Caution advised on ATO’s new super balance tool
While the ATO’s new tool for determining a superannuation balance position has been welcomed, SMSF professionals have been cautioned about relying wholly on the ATO’s data.
SMSF professionals can now request information regarding their superannuation balance position through the tax office. For instructions on how to do this, click here.
This service was established prior to the superannuation reforms stemming from the 2016 federal budget, including critical changes to the contributions caps.
While this is a welcome service, SMSF professionals should be wary that there may be a lag in the accuracy and availability of data.
“It’s quite important that the ATO has taken this step to make this information easily available,” SuperConcepts general manager, technical services and education, Peter Burgess, told SMSF Adviser.
“The ATO has made it clear that information is only available up until a certain point. They are relying on information that is being provided to them by the super funds, which is a problem if that information isn’t available and isn’t up-to-date,” Mr Burgess said.
This makes a case for real-time reporting, which the ATO currently has slated for the 2018-19 financial year.
“With no up-to-date information on a regular basis, it’s going to make it very difficult, particularly for those clients approaching the $1.6 million threshold,” Mr Burgess said.