Software quirk flagged with transfer balance account
A minor rounding error has been occurring with certain types of software where the software adds a couple of dollars to a client's transfer balance account, according to BDO.
Speaking to SMSF Adviser, BDO superannuation partner Paul Rafton explained that for clients who had to commute an amount to accumulation in order to bring their retirement phase account down to the $1.6 million, there is a rounding issue error occurring with certain software where it adds a couple of dollars to the transfer balance account amount.
"When clients do that commutation to the $1.6 million, some of the software we're finding is coming up with $1,600,002 for whatever reason. It's some kind of rounding error," explained Mr Rafton.
"It's a bit of a quirky one. I don't think its a material issue, more of a nuisance factor but whether that triggers anything in the ATO systems when those balances are reported in the TBAR will be interesting."
Mr Rafton said its unclear whether this would be automatic trigger for the ATO or whether they would apply common sense and recognise that its not a material amount and clearly a rounding issue.
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.