The ATO has outlined some of the more common errors it is encountering with the SMSF annual return that are preventing the efficient processing of this compulsory document.
“One common error is not providing all members’ information, such as names and tax file numbers,” ATO SMSF experiences director Melissa Anstis noted.
“We also see incomplete or inaccurate auditor details, including the auditor number and the date the audit was completed.
“Additionally, we often see closing account balances that do not match the sum of the accumulation and retirement-phase account balance amounts. Remember, if the closing account balance is zero or negative, then you must enter zero.”
Anstis reiterated the inclusion of correct and complete information on the SMSF annual return will help ensure it will be processed in a timely manner.
She also took the opportunity to remind trustees of the importance of having an exit strategy for their SMSF and not to leave putting one in place until they are actually looking to wind up the fund.
“Even if you’re not ready to wind up yet, it’s still important for all funds to have an exit plan in place,” she said.
Further, she pointed out any plan for the winding up of an SMSF cannot be considered static and must be reviewed regularly for it to be properly effective.
“Just like your investment strategy, your exit plan is not a set and forget document. You should review your exit plan regularly, assess your fund and each member’s circumstances to decide if a self-managed super fund is still right for you,” she suggested.
“Trustees who don’t have an exit plan are often unprepared and can get caught by surprise when an unexpected event means they need to wind up their fund. So, I strongly urge you to have a plan for when to wind up.”
The ATO will be sharing more of its insights into the sector at SMSF Trustee Empowerment Day 2024, co-hosted by smstrusteenews and the SMSF Association. To register, please visit here.
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