Class Trust platform gets new ATO automation capability

ASX-listed wealthtech developer Class has unveiled a new automation capability within its trust accounting and administration software cloud platform, Class Trust, helping accountants meet their obligations under the Australian Taxation Office’s (ATO’s) new Trust Income Schedule (TIS).

The capability, which Class says “eliminates the need for manual entry”, enables accountants to auto-complete and reconcile income distributed from trusts including unlisted trusts, listed securities, managed funds and stapled securities into the TIS.

The capability effectively pre-fills beneficiary income, promising to eliminate manual entry and reduce errors.

Under the ATO’s Modernisation of Trust Administration Systems project, new tax return changes effective from the 2023-24 income year require all beneficiaries who receive trust income from 1 July 2023 to lodge the new TIS with their tax return.

The ATO counts more than 947,000 trusts in Australia, with assets totalling $2.3 trillion.

Class chief executive Tim Steele said the Trust platform was designed to provide accountants with an “automated, streamlined and compliant TIS”, simplifying the administration of trust entities at tax time while also reducing the complexities of reporting and lodgement requirements.

He added: “Trusts are often in the spotlight and its critical accountants efficiently adapt to new regulations so they can continue to cost-effectively deliver great client outcomes.”

Launched in late 2020, and promising to do away with a surfeit of Excel sheets typically used by trust accountants, the cloud-based Class Trust platform was designed with the objective of “[automating] significant parts of the trust administration process” for discretionary and unit trusts.