With a lot of focus in the past 24 hours on the Government’s decision to not proceed with the $500,000 lifetime non-concessional contribution (NCC) cap, it is frustrating to think about the wasted resources that have been deployed at the Australian Taxation Office (ATO) to support requests by individuals, tax agents and advisers as they feverishly obtained historical information on NCC amounts since 1 July 2007.
Whilst initially having to support this process through telephone requests, we recently saw such requests being able to be made via the tax agent portal which you would presume came at a reasonable cost, all funded from taxpayer’s money for deployment. All of this now… a complete waste of time.
Add to this the work put in by superannuation software providers (e.g. BGL, Class, etc) to data mine this information, some of this now amounts to nothing. Again, whilst the policy outcome might be a good one, there is justification for some people to feel pretty ‘peeved’ about the whole process (just like the photo).
It demonstrates the importance (once again) in these instances for the Government to be more consultative, both internally with their own party room and other key stakeholders, rather that legislate on the run.
We will be discussing the impact of the NCC cap changes and more in our upcoming ‘Changing Face of SMSF’ webinar on Wednesday, 21 September 2016 at 12pm AEST.