SMSF’s and the new reporting requirements
If you operate a Self Managed Super Fund (SMSF) and are either in pension phase,
approaching pension phase or making changes to your pension, then these new reporting
requirements affect you.
Included as part of the recent super changes relating to the $1.6 million transfer balance
cap, these new reporting requirements have now come into effect from 1 July 2018.
What do you need to report?
As a trustee, you now have an obligation to report to the ATO when any of the following
occur that affect a members transfer balance, including:
- details of income streams being received on 30 June 2017 that
– continued to be paid to them on or after 1 July 2017, and
– were in retirement phase on or after 1 July 2017
- details of new retirement phase and death benefit income streams
- details of some limited recourse borrowing arrangement payments
- details of commutations of retirement phase income streams that occur on or after
1 July 2017.
How often do you need to report?
If your SMSF is already in pension mode, this income stream must be reported to the ATO
before 1 July 2018. This includes any income streams that a member was receiving on 30
June 2017 that has continued to be paid to you after 1 July 2017.
After 1 July 2018, all SMSF’s need to report any event that affect their members transfer
If all members of your superannuation fund have a balance of under $1,000,000, then you
need to report any events that affect your transfer balance cap when you lodge your SMSF’s
income tax return.
If any members of your superannuation fund have a balance of $1,000,000 or more, then
you must report any events that affect your transfer balance cap within 28 days after the
end of the quarter in which the event occurs.
It’s now more important than ever that you contact us should you make changes to your
transfer balance cap. As you can see from the above new reporting requirements, the ATO
has now imposed reporting requirements and deadlines to those members who are in
pension mode or considering changes to their pension accounts.
Author: Kim Jay