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Common EOFY slip-ups flagged for SMSFs
In a bid to avoid common basic errors in the lead up to June 30, BDO has released a checklist for SMSF professionals to be wary of.
The SMSF sector regularly averages a compliance standard of above 90 per cent with the ATO, but niggling and basic issues are often the downfall of even the most well-meaning trustees.
Partner at BDO, Paul Rafton, finds recurring themes each year in the lead up to June 30, which are often easily avoided.
These include:
1. Failing to pay the minimum pension before 30 June
2. Not ensuring that contributions have been received into the SMSF’s bank account by close of business on 30 June (i.e. failing to allow bank/clearinghouse processing time)
3. Not rectifying any prior-year breaches of SISA (Superannuation Industry Supervision Act)
4. Making contributions in excess of their caps, because they either failed to properly track earlier contributions or did not take into account the reduced contribution caps that apply from 1 July 2017
Moving into the new financial year, the SMSF sector can expect the recurring priority item of non-lodgement to be at the top of the ATO’s agenda.
Late last year, the ATO flagged that about 40,000 SMSFs could be on the chopping block, due to persistent non-lodgement issues.
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