The ATO is currently exploring concessions for its events-based reporting regime, including carve-outs for those well under the transfer balance cap and additional transitionary periods.
Although well intended by the ATO, and in response to divided feedback, SuperConcepts head of technical services, Peter Burgess, said having various sets of rules will “no doubt” result in errors from clients and the tax office.
“I understand the ATO is trying to do everything they can accommodate the needs of the SMSF sector and I think they should be commended for that,” Mr Burgess told delegates at the SMSF Summit in Brisbane last week.
“But I’ve got to say, what a shemozzle we are in when it comes to events-based reporting,” he said.
“Once we start carving out clients, it becomes complex and it leads to errors,” he said.
The ATO’s assistant commissioner for superannuation, Kasey Macfarlane, said the ATO is intent on enforcing systems which give trustees the best chance at compliance with the new superannuation reforms, which is why there has had to be a considered push to the new reporting regime.
“But we realise this has been a significant shift for the sector. We know there are concerns about the administrative impact and cost, when compared to the benefits of more regular reporting,” she told delegates at the SMSF Summit.
“We are carefully considering that feedback, we are listening, and we do expect to make an announcement about our position in the coming weeks,” she said.
“We need to work out how to balance administrative ease and cost… and ensure that we can have transparency, and that SMSF trustees don’t end up with an unexpected tax bill under the new measures,” she said.