Indications that this was a direction that SMSF trustees may be expected to take arose from the newly established Super New Measures SMSF Consultation Group, which met for the first time earlier this year. This group was established to ensure regular discussion between stakeholders and the sector's regulator.
The ATO advised that due to practical implications for SMSF members there are several events that SMSFs will need to report to the ATO on an events basis for the purpose of the transfer balance cap, including:
It is understood that the ATO had proposed to introduce event based reporting for all SMSFs from July 1 2017, but recognised there were practical issues to deal with and that trustees would require sufficient time to transition to a model of more regular events-based reporting.
Under the proposed reporting requirements, some events like a commutation of a pension would be required to be reported within 10 business days after the end of the month in which that commutation occurs. The commencement of pensions would need to be reported within 28 days of the end of the quarter.
The ATO also noted that it is expecting to issue a range of different letters to individual super fund members, including instances where an individual member:
See the SMSF New Measures Consultation Forum key messages here.
Source: This article was first published by Tax & Super Australia at http://www.taxandsupernewsroom.com.au/
You can read earlier ClearLaw articles on a range of SMSF topics.
Julian Smith is a partner in the Maddocks Commercial team.
Julian advises extensively in the following areas:
Julian advises clients ranging from public companies servicing the wholesale financial services market to high net worth individuals and their advisers.
Julian has been with Maddocks since undertaking articles in 2001.
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