Administration, ATO, SMSF

End-of-year reminders from ATO

ATO SMSF annual return Minimum pension payment self-managed super

SMSF trustees have been reminded to check the accuracy of their fund details on the SMSF annual return before lodging and ensure they pay members the minimum pension amount by 30 June.

The ATO has issued a series of reminders to SMSF trustees to ensure they meet their compliance obligations as the end of the financial year approaches.

In the first instance, the regulator encouraged trustees to confirm certain details are accurate and up-to-date when they lodge their SMSF annual return (SAR) after making the document available on its website today.

“The SMSF annual return is more than a tax return. You are required to report regulatory information for your SMSF, member contributions and pay the SMSF supervisory levy,” the ATO said.

“To enable your SAR to be processed without delay, it is important to avoid the common errors we see by ensuring the members’ information and tax file number is provided as per section F, correct SMSF auditor number and auditor details are provided [in section A item 6], including the date the audit was completed, and the closing account balance equals the sum of accumulation and retirement-phase account balance amounts.

“If the member’s closing account balance is zero or a negative amount, write 0 [in section F].”

If trustees are having difficulties lodging the SAR, the regulator suggested consulting its SMSF support service or contacting the ATO directly for assistance.

The ATO also released the key rates and thresholds that apply to superannuation for the new financial year. As a result of the increase in the average weekly ordinary time earnings figures released in February, the concessional contribution cap will increase from $27,500 to $30,000, while the cap relating to non-concessional contributions will increase to $120,000.

The thresholds for Division 293 tax ($250,000), the transfer balance cap ($1.9 million) and the defined benefit income cap ($118,750) will remain unchanged from the current financial reporting period.

No increases were listed for the low rate cap as it will no longer be relevant from 1 July since the preservation age has increased to 60, removing the need for different tax treatments for individuals between preservation age and 60 years old.

Finally, the ATO reminded trustees of their obligation to comply with the minimum pension standards before the end of the month.

“If you haven’t already, you must ensure all members receiving an account-based pension are paid their minimum pension amount by 30 June,” it stated.

“This is calculated by applying the relevant percentage factor based on the member’s age by the member’s pension account balance calculated as of 1 July 2023 or on a pro-rata basis if the pension commenced part way through the 2023/24 financial year.

“If the minimum payment is not made by 30 June, this can result in adverse taxation consequences for the member.”


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