Class has introduced additional features to help accountants and SMSF administrators manage the government’s new superannuation reforms, in particular, tackling bulk commutation of pension accounts.
Bulk commutation allows Class users to quickly and easily commute pensions to the accumulation phase to assist SMSF members in complying with the new $1.6 million transfer balance cap on super pensions.
Past research from the group revealed that thousands of SMSFs will need to commute multiple pension accounts to comply with the new law.
Almost 14 per cent of SMSFs on Class have at least one member with a super balance of more than $1.6 million and a large number of SMSF members have multiple pension accounts, each of which counts towards the new cap and potentially needs to be commuted.
Class chief executive Kevin Bungard said bulk commutation will be a huge time saver for accountants.
“Class is automating tedious and time-consuming parts of complying with the super reforms and letting accountants focus on the services where they really add value,” he said.
Existing Class data filters allow users to easily create a list of SMSF members with a pension balance greater than $1.6 million.
The new bulk commutation feature allows users to choose how much they want to commute from each account-based pension or they can nominate a total amount, which can be automatically distributed across pensions based on the pension start date or the tax-free percentage.
Class will then automatically create the appropriate documentation for the bulk commutation event.
The group has also introduced a capital gains tax relief report capability for proportionate funds and new filters on the member console to show which funds are in pension or accumulation phase.
