DomaCom completes integration with BGL
DomaCom has completed its integration with SMSF administration platform BGL’s Simple Fund 360, further building on the platform’s downsizer contribution support.
BGL has implemented a seamless data interface with DomaCom through a data implementation which will allow 200,000+ SMSFs to use the DomaCom Fund. Following the integration, SMSFs’ accountants are now able to receive automated transactional data feed into their Simple Fund 360 software from the DomaCom platform.
DomaCom said accountants can now more efficiently administer their SMSFs and access data from DomaCom. SMSFs can now also use DomaCom’s Senior Equity Release platform to benefit from the Australian Taxation Office’s recent ruling on downsizer contributions and top up their SMSF.
“DomaCom is excited to partner with BGL on efficiently delivering the benefits of our innovations to Australia’s self-funded retirees,” DomaCom CEO Arthur Naoumidis said.
“The ability for retirees to support themselves by modifying their personal balance sheets and moving some of the financial resources tied up in their homes to their super funds will enable them to enjoy a better retirement.
“Thanks to our partnership with BGL, they will be able to do this with the knowledge that their accountants can efficiently administer their SMSFs.”
BGL managing director Ron Lesh added: “BGL has been at the forefront of innovation in the delivery of SMSF administration solutions since 1997, and I am pleased to welcome DomaCom to the BGL family to help our clients support their self-funded retirees.”
The integration with BGL is a major milestone, according to DomaCom, that builds upon the ATO ruling on downsizer contributions last year. Specifically, the ATO’s Administrative Binding Advice confirms part-disposal of a home for downsizer contributions.
This means that a person can dispose of part of their home under DomaCom’s Senior Equity Release platform and be eligible to make a downsizer contribution.
The ability to contribute the proceeds of downsizing part of a home into superannuation was one of several measures announced in the 2017–2018 budget to reduce pressure on housing affordability in Australia.
From 1 July 2018, eligible people aged 65 or over have been able to make a downsizer contribution into their superannuation of up to $300,000 from the proceeds of selling all or part of their home.
As downsizer contributions are not subject to the usual concessional or non-concessional contribution caps, they can still be made when a member’s balance exceeds $1.6 million. While 5,000 retirees used this facility in the first year, Domacom noted research indicates that a large proportion of retirees would prefer to access the downsizer provisions while being able to continue living in their homes.
“The ATO confirmation on part-disposal now means that SMSF retirees can use DomaCom’s Senior Equity Release platform to sell a part-interest in their home and make a downsizer contribution without having to move out of their home,” DomaCom said.
“While a residential property cannot be sold to an SMSF, a part-interest of a home can be sold to DomaCom’s Senior Equity Release platform which provides cash to the member that they are legally able to contribute to their SMSF.”