SuperConcepts' SMSF technical experts said emerging concerns about clients needing to cancel existing Transfer Balance Account reporting due to Total Super Balance (TSB) double counting maybe premature after discussions with the ATO.

“We’ve seen a lot of concern from our own customers and some confused analysis in the market about this issue but we do not believe that reports will need to be redone,” said Anthony Cullen, SuperConcepts' SMSF Technical Specialist who wrote a detailed blog on the issue.

“It’s true the legislation is very difficult to understand in its current wording and we’ve been in constant communication with the ATO who are doing everything possible to provide clarity around this topic.

“We currently have clients that are trying to ascertain how they received an excess non concessional contribution notice for the 2018 financial year, on the back of a purported TSB above $1.6 million.  

“Their TSB should not be above this level and appears to have been derived from the double counting of balances that existed on 30 June 2017 and subsequently used to commence a pension on 1 July 2017, which we’ve outlined in detail in our blog analysis.

“We’ve spoken to the ATO and they acknowledge they’re investigating with a view to providing more detailed clarity in the near future. 

“We have had one client successfully resolve the matter over the phone, although we are yet to receive written confirmation of this.

“For another client, they have progressed down the path of objecting to the excess NCC notice, as this appears the only avenue available to them. Initial feedback from the ATO was to amend the Transfer Balance Account Reporting events. However, the information lodged was in accordance with reporting requirements for TBA purposes.

“These two cases not only highlight an inconsistent approach to dealing with the matter, but a broader misunderstanding of the nature of the problem itself.

“Whilst this issue may be an unintended consequence stemming from the transitional interaction between a member’s TBA and TSB on 1 July 2017, a resolution is needed urgently because it has the potential to impact any clients who are looking to understand their non-concessional contribution bring-forward limits prior to making contributions in the current financial year.
   
For a detailed look at this technical issue, read Anthony Cullen’s analysis.

Media contact: 
Garth Montgomery
0408 864 851
garth.montgomery@superconcepts.com.au