SMSF Association urges quarterly reporting for TBAR

smsf-association/TBAR/SMSF-advisers/

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

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 4 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 2 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND