The ATO has recently made a change to its Super Fund Look Up page policies which could have a significant sting for SMSFs. From 1 October 2019 an SMSF will have its registration details removed from the Super Fund Look Up site if it has an annual tax return outstanding with the ATO for more than 2 weeks.
The ATO will look into the status of each SMSF on the first business day of each month and either remove those who do not comply or reinstate those who were removed but then got their lodgements up to date.
So for those funds who have not lodged their 2018 tax returns, their registration status will be removed from 1 October 2019 and fund who lodged their 2018 tax returns late (& have a lodgement deadline of 31 October 2019) will need to lodge their returns by the end of November to avoid having their registration status removed on 1 December 2019. The ATO has confirmed that one way to avoid this is to apply to the ATO for a lodgement deferral. This will ensure the status remains as complying as long as the tax return is lodged by the agreed to extended lodgement date
The consequences of having the SMSF registration details removed are twofold. Firstly the SMSF will be unable to receive rollovers from any APRA regulated funds (i.e. SMSF will not be able to receive rollover of member’s balances from other industry or retail funds). Secondly and even more serious is that the fund must not receive any employer contributions whilst the fund’s regulation details are removed. Any such contributions will not be deemed to be employer contributions and instead the member must direct their employer to pay the contribution to the employer’s default fund or another fund of the member’s choosing.