I am finding the ATO is disallowing personal concessional contributions by members to SMSF (and on some occasions APRA funds) because the fund has not reported the contribution. This would not normally happen until the SMSF lodged the annual return (possibly as late as May 2020). Has there been any discussion on this. Is there an expectation that funds will make interim declarations to the ATO where a member makes a concessional personal contribution.
I’ve never come across this!
We do always make sure that the member has done their claim form, and they have an acknowledgement from the fund, before the individual lodges their return.
I’m not aware of any interim reporting/declaration available for this, what is it called?
I find that lodging the client that is claiming the personal concessional contribution on their individual tax return at the same time or just before the SMSF annual return is lodged avoids a lot of these issues.
The ATO’s data matching system is not that great.
I believe this is the link for the ATO’s instructions to SMSF’s on their obligations with regard to Members requesting to make personal concessional contributions:
In my situation I need to send myself (as Trustee) a notice that I (as Member) intend to claim a deduction. and then when I (as trustee) receive that email (from me) I need to send myself back (As trustee) an email confirming receipt of such request. Lucky we stopped cutting down trees years ago. You have to laugh…
Thanks for your comments. The problem we were having is the ATO would just reject the claim because they had not heard from the fund. This was July and August; the SMSF funds were not prepared and
We had the contribution paperwork on file and would have provided copies on a phone call. But no, claim rejected and a lot of time wasted to get it amended. Pity they have not got to the stage of
allowing attachments to be uploaded into the return and the whole package lodged.
Now that clients can make their own personal concessional contributions, many are keen to lodge early due to an expected refund. Have fun writing to yourself. Makes this current Investment Strategy
debate look even more bazaar having to justify why you made an investment in something that you know is a good investment for you with your own money.
Yes I have had the same experience as well. The ATO is not waiting until the SMSF has lodged the annual return until making the assessment of allowing the claim as a personal concessional.