The Australian Taxation Office (ATO) is ramping up its efforts to address the increasing non-lodgement of Self-Managed Super Fund (SMSF) annual returns (SAR). Deputy Commissioner Emma Rosenzweig recently revealed that over 85,000 SMSFs have yet to lodge their annual return for the 2023 financial year, with nearly 55,000 still outstanding for the 2022 financial year.
This has raised alarms, as non-lodgement often indicates potential compliance risks, including the illegal early release of superannuation funds. This is particularly concerning when it comes to newly established funds who haven’t yet lodged their first return.
Lodging your SMSF annual return is not just a regulatory requirement—it’s an essential step in ensuring your fund remains compliant and in good standing with the ATO. If you’re unsure about your lodgement status or need assistance, seeking professional advice is your best bet at ensuring the compliance of your fund and avoiding any potential penalties.
What Happens If I Don’t Lodge?
The lodgement of your Superannuation Annual Return (SAR) is a basic expectation for Trustees choosing to run their own superfund. The ATO has made it clear that non-lodgement will attract increased scrunity and see the SMSF possibly flagged for further investigation, with penalties for funds that are found to be non-compliant.
Where a superfund fails to meet its lodgement obligations, further action may be taken by the ATO, such as no longer displaying the fund as compliant on their external register of SMSFs, Super Fund Lookup. The Fund’s regulations details will be removed from the register, meaning employers will not be able to make contributions and the Fund is not able to accept rollovers from other superannuation accounts you may have.
This implicates not just Trustees, but employers too. If an employer can’t confirm the compliance status of a fund, they will be unable to make contributions, which puts their own compliance with super guarantee (SG) obligations at risk.
Furthermore, continued failure to lodge your SAR can also result in financial penalties. A non-compliance penalty can incur a maximum of 20 penalty units or just over $6,500.
How Do I Know If I’m Meeting My Obligations?
As an SMSF trustee, staying on top of your lodgement obligations is crucial, but it’s not always clear-cut. Many trustees may be unsure if they need to lodge a return or unaware that they are even behind on their obligations.
To meet your obligations, you should ask yourself:
✔️ Has my SMSF lodged an annual return every year since it was established? (Even if your fund has had no activity, an annual return is still required)
✔️ Did I lodge my SMSF’s annual return on time?
✔️ Is my SMSF listed as ‘complying’ on the Super Fund Lookup (SFLU) register?
✔️ Have I received any ATO notices regarding overdue returns?
If you’re unsure about your lodgement status, it’s important to seek professional advice sooner rather than later. If you’ve missed deadlines, you may already be on the ATO’s radar. The longer a return remains overdue, the greater the risk of penalties, increased scrutiny, or even fund compliance issues.
Don’t Leave Your Fund’s Future Up To Chance
Whether you need to determine your lodgement status, bring your SMSF up to date, or ensure your return is prepared correctly, BIS Cosgrove makes the process smooth and stress-free. We guide you through your obligations, liaise with the ATO on your behalf, and help you avoid unnecessary complications.
With over 25 years of experience and a qualified team of SMSFA-certified Specialist Advisors™, we provide expert guidance to ensure your SMSF stays compliant with the ATO and on track to meeting your retirement goals.
We specialise in all areas of SMSF, such as:
✔️ Establishment & Structure
✔️ Advice & Accounting (including preparation of annual returns)
✔️ Property & Borrowing
✔️ Ongoing Management & Support
Still not sure where to start? Get in touch with us today to ensure your SMSF meets all regulatory requirements and continues working towards securing your retirement.
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The material and contents provided in this publication are general and informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
