In their submission during an ATO feedback forum, prominent accounting groups — including CPA Australia, Chartered Accountants ANZ, the Institute of Public Accountants (IPA), and the SMSF Association — expressed industry-wide disagreement with the ATO’s stance. The ATO's current position stipulates that failing to meet the minimum pension payments results in an automatic cessation of the pension, a position that these groups challenge.
The ATO had previously communicated to industry associations that a pension could not toggle between compliance and non-compliance yearly, a viewpoint that, according to the accounting bodies, contradicts APRA's regulatory framework under the Superannuation Industry (Supervision) Act (SIS Act).
Accounting groups highlighted cases where APRA has shown flexibility, allowing certain pension discrepancies to be corrected without inflicting adverse tax implications. This includes instances where trustees miscalculated pensions or missed a final payment for the year, yet APRA ensured continued compliance under the SIS Act.
By regulating large funds with this adaptable approach, APRA has direct implications for income tax outcomes. Consequently, the accounting groups emphasize the necessity for both ATO and APRA to present a unified regulatory stance, ensuring no unfair disadvantages across sectors regarding pension payment shortfalls.
This push for regulatory harmony highlights the broader need for consistent pension regulations that safeguard industry stakeholders from uneven tax consequences and support the integrity of pension systems.
