SMSF tax return also known as DIY super return or superannuation tax return is mandatory if you control your retirement savings in the form of retirement saving vehicle known as self managed super fund.
The tax return due date varies if its new fund or existing fund, lodgment is done through registered tax agent or trustees, if the previous year’s tax return was lodged on time. Due date can be confirmed by online portal or your tax agent can confirm through tax agent portal. If you are using registered tax agent for the lodgment of the SMSF annual return you will get extra time to lodge the return as compared to if you lodge by yourself.
Financial year for self managed super funds is from 1st July to 30th June. It is one of the requirements to have an SMSF to lodge annual return every year from the fund inception till wind up. Tax return can only be lodged once the audit of the fund has been finalized by the ASIC approved SMSF auditor and the SMSF auditors and audit complete details will be included in the tax return.
Tax rate for SMSFs in Australia is flat 15 percent on the taxable income which will be calculated after deductions are deducted from the assessable income. Funds is pension phase will be tax free but needs to follow superannuation rules for pension and transfer balance cap rules. Different rates can apply to funds in some circumstances examples being non complying SMSFs taxed at higher rate of 47 percent.
Every self managed super fund is different with some simple and other more complex. We can prepare and lodge your Superannuation tax return irrespective its being simple or complex.
Self Managed Super Funds or DIY Super Funds assesses their own debt or tax refund. Once the tax return of the SMSF is lodged it will be considered as assessment and a separate notice of assessment will not be issued.
Options of lodging the tax return is paper form or through software. We use SMSF specialist software BGL simple fund for the preparation and lodgment of the superannuation tax return.
If the tax return will be overdue for some time the SMSF details will be removed from the Superfund lookup and employers will not be able to make member contributions with this status. Status will come back to normal once the overdue tax returns are lodged and Superfund lookup status will be updated.
Part of the SMSF tax return is the SMSF details section, auditor details, income section, deduction section, member section and assets and liability section. All details need to be filled for the relevant financial year and tax return will be submitted to the ATO. Super levy will also be paid as part of the SMSF tax return for the relevant year and for the first year of the SMSF super levy will be paid for the next year in advance and when winding up the fund year no super levy will be paid and will be adjusted on the SMSF tax return.
If the superfund tax return needs to be amended in the later stage whole tax return will need to be submitted again and not only the part that needs to be amended. As amending one part will change the other part figures on the return.
If the superfund needs to be wind up at some stage final tax return will be prepared and lodged with wind up details on the tax return. Audit for the final year need to be completed before the lodgment.
If you need any help or have any question regarding SMSF tax return please feel free to contact our Superannuation expert team.