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The anticipated non-arm’s length expenditure (NALE) rules, which will oversee the regular costs of...
Thinking of Claiming on Personal Contributions This Year? Don't Forget Your Obligations.
As the financial year draws to a close, the Australian Taxation Office (ATO) has issued two crucial prompts for Self-Managed Super Fund (SMSF) trustees, stressing the vital importance of their funds remaining compliant.
Firstly, the ATO has advised trustees to promptly acknowledge a legitimate Notice of Intent (NOI) when members are aiming to claim deductions on personal superannuation contributions.
The ATO instructs that upon receiving an authentic NOI for contribution deductions from a member, trustees are obligated to acknowledge this notice expeditiously, unless there are valid grounds to decline the NOI.
"Trustees are required to report the acknowledgement of a NOI within a span of 10 business days. If a member submits an additional NOI for a different sum, this should be recorded as a distinct NOI operation.
"The only circumstance under which you can refuse to provide an acknowledgement for a legitimate NOI is when the super account doesn't have sufficient funds to meet the tax obligation that would arise upon acknowledgement," it elaborated.
This counsel is particularly relevant in light of the ATO's recent actions to rectify an inconsistency between the Income Tax Assessment Act 1997 (ITAA) and the Superannuation Industry (Supervision) Regulations (SISR) concerning the work test requirement.
Furthermore, the ATO has urged trustees to swiftly communicate any modifications to their SMSFs to the regulator, whether these involve changes to contact information, alterations in the SMSF structure, or adjustments to banking details.
"Regardless of the magnitude of the changes - minor or significant - it's crucial to inform us about modifications to your SMSF within a period of 28 days. If there are changes to your contact details that we are not notified of, you could potentially miss crucial communications from us," cautioned the ATO.
The ATO also assured trustees that following any alterations to details such as banking information, electronic service addresses, authorized contacts, and eligible members, they will receive an update via text or email.