When is a new SMSF established?

Knowing when an SMSF has been established is important for two reasons.  The first is that the establishment date determines when the 60 day time period for registration of the SMSF commences.  The second is that the establishment date determines whether an SMSF return is required to be submitted to the ATO.

An SMSF is established when the trustee first receives a contribution (or a benefit rollover or transfer) on behalf of the fund.  Typically, the first contribution is made on the same day as the trust deed is signed.  In this situation the date of signing the trust deed and the date of establishment will be one and the same.  However, if the trust deed is signed on, say, 5 May and the first contribution is only received by the trustee on the 10 June, the fund will be established on the 10 June.  In this situation, the date of signing and the date of establishment will be different dates.

A newly established SMSF has 60 days in which to register with the ATO.  Registration with the ATO involves applying for an ABN, possibly registering for GST, applying for a Tax File Number and making an election for the SMSF to be regulated under the SIS Act.  Registration can be achieved by completing and submitting a particular ATO form (being form NAT 2944).  

However, registration can be achieved over the web.  The advantage of registration over the web is that an acknowledgment will automatically and promptly be provided.  If the SMSF is registered within 60 days the fund will, once the first annual return is lodged with and processed by the ATO, be deemed as a complying superannuation fund from the date of establishment.  

If registration is made only after the end of the 60 day period (and assuming the ATO has not granted an extension) the fund will not be treated as a complying superannuation fund for the first financial year.  The fund may be treated as complying for subsequent financial years.

Registration of the SMSF with the ATO and the establishment of the SMSF are separate matters.  Establishment of the SMSF is a precondition for registering the SMSF.  The SMSF could be established and registered on the same day.  However, an SMSF cannot be registered before it is established.  

A newly established SMSF must lodge, by the due date an annual return in respect of the financial year in which it was established.  If the SMSF was established on 29 June 2014, it must still lodge an annual return in respect of the 2014 financial year.