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Race to EOFY as 35% of SMSFs still lodging
Recent ATO statistics indicate that around two-thirds of all SMSF annual returns for the 2016–17 financial year have now been lodged, with just days left to the end of the financial year.
In a podcast released on 21 June, ATO Superannuation Deputy Commissioner James O'Halloran said the deferral of SMSF lodgments has helped to relieve some of the pressure on SMSF professionals at a time when they are likely to be needing some assistance.
“Pleasingly to date we have about 65 per cent of lodgments that have come in and that's good — perhaps good or bad we'll see where we land by the end of the year,” said Mr O’Halloran.
Analysis conducted by Class earlier in June based on Class users indicated that as of 31 May 2018, total SMSF lodgments were trailing the lodgment rate last year by 10 per cent.
Mr O’Halloran also said that around 30,000 funds have now claimed CGT relief.
“The decision to apply for CGT relief is important. Trustees who want to apply for CGT relief need to advise us by completing the election within the CGT schedule together with the relevant CGT questions in the in the SMSF annual return,” he said.
“It is in fact an irrevocable decision. It's an important one. It's a transitional one. So when completing that election, it is particularly important to do it on time because the CGT relief is not automatic.”
He also highlighted the importance of keeping up with the new reporting requirements with the transfer balance cap and total superannuation balance.
“When reporting existing pensions, and by that I mean ones being paid prior to 1 July 2017, it's important to report the date as at 30 June 2017 as this allows us to do some pretty important things,” he said.
“It identifies cap defined benefit pensions including market-linked pensions and if the individual qualified for the transitional period arrangements, back before December 2017 to bring their transfer balance cap back to $1.6 million.”
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
Wow, such indifference from the regulator - "Pleasingly to date we have about 65 per cent of lodgments that have come in and that's good — perhaps good or bad we'll see where we land by the end of the year."
Its bad - pure & simple. Hundreds of thousands funds unlodged. More importantly what is the regulator going to do post 30th June. There will be funds that have not reported for TBC or claimed CGT relief.
Will late lodgment penalties be enforced?
Will a lodgment extension be granted?
Will trustees or tax agents be penalised?
Surely the ATO has a plan, after all they should have been monitoring lodgments over the year.
How in these days of specialised superannuation software, data-feeds, artificial intelligence & an abundance of offshore resources can a result like this occur?
Lucky the Financial Services Royal Commission is not looking into SMSF administration industry (cottage industry).0- This is an appalling result for SMSF trustees. Once again let down by administrators whose service standards are getting worse each year. The industry had plenty of time to implement the reforms.
So what about the one third not lodged, what will be the impacts on future year lodgements - underpaid pensions, excess non-concessional contribution, TBC reporting etc
Its time for the regulator to step up. Almost 200,000 funds not lodged representing approx 400,000 members & 220bn in FUA0
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