In an update posted on the ATO website on Monday, the regulator said trustees needed to take note that the cut-off period for re-reporting would be in early December.
“SMSF trustees need to action commutation authorities by the due date, even where the due date falls within the Christmas New Year holiday period,” the ATO said.
“If the information we have relied on is incomplete or incorrect, you’ll need to send through correct reporting. Our processing cut-off for this is 10 December. This will ensure we process any corrections and revoke the commutation authority before Christmas.”
The ATO said SMSF members and their agents could view the information that had been relied upon when issuing the commutation authority through the ATO’s online services for individuals and tax agents.
The announcement follows reminders from the ATO to take quick action around excess transfer balance determinations to avoid any accidental non-compliance during the Christmas period.
The regulator had encouraged trustees earlier this month to respond early to correspondence around excess transfer balance determinations or commutation authorities issued in October, as these would have due dates around Christmas.
“We encourage SMSF trustees and members to respond early to this correspondence to avoid adverse consequences,” the ATO said in the previous announcement.
“Commutation authorities need to be actioned by the due date to avoid losing access to the income tax exemption on the assets supporting the pension.”
