Welcome to the October edition of FAQs! As we approach October month-end, it's a final lodgment period for registered tax agents to fulfill their tax and superannuation lodgment obligations. Let’s dive into what you need to know this month!
Reviewing ECPI calculation
- Fund Policy Setup: Only one new fund policy need to be established for each financial year. This policy should align with the current financial year processing and include correct GST settings, deferred tax accounting policies, deferred member tax, asset segregation strategies, readiness to apply new actuarial percentages, and the election of the ECPI calculation method. Do not create two fund policies for changes in segregation periods within the same financial year.
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Exception Errors: When your fund has two segregation periods within a financial year, you may encounter following exception errors warning messages. To resolve these errors, please follow the guidelines in this article and perform a period update for the date when the segregation period changed.
- "Period update required on MMM DD, YYYY due to ECPI Method change on MMM, DD, YYYY, from Deemed Unsegregrated to Deemed Segregated"
- "The total interim Distributions for xxx do not equal the Final Distribution for ECPI method Deemed Segregated."
- Period Updates: When you apply for an actuarial certificate, the fund policies will automatically update with the latest actuarial percentages. You will need to reprocess the last (only one) period update to apply the correct ECPI calculation.
- ECPI Calculations Review: To review the ECPI calculation for the fund, run the "Statement of Taxable Income" report. This report provides a breakdown of the ECPI for each taxable income component.
- Written-off ECPI:You may notice written-off ECPI when there is a tax loss position in the fund. In this situation, the expense deduction is not claimable, resulting in a written-off ECPI adjustment.
Tax Lodgment
October lodgement due date is approaching, have you been lodging SMSF and Trust returns via Class? Here are a few advantages to do so.
- Time Savings: Class allows the ability to lodge multiple SMSF tax returns in bulk via a single screen.
- Centralised: Effortlessly track and manage all your SMSF lodgements through our tax lodgement console across your entire business.
- Less Errors: Reduces the chance of any human errors encountered when exporting the tax return manually to other software systems.
- Automated Feature: FY24 New Trust Income Schedule is automatically populated in your form and a new Trust Income Schedule Reconciliation Report is available to help reconcile your the tax statement components and distribution events to your Trust Income Schedule.
- Check out our help center's Trust lodgment section for your next Trust lodgement.
Managing TBAR
Since 1 July 2023, a quarterly reporting requirement applied for all SMSFs. SMSFs are obligated to report their Transfer Balance Account Report (TBAR) events within 28 days after the end of the quarter when the event occurred.
Here are some Help Articles that can assist you with the TBAR reporting process in Class.
- TBAR FAQ: A collections of frequently asked question about TBAR to address common inquiries and provide guidance for your reference..
- TBAR Amendment: Guidance on the processing for amending previously lodged TBAR events that is generated in Class.
- TBAR Lodgment Console: Generate TBAR files for reportable events and download the csv file to lodge through Tax Agent Portal.
- Manual TBAR Event: This tool allow you to record TBAR events that were lodged or created outside of Class or make adjustments to a member’s Transfer Balance account to align with ATO TBAR records.
- TBAR Console: At the fund level, the TBAR console provide monitoring and tracking of Transfer Balance Account of each members. If you are seeking the insight int the TBAR Cap Indexation effective 1 July 2023- Please refer to the article here
- TBAR Declaration: Class provide report of TBAR Declaration with the purpose for trustee to give permission to a registered tax agent to lodge TBAR records on behalf of the fund to the ATO through the tax agent portal electronically.
Webinars and Training
Training:
Class offers a complimentary online course, Class Essentials, covering modules and topics presented in our live training courses. These modules can be attempted in any order, and upon completion, you will receive a certification of achievement.
Webinars:
Date |
Title | Link |
1 Aug 2024 | Compliance Update for Accountants | Recorded Webinar |
13 Aug 2024 |
Death benefit and Family Law Processing |
Recorded Webinar |
27 Aug 2024 | Tax Statement Processing | Recorded Webinar |
29 Oct 2024 | Pension Processing | Registration Link |
31 Oct 2024 | Class Quarterly Product Updates | Registration Link |
26 Nov 2024 | Corporate Action Processing | TBA |
Please keep a lookout for our in-app shoutout pop-up notifications detailing how to register for our future webinars.
To view the FAQs newsletters from past months please click here.
As always, you can contact the Class Customer Service team on 1300 851 057, Chat with us via Live Chat, or email us at support@class.com.au