When is it not required to lodge SMSF annual return?

Once established legally all SMSFs are required to lodge annual return except in the first year of the SMSF registration if there are no assets in the fund, there is no requirement to lodge the tax return. Trustees can either request tax office for return not necessary or cancel fund’s registration.

What are the requirements for the SMSFs for the approval of return not necessary?

To be a trust structure SMSF is only establish once it has assets set aside for fund member benefits. If there are no assets in the fund in first year trustees can:

1. Write to the tax office and request funds registration to be cancelled

2. Request tax office to approve return not necessary by satisfying the conditions below:

– In its first year of setup fund has no assets and did not receive any contribution or

rollover for any fund member

– Submit supporting document with the RNN request showing first date fund held

assets and started operating. Example being SMSF bank account statement

– Advise the ATO that once operating fund will lodge all future returns

RNN can also be lodged by the registered tax agent on funds behalf through tax agent portal.

They need to select options as below for the lodgement of this request:

– SMSF new registrant – return not necessary request

– SMSF cancel of registration – where the Superfund has not legally established

Is the return not necessary only for the first year of the registration or can it be lodged
for second year if there are no fund assets?

In limited circumstances RNN will be granted for the subsequent years. For approval

supporting document evidence needs to be provided with RNN request as an evidence of date fund first held assets.

What is the due date for the lodgement of the tax return if first year was granted return
not necessary?

In the second year of the fund due date will be 31 st Oct after the end of the financial year if lodged by trustees or 28 th Feb of the next financial year if lodged through registered tax agent.

These dates are same as it is a newly registered SMSF lodging its first return.

Does audit needs to be done for the Return not necessary year of the SMSF?

No. Audit is not required for the return not necessary year.