The Government should provide online tools to help taxpayers comply with the recently legislated changes to superannuation, says Tax & Super Australia in their 2017/18 Pre-Budget submission.
Tax & Super Australia says part of the “mixed” reception to the changes is due to the perceived complexity of the new rules.
“To comply with the new law, affected taxpayers will have to keep track of various balances and transaction amounts in relation to all of their superannuation accounts, and ensure that they do not breach statutory limits,” says the submission.
“Currently, this information is often not able to be obtained instantaneously and may require time-consuming manual reconciliations.”
“In our view, the provision of appropriate online tools to assist taxpayers and their advisers to comply with the new law should be concomitant with these rules coming into force.”
Tax & Super Australia recommends the Government dedicate funding in the 2017/18 Budget to developing online superannuation tools, based on myGov.
The submission says the information provided to taxpayers via these online tools should include the Transfer Balance Cap, the Transfer Balance account, their total superannuation balance and unused concessional contributions cap.
“The values should be as up-to-date as at access date as is feasible (depending on the information that can be obtained from superannuation funds).”
“We emphasise the need to reduce the compliance burden on taxpayers in terms of both costs and time. Making it easy to comply will also minimise inadvertent errors and breaches of statutory caps.”
“Without tools to provide instantaneous, accurate data to individuals, substantial compliance costs will be incurred just to determine the relevant balances and transaction amounts that the new law requires.”