What's changed for SMSF's in the 2019 Financial year

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The following summarises changes to the SMSF Annual Return for 2019 compared to 2018. 

Fund Details - SMSF auditor

 

  • A new label B has been added: "Was Part A of the audit report qualified?". This label is to report the Part A qualification outcome determined by the fund's SMSF Approved Auditor.

 

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Fund Details - Bank Account and ESA changes for SuperStreame

Several changes will be made between over the next few years to include SMSFs into SuperStream for rollovers. From the 2018-2019 year onwards:

  • The title has been updated to “Fund’s financial institution account details”
  • The instructive text has been updated to: This account is used for super contributions and rollovers. Do not provide a tax agent account here.
  • Lable 7a will be mandatory to complete

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  • A  new checkbox is to be displayed within Section A label 7a named "I would like my tax refunds made to this account. Go to C". If the checkbox is selected, then Section A Fund Information label 7b does not need to be completed
  • The Account name now allows up to 200 characters (including spaces).

Changes to Section A label 7b - Financial Institution account details for tax refunds

  • a)     The title for label 7b has been updated to: “Financial Institution account details for tax refunds”
  • Label 7b instructive text has been updated to: "This account is used for tax refunds – you can provide a tax agent account here."
  • The Account name now allows up to 200 characters (including spaces).
  • The details entered at label 7b must be different from those entered at label 7a

 

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Members - Downsizer Contributions

In the 2017-18 Budget, the Government announced the contributing the proceeds of downsizing to superannuation measure to reduce pressure on housing affordability. This law has been passed which allows individuals to use the proceeds in relation to one sale of their main residence to make contributions (downsizer contributions) of up to $300,000 to their superannuation provider if they are 65 years of age or over and meet all the eligibility requirements. Downsizer contributions can be made regardless of the other contributions caps and restrictions that might apply when making voluntary contributions.

See Downsizer Contributions for to enter these contribution types into Simple Fund 360. 

For the 2018-19 financial year onwards the Members Section will display the Downsizer amount to be reported along with the date in which the event took place.

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An SMSF Annual Return will fail the ATO's validation if the contribution amount reported is greater than $300,000, there is a receipt date but no contribution amount or there is a contribution amount but no receipt date.

Members  - LRBAs

In the 2017 Budget, the Government announced a superannuation integrity measure whereby an amount for outstanding Limited Recourse Borrowing Arrangement (LRBA) balances would form part of an individual’s Total Superannuation balance (TSB). This was designed to reduce the attractiveness of members manipulating their TSB by drawing down their interest and returning those amounts of money to their SMSF through an LRBA. This is to apply to new LRBAs from 1 July 2018 with members who have met a “nil cashing” condition of release, or all members if the LRBA is provided by an associate of the SMSF (commonly referred to as a related party loan).

From 2018-19 financial year onwards:

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  • A new label “Y” has been added to the SMSF annual return in the Members information Sections F and G after Closing account balance, named “Outstanding limited recourse borrowing arrangement”
  • An error will be triggered when the total of amounts reported at the new LRBA label ‘Y’ for all members is greater than the amount reported at Section H Liabilities  label V1 “Borrowings for limited recourse borrowing arrangements”

 

Assets and Liabilities  - Cryptocurrencies 

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In the Assets section and a new label has been added to report the value of an SMSF's cryptocurrency amount.

Refer to How to deal with cryptocurrencies such as Bitcoin? for how to enter transactions and set up the Chart of Accounts in Simple Fund 360. If you have added a Custom Account for this in the Chart of Accounts ensure you have selected the correct Tax label. 

The ATO is collecting bulk records from Australian cryptocurrency providers as part of a data matching program to ensure people trading in cryptocurrency are paying the right amount of tax

 

ATO References

 

 

 

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