ATO blocks SMSF wth overdue tax return from receiving employer contributions

Date of article: 4 September 2020
Last updated: 4 September 2020

The Australian Taxation Office (ATO) has said that it will change the status of a SMSF on Super Fund Lookup (SFLU) (https://superfundlookup.gov.au/) to 'Regulation details removed' if the SMSF is more than two weeks overdue on any Annual Return (Tax Return) lodgement. The SMSF will remain with this status until all overdue lodgements have been brought up to date.

Having a status of ‘Regulation details removed’ means:

• You cannot rollover any member benefits to the SMSF
• Your employers cannot make any employer/ super guarantee contribution payments for members of the SMSF.

We have also notice some financial institutions are checking the SFLU and may not allow new accounts to be opened, or place restrictions on existing accounts of SMSF with 'Regulation details removed'.

Self-managed Superannuation Fund Annual Return (Tax Return) are due:

Newly registered SMSFs  For the SMSF's first year:

• the due date is 31 October for self-preparer
• if it is prepared by and lodged by a tax agent, the due date is 28 February of the following year
• if your SMSF was reviewed by the ATO at registration, it is due 31 October, even if it is prepared and lodged by a tax agent.

Following years  For the SMSF's subsequent year:

• one or more prior-year tax return were outstanding as at 30 June, the due date is 31 October
• for self-preparer, the due date is 28 February of the following year
• if it is prepared by and lodged by a tax agent, the due date is 15 May of the following year.

If you have outstanding tax returns, we can help you get back on track with the lodgement of your SMSF's tax returns and regulation details reinstated.

Do you need help with your situation or if you wish to discuss the above, please contact us. Our contact details.