SMSF Association urges quarterly reporting for TBAR

26 September 2017
| By Jassmyn |
image
image
expand image

The SMSF Association has urged the Australian Taxation Office (ATO) to adopt the quarterly reporting approach to the introduction of the Transfer Balance Account Report (TBAR).

Pointing to its submission to the ATO, the SMSF Association said it supported the option that allowed self-managed superannuation funds (SMSFs) 28 days after the end of the relevant quarter to report, with two exceptions, all transfer balance cap events from 1 July 2018.

It noted that 90 per cent of the association members supported this option, suggesting there was general concern from members about SMSF advisers’ ability to cope with all the super changes and increased costs for clients driven by extra reporting requirements.

Currently, the proposed transition period is to 1 July 2020, requiring SMSFs to lodge a TBAR in 10 days after the month the transaction occurs, bringing SMSFs into line with other super sectors.

SMSF Association chief executive, John Maroney, said: “We believe that quarterly reporting will allow for a smoother transition to event-based reporting as trustees and their advisors will have more time to ensure that reporting obligations are met after a relevant transfer balance cap event has occurred”.

“Shifting pension reporting to an event-based approach from the current annual method is a significant change for the superannuation system, especially for SMSFs,” he said.

“It is important that the ATO applies due caution in the design and implementation of TBAR and allows an appropriate transitional period to ensure minimal disruption, with less than half of the respondents to our survey saying they are ready for the introduction of event-based reporting.”

Maroney noted that the industry was currently overwhelmed with the super changes taking effect from 1 July 2017, the introduction of the licensing regime for accountants and the usual ongoing compliance requirements.

The Association also suggest that during the transition period, reporting should be limited to fund members who had a total super balance of more than $1 million to reduce the reporting burden on advisers and trustees. It said this would drastically reduce the number of SMSF members who would be required to comply with TBAR obligations.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago