You may have heard of Events Based Reporting but not quite sure what this means for you as a member of a SMSF.
The ATO’s initial proposal of Events Based Reporting had software providers, administrators and professional bodies scratching their heads at the thought of the additional administration and costs required to adhere to the ATO’s new requirements.
There have been many disgruntled conversations over the last few months regarding the impracticality of these new reporting rules from these parties.
The superannuation changes from 1 July 2017 certainly had us on our toes and as if these changes weren’t enough, the ATO started to talk about ‘events based reporting’ as a means to keep track of individual’s superannuation balances.
We have now heard good news that the ATO has taken on board the many suggestions and criticisms its proposals received and eased up on the reporting requirements they wished to implement.
When will Events Based Reporting commence?
The ATO announced that its implementation of SMSF event based reporting will commence from 1 July 2018.
SMSFs with member balances over $1 million:
Events Based Reporting will be limited to those SMSFs with members with total superannuation account balances of $1 million or more. These SMSFs will be required to report Transfer Balance Cap events 28 days after the end of the quarter in which the event occurred.
SMSFs with member balances under $1 million:
SMSFs whose members’ total superannuation balances are less than $1 million can report Transfer Balance Cap events at the same time the SMSF lodges it’s tax return.
The ATO originally expected all SMSFs regardless of account balances to report Transfer Balance Cap events monthly!
The final proposal will save SMSF’s excessive administrative costs.
SMSFs solely in accumulation phase are not affected by Events Based Reporting as it only relates to transfer balance cap events.
If you are one of our valued clients likely to be affected by the above reporting changes, you will hear from us closer to 1 July 2018 to help you transition to the new reporting rules.
If you would like to know more information please Contact Us