Analysis of SMSF lodgements based on Class data indicates that at 31 May 2018, total SMSF lodgements were trailing the lodgement rate last year by 10 per cent.
Class stated in its analysis that Monday, 2 July 2018, is a “double-whammy deadline” for both SMSF returns and to report 30 June 2017 TBAR balances for SMSFs with pensions.
While Class said while practitioners are prioritising the lodgement of pension phase funds, given that TBAR reporting is due 2 July, pension lodgements are still 6 per cent behind where they were last year.
The data shows that lodgement of accumulation phase funds lags by a full 15 per cent on where they were at 31 May 2017.
Smarter SMSF chief executive Aaron Dunn said the delay was not a surprise and the extension provided by the ATO was “appreciated, and clearly needed, to deal with the huge disruption and additional workload brought about by super reforms”.
Class chief executive Kevin Bungard said the industry has risen to the significant challenges of super reforms.
“It is great to see practices ‘boxing smart’ and focusing on pension funds so that the TBAR balance reporting deadline can also be met,” Mr Bungard said.
As a Registered SMSF Auditor, I can totally support the Class findings. It is my belief that with the ATO granting a default extension to SMSFs, the accounting profession has prioritised other classes of returns, leaving SMSFs to the last. I am now in a position where over 20% of the funds I audit are arriving on my desk in the last 6 weeks of the financial year. Accountants have been advised that work arriving after 1 June cannot be guaranteed. There will be an increase in late lodgements notwithstanding the extension granted.
Have heard worse stories, for example the administrator that closed Australian onshore operations that is according to their CEO more than 3 months behind lodgement targets. Just Another Messy Problem for the regulators to sort out.
While the cost advantage is tempting you still must deliver service. Losing clients is more expensive than maintaining experienced onshore SMSF specialists.