ATO SMSF systems creating confusion
|
|
The Self-Managed Super Fund Professionals' Association of Australia (SPAA) has criticised the Australian Taxation Office (ATO) for listing new self-managed super funds (SMSFs) under a new category of “Registered — status not determined” in the Super Fund Look Up system, claiming it creates the impression that new SMSFs are not compliant.
The ATO created a category of “Registered — status not determined” within the Super Fund Look Up system for newly created SMSFs in January this year, and explained it would indicate they were newly formed funds that have not yet lodged their first annual return.
But in a media briefing at the SPAA conference in Melbourne, SPAA chairman Sharyn Long said that the ATO’s explanatory notes of the new category suggested that these funds would not be compliant with regulation until they lodged their first return.
“The first thing most people who set up an SMSF do is apply to roll over their existing superannuation entitlements out of the large fund — and large funds rely on Super Fund Look Up to determine if the [SMSF] is a compliant fund,” she said.
Larger super funds could refuse to roll over funds into a new SMSF, saying that it wasn’t compliant with regulation, Long said.
The notes suggesting a fund may not yet be compliant were also inconsistent with current regulation, Long said.
When a new SMSF is formed, it is automatically a compliant fund unless it breaches a provision of the Superannuation Industry Supervision Act, she said.
“We have absolutely no concern with the fact that processes are meant to be quite rigorous. It’s just that some of the processes that have been asked for don’t make a lot of sense,” said SPAA chief executive Andrea Slattery.
Recommended for you
Data and technology provider Novigi has acquired Iress’ superannuation consulting and managed services business from Apex Group.
AMP is to launch a digital advice service to provide retirement advice to members of its AMP Super Fund, in partnership with Bravura Solutions.
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
