Specific exceptions would apply for commencement of income streams and LRBA repayments (amongst others), allowing reporting to occur 28 days after the end of each quarter.
- Option 2 – Following a transitional period until 1 July 2018, the ATO would introduce quarterly events-based reporting (28 days after end of each year) for SMSFs for a transitional period until 1 July 2020, then shift reporting to 10 days after month end.
In this podcast, Aaron discusses these two options, analyses the key issues within the position paper and share his thoughts on the future challenges presented within the industry as a result of the introduction of the new transfer balance cap measures.
ATO Position Paper
Click on the link to view the ATO’s position paper, ATO Position: Paper Transfer Balance Cap & SMSF ‘Event-Based’ Reporting Framework
Webinar
Want to find out more about the proposed SMSF events-based reporting requirements? Non-members can access the webinar for $99 (incl. GST).
NB. Members, this webinar is available within the Campus platform to access at any time.
Poll:
Tell us what you think about the proposed SMSF events-based reporting requirements by completing the poll below:
QUESTION: Would you support events-based reporting that required SMSFs to report to the ATO 28 days after the end of each quarter?
The ATO is contemplating alternate models for the events-based reporting timeframe for SMSFs. This poll is to gather information about professional & trustee thoughts about adopting an alternate model to the ATO's current proposal of 10 days after the end of each month (with limited exceptions for SMSFs).
Sorry Aaron, I strongly disagree with your comments regarding the pension commencement date. If the pension has to start on 1/10, then what happens to the pension payments that the member has drawn between 1/7 and 30/9? The ATO must allow a margin of error and allow for estimates and then re-reporting the actual balance when the financials are finalised. The member can request a pension. The fund can accept that request. I don’t understand how you can say the pension cannot start immediately simply because the financials aren’t finalised.
Hi Elaine,
I understand you’re comments and don’t necessarily disagree with what you are saying. However, there will be a greater focus around the establishment of income streams consistent with TR 2013/5, along with the timeframes that will be imposed be events-based reporting. In you’re example where benefits are withdrawn before October, then the fund will have two options – (1) get the reporting done before 28 October (following end of transitional period), or (2) treat the amounts as lump sums as the income stream hasn’t commenced at this time.
Most importantly what I am suggesting is that we are about to see a ‘shift’ – no longer can we simply rely upon hindsight to make decisions. It will require some planning, not only with the commencement, but also with ongoing income stream payments too! Something, that I’ll be covering in this week’s podcast – stay tuned!
Regards,
Aaron