Welcome to the February edition of our Class FAQs, where we look back and answer last months questions.

Annual Return Lodgments

As we enter the peak tax lodgment period, we've shared the following articles to assist with key annual processes and troubleshooting associated queries:

• Period Update – details how to run a period update, with additional links to articles that will help you resolve warning messages.
• Actuarial Certificates – includes background on ECPI changes; how to request an Actuarial Certificate and troubleshooting.
• Lodgments – learn why a lodged tax return may not be showing on the ATO Portal; how to resolve issues with multiple tax return submissions; missing member information in Section F.

ASAE3402 Type II Assurance Report on Tax Statement Automation

​​​​​​On 17 February 2023, we received ASAE3402 certification on our Tax Statement automation services, from the Auditing and Assurance Standards Board.

Class' Tax Statement automation service sources distribution tax components from fund managers, ASX announcement data, share/unit registry providers and annual tax statements issued to investors by registries. We verify the source data by reconciling at least two independent sources of information, and the verified tax statement information is then used to create tax templates which are made available to clients.

This report provides assurance to auditors that effective controls are in place to ensure components for distributions have been captured accurately in the financial reports, and also assures tax returns by utilising the Class tax statement automation service.

For Administrators

For Class clients, this means they can generate tax statements automatically for nearly 1,600 securities without the need to gather a range of tax statements to be sent to auditors and manually key in those complex data entries.

For SMSF Approved Auditors

Auditors can use this report to reduce their substantive testing around distribution tax components when the financial report under the audit has been prepared with Class, where the preparers have used the automated tax statement service. Significantly reducing the time required to audit.  The reports can be shared with external auditors on request. All requests need to be made in writing to support@class.com.au and must provide evidence the external auditor is auditing the Class Fund (i.e. be an invited Auditor to a Business or Fund/s).

Member Console

Tracking contribution and pension withdrawals is important as the end of the financial year draws closer. You can utilise the Business Level Member Console to see the current accumulation and pension details of all SMSF members in your Class Business. You can also create Pension Reviews minutes for trustees and members to sign. 

Income and Expense Settings

• Classification an Category Type 
• GST Category  
• Tax Deductible/Assessable 
• Tax Return Label 
• Pension Apportionment Method