Is your SMSF a Trust Beneficiary?
If your SMSF is a trust beneficiary from 1 July 2024 there will be changes to your reporting.
Income tax reporting changes delivered under the Modernisation of Trust Administration System (MTAS) project will come into effect on 1 July 2024 for your 2023–24 Self-Managed Superannuation Fund Annual Return (SAR).
If your SMSF has received a distribution from a trust you need to complete a new trust income schedule which is lodged with your SAR. ATO has replicated the fields from the trust statement of distribution, so all you need to do is copy the information across.
If you receive a distribution of trust income from a managed fund, this should also be included in the new trust income schedule. The trust income schedule instructions will show you how the information on the tax statement provided by the managed fund is reported on the trust income schedule.
Remember you will need to get the information required in the trust income schedule from the trust. ATO recommend you ask the trustee for a copy of the trust statement of distribution if you don’t receive one by the time you come to lodge your SAR.
Notify ATO if you make any changes to your SMSF
Be sure to let ATO know if you make any changes to your SMSF.
As a trustee, part of your obligations in maintaining a Self-Managed Super Fund (SMSF) are that you must notify ATO if you make any changes to your SMSF. These changes could include:
- Contact details (contact person, phone or email address)
- Change of structure within your SMSF
- Fund status
- Bank Account details.
Regardless of how big or small the changes are, it’s important to notify ATO of any changes to your SMSF within 28 days.
If you change your contact details, but don’t notify ATO, then you run the risk of missing out on any important correspondence from ATO.
When you notify ATO of any changes, to protect you against the possibility of fraud or misconduct, ATO will send you an alert via SMS or email (or both). ATO SMS alerts will no longer contain hyperlinks, these have been removed as part of an ATO wide project involving the removing of hyperlinks from all SMS.
Switch to Paperless Activity Statements by going digital
Are you still receiving or lodging your activity statements on paper?
Did you know lodging your Business Activity Statement (BAS) electronically is quick, easy and secure and means you:
- Can lodge at a time that’s convenient to you
- May receive an additional 2 weeks to lodge and pay your BAS – see our two-week lodgment concession
- May receive a faster refund
- Can get help to avoid mistakes
- Can review your BAS before lodging and check the amount calculated equals what you expect to pay or receive
- Can lodge online and your next BAS will be sent electronically.
Start receiving your activity statements electronically
To receive your activity statements electronically visit communication preferences on the ATO website. There you will be able to choose what email address you want your digital communications to go to and update your details.
New guidance for engaging with Artificial Intelligence
‘The new guidance, co-sealed with the international intelligence community, includes important advice to help medium businesses to large organisations interact with AI securely.
When used securely, AI has the potential to benefit businesses by improving efficiency and effectiveness in all industries. It’s important to understand the challenges your organisation may face when engaging with an AI system and how to manage them.
The new guidance from ASD’s ACSC outlines steps businesses can take to securely use AI in their operations.
- Apply advice about engaging with AI alongside the Essential Eight framework to help secure your AI system.
- Know the constraints of your AI system and train your staff to use it securely.
- Understand how the AI system will affect your organisation’s privacy and data protection obligations.
- Consider if any AI services used in your organisation or supply chain are secure-by-design.
- Have suitably qualified staff to ensure the digital system is set up and maintained securely.
ASIC: get ready for Climate Change Reporting now
ASIC Chair Joe Longo has outlined ASIC’s initial enforcement approach in administering the proposed mandatory climate reporting regime. In a recent speech, he has urged large companies to start considering and putting into place the systems, processes and governance practices that required to meet new climate reporting requirements, proposed to commence from 1 January 2025, stating:
“It’s simply not an option to put this off until after legislation has passed, and then scramble to comply. You have to figure out how you’re going to marshal data, support and capabilities and start keeping the necessary records now – today.”
ASIC Scam Alert – Fake Bond and Term deposits
ASIC is alerting consumers to new ways scammers are offering fake bond and term deposit scams. Scammers are impersonating legitimate financial services businesses that do not have a website, social media account or other digital channels. The scammers are using the real business addresses, ABNs and AFSLs of the business and creating fake reviews. This limits consumers’ ability to conduct internet searches or other research on the company as there is no “real” website or internet presence.
ASIC review of member services for Death Benefit Claims
ASIC have commenced a multi-year project continuing over 2024 and beyond, which will look at superannuation industry practices and compliance with laws in relation to trustee administration and contact centres.
ASIC’s initial focus is a two-phase review of how trustees handle Death Benefits Claims. The regulator has released an article that outlines some observations from the first phase of their review, as well as actions trustees should take to improve their approach and the experience of their members.
Improving Superannuation Member Services — Dealing with Death benefit claims
ASIC have said that ‘our initial focus is a two-phase review of how trustees handle death benefits claims.’
The report contains the following headings and can be accessed here:
- Complaints are on the rise
- Death benefit claims can be complex
- Helping members plan ahead
- Effective communication is critical
- ASIC calls on trustees to act now
ASIC consultation: Guidance for Carbon Markets
ASIC has released a consultation paper on proposed updates to Regulatory Guide 236 Do I need an AFS licence to participate in carbon markets? (RG 236).
The proposed updates address the implications of the safeguard mechanism reforms to the financial services and markets section of the Corporations Act 2001, as well as changes in the regulatory landscape for carbon markets, particularly Australian Carbon Credit Units (ACCUs), that have occurred since RG 236 was last re-issued in May 2015.
ASIC review of Super Trustee Advice Charging Practices
ASIC has released a report entitled Rep 781 Review of Super Trustee Practices: Protecting members from harmful advice charges. This report reviews how Super Trustees are acting to protect members’ Superannuation balances from erosion by inappropriate advice charges.
Continued deficiencies have been observed in oversight of advice fee deductions by some trustees. ASIC has stated it has an ongoing interest in whether trustees are complying with the law in this area and will take regulatory action as appropriate where they identify non-compliance.
Source: Australian Taxation Office
