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ATO responds to gripes over access to TBAR services
While the ATO acknowledges that there is frustration in the SMSF sector that only tax agents for individuals are currently able to access TBAR services, it says that privacy concerns are preventing it from extending these services to other types of professionals.
Speaking in a webinar on transfer balance account reporting (TBAR) services for tax agents, ATO director Helen Morgan addressed some of the concerns about the limited access to TBAR information and services for SMSF professionals who are not a member’s individual tax agent.
In early April, the ATO said that access to transfer balance account report services has been extended to all tax agents and BAS agents in public beta through the online services for tax agents portal.
However, other types of SMSF professionals such as financial advisers are not able to access this information yet.
“While we appreciate that in the superannuation context, it is useful for trustees and their advisers to have a full understanding of the member’s circumstances, especially if they have or have had in the past, superannuation interests outside their SMSF which count towards their cap, it really is only limited to the individual and their agent who have access,” Ms Morgan said.
“I can appreciate that there’s a level of frustration in the sector about this, but it’s essentially a matter of privacy. We can only provide that information back to that individual or their personal tax agent.”
Ms Morgan said that individual clients can choose to download and share that information with professionals.
“But under our current systems and access permissions framework, it’s not possible for individuals to give you access to their full superannuation online,” she said.
“If an individual truly wants you to act on their behalf and have a full understanding of their affairs, then maybe [they] should consider engaging you as their agent, and if this isn’t appropriate, it’s probably best to ask the individual to provide that information.”
Ms Morgan said that the easiest way for individuals to obtain information is from their myGov account.
“If the individual doesn’t have an agent, they are probably already lodging their personal income tax returns using MyTax, so they’ll already be using a myGov account, so it’s just a matter of them going in and clicking on the superannuation tab of that account,” she said.
SMSF professionals have previously pointed out some of the hurdles of relying on clients to access and download their superannuation information from myGov.
Keep It Simple Super director Julie Taylor said that many clients haven’t set up a myGov account or don’t have access to a computer.
“I just don’t think everyone is engaged with myGov. When we’re talking to advisers, often their client don’t have myGov and then they’ve got to run through the process of getting them on there,” Ms Taylor said previously.
“We’re relying on the client to know what they’re doing with the myGov account and, realistically, not all clients have computers. There are a large proportion of SMSF clients that are older and they have to go to the library to hook up to their myGov account.”
Miranda Brownlee
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 also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
It’s astounding that we spend so much on the public service, but they still aren’t capable of producing workable solutions.
The problem is multiplied as not only do these Govt agencies not talk to each other, they don’t even coordinate internally. See how aggressive the ATO is in issuing a an excess transfer balance cap assessment, when they they can’t even communicate TBA amounts used to financial planners..... remember financial planners? They are the ones tasked with planning for the use of the TBA. And as ASIC & the ATO are so vitriolic about, accountants (the ones who can get the information) are threatened if they advise on it.
At present, the ATO don’t even acknowledge in a letter to the taxpayer the amount counted. At least if the taxpayer had something in writing it might help in the planning process.
This is no different to the RBL system. Only an individual’s tax agent could get this information. Planners had to organise an authority and wait 6 to 8 weeks for an ATO reply. “Unworkable” is why RBLs were scrapped. Did you guys at the ATO learn nothing from that?
0- The TBA is at an individual level and, as with tax returns, only Tax Agents can see into the system. Registration as a Tax Agent is a thorough process that includes necessary checks and balances.
MyGov seems like the answer to self service, but agree, it is less than user friendly.
You would think the data capability we have these days would permit direct notification of the TBA record, every time there is a change, to the taxpayer, via an email notification with an embeded link (not to MyGov).
Data security has been prioritised over functionality but I suspect that there could be a middle ground if there was the will to truly make information accessible.
I suspect it will take a national outrage following TBA breaches, compensation payments and general poor outcomes for anything to change, similar to the excess contribution regime prior to 2013.0 - Doesn't answer the question about why a superfund can't see what it has lodged about its members? The superfund lodges the TBAR, but has no idea whether the ato has processed it, or correctly for that matter. Even if it's a privacy issue to see their total super balance, the superfund should at least be able to see what it has lodged.0
- Just another example of how insulated public servants are from the real world.
Treasury should have taken the lead here, not just implementing a transfer balance system, but ensuring that it can actually work.
Hiding behind privacy concerns and MYGov is a cop out. The target audience of TBAR (over age 65) are not the most computer literate and MyGov is difficult to use.
At every step accountants have been isolated and threatened by the ATO & ASIC about giving superannuation advice, yet you
now want to dump this shimozzle in our laps.
Politicians make laws and the public service is tasked, at enormous expense to the country, to make them work.
Near enough is NOT good enough.
With this type of half baked approach it’s no wonder that planes start falling out of the skies!0 - So basically they are saying that they know everyone is really annoyed but suck it up. Perhaps next on the ATO to do list should be to provide a simple framework for clients to give permission to any professional they want to have access to their super. Seems simple enough to me.0
- I have a slightly different problem with access to TBAR reporting. Because of restrictions placed by the ATO, I am unable to lodge a TBAR through BGL without engaging a tax agent. I can however lodge the Annual Return through BGL without needing a tax agent. Doesn't make sense.0
- More ridiculous legislation, more red tape, more delays, MUCH more cost.
When are the politicians and bureaucrats going to realise they are running the country into the ground for no economic or productive benefit.
Strangulation by regulation.
They want efficiency and lower fees in the super sector and every action they take makes the process more expensive.
Ignorance? Incompetence? Stupidity?
How did we end up with such a ridiculous system?0- You answered it in your second last line - without the question marks.0
- Over Bloody Complicated ODwyer and her ATO & Treasury buffoons who rushed in the Pension Caps with zero industry consultation.
That’s how we have this ridiculously costly and stupidly complex and ever growing system of red tape BS regulation.
Wonderful for ODwyer to exit now and leave us all this stinking mess.
You absolutely stink ODwyer.
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