BGL has released updated advice to clients on the new 1 July 2017 SMSF reporting requirements. These changes are a result of the introduced 2016 budget superannuation changes.
“The requirements are horrendous for anyone with a pension interest. The ATO is talking about fortnightly reporting” says Ron Lesh BGL Managing Director.
In general terms, there are two areas that clients need to be aware of over the next few months – the CGT changes and the pension changes. The CGT changes will mean a lot of work for practitioners who will need to make decisions about where assets stand in a SMSF plus the pension changes in terms of reporting and the ATO’s new Transfer Balance Account Report (TBAR) making automation a must.
“I simply don’t know how clients will be able to collect the data to report to the ATO if their SMSF software is not automated” said Lesh. “It is simply not possible to report pension events every fortnight unless your SMSF software automatically collects and processes the data – simply put: automation = compliance.”
BGL’s Simple Fund 360, our market leading, award winning cloud SMSF administration solution, provides industry leading automation with well in excess of 80% of transactions auto-matched each day and certainly no buttons to push to match simple things like investment income. “Simple Fund 360 provides next generation data matching using BGL’s SmartPost 2 technology. This technology will certainly make compliance easier” according to Lesh.
BGL is making the necessary software changes to help clients comply in both Simple Fund 360 and Simple Fund Desktop. Clients will find it is more difficult to comply with the new rules using Simple Fund Desktop, even though the software will include all the necessary CGT changes and will prepare the appropriate pension forms.
Simple Fund 360 also provides Contribution and Pension Dashboards which instantly provide a simple graphical view of a fund member’s position. The Contribution Dashboard displays real time concessional and non-concessional contributions compared to statutory limits while the Pension Dashboard provides details of pension account balances, minimum and maximum amounts and amounts drawn for the period. Simple Fund 360 clients can also produce a forecast of future pension payments.
“Because Simple Fund 360 automatically allocates contributions received and pension payments to member’s accounts each day, all information displayed in the software is in real time” added Lesh. “This is a unique feature of Simple Fund 360 and is only possible as a result of the integration and connectivity BGL has with our data partners. Simple Fund 360 now has over 185 data feeds leading the industry with connectivity.”
Simple Fund 360 is now the preferred SMSF administration solution for almost 2,300 SMSF administrators representing over 110,000 SMSFs.