Registered but Empty Funds

A super fund will only be established once there are assets of the fund.  These assets could arise by an initial contribution or by rolling over super benefits into the newly established fund.

Signing a superannuation deed and registering the fund with the ATO will not establish the fund.

Where there are no assets of the fund, the ATO based upon the position at general law, takes the view that no fund is in existence, despite there being an ABN or TFN for the fund.

There could be good reasons to delay giving the fund assets: for example, if the superannuation deed is signed in late June 2011 and there is little point in having a fund in existence for a few days of a financial year, assets may be transferred on or after 1 July.  The delay in the transfer of assets means no financial statements and audit is required and a tax/regulatory return need not be submitted in respect of the 2010/11 financial year.  This will avoid incurring unnecessary audit and return preparation expenses as well as the supervisory levy which is now $180.

In order to avoid the ATO subsequently chasing up annual returns – which according to their records, are required to be lodged, the Trustee could notify the ATO to flag the fund as a “Return not necessary” for the 2010/11 financial year.  The relevant ATO form reference is NAT 0536.