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.
- Failing to pay the minimum pension before 30 June
- 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)
- Not rectifying any prior-year breaches of SISA (Superannuation Industry Supervision Act)
- 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.
By: Katarina Taurian
12 APRIL 2018