Taxpayers need new tools to comply with the changed superannuation rules, says Tax & Super Australia in its 2018/19 pre-Budget submission.
The organisation used its pre-Budget submission, in part, to call on the Government to provide new online tools to help taxpayers comply with the new rules that took effect on 1 July 2017.
“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. 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 says these tools should provide the following information, with figures to be as up-to-date as feasible:
- Transfer Balance Cap
- Transfer Balance Account
- Total Superannuation Balance
- Unused concessional contributions cap for the year
“In our view, the simplest and most effective method of providing the digital superannuation tools to taxpayers is to make them available on myGov,” says the submission.
“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. The compliance burden is compounded by the fact that many individuals have more than one superannuation account, and will be required to obtain the necessary information from multiple super funds.”
“For individuals that use an adviser, it can become very costly in fees paid to the adviser to reconcile and check balances and thresholds. ”
“If the new rules result in disproportionate costs and effort to comply, this could become a disincentive for taxpayers to contribute more into their superannuation accounts than the statutory minimum and invest more money from which they can self-fund their retirement.”