30 June ‘red alert’ for SMSFs as critical issues need consideration

The SMSF Association says 30 June is a ‘red alert’ for SMSF trustees, with several “critical issues” that need to be considered ahead of the “looming” deadline.

SMSF Association CEO John Maroney said the transitional CGT relief, Transfer Balance Account Reporting (TBAR) and contribution caps should all be on the radar in preparation for the end of the financial year.

“SMSF trustees need to be aware they may have to report a transfer balance cap income stream before 1 July 2018,” he said. Read more...

SMSF lodgments 10% behind prior year as “double-whammy” deadline looms

SMSFs are 10% behind on Annual Return lodgments compared to last year, according to Class lodgements.

Class said that 2 July 2018 – which is a Monday – is a “double-whammy” deadline for SMSFs, with both SMSF Annual Returns and Transfer Balance Account Reporting (TBAR).

“With less than a month to go, accountants have a big task ahead to lodge FY17 annual returns, claim CGT relief and report 30 June 2017 TBAR balances for SMSFs with pensions,” said Class.

“Despite the extension to SMSF annual return lodgments being granted both last year and this year, analysis of Class Super data reveals that accountants are 10% behind on lodgments compared to end of May last year.” Read more...

Extended SMSF Annual Return deadline approaching, warns ATO

The ATO has reminded SMSF trustees and professionals that the extended deadline for the 2016/17 SMSF Annual Return in approaching.

“Now is the time to be preparing your 2016-17 self-managed super fund (SMSF) annual return,” says the ATO.

The ATO points to its previous announcement of an extension of the due date to 30 June 2018, to give SMSFs and advisers more time to make decisions around the superannuation changes that took effect on 1 July 2017.

As 30 June 2018 is a Saturday the ATO says lodgement can be made on the next business day, which is Monday 2 July, “without penalty”. Read more...

ATO extends 2016/17 SMSF return lodgement date, due to super reforms

The ATO has extended the due date for lodgement of 2016/17 SMSF Annual Returns to 30 June 2018.

“We recognise there are some major new considerations and decisions for SMSFs and their advisers to make in this first financial year of operation of the superannuation reforms that came into effect from 1 July 2017,” said Deputy Commissioner James O’Halloran.

“We have therefore decided to extend the lodgement date for 2016–17 SMSF annual returns so that SMSF trustees and their advisers can focus on these important matters,” he said. Read more...

ATO taking action on overdue SMSF annual returns

The ATO is taking a number of actions against SMSFs with overdue SMSF annual returns.

The ATO said it was tacking a “tougher stance” on SMSFs with overdue SMSF annual returns, particularly funds with two or more overdue returns.

Actions the tax office is taking currently include cancelling approximately 9,000 ABNs for SMSFs that show no evidence of operating.

The ATO says it has been calling tax agents to arrange an agreed date for lodgement, and visiting others to get feedback on why their SMSF clients’ returns are overdue. The ATO is also writing to SMSFs in pension phase to remind them that they still have a lodgement obligation. Read more...

SMSF annual return electronic lodgment to be PLS only from 11 Nov 2017

Tax agents lodging SMSF Annual Return 2017 will need to use the Practitioner Lodgment Service (PLS) from 11 November 2017, the ATO has announced.

The Practitioner Lodgment Service (PLS) is gradually replacing the Electronic Lodgment Service (ELS) as the way to electronically lodge returns with the ATO. PLS is part of Standard Business Reporting (SBR).

The ATO has announced that SMSF Annual Return 2017, Fund income tax return 2017 and Trust tax return 2017 will only be able to be lodged electronically through PLS from 11 November 2017. FBT returns and partnership tax returns have already moved to the PLS. ELS for company and individual tax returns is set to end in 2018. Read more...

ATO extends due date for SMSF Annual Return 2015/16

The ATO has announced that it has extended to 30 June 2017 the due date for lodgement of the SMSF Annual Return for the 2015/16 financial year.

ATO Deputy Commissioner James O’Halloran said this decision was made as a result of feedback from professional and industry representatives, seemingly related to the changes from the 2016 Budget applying from 1 July 2017.

“We have heard that many accounting and advisory firms are stretched to meet their usual annual SMSF lodgment commitments, in addition to providing advice to their clients about the superannuation changes taking effect on 1 July,” he said. Read more...

ATO identifies common SMSF bank account reporting errors

ATO, SMSF Annual Return, bank account details, electronic service address (ESA), Label 7A 7B 7CThe ATO has identified some common errors in reporting bank account and SuperStream details in the SMSF Annual Return.

The 2015 SMSF Annual Return included new labels for reporting the bank account and Electronic Service Address (ESA) for SMSFs, labels 7A, 7B and 7C.

The ATO has now identified some common errors in completing these labels on the Annual Return.

The ATO says, for Label 7A – which asks for the bank account of the fund – that: “The bank account nominated at label 7A of the SAR must be an account operated by the SMSF trustees. These account details should be unique to each SMSF and cannot be a common account used across multiple clients, such as your practice trust account.” Read more...

ATO tips to avoid misreporting LRBAs in SMSF Annual Return

ATO tips LRBA errors, misreporting, SMSF Annual ReturnWith only a couple of months until all 2013/14 SMSF annual returns should be lodged the ATO has issued several “tips” to help to avoid misreporting Limited Recourse Borrowing Arrangements (LRBAs) in the SMSF Annual Return.

The ATO warns that, where an SMSF has a LRBA, to “make sure you report them at the LRBA labels in Section H: Assets and liabilities of the SAR [SMSF Annual Return].”

“We have noticed some misreporting at these labels,” said the ATO.