Commutation authority issues surfacing for APRA funds
The ATO has warned APRA-regulated funds that a small number of commutation authorities have been issued with an incorrect amount in certain circumstances and is contacting impacted funds this week.
In an online update, the ATO said a small number of the commissioner’s commutation authorities have been issued with an incorrect amount in some instances where the ATO have sent an ETB determination to an individual, the individual has commuted an amount less than the crystallised reduction amount set out in the ETB determination, and the commutation was reported after the due date.
“Our system is correctly evaluating the remaining amount that needs to be commuted, but is not populating the commutation authority with this amount. Instead the system is populating the commutation authority with the full value in the ETB determination,” the Tax Office said.
“We have stopped sending commutation authorities to funds to allow us time to investigate further and resolve the matter.”
The ATO said it will contact funds where it has identified that an incorrect commutation authority was sent.
“If you are concerned that we have issued you with a commutation authority that is incorrect and we have not contacted you, you should contact us by email,” it said.
The ATO also assured funds that it will still issue ETB determinations when an individual exceeds their cap and ETB tax.