- Super Success - Relief for up to 85% of SMSFs
The ATO has announced 85% of SMSF Trustees are no longer required to undertake the burden of additional reporting required from 1 July 2017 in "real time", allowing access to annual reporting.
The Super Reforms added additional reporting requirements to SMSF Trustees to enable the ATO to monitor members "Transfer Balance Cap" from 1 July 2017.
From 1 July 2018 those SMSFs that have members with total superannuation account balances of $1 million or more will be required to report events impacting members’ transfer balances within 28 days after the end of the quarter in which the event occurs.
What must be reported:
- Starting pensions (except transition to retirement pensions)
- Stopping pensions (except transition to retirement pensions)
- Partially stopping pensions
- Limited recourse borrowing arrangement payments
- Personal injury (structured settlement) contributions
- ATO commutation authorities (for when your transfer balance cap has been exceeded and the ATO directs the SMSF to stop part of your pension)
Where we look after your SMSF we are working hard to ensure your fund is ready for real-time reporting, including:
- Determining the impact these requirements may have on your SMSF
- Bringing forward completion of your annual accounts to determine your TSB
- Adopting alternative methods including transition to Class to keep your fund up to date in real time
- Working with you to ensure withdrawals from super result in the most positive impact on your Transfer Balance Cap and your Estate Plan
Where can you help?
- Review your fund investments to determine if your product provider enables real-time access to their information
- Contact your Grant Thornton adviser to discuss further