Overview
The Australian Taxation Office (ATO) recently reminded SMSF trustees lodging their SMSF Annual Return (SAR) is the most important compliance obligation they must meet.
They also mention in their SMSF Newsroom article over 65,000 SMSFs still have outstanding lodgement obligations for the 2023 year, and they are seeing a similar trend in late lodgements for 2024.
What are the lodgement requirements?
Self-Managed Superannuation Funds (SMSFs) established during the 2024/25 financial year are required to lodge their annual return for the year ended 30 June 2025 by 28 February 2026.
This requirement is only for SMSFs that have been legally established, that is, have received superannuation rollovers and/or contributions into the Fund on behalf of members, during the financial year.
If an SMSF has been established but does not have any assets set aside for the benefit of the members and did not commence operating during the first year, then it is not legally established, and no income tax return is required to be lodged with the Australian Taxation Office (ATO). Consequently, there is no liability to pay the ATO supervisory levy in that year ($259).
These SMSFs however, must lodge a Return Not Necessary (RNN) for the 2024/25 financial year to advise the ATO of the Fund’s status.
To apply for an RNN the SMSF must confirm in writing that it did not hold assets and did not receive any contributions or rollovers into the Fund during its first year.
It must also outline the date the fund first held assets and commenced operating and that it will lodge future returns.
The due date for lodgement of the RNN is not later than 28 February 2026.
Newly registered funds that do not have a Tax Agent and those with overdue SARs for prior years (excluding deferrals), need to:
- Lodge their SAR by 31 October 2025
- Pay any owing amount by 1 December 2025.
What are the ramifications of late lodgement?
If trustees fail to lodge the SAR on time, there may be penalties applied and the SMSF tax concessions can be lost in some circumstances. If the fund’s lodgement is overdue, its Super Fund Lookup status may change to ‘regulation details removed.’ This can restrict the SMSF from receiving rollovers and employer contributions.
To restore compliance, and be able to operate the fund, trustees need to lodge the overdue returns with the ATO by 31 October 2025.
It is also important to note the ATO will be undertaking targeted compliance action for SMSFs that are behind with their lodgement obligations. Unless prompt action is taken in relation to the outstanding obligations of these funds, their trustees can expect ATO compliance action to deliver sanctions which could include their disqualification from running an SMSF.
What to do next?
It is vital trustees provide us or their appointed tax agent all the necessary documentation that will enable the preparation of the SMSF’s financial statements and income tax return in a timely manner. Note that the Fund will also be required to be audited prior to lodgement. Therefore, to avoid missing this key deadline do not leave this task to the last minute.
If the trustees are aware the Fund has not legally been established as of 30 June 2025 (however it is operational), please provide this confirmation to enable the lodgement of the RNN via the tax agent portal. We will require members, trustees, or their intermediaries to provide a copy of the bank statement showing receipt of the first rollover/contribution being made into the Fund as confirmation.
What does Neo Super provide?
We are an innovative end-to-end SMSF service provider specialising in:
- SMSF administration and compliance
- Documentation services, including fund establishment, borrowing arrangements and pension documentation
- White label documentation and services for Intermediaries such as accountants and financial planners
- SMSF technical support, education, and training.
Further Information
For other service requirements, please contact our office at neo@neo-super.com.au or 1300 083 428.
