SMSF Tax Return
A Self Managed Super Fund (SMSF) is formed with an intention to hold greater level of control on the retirement monies of individuals whereby the member can customize their investment strategies with a vision to make greater profit than holding monies in Industry Super Funds. The advantage of having an SMSF in comparison to holding monies in Industry Super Funds is the level of control the members have on their investments. An SMSF is required to lodge an SMSF Tax Return from the time it has been setup. An SMSF Tax Return lodgement is compulsory for all SMSFs because it also reports vital information such as the super contributions along with the investment income.
On one hand there are increasing numbers of SMSFs which are being registered and on the other hand greater number of them could be declared as non – compliant due to non lodgement of their SMSF Tax Returns. The ATO warns that if the funds remain overdue for lodgement for longer than reasonable time then they could face serious consequences. This could include SMSF trustee paying heavy penalties, declaring the SMSF as non – compliant, creating automated default assessments by the ATO or even disqualifying a trustee for persistently not lodging returns.
We understand that managing an SMSF is highly complex due to the several compliances related issues and its complex tax treatments. This is one of the reasons that many SMSF are not lodged in a timely manner or remain inactive for a long time. An SMSF Tax Return lodgement generally requires the preparation of the following documents:
- Financial Report
This includes the fund’s Profit and Loss, fund’s Balance Sheet and the fund’s Cash Flow Report
- Member’s Statements
These indicate the Member’s superannuation balance allocations
- SMSF Tax Return
This includes the tax summary which provides the tax estimate for the Super Fund and the Supervisory Levy payable
- Auditor’s Report
This includes an external auditor (other than the tax agent) who would review and provide their opinion to the tax office regarding the compliance of the Super Fund
The Australian Taxation Office’s website provides more information pertaining SMSFs and SMSF Tax Return Lodgements. If you are still unsure about your circumstances, please feel free to contact us to know your tax obligations. Our experienced team at A One Accountants would be able to assist you with any concerns you may have. Give us a call on 03 8609 1889 and speak to one of our friendly staff and we shall clear up any queries you may have.