POWERED BY MOMENTUM MEDIA
SMSF Association urges quarterly reporting for TBAR
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 advisers 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 suggested 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.
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
