ATO reminds trustees to meet lodgment obligations

More than 65,000 SMSFs still have outstanding lodgment obligations for the 2023 year, and the ATO said the trend is continuing in 2024.

The regulator says that to avoid penalties and the loss of SMSF tax concessions, SMSF trustees need to ensure their lodgments are up to date.

It said that lodging the SMSF annual return (SAR) is the most important compliance obligation trustees must meet.

The SAR covers the income tax return, regulatory information and member contribution reporting, and also enables payment of the SMSF supervisory levy.

“We are concerned about the growing number of SMSFs falling behind with their lodgment obligations and remind trustees of the importance of understanding and meeting their lodgment and compliance obligations,” the Tax Office said.

“If you fail to lodge your SAR on time, there may be penalties applied and SMSF tax concessions can be lost. If your fund's lodgment is overdue, its Super Fund Lookup may change to 'regulation details removed'. This can restrict your SMSF from receiving rollovers and employer contributions.”

During 2025–26, the ATO said it would undertake targeted compliance action for SMSFs behind with their lodgment obligations.

It warned that unless prompt action is taken regarding the outstanding obligations of these funds, their trustees can expect compliance action to deliver sanctions which could include their disqualification from running an SMSF.

Keeli Cambourne

July 2025

smsfadviser.com