While it’s still early days with the transfer balance account reporting regime, Class chief executive Kevin Bungard said some issues have arisen where reports have been manually processed and it’s not clear who is responsible for completing TBAR lodgements for the client.
For example, where a client changed accountants in the past 12 months, it may be unclear which professional is responsible for reporting what, the CEO explained.
“Will it be the previous accountants who have been doing the lodgement for last year’s tax return, who probably did that on the 2 July or thereabouts? Would they have done the TBAR or it is the new accountant who’s doing TBAR because they’ve picked up from the new financial year,” Mr Bungard said.
The confusion around this, particularly where different firms use different methods for reporting, is causing some events to be reported twice.
“There has been some reporting of double accounting where someone’s done a manual return and someone else has done an electronic lodgement. So, I think there might be some confusion with handovers between firms where trustees have changed administrator.”
The TBAR regime, as well as a spate of other measures announced in the 2016 federal budget, have been an ongoing source of confusion for the SMSF sector, and the lead up to this year’s June 30 deadline was no exception.
For example, in early June, Class found pension accounts were causing serious delays to SMSF lodgement, whereby 35 per cent of funds were yet to lodge their annual returns a week out from deadline.
The “biggest ECPI changes in a decade” are also continuing to create waves. You can read more about them here.
Over Complicated ODwyer and her Treasury buffoons who brought in the biggest changes to super in 10 years with no consultation. And look at the complete admin, red tape and costly, unmanageable mess we have.
ODwyer, your actions are disgustingly arrogant.
Taxes excess Pensions was a correct and acceptable approach, effectively bringing back RBL’s that should not have been removed. But had you consulted and listened to industry this could have much more easily been done with taxing income over $75K or $100K pa for a pension member.
RBL’s ODwyer style will be another admin disaster for the ATO – ODwyer, you should clean up this mess or better still just leave.
This is looking as bad as the old RBL reporting. Mismatching of rollovers out & in with new income streams.
The only way for it to work is if all funds (including SMSFs) report on the same time frame. Of course this won’t be palatable to the hordes of administrators who lodge annually. That’s if they are even up to date.
Just another messy problem for the ATO & administrators to sort out.
We had this issue where we lodged the TBAR for a client with their Jun17 balances at the end of June 2018, but the client had rolled their SMSF balance into a retail fund in March 2018. The retail fund had already reported the transfer in, to the ATO. We received notification of an excess transfer balance cap last week. The ATO advised that, if there’s been a commutation and rollover out of a SMSF, to lodge the TBAR asap. Once the new TBAR is lodged, the ATO system should update within 24 hours.