SMSF compliance status removed if annual returns are late

Melisa Wheatley Sunday, 10 November 2019

The ATO has announced that SMSFs that do not lodge their annual returns on time will have their fund’s status on Super Fund Lookup changed from ‘Complying’ to 'Regulation details removed'.

At a high level the change may result in issues for funds in receiving rollovers from APRA regulated funds and contributions from employers. Having a status of 'Regulation details removed' means APRA funds won't roll over any member benefits to the SMSF and employers won't make any super guarantee (SG) contribution payments for members of the SMSF.

This could particularly impact on clients consolidating their superannuation accounts or receiving mandated employer contributions from independent employers (note that employees are required to advise their employer if the fund is no longer complying). There is also a risk that related employers could face issues as a result of making contributions to a fund that is not confirmed to be complying, such as losing the deductibility of contributions and having super guarantee charge obligations.


Credit: Knowledge Shop: October 2019