ATO's final position on SMSF pension reporting requirements

Wealth Management Insights

With the introduction of the new $1.6m Transfer Balance Cap or limit on pensions, from 1 July 2017, the ATO and self-managed superannuation fund (SMSF) industry have been in discussions about the reporting requirements to the ATO.

The ATO announced this morning that SMSFs with a member who has a total superannuation balance of greater than $1m will be required to report any transactions within 28 days of the end of the quarter from 1 July 2018.

The common transactions that will be required to be reported are:

  • Pension Commencements;
  • Pension Cessations; and
  • Partial commutation of pensions and payment as lump sums.reporting requirements

In assessing the requirements for an SMSF to be reporting on a quarterly basis, all superannuation balances, including those outside of superannuation and lifetime pensions will need to be counted to the $1m superannuation balance. 

All SMSF members with less than $1m will be required to report annually by the due date of their annual return.

This announcement provides clarity in relation to the ATO reporting requirements.

Should you wish to discuss how your SMSF can best comply with the new reporting requirements and be in a position to have the financial information for the fund updated regularly please contact your nearest RSM SMSF specialist.

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This article has been prepared by RSM Financial Services Australia Pty Ltd ABN 22 009 176 354, AFS Licence No. 238282.

As everyone's circumstances are different and this article doesn't take into account your personal situation, it is important that you consider the above in light of your financial situation, needs and objectives, and seek financial advice before implementing a strategy.

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