03 Apr 13 SMSF annual return 2012 and impacts on PAYG instalments
The ATO advises that over the years, it has identified that many self-managed super funds (SMSFs) are inaccurately claiming some deductions when they:
pay an income stream
are entitled to claim exempt current pension income.
To assist trustees in completing their annual reporting obligations and to ensure that they calculate the correct tax liability, the ATO has made a significant change to how exempt current pension income (ECPI) is reported in the SMSF annual return 2012.
Label Y Exempt current pension income has now been inserted in Section B: Income of the SMSF annual return and now replaces label K, which was previously recorded in Section C: Deductions.
The new SMSF annual return layout will enable SMSF trustees to accurately claim deductions. The changes are also consistent with how the relevant legislation treats the income as exempt.
The ATO says it will continue to closely monitor entitlements to claim an amount of income as ECPI and intends to review a number of SMSFs as part of its ongoing compliance activity.