SMSF event-based reporting “draconian”, no basis in legislation: BGL

BGL says the new event-based reporting requirements are “draconian”, and that it can’t find where in the legislation the new rules are mandated.

BGL – which makes Simple Fund 360, among other software –  has launched a campaign, called #telltheATO, and started a petition to go to Minister Kelly O’Dwyer and the ATO Commissioner, in the hopes that the ATO will rethink its position.

Under event-based reporting super funds, including SMSFs, will be required to report more information to the ATO, and much sooner after the events occur.

“The ATO wants you to report when every single one of your client’s start a pension, no matter what the member account balance. Even if the balance is $10,000 – you will still need to report it to the ATO. This reporting is required within 28 days after the end of the quarter in which the pension is commenced,” said BGL.

“Furthermore, the ATO wants you to report any change in a pension within 10 days of the end of the month in which the pension is changed.”

“The ATO is suggesting that come 1 July 2018, you may need to lodge a form every 14 days.”

BGL says these reporting requirements are “ridiculous” and is “appalled” that the professional accounting bodies have “done nothing to support their members in opposing these draconian rules”.

BGL Managing Director, Ron Lesh, said: “I am very concerned how all these changes affect our clients”.

“The 2016/17 budget changes have already added a huge amount of work for our clients and a huge amount of cost to their clients – these reporting rules are simply going to make things worse,” he said.

“Furthermore, it would appear the ATO is making up its own rules here.”

“We have scoured the new legislation and regulations and cannot find anywhere where these reporting requirements are outlined.”

The petition, which can be signed at causes.com, is addressed to Kelly O’Dwyer, Minister for Revenue and Financial Services, and Chris Jordan, Commissioner of Taxation, reads:

We, the undersigned, hereby call on the Minister for Revenue and Financial Services and the Commissioner of Taxation to revise the draconian superannuation reporting requirements proposed by the ATO. The ATO wants every person in Australia with a superannuation pension to report the start of any pension and for any change in that pension. This reporting applies if the pension balance is $50,000 or at the $1.6m pension cap. We think this is big brother gone mad. We think the only pensions that should be reported to the ATO are pensions where a member has a superannuation balance of $1.6m or greater. Furthermore, we demand the ATO adopt a single date for the reporting of pensions and pension changes. We think all reporting should be 28 days after the end of each quarter.

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