EVENTS BASED REPORTING
After detailed consultation with the self-managed super fund (SMSF) sector, the ATO announced today that its implementation of SMSF event-based reporting from 1 July 2018 will be limited to those SMSFs with members with total superannuation account balances of $1 million or more. 9th November 2017.
Event-Based Reporting was introduced to control and regulate movements within a SMSF and in particular to control the excess balance transfer cap currently set as $1,600,000.00 from 1st July 2017 in order that income from Accumulated Funds be properly taxed at the current rate of 15% in excess of the cap and otherwise. The monitoring of all movements within SMSF will therefore be subject to possible closer scrutiny by the controlling body the ATO.
If a fund has any one member balance in excess of $1 million it must report on all members
From the 1st July 2018, those SMSF that have any members with the total superannuation account balances of $1 million or more will be required to report events impacting members balances within 28 days after the end of the ensuing quarter.
The test date starts as from 1st July 2017 for members with existing pensions and the 30th June immediately prior to the commencement of a new pension income stream.
Those trustees that are using web based accounting programmes will find meeting these requirements a lot easier and without such programmes will be virtually impossible and extremely difficult. Your accountants assistance may be required. Web based programmes can also be linked directly with online event based reporting.