If you have a Self-Managed Super Fund (SMSF), you will have heard from us regarding monthly online processing. Why? due to the change in reporting requirements that have come about via the introduction of Single Touch Payroll (STP) and Transfer Balance Account Reporting (TBAR). Our expert SMSF administration service allows us to do weekly processing of transactions, which allows us to comply with the increase in reporting requirements handed down by the ATO.
As you may already be aware, STP is now compulsory for all businesses employing 20 or more people and will be compulsory for all other employers from 1 July 2019. It’s part of the Australian Government’s improvement of data matching and information reconciliation processes.
So, if you have an SMSF how does this affect you? Well, STP will provide employees with more visibility regarding their employer superannuation contributions and replace paper PAYG Payment Summaries via the My Gov Portal. So, for those who are self-employed and those maximizing their annual super contributions, STP will require closer monitoring of wages and superannuation contribution – mainly because STP places more restrictions and time limits when adjusting employee pays.
While STP may not affect you if you are already in retirement phase, TBAR does affect you. TBAR is required to report certain events relating to pensions that occur throughout the financial year. These events are not reported as part of the SMSF annual tax return. TBAR enables the ATO to track superannuation balance’s that are in pension phase. The ATO is interested in how individuals are tracking against the $1.6m transfer balance cap. Regardless of how far under the $1.6m transfer balance cap you sit, the ATO are still very much interested in individual’s pension phase or tax-free balances.
How will we help you?
Our expert team will ensure that you comply with the new requirements from the ATO.
Another benefit we offer all SMSF clients is an online login where you can view the balance of your SMSF at any time, at any desired date. Keeping processing up to date allows us to provide you with timely reports to assist you in managing your valuable superannuation.
What does this mean for you in terms of the cost? You will receive a greater level of administration service for the same cost as before, which includes the annual audit fee.
Want to discuss your SMSF needs? Get in touch with us today.