The ATO has highlighted a system issue affecting amendments to notional taxed contributions (NTC) and defined benefit contributions (DBC) for certain members.
The regulator said the issue was impacting the calculation of excess concessional contributions and additional contributions tax for Division 293 for some defined benefit members.
“Our systems are ignoring amendments of NTC or DBC or both where the annual account balance is reported as zero,” it noted in an update on its website.
“This may result in incorrect excess concessional contributions determinations or Division 293 or both assessments issuing to affected members. The issue is limited to where the overwrite function is used to amend this particular reporting.”
A permanent system solution was being investigated and trustees would be notified once a system fix had been scheduled, it added.
“In the interim solution, we request you stop using the overwrite process when amending NTC and DBC values for an annual member account transaction service with a zero balance. Instead, cancel the original before reporting the updated NTC or DBC values,” it said.
It also announced improvements to its ATO Online service for tracking and managing superannuation, including the decision to display more contribution types, such as employer contributions to defined benefit funds and non-employer contributions, on ATO Online screens.
“Additionally, the employer contributions screen now displays contributions from past financial years (2018/19 onwards), allowing you to track your contributions over a longer period,” it said.
It pointed out a further update, which would allow for the display of limited recourse borrowing arrangement (LRBA) amounts on the total super balance (TSB) screen, ensuring these amounts would no longer need to be manually calculated.
“Until the recent update, the TSB amount displayed on ATO Online may not have been correct if you were required to include an outstanding amount of an LRBA in your SMSF annual return. TSB amounts on ATO Online now include your share of the outstanding LRBA amounts reported to us, if applicable,” it added.
Earlier this week, the ATO notified trustees of changes to the 2020 SMSF annual return form and highlighted the inclusion of a new label affecting funds with LRBAs.
