-  3193 3000
With all the new changes to superannuation over the past year, it was inevitable for the ATO to introduce a system to track all the changes and ensure that every member and fund is compliant.
So the ATO is introducing new event based reporting. Technically speaking, this isn’t “real time reporting” as they don’t want to know your super balance on a daily basis, they just want to know about specific events. However, due to the fast turn around for this kind of information, if you aren’t embracing real time reporting you could be up for late lodgement penalties.
Key clients are going to be forced to move to “real time reporting” to meet these new reporting requirements.
Under these new reporting requirements, events such as taking a lump sum withdrawal would require to be reported to the ATO within 10 business days after the end of the month in which that commutation occurs. If you start a new pension then this would need to be reported within 28 days of the end of the quarter.
These measures require information to be recorded fairly quickly after the transaction occurs due to the fact that the penalties for the member are significant, and are calculated on a daily basis. To put it simply, delay of information means that the concerned member will be penalised.
While it seems like a big step going from annual reporting to event based reporting, the ATO has given you until 1 July 2018 to get ready for this change. Although depending on your situation, you may need to report events before this date to meet interim reporting requirements.
At businessDEPOT, we see real time reporting as a real positive for clients as they will have more up to date information to make better strategic decisions about their super. For example, they will know if they are nearing their $1.6million cap and can take opportunities for extra contributions and will be able to implement better tax strategies upon withdrawal of their super.
Consider one of our monthly bundle packages designed to keep your fund up to date and ensure you comply with the new event based reporting.
For more information, 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.