Self-managed superannuation fund (SMSF) administrative software provider Class Super has enhanced its offering through the provision of a standard business reporting (SBR) capability that will improve the cost efficiency in the running of these funds.
One of the main areas where a tangible benefit will be realised is in the furnishing of business activity statements (BAS) for SMSFs and the subsequent claiming of goods and services tax (GST) credits paid by funds.
"GST registrations for SMSFs have been problematic for a long time because an enormous amount of paperwork goes into it and by and large a significant number of accountants and administrators aren't actually registering the funds for GST because the paperwork exceeds the benefit," Class Super chief executive Rajarshi Ray told InvestorDaily.
According to Ray, about one-third of SMSFs fell into this category, meaning the trustees of those funds were forfeiting a lot of money.
Class Super's new SBR facility now allows SMSFs to complete BAS and income activity statement requirements and claim GST credit all electronically, something previously considered too difficult by the wider SMSF community.
In providing an electronic process, no additional work has to be performed by the accountant or administrator either and all the benefits can flow straight to the trustees.
"Since we rolled out SBR we've notice just how much people are now claiming on their BAS, which they weren't able to do before because it wasn't effective to do so. It means the 75 per cent on the brokerage rates or the admin fee can be claimed, which can translate into hundreds or thousands of dollars cash back for trustees," Ray said.
"This is real tangible money going back into their funds."
Class Super estimates the new facility could save SMSF members up to $800 million a year.
The new SBR service also allows for real-time monitoring of the contributions caps, thereby potentially lessening the likelihood of SMSFs incurring excess contributions tax liabilities.
