Class has made changes to its accounting and administration software to bring it in line with new trust income reporting standards the ATO introduced in June.
As part of ongoing changes under the ATO’s Modernisation of Trust Administration Systems (MTAS) project, from the 2024 income year, beneficiaries of trust income from 1 July 2023 will be required to lodge a trust income schedule (TIS) with their tax return.
In response, the financial services organisation has enhanced its Class Trust cloud software allowing it to automatically generate a TIS that is compliant with the new reporting requirements.
The firm stated the update will allow accountants to auto-complete and reconcile income distributed from trusts, including unlisted trusts, listed securities, managed funds and stapled securities, into the TIS and remove the need for manual entry of data.
Class chief executive Tim Steele explained the enhancement would support accountants in dealing with regulatory changes and the management of administering trusts.
“Class Trust is designed to provide accountants with an automated, streamlined and compliant TIS which simplifies the administration of trust entities at tax time, while also reducing the complexities of reporting and lodgement requirements,” Steele said.
“Trusts are often in the spotlight and it’s critical accountants efficiently adapt to new regulations so they can continue to cost-effectively deliver great client outcomes.”
Class noted recent ATO figures indicate there are about 947,000 trusts with assets of $2.3 trillion and the regulator has highlighted the TIS changes will also apply to SMSFs that are beneficiaries of a trust.
In May, the regulator told SMSF trustees: “If your SMSF has received a distribution from a trust you need to complete a new trust income schedule, which is lodged with your SAR (SMSF annual return).
“Remember you will need to get the information required in the trust income schedule from the trust. We recommend you ask the trustee for a copy of the trust statement of distribution if you don’t receive one by the time you come to lodge your SAR.”
