Misunderstanding Contribution Reporting

25 Oct 2023

Written by

David Busoli, Principal

Each year we have a few instances where an SMSF member is informed, by their personal accountant, that they can’t lodge their personal tax return until we inform the ATO of their personal deductible contributions or lodge their SMSF accounts. This is because they cannot see these contribution records on their ATO Online portal. There is a good reason for that.

Only APRA funds report personal deductible contributions to the ATO within 10 days of being provided with a valid S.290-170 notice. Not only are SMSFs not required to report, they are not supplied by the ATO with the means to do so. The ATO relies on the member’s personal tax return to determine if they have made a personal deductible contribution to their SMSF.

Even the lodgement of the SMSF accounts has no effect. If the SMSF has received a valid S.290-170 notice, contributions tax will be levied on the member’s personal contributions but, unless their personal tax accountant claims this deduction in their personal tax return, the ATO’s records will not register this. The result is that the member’s SMSF account will have been taxed without the member receiving the benefit of the personal deduction. Not the best scenario.

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