SMSF annual return (accumulation phase)

* SMSF Annual Statement
* Profit & Loss Statement
* Member Statements
* Investment Reports
* Trustee Resolutions & Minutes

$550 ( inc GST)

* SMSF Indipendent audit

$330 ( inc GST)

SMSF annual return (accumulation phase) - information

15 Aug 2020 updated

As a trustee, there are numbers of administrative obligations:

● lodge SMSF annual returns

● appoint an SMSF auditor

● value the fund's assets

● report transfer balance cap events

● lodge Superannuation transfer balance account reports

● keep records

● notify the ATO of changes.

You need to lodge an annual return once the audit of your SMSF has been finalised. The SMSF annual return is more than an income tax return. It is also used to report super regulatory information, member contributions and pay the SMSF supervisory levy.

If your fund did not have assets in the first year it was registered, you may not need to lodge a return for that year.

When to lodge ?

If you lodge your SMSF annual return yourself, the due date is:

● generally 28 February following the financial year

● 31 October if you didn't lodge your return for the previous financial year on time

● 31 October for your first year

If your return is lodged through a tax agent, they'll tell you the due date. For your first year the due date will be 28 February.

If your SMSF is reviewed by the ATO at registration, your first year return due date will be 31 October even if it is prepared and lodged by a tax agent. The ATO will notify you if this is the case.

If a due date falls on a weekend or public holiday you can lodge or pay on the next business day.

Failure to lodge your SMSF annual return by the due date can result in penalties and the loss of your SMSF’s tax concessions.

● Appoint a SMSF auditor

You must appoint an approved SMSF auditor to audit your fund each year, not later than 45 days before you need to lodge your SMSF annual return. The auditor examines your fund's financial statements and assesses your fund's compliance with super law.

We will appoint a licensed auditor to help you with this.

Your SMSF auditor must be:

> Registered with ASIC – if they are, they will have an SMSF auditor number, which we will provide on your annual return.

> Independent – they should not audit a fund in which they hold any financial interest, or where they have a close personal or business relationship with members or trustees.

An audit is required even if no contributions or payments are made in the financial year.

Before an SMSF auditor can start an audit, you or your professional adviser need to give them information about your accounts and transactions for the previous financial year. Any additional information requested by your SMSF auditor, in writing must be provided within 14 days.

Your auditor should advise you of any breaches of the rules. You, as trustee, should rectify any contravention as soon as possible.

Your auditor is also required to report certain contraventions to us. Even if you terminated an auditor engagement or the auditor does not finish the audit, if they have identified a reportable contravention, their obligation to report to us remains.

● Value the fund's assets

You need to value the assets of the fund at their market value for the purpose of preparing your fund's accounts, statements and the SMSF annual return.

Market value is the amount that a willing buyer of the asset could reasonably be expected to pay to acquire the asset from a willing seller if all the following assumptions were made:

> that the buyer and the seller dealt with each other at arm's length in relation to the sale

> that the sale occurred after proper marketing of the asset

> that the buyer and the seller acted knowledgeably and prudently in relation to the sale.

Apart from preparing and lodging your annual accounts and, if required, transfer balance account reports, you will also need to value assets:

> if your fund has investment dealings with, or sells assets to, a related party

> if you need to determine the percentage of in-house assets in your fund

> on the commencement day of a pension

> if your fund transfers a collectable or personal use asset to a related party – in this case the valuation must be done by a qualified independent valuer.

● Report transfer balance cap events
The event-based reporting (EBR) framework for self-managed super funds (SMSFs) commenced on 1 July 2018. It enables the ATO administer the Transfer balance cap. You generally need to start reporting to the ATO, under the EBR framework, when your first member commences a retirement phase income stream.

The transfer balance account report (TBAR) is used to report certain events and is separate from the SMSF annual return (SAR). The TBAR enables the ATO to record and track an individual's balance for both their transfer balance cap and total superannuation balance.

There is no 'special circumstances' discretion for contraventions of the transfer balance cap and it is particularly important for all SMSF trustees and members to self-monitor and ensure that members do not exceed their transfer balance cap.

● Keep Records
One of your responsibilities as a trustee is to ensure proper and accurate tax and super records are kept.
You should take minutes of all investment decisions, including:

   > why a particular investment was chosen
   > whether all trustees agreed with the decision.

If, as one of the fund’s trustees, you invest the SMSF’s money in an investment that fails, the other trustees could take action against you for failing to be diligent in your duties. However, if your investment decision was recorded in meeting minutes that were signed by the other trustees, you will have a record to show that the other trustees agreed with your actions.

You need to make certain records available to your fund’s SMSF auditor when they audit your fund each year. You may also need to provide accurate records to the ATO if they ask to see them.

You need to keep the following records for a minimum of five years:

   > accurate and accessible accounting records that explain the transactions and financial position of your SMSF
   > an annual operating statement and an annual statement of your SMSF’s financial position
   > copies of all SMSF annual returns lodged
   > copies of Transfer balance account reports lodged
   > copies of any other statements you are required to lodge with us or provide to other super funds

You need to keep the following records for a minimum of 10 years:

   > minutes of trustee meetings and decisions (if matters affecting your fund were discussed, for example you reviewed the fund's investment strategy)
   > records of all changes of trustees
   > trustee declarations recognising the obligations and responsibilities for any trustee, or director of a corporate trustee, appointed after 30 June 2007
   > members’ written consent to be appointed as trustees
   > copies of all reports given to members
   > documented decisions about storage of collectables and personal use assets.
Don't forget that income tax record-keeping requirements also need your attention – especially documents on deductions, capital gains and losses.

Keep records in writing and in English. If you keep electronic records, they must be capable of verification by us and be in a form we can access and understand.