Mid-tier firm HLB Mann Judd has already cited issues with obtaining historical contributions records from the ATO for clients.
“We were on the phone for 20 minutes and their record was $195,000 different to what our records were, and that was after 20 minutes,” said HLB Mann Judd partner of wealth management, superannuation, Michael Hutton.
Currently, the ATO calculates the amounts manually, based on information from funds, income tax returns and excess contribution amounts released from funds.
The ATO announced this week that it has been receiving requests for non-concessional contributions records for SMSF clients, and plans to “simplify the calculation process” before 1 July.
“If individuals and funds have met their lodgment obligations, we can calculate amounts for the period 1 July 2007 to 30 June 2015,” the ATO said.
“To help us provide information within a few business days to those with a critical need, we ask that you prioritise your clients’ requests.”
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It’s great the ATO will open up their systems to allow Accountants determine prior year NCC made. However, Accountants should ensure that all prior year ITRs have been lodged, and, if possible, ensure that contributions have been correctly reported in the past.
With the proposed budget changes with contribution caps and pension caps, I believe it is now time to review the compulsory reporting of member information in the member statements and/or Annual returns. The maintaining of undeducted contribution amounts and balances is essential for sound fund management, but to date the reporting has not been a requirement and in many cases has been ignored by trustees.
Another stupid rule by politicians and bureaucrats that drive excessive costs and wasted time into an already overburdened industry.
Less and less people can afford financial planning advice but more and more need it.
other than the NCC backdating and level most changes were positive. The only problem, for middle Australia, is that the system is sufficiently complex that they will need help but the cost to them for decent advice is likely exceed the benefit.
Therefore no good will come of this either.
Stupid bureaucrats and stupid politicians.