The ATO has issued several reminders for SMSF trustees to ensure they meet compliance obligations, with key reporting deadlines approaching in October.
Firstly, the regulator has urged trustees to gather evidence to support the valuation of any assets held in their funds before submitting them to auditors for the preparation of their SMSF annual return (SAR).
The regulator has previously highlighted it will be reviewing asset valuations, particularly for those SMSF holdings that have not changed for several years, as part of its compliance activities.
“The market value of an asset is the amount that a willing buyer and seller would agree to in an arm’s-length transaction. These valuations will be used when preparing your fund’s accounts, statements and SAR,” it stated.
“It’s your responsibility to provide objective and supportable evidence to your auditor for the valuation of the fund’s assets, including all relevant documents requested to prevent delays in auditing the fund.
“Failure to do so could result in a potential late lodgement of your annual return or a contravention if mistakes have been made.”
Additionally, it reminded trustees to submit their SAR by 31 October if their fund meets certain conditions.
“If your SMSF had assets, such as super contributions or other investments as of 30 June 2024, then you may need to lodge a SAR for the 2023/24 financial year,” it said.
“Your lodgement due date will depend on your circumstances. If your SMSF is new and you are preparing the SAR yourself, or have previously lodged a SAR late, your due date is 31 October 2024.”
It also warned failing to lodge a SAR on time could result in a fund’s compliance status being changed on Super Fund Lookup, potentially affecting rollovers and employer contributions.
Finally, the ATO advised trustees to submit a transfer balance account report (TBAR) by 28 October to notify the regulator of any changes to their pension account, even if the member’s total superannuation balance is less than $1 million.
“You must also report and lodge within 28 days after the end of the quarter in which the event occurs. You are not required to lodge if there were no transfer balance account events during the quarter,” it stated.
“If your SMSF does not lodge a TBAR by the required date, the member’s transfer balance account may be affected. The member may need to commute any amounts exceeding their cap and avoid more excess transfer balance tax.”
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