Powered by MOMENTUM MEDIA
subscribe to our newsletter
SMSFs carved out of FATCA

SMSFs carved out of FATCA

Katarina Taurian
01 May 2014 — 1 minute read

The US and Australian governments have excluded SMSFs and superannuation from the US Foreign Account Tax Compliance Act (FATCA).

Earlier this week, the federal government announced it has entered into an intergovernmental agreement (IGA) with the US to "reduce the burden on Australian financial institutions" of complying with the US FATCA.

Treasurer Joe Hockey heralded ramifications for “a large part of the Australian financial services sector”.

However, the IGA will carve SMSFs out of the FATCA compliance net under the exemption for Australian superannuation entities, the SMSF Professionals’ Association of Australia’s senior manager for technical and policy, Jordan George, told SMSF Adviser.

“This means that any SMSFs that have a US citizen as a trustee/member or have US assets do not need to adhere to the strict FATCA reporting compliance which will save on compliance costs for trustees and their advisers,” he said.

“So trustees and advisers are in a position where they do not have to do anything because of the agreement.”

AMP SMSF’s head of policy and technical, Peter Burgess, also noted on Twitter that this carve out should mean there are no extra reporting obligations for SMSFs.

SMSFs carved out of FATCA
smsfadviser logo
join the discussion

Do you think the government should reinstate the accountants’ exemption for SMSF advice?

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

Get the latest news and opinions delivered to your inbox each morning

In this month's issue:

  • Time wrap
  • The tech bull run
  • From hobby to passion
  • Golden Years
  • An untimely reminder
  • Why change is so difficult
  • Key Strategies for equalising super