SMSFs to move to Event Based Reporting

[ by 1 July 2018 ]
by Tegan Cairns Published

We’ve seen a lot of changes to super with the introduction of the new legislation. Given this, it was only inevitable that the ATO would introduce a new system to track compliance.

While the ATO is making a point of calling this new system an “events based reporting” system, let’s just call it what it is, a push for real time reporting. Whilst technically not everyone has to move to real time reporting for their SMSFs, you could incur penalties and miss out on tax savings if you choose not to.

Key clients that need to comply with the new ATO reporting requirements are:

  • 1.Anyone looking to commence or change their pensions [with only 28 days after the end of the quarter to report a pension commencement]
  • 2.Anyone looking to withdraw more than the minimum pension annually and use lump sum strategies to reduce tax [with only 10 days after end of month to report each commutation of your pension]

In our opinion, the only way anyone with an SMSF can meet these time frames is to move to the real time reporting system.

At businessDEPOT we have been recommending real time reporting for our clients for the last few years. We’ve seen the below benefits for all of our clients that have taken it up so far:

  • 1.Increased efficiency – through lower data collection for the client, and quicker turnaround to get a tax refund
  • 2.Real time information for them to base decisions on. This has become even more important with the introduction of new rules such as the $1.6million cap.
  • 3.Quick rectification if any small breaches were incurred.

With the introduction of these new reporting requirements, we can see benefits continuing to increase, because lets face it – everyone is time poor, and no one wants to be tied down to such strict reporting conditions to access their own money in retirement.

You have until 1 July 2018 to be fully ready for this system, however we recommend you take the opportunity to get on board early, so you can make the most of your super opportunities now.

For more information please give me a call on 07 3193 3052 or on email t.cairns@businessdepot.com.au. Also check out Megan’s blog here.


General Advice Warning:

Information provided on this website is general in nature and does not constitute financial advice. Every effort has been made to ensure that the information provided is accurate. Individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult a financial adviser to take into account your particular investment objectives, financial situation and individual needs.

Depot Superannuation Pty Ltd is a corporate authorised representative (No 1240831) of Hunter Green Pty Ltd AFSL 225962.

Tegan Cairns
read more by Tegan Cairns
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