The Australian Taxation Office (ATO) treats a self-managed superannuation fund like a person – any income it receives will be taxed. However, a special concessionary tax rate of 15% generally applies to such income.
Your SMSF tax returns (NAT 71226) provide the Australian Taxation Office with more than just income data. IThe SMSF Annual Return includes key details about the fund, its members, regulatory status, auditor, and tax agent. The ATO also uses this information for compliance checks and statistical reporting. Your SMSF audit must be finalised before you lodge your tax return. Remember to include the correct auditor details.
Timely lodging lodgement of SMSF annual returns is a critical responsibility for SMSF trustees. And remember that each member must also submit an annual individual tax return, unless
The Australian taxation law is clear, but the details are intricate. Therefore, most SMSFs seek professional advice and taxation services to ensure ATO compliance.
All SMSFs with assets must submit a tax return every year, even if no income was generated or the fund is 100% in the retirement phase.
Self-managed superannuation funds without assets in their first year can apply for an RNN (return not necessary) from the ATO.
The date depends on individual circumstances:
The lodgement date is 31 October (or the next business day if this is a holiday or weekend) if:
An exception to this rule is if
The lodgement date is 28 February if:
If a tax agent is lodging your return, they will tell you the due date. The ATO provides tax professionals with a list of due dates, depending on specific technical circumstances.
If you think your lodgement will be late, it’s essential to inform the ATO and request a deferral. It’s also a good idea to talk to a registered tax agent about your options.
If your SAR is more than two weeks overdue
Super Fund Lookup is the ATO’s register of the compliance status of SMSFs, and it is updated on the first business day of every month.
Employers and APRA funds can use it to check that an SMSF is eligible for contributions, transfers or rollovers.
If your fund income tax return is late, the ATO will change the status to “Regulation details removed”.
If your SAR is more than two weeks overdue
The status will change to “Complying” only after all overdue lodgements have been brought up to date.
Members can then request employer contributions be made into the fund and rollover benefits from other funds.
The ATO tends not to be punitive with taxpayers who engage with them and want to get things right.
So, the ATO is unlikely to apply the failure to lodge on time (FTL) penalty to isolated cases of late lodgement of SMSF annual returns. However, they can, issue a fine if they believe that you are wilfully not lodging or are doing nothing about rectifying the breach.
There are different penalties. It starts at one penalty unit per 28 days (or part thereof) for a small entity to a maximum of five units. The number of penalties is multiplied, depending on the size of the entity.
The current penalty per unit is $330.
Here Is some good news.
You have a “safe harbour” from the FTL penalty if you have engaged a registered tax agent to lodge your return, you have provided them with all the necessary documents, and they were not reckless or intentionally disregarding the law.
Even if you miss the due date, try to have your return lodged as soon as possible to avoid interest penalties.
We offer comprehensive and cost-effective tax services to accountants and advisers of SMSFs.
We have a team of highly qualified SMSF tax accountants. They are 100% Australia-based and have many years of experience dealing with the Australian Taxation Office.
When you use our SMSF administration services, we can also act as the fund’s tax agent. We will lodge the annual return and manage all SMSF tax obligations.
Combining your Daily or Annual SMSF administration with our tax agent services is a cost-effective way to streamline compliance and reduce administration costs.
If you choose to use your own tax agent for the SMSF, our administration service will still provide a pro-forma tax return to help you prepare and lodge it accurately.
If you use our audit services, we will refer you to an independent SMSF auditor, ensure all your documentation is provided, and coordinate audit and tax office requirements.
See here for a complete list of our services and fees.
If your SMSFs have overdue tax obligations, we can help you get back on track with expert support and compliant administration.
Are you an accountant or financial adviser with overdue SMSF annual returns? Contact us for a complimentary review and find out how we can support your practice.
If we administer your SMSF, we will already have most of the Information needed for the SMSF annual returns. This includes items such as your Australian business number (ABN), details of bank accounts, and receipts or statements for the expenses you are claiming as deductions. We will ask you if we need anything else.
If you use our administration and audit services, we can also act as tax agents for the annual tax lodgement for your funds annual SMSF return. For details, please contact SMSF Engine.
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