SuperConcepts has started using AI to automate the actuarial certificate process to claim Exempt Current Pension Income (ECPI) in SMSFs.
SuperConcepts says its SuperMate software now uses “powerful AI capabilities” to determine if an actuarial certificate is needed and send data to a chosen actuarial firm. The resulting certificate is “automatically received and stored in SuperMate’s Document Management System”.
This ‘ECPI validation engine’ will reduce time spent, costs, and exposure to compliance risks, the company claims.
“ECPI is one of the largest concessions used by SMSFs and is an obvious target by the ATO for review to ensure the claim is correct,” said SuperConcepts Chief Technology Officer Kurt Groeneveld.
“Claiming ECPI manually can be quite complex and confusing, particularly as both the segregated and unsegregated method can apply in the same income year, across multiple periods. You need to be aware of the effect on the method used where an SMSF has ‘disregarded small fund assets’.”
“By having an automated actuarial certification process, it removes the complexity and gives you the assurance that SuperMate’s AI capabilities lower the compliance risk of getting an ECPI claim wrong.”
“For Accountants, Advisers, Auditors, and Direct Trustees, this new AI driven function reduces time spent on what can be a complex calculation and produces a reconciliation report to verify the amount of the claim, clearly showing which method has been used and for which periods,” said Mr Groeneveld.
“The automated intelligent workflow minimises errors that could be made when assessing which ECPI method should be used, assuring your fund of compliancy.”
Bulk TBAR feature added to SuperMate
A bulk Transfer Balance Account Reporting (TBAR) feature has also been added to SuperMate.
“This TBAR reporting function provides some critical relief to SMSF professionals who are under the pump with additional compliance rules since the $1.6 million transfer balance caps were introduced,” said Groeneveld.
The software can now automatically generate data on common Transfer Balance Account events – such as pension commencements – and prepare it to be exported and lodged with the ATO through the Tax Agent Portal.
“It’s so easy to get it wrong and many professionals are painstakingly doing manual reporting looking at each TBA event, and it’s taking them ages, so we created a solution,” said Groeneveld.
“They can now generate a data file to be uploaded to the ATO portal for multiple member data records for a single fund, a list of selected funds, or across all funds being managed.”
“This provides a higher level of quality assurance that the data lodged is correct and helps you manage your SMSF clients’ TBAR obligations.”