Hot Issues
spacer
Covid-19 resources
spacer
‘HomeBuilder’ grants now available.
spacer
Tax Time Checklists - Individuals; Company; Trust; Partnership; and Super Funds
spacer
JobKeeper documentation ‘absolutely critical’ in ATO audit
spacer
ATO updates JobKeeper compliance approach
spacer
COVID-19 hotspots - tax time 2020
spacer
$150k instant asset write-off set for significant drop
spacer
Tax reform to feature heavily in PM’s JobMaker plan
spacer
Jobkeeper Fraud warning
spacer
ATO extends initial JobKeeper payment deadline
spacer
Boosting cash flow - ATO
spacer
Our website, your resources
spacer
ATO releases JobKeeper alternative test
spacer
Temporary Working from Home Expenses Rule
spacer
Minimum Pensions Halved – 2020 & 2021
spacer
More coronavirus support for landlords, commercial tenants
spacer
COVID-19: Early Childhood Education and Care Relief Package
spacer
What Covid-19 relief packages mean to you.
spacer
Now I’m working from home, what can I claim?
spacer
Global statistics plus Covid-19 updates
spacer
ATO clarifies COVID-19 rent relief concerns
spacer
Banks to defer small-business loan repayments for 6 months
spacer
Historic $130bn wage subsidy to cover 6 million workers
spacer
Stage 2 – Covid-19 stimulus package.
spacer
Covid-19 Update - Small Business
spacer
PM launches $17.6 billion virus stimulus plan
spacer
SG amnesty bill passes Parliament
spacer
ATO flags most common SMSF return mistakes
spacer
Expected GDP by country 2010 to 2100
spacer
ATO expands small business review pilot
spacer
A resource hub for our clients.
spacer
Risks when dating documents in 2020
spacer
Australian Taxation Office (ATO) debts may affect your credit rating
spacer
Statistical picture of Australia - Update
Article archive
spacer
Quarter 1 January - March 2020
spacer
Quarter 4 October - December 2019
spacer
Quarter 3 July - September 2019
spacer
Quarter 2 April - June 2019
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
ATO flags most common SMSF return mistakes

The Australian Taxation Office has revealed the top five most frequent errors made in the submission of SMSF annual returns as well as how advisers can avoid them when lodging this year.

       

A bank account that isn’t unique to the SMSF

The ATO said there must be a bank account in the fund’s name to manage the SMSF operations and to accept contributions, rollovers of super and income from investments.

Further, it said the account must be separate from the trustees’ individual bank accounts and any related employers’ or advisers’ bank accounts.

“This will protect your fund’s assets and ensure super payments can be made to your SMSF,” the ATO said.

Providing an incorrect electronic service address (ESA)

The ATO said an ESA allows an SMSF to receive electronic remittance advice and contributions if it has members receiving super from non-related employers. Therefore, it’s not an email address or the contact details of the SMSF messaging provider.

“An ESA consists of alphanumeric characters with a combination of upper and lower-case characters and is case sensitive,” the Tax Office said.

Not valuing an SMSF’s assets at market value

The Tax Office noted that SMSF assets need to be calculated at market value as at 30 June to prepare the fund’s accounts, statements and SAR.

“If you follow our valuation guidelines, we’ll generally accept the valuation you provide,” the ATO said.

“Accurate asset valuation is important to ensure your SMSF retains its complying fund status. Penalties may apply for inaccurate valuations as these can have an impact on your members’ balances.”

Trying to lodge with zero assets

The ATO said an SMSF is not legally established until the fund has assets set aside for the benefit of members. As a result, the regulator said it won’t accept a SAR from an SMSF that has no assets unless the fund is being wound up.

“If this is your SMSF’s first year and you have no assets set aside for the benefit of members, you can ask us to either cancel your fund’s registration or flag the SMSF’s record as return not necessary (RNN),” it said.

Lodging an SAR without auditor details

An approved auditor examines an SMSF’s financial statements and assesses the fund’s compliance with super law, meaning an audit must be completed before your SAR can be lodged, according to the ATO.

“A SAR lodged without auditor’s details will be suspended and not recognised as a lodgment. This will impact the complying status of the fund until the SAR is lodged with the required information,” the ATO said.

“Appoint an auditor at least 45 days before your SAR is due to ensure the audit is completed in time to meet the lodgment date.”

 

 

Adrian Flores 
26 February 2020
accountantsdaily.com.au