New SMSFs & annual returns

The annual return obligations of new SMSFs are often misunderstood.

In respect of an SMSF which was established during the 2014 financial year, the due date for lodgement of their annual return is:

• 31 October 2014  -  if the SMSF has not appointed a tax agent (and consequently prepares its own returns); and
• 28 February 2015  -  if the SMSF has appointed a tax agent.

If an SMSF has been not been established during the 2014 financial year but has been registered, the trustee must lodge a “return not necessary” form.  By lodging this form the ATO is advised that no contributions, benefit transfers or rollovers were received by the trustee of the SMSF during the first financial year.  The form also requires the trustee to state the date on which contributions were first held for the fund.  

The “return not necessary” form procedure permits one false start in the establishment of the SMSF.  

If the SMSF has still not been established during the second year, the trustee cannot lodge another “return not necessary” form but must cancel the registration of the fund.