The Australian Taxation Office has issued a reminder to trustees of self-managed superannuation funds in pension phase that they must still lodge a tax return.
And it has warned that SMSFs that do not lodge returns, even if the members are drawing pensions and no longer lodging personal tax returns, will have to be wound up
The ATO says it has had to contact SMSFs that have failed to lodge multiple tax returns, even though they are still active.
The ATO says the feedback it got back from some funds was that they did not realise they were still required to lodge tax returns once the members were drawing pensions and were no longer lodging personal income tax returns.
Retirees over 60 who are drawing a pension from their super fund do not pay tax on their income. In addition, the pension account is not taxed on its earnings.
The ATO says the reason all SMSFs must lodge an annual return is that “it is more than an income tax return.”
The annual return includes general information about the SMSF and its auditor, member information, assessable income (if there is any), deductible and non-deductible expenses, losses, information about such matters as family trusts election and interposed entity elections.
It includes a breakdown of the assets and liabilities of the fund, including the market value of the assets. It must include a valuation of in-house assets.
And the return includes a declaration from the trustees that they have met their obligations.