SMSF client-to-agent linking requirement
The ATO has reminded financial advisers, accountants and trustees that client-to-agent linking now applies to all types of entities with an ABN, including SMSFs.
For new SMSFs using a tax agent, trustees can link to their agent by lodging the SMSF ABN registration form and nominating their tax agent as their representative.
They do not need to follow the client-to-agent linking steps.
For existing SMSFs, trustees will need to follow the client-agent linking steps in online services for business (OSB) if they add or change a tax agent or if they change the authorisations given to their existing tax agent.
For SMSFs with an individual trustee, one trustee can complete the linking process by setting up and accessing online services for business and completing the agent nomination. For SMSFs with a corporate trustee, the principal authority needs to complete the client-to-agent linking process.
Once they have set up their MyGovID they will need to contact the ATO for support to link the fund’s ABN to their myGovID in Relationship Authorisation Manager.
Trustees should update their details on the Australian Business Register (ABR) as this will assist in the client-to-agent linking process and are also being warned that if they have not yet lodged their annual SMSF return they could face penalties.
The due date to lodge SMSF annual return (SAR) was 31 October if the SMSF is newly registered and trustees are preparing their own return, or they have overdue SMSF annual returns from prior financial years.
The regulator warned that if the fund has missed its lodgment due date, it is important to lodge now or it may consider further compliance actions.
It stated if an SMSF annual return is more than two weeks overdue and the ATO has not been contacted, the fund’s compliance status will be changed on the super fund lookup.
This will mean APRA funds can't roll over member benefits and employers are discouraged from making any super guarantee contributions.
This status will remain until the overdue lodgments are brought up to date.
Trustees are still required to lodge if the fund has had no contributions, income, or payments made, or is in pension mode. If the SMSF does not have assets set aside for the benefit of members in the first year it was registered, the trustee can ask us to cancel the fund or request a return not necessary.
