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New Concerns for Overdue SMSF Annual Returns

Commencing 1 October 2019, any self-managed super fund annual return lodgement more than two weeks overdue will have its status changed on the Super Fund Lookup. The ATO has chosen this method in order to protect retirement savings.

The new status, ‘regulation details removed’, will remain on the SFLU until the overdue lodgements are finalised.

The ATO will make changes to the SFLU in regards to the SMSF status on the first business day of each month. If the SMSF’s return lodgement exceeds two weeks overdue the status will be changed to ‘regulation details removed’. Once the SMSF lodges the overdue return the status will be amended to ‘complying’ on the first business day of the next month.

If a SMSF’s status is ‘regulation details removed’:

  • Employers will not make any super guarantee contribution payments into the SMSF for its members. SMSF members should advise their employer to make SG payments into the employer’s default super fund or another fund of the member’s choice.
  • APRA funds will not roll over any member benefits to the SMSF. Once the status is changed to ‘complying’, members can request a rollover of any member benefits held outside the SMSF into the fund.

The ‘regulation details removed’ status can be avoided. If a lodgement will be late, the SMSF trustee should seek a ‘deferral to lodge SMSF annual returns’ before the due date. This will ensure that the SMSF status remains ‘complying’. However, if the agreed date of deferral is not met, a 'regulation details removed’ status will be displayed.

If you would like to discuss this please contact our office.

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