The information below may help you avoid potential pitfalls when preparing your SMSF annual return.

Providing electronic funds transfer (EFT) details at Section A, Question 7

• 7A – Bank account (Super payments)

The bank account you nominate for super payments and tax refunds must belong to the SMSF. We make super and SuperStream payments directly to the account nominated at this label and payments may be affected if you provide incorrect details.

• 7B – Bank account (tax refunds)

You can use a different bank account for tax refunds or if you have wound up your SMSF and expect a refund. These details can be those of a tax agent.

• 7C – Electronic service address

If you receive employer-sponsored contributions you must include a registered electronic service address (ESA). The ESA is only used for SuperStream transaction reporting and is not an email or postal address. You can obtain an ESA from a registered ESA provider and you should make sure it is shown exactly as provided when you registered for it.

Reporting income items at Section B, Question 11

• Label M Trust distributions

Something else that crops up is trustees saying they received a distribution from a discretionary trust when it should be a fixed trust.

• Label R Assessable contributions

Not completing the contribution labels correctly can lead to excess concessional tax consequences, for example putting down that you’ve made a concessional contribution, such as an employer contribution, when the contribution is really a non-taxable one.

And finally, don’t forget that

• You need to value the assets of your fund at their market value.
• Payment (if any) is due with the lodgment of the annual return. This includes paying any outstanding tax if your fund has wound up and this is your final return.

© Australian Taxation Office for the Commonwealth of Australia