Proposed superannuation guarantee amnesty

There is a proposal to provide employers with a 12-month amnesty to self-correct past superannuation guarantee non-compliance without penalty.

If the Treasury Laws Amendment (2018 Superannuation Measures) No.1 Bill 2018 (Amnesty Bill) is passed by Parliament, the amnesty will be available from 24 May 2018 to 23 May 2019.

Given the time period it covers, the ATO will apply the new law retrospectively to voluntary disclosures made within the time period.

Until the new law is passed, the current rules apply, which includes a ‘$20 per employee per period’ mandatory administration component to SG charge statements lodged by employers.

If you are concerned that you may have super guarantee corrections to make, please speak with your tax adviser.

Event-based reporting for SMSFs

On 1 July 2018, the event-based reporting framework for self-managed superannuation funds (SMSF) began to apply.

The new framework helps the ATO to administer the transfer balance cap. Once the first member in the fund starts to receive a retirement phase income stream, the SMSF will have to report to the ATO.

The report about the transfer balance cap (‘transfer balance account report’ (TBAR)) is a separate reporting obligation to the Annual Return for the SMSF. The TBAR enables the ATO to record and track an individual’s balance for both their transfer balance cap and their total superannuation balance. However, it is important that SMSF trustees and members monitor their own account balances.

To do!
If you have your own SMSF, you should speak with your tax adviser about monitoring members’ account balances and the fund’s reporting obligations.
A TBAR was due to the ATO on 29 January 2019 if a fund member had a total superannuation balance of more than $1 million or a member had a transfer balance account event occur between 1 October 2018 and 31 December 2018.

Are the details of your SMSF up to date on the Australian Business Register?

If you make changes to the details of your SMSF, the Australian Business Register (ABR) needs to be updated within 28 days of those details changing. Changes to the following details must be updated on the ABR:

  • trustees
  • directors of the corporate trustee
  • members
  • contact details
  • address
  • fund status.

Your tax agent can check the ABR for you and confirm with you whether the details of your SMSF are up to date or make any changes for you.

The Small Business Superannuation Clearing House: updated communication

The ATO has updated the way it notifies users of the Small Business Superannuation Clearing House (SBSCH) of changes to the SBSCH. The terms and conditions of the SBSCH have also be updated to provide small business users with a better understanding of:

  • when a payment is ‘accepted’ by the SBSCH for an employer’s superannuation guarantee contributions;
  • what happens when a fund doesn’t accept a payment (due to missing or incorrect payment instruction details); and
  • when the superannuation guarantee charge applies.

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Thompsons Australia Newsletters and articles are distributed by professional tax practitioners to provide information of general interest to our clients. The content of this newsletter does not constitute specific advice. Readers are encouraged to consult their tax adviser for advice on specific matters.