SMSFs to be monitored daily under TBAR, warns software firm
Under the new reporting requirements for TBAR, SMSF firms may have to monitor their clients’ SMSFs on a daily basis to keep on top of the compliance, warns an SMSF software provider.
Class chief executive Kevin Bungard said while it’s relatively easy for SMSF practitioners to access information about any events that might occur in their client’s fund, accountants have traditionally not looked at their client’s SMSF until the next lodgement season.
This could cause problems under the transfer balance account reporting (TBAR) he warned, where an SMSF trustee starts a pension for example and the accountant is unaware or not watching what is happening.
“The practice [may need] to have someone whose job every morning is to watch what’s happening and look out for anything that the firm needs to be on top of, [who] contacts the trustee to say ‘hey, I’ve just noticed you’ve taken money out above your pension minimum, we’re going to have to do some extra work around this now’,” explained Mr Bungard.
If the SMSF practice is not watching, he said, there is a danger that four months will go past and the reporting deadline will be missed and there could be a fine or the client might miss out on the ability to claim that credit from their transfer balance cap.
“I think that’s where you’ll start to see some disappointed people if the administrator or accountant hasn’t been on top of what’s happening and they end up missing their deadlines,” he warned.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.