One SMSF software provider expects the scale of reporting required for transfer balance cap events to be on a large scale, and is looking to invest in ways to make the reporting more seamless.
Class chief executive Kevin Bungard said he expects that a lot of the SMSF administration providers, especially cloud-based providers will be looking to ramp up the development of features that streamline the new events-based reporting requirements.
“I would expect that all the software providers will attempt to make this as easy as possible. I think one of the interesting things from the Class Benchmark Report was what the potential scale for an increase in commutations could actually be,” said Mr Bungard.
After initially analysing the new reporting requirements, a lot of the industry, including the software developers, he said, did not expect the reporting to be that significant.
“Everyone was thinking well there are not that many commutations, it’s only about 12 per cent of funds that are making one commutation each year, that’s not too onerous. I think it’s only when you start thinking about the other strategies where you’ve potentially got people who are rebalancing funds or more dramatically if they do look to implement strategies to get credits back on their transfer balance account, then I think that volume of commutations presents a challenge for the practices and the software vendors,” he explained.
“I expect that once we have all the information that all the software providers will look to make the reporting streamlined. Certainly it’s something that we’re focused on as making as streamlined as possible.”
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