POWERED BY MOMENTUM MEDIA
SMSFs not to be paid SG if annual returns are late
Self-managed superannuation fund (SMSF) members will not receive any superannuation guarantee (SG) payments if their annual return lodgement is more than two weeks overdue, the tax office has announced.
The Australian Taxation Office (ATO) announced that from 1 October if an SMSF was overdue on any annual return lodgement and had not requested a lodgement deferral the office would change their status on Super Fund Lookup (SFLU) to “Regulation details removed”.
“We're taking this approach because non-lodgement combined with disengagement indicates that retirement savings may be at risk. This status will remain until any overdue lodgements have been brought up to date,” the ATO said.
“Having a status of ‘Regulation details removed’ means the Australian Prudential Regulation Authority (APRA) funds won't roll over any member benefits to the SMSF and employers won't make any SG contribution payments for members of the SMSF.”
It noted there was a two-step process for updating SFLU on the first business day of each month, and when all overdue lodgements were received it would update the SFLU to reinstate the SMSF’s “complying” status.
SMSFs could call before the due date to seek a lodge deferral if they did not think they could meet the due date.
“While the fund's status is 'Regulation details removed', members should alert their employer to make any SG payments into the employer's default super fund or a fund of the member's choice,” the ATO said.
“Once the SFLU status of the SMSF has been updated to 'complying', members can request a rollover to their SMSF of any member benefits that may be held outside their SMSF.”
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
