The Australian Tax office has has substantially softened a highly controversial ‘events-based’ reporting proposal after consultation with industry bodies. The below is a edited summary of the ATO release.
From 1 July 2018:
- SMSFs with members with a total super balance of less than $1 million will report events that impact their members’ transfer balances at the same time that the SMSF lodges its annual return.
- SMSFs that have members with super balances of $1 million or more will be required to report events impacting members’ transfer balances within 28 days after the end of the quarter in which the event occurs.
- All SMSFs must report details of “pre-existing” income streams to the ATO by 1 July 2018. A pre-existing income stream is an income stream the member was receiving on 30 June 2017, which continued to be paid to the member on or after 1 July 2017.
More information will be forthcoming to help you understand how these new event-based reporting requirements affect you and your clients.