In an SMSF Association online technical update, technical services manager Mary Simmons said although most of the industry is focusing their attention on the recent federal budget, it is important to not lose sight of the need to lodge an SMSF annual return (SAR) on time.
“We recognise that there are many reasons, many beyond your control or that of your client, as to why an SMSF annual return may be late, so if you have clients in this situation, it is not too late to request a deferral,” she said.
“To assume that the commissioner is about to announce a blanket extension, deferring all 2019–20 SMSF annual return lodgements till 30 June 2021, would be unwise.”
Ms Simmons said that the SMSF Association’s discussions with the ATO have confirmed that the regulator remains committed to working with SMSFs that need more time to meet their lodgement obligations due to exceptional and unforeseen circumstances. However, these SMSFs need to contact the ATO before their due date to request an extension.
“Without an extension, if the SMSF annual return is more than two weeks overdue, the regulator will proceed to change the compliance status of the SMSF to ‘Regulation details removed’ on the Super Fund Lookup,” she said.
“This in turn will limit the SMSF’s ability to receive employer SG payments and rollovers from other superannuation providers. What’s more, additional failure to lodge and administrative penalties could also apply.
“Without a doubt, this is one of the busiest times of the year for SMSFs professionals, so if you have clients that need more time to lodge, it is important that you seek a deferral immediately.”
The ATO also previously flagged the importance of making sure SMSFs are on track to lodge their SAR, with the 5 June lodgement the most recent due date.
“To be able to complete the fund’s annual return, your tasks as a trustee include completing or organising for a valuer to complete a valuation of the fund’s assets, preparing (or have your accountant prepare) the fund’s end-of-year financial statements,” the ATO reminded.
“Be ready to provide signed copies to your auditor; appointing an auditor at least 45 days before the lodgment due date — remember, auditors are busy, so begin this process as soon as possible.”
For SMSF tax practitioners juggling multiple types of lodgements, the Tax Office on Friday also announced that tax agents still affected by the impacts of COVID-19 can now request for help through a dedicated phone line linked to the tax agent lodgement program fast key code.
Anna Kovic, may I suggest you read Wearyone’s comment…………..you obviously have no idea of the workload!
As one of them “accountants” I can only say that having to work to midnight several nights each week and have no life for 12 months so that I could get JobKeeper support to businesses and ALSO keep SMSF and other tax services on-time was a huge ask. If others were not prepared to forsake sleep just to keep their auditor happy, then . . . . can you really blame them.
There were always going to be consequences for conscripting tax agents in such a fashion. And very few firms have any real excess capacity. I’d hazard a guess to say the numbers of registered agents is dwindling, so less of us are doing more. Until the ATO address the increasing compliance lodgement burden this will simply become a regular occurrence.
And I do feel sorry for the auditors, because you are merely at the end of this chain.
Last year the government gave a blanket extension and the pandemic had only impacted 2 months of the year. This year the pandemic impacted the entire year for those assisting with JobKeeper or with struggling businesses – and we get NO extension. GO FIGURE!
No kidding that auditors are busy. Mainly due to the poor performance of administrators & accountants who continue to fall behind with account preparation & lodgements. I can imagine the number of extension requests being lodged either blaming auditors or blaming Covid19.
Nice article but about 45 days too late. Lodgement day was yesterday. It will be interesting to see what proportion of funds were lodged