SMSF software firm BGL has called on the Treasury to drop its proposed 45-day preparation requirement for SMSF accounts, with the SMSF industry having “already suffered through a year of extreme stress”.
BGL managing director Ron Lesh said the proposal to require SMSFs to prepare their financial statements 45 days before their lodgement date makes no sense and could lead to increased instances of backdating.
“I am trying to understand why this is necessary or where this has come from. It will not improve SMSF reporting, it will not improve SMSF audits, it will not improve SMSF annual return lodgements — so why has it been proposed?” Mr Lesh said.
“In fact, in my view, it could do the opposite. It could put SMSF trustees in a position where they need to backdate accounts — for no reason or benefit.”
Mr Lesh said the SMSF industry has made it clear that the change is unnecessary and that it will simply be an additional burden on SMSF trustees, administrators and auditors.
“I thought post-COVID-19 we were trying to cut unnecessary red tape rather than add more regulations to an already incredibly overregulated industry,” Mr Lesh continued.
“I hope Treasury is listening. A clear statement from Treasury or the government that this change will be dropped is needed now before it causes more angst in the SMSF industry that has already suffered through a year of extreme stress.”
BGL is one of the latest firms to slam the measure, with the accounting bodies and associations such as The Tax Institute and the SMSF Association all expressing concern about the proposed reporting requirement.
“The proposed amendment will achieve nothing beyond forcing the preparation of SMSF accounts into a tighter time frame which will place additional pressure on accountants and those assisting SMSFs in the preparation of their accounts,” The Tax Institute said in its submission.
“Around 99 per cent of SMSFs use a tax agent to lodge their annual return, and tax agents cannot afford to lose 45 days out of their schedule to prepare SMSF accounts earlier in order to meet the proposed requirement.”
BGL is dismayed at Treasury’s proposed 45 day SMSF accounts rule.
“It’s just dumb” said BGL’s Managing Director, Ron Lesh. “Why do SMSFs need to prepare their financial statements 45 days before their lodgement date? It just makes no sense”
In a draft amendment to the The Treasury Laws Amendment (Miscellaneous and Technical Amendments) Regulations 2020 it is proposed to insert a new regulation 8.02AA into the Superannuation Industry (Supervision) Regulations 1994 to require accounts and statements for SMSFs to be prepared at least 45 days before the annual return is required to be lodged.
“I am trying to understand why this is necessary or where this has come from” asked Lesh. “It will not improve SMSF reporting, it will not improve SMSF audits, it will not improve SMSF annual return lodgements – so why has it been proposed?”
“In fact, in my view it could do the opposite. It could put SMSF trustees in a position where they need to backdate accounts – for no reason or benefit” noted Lesh.
“The SMSF industry has clearly said this change is unnecessary and that it would simply be an additional burden on SMSF trustees, administrators and auditors” says Lesh. “I thought post COVID-19 we were trying to cut unnecessary red tape rather than add more regulations to an already incredibly over-regulated industry.”
“I hope Treasury is listening” stated Lesh. “I do not know who came up with this dumb idea, but one would suspect it was someone who has no experience in the real world. A clear statement from Treasury or the Government this change will be dropped is needed now before it causes more angst in the SMSF industry that has already suffered through a year of extreme stress.”
The CAS 360 team have lost all of their pocket money betting on races during the sprint carnival, so we have divided to release another huge update!
Compliance tab in Contacts
We have added a new compliance tab into the CAS 360 contacts screen. This feature will allow you to store identity information for each contact. Currently we support drivers’ licence, passport and citizenship information for each contact.
Company Screen Columns
Since the initial release of CAS 360 over 3 and a half years ago, our clients have requested that we add (or remove) fields to the company screen. This is the home screen of CAS 360 and where so much of your daily work kicks off.
Now, you have control over your own company screen columns. You can select and deselect the columns you need to complete your work. The selections are saved only for you and will not change for anyone else in your firm. You can now choose to add new fields such as:
- Billing Contact
- Company Status (yes, that’s company status)
- Client Number
- Client Reference Number
- Billing Date
- Current Client
Trust Import Spreadsheet
Over the last 6 months we have invested in building a fantastic trust feature set, there are now close to 100,000 trusts managed in CAS 360.
We have now made it even easier for you to start managing your trusts through CAS 360, with our new Trust Import Spreadsheet. This can be downloaded from within the Trust screen, and once you have added the data, send it to BGL via a Support ticket and we will import the data.
Best of all, we do not charge for trusts. So, unlike a bet on the Melbourne Cup, you can’t lose.
Company Name change invoice
When preparing a Company Name change in CAS 360, a company name change invoice will be prepared for the client with all the correct ASIC information entered.
We have also made improvements to all CAS 360 generated invoices, by consolidating 3 invoice templates (deregistration, late fee and name change) into just 1 template.
We are very excited to release phase 1 of our CDD & AML Compliance features in CAS 360. Now each company in CAS 360 will have a compliance tab, these screens will go through the important steps of adding information such as nature of business relationships and setting up compliance officers.
As CAS 360 has all the company and trust information, we are easily able to identify the contacts involved in the company, and provide you with identity, SOF and PEP fields to add all the required information.
Coming Soon: Phase 2 of our identity features will include the ability to email your clients and ask them to provider their identity data, and we are also working on a new integration to verify client identity documents with identity providers.
Multi Company Changes
Phase 2 of our Multi Company Changes for New Zealand has been released and we are excited to now support Contact Address Changes for Directors and Shareholders, and also Communication Address Changes for companies.
As with the last release, these changes can be made once and all the required documents for each entity is automatically prepared. This feature is cross-jurisdiction and will prepare the correct supporting documents based on the company jurisdiction. Once prepared these documents can be easily lodged with the regulator.