ATO flags concerns with lodgement rate for 2019 return
With the lodgement rate still sitting at 84 per cent for the 2019 annual return, the ATO is concerned that some of the funds yet to lodge may have other compliance issues in their fund.
ATO assistant commissioner Justin Micale said that while the ATO understands that the COVID-19 restrictions are continuing to have an impact on the lodgement behaviours of some SMSFs, the lodgement rate for 2019 SMSF annual returns are still tracking around 84 per cent.
This is despite the due date for the 2019 return being deferred to 30 June 2020, he said, speaking at the SMSF Adviser Technical Strategy Masterclass.
“We definitely have some ground to make up there. Our message is simple, if trustees are experiencing difficulties with lodging outstanding returns, they should contact us before we take action,” Mr Micale cautioned.
Mr Micale said the ATO considers SMSF annual lodgement to be a fundamental compliance responsibility for all trustees as it provides the regulator with visibility over the fund’s compliance with its regulatory and tax obligations.
“We have found that when an SMSF stops lodging, this can also be an indicator of broader compliance issues. Having said that, we do understand there can be other factors at play,” he stated.
He reminded trustees that where they fail to lodge on time, the ATO will automatically change the status of the fund on superfund lookup.
“This involves us updating the status of an SMSF on super fund lookup to regulation details removed, and having this status in place means that APRA funds won’t be able to roll over any benefits to the SMSF, and employers won’t be able to make any super guarantee contributions for the SMSF members,” he said.
“This status will remain until all outstanding lodgements are received. Our clear observation is that when an SMSF stops lodging, it often means the fund is having issues meeting some of its other obligations.”
Miranda Brownlee
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.
