From 1 October 2019, if your SMSF passed the lodgment due date for more than two weeks, ATO will update the status on Super Fund Lookup (SFLU) to ‘Regulation details removed’.
What does this mean to the trustees/members and SMSF?
- your SMSF is still complying. This does not mean your SMSF is a non-complying SMSF. An SMSF is only a non-complying SMSF when ATO issue a non-complying certificate to its trustees;
- All members in the SMSF will not be able to roll over any member balances from industry or retail super fund;
- All SMSF members will not be able to receive employer contributions. Members’ employers will receive ESA error message when paying the employer contributions to the SMSF.
How members/trustees can rectify this and get the status back to normal?
- apply for lodgement deferral with ATO. This should be done before the lodgement due date. iCare Super always lodges the deferral for the SMSF clients before the lodgement due date. However, you have to lodge the tax return before the new extended due date;
- lodge the over due tax returns as early as possible. ATO normally will change the status back to “complying” in four weeks after all the overdue tax returns have been lodged.
Where shall the member’s employer contributions be paid to if the complying status has been removed?
- member should open a member account with retail or industry superannuation fund and advise the employer to pay the employer contributions to that account;
- member can roll over the member balance in industry or retails superannuation fund to their SMSF after the all the overdue tax returns have been lodged.
If you have any overdue tax return lodgement for your SMSF, please contact us on 03 9557 4079, firstname.lastname@example.org or via online chat.