The ATO has released information about lodging their SMSF early engagement and voluntary disclosure service. SMSF trustees can use this service to inform the ATO of a contravention that has occurred, rather than waiting for their auditor to tell the ATO after the financial year has ended.
If trustees voluntarily disclose unrectified contraventions before the ATO start an audit, the ATO will take the disclosure into account when determining what other actions we need to take.
During the 2022 financial year, the ATO received 897 voluntary disclosures which is the highest it has received in any financial year. This is a 11% increase from the 2021 financial year.
Before using this service, SMSF trustees or agents must develop a plan to rectify the contravention.