SELF MANAGED SUPER FUNDS (SMSF) AT RISK OF LOSING THEIR COMPLIANT STATUS!
The ATO has advised late lodgement of SMSF annual returns will result in a change to a fund’s status on its Super Fund Lookup (SFLU) facility until compliance with the reporting requirement is satisfied.
The SMSF regulator stated: “if an SMSF is more than two weeks overdue on any annual return lodgement due date and hasn’t requested a lodgement deferral, we will change their status on SFLU to ‘Regulation details removed’.
This status will remain until any overdue lodgements have been brought up to date. The new ‘Regulation details removed’ status means employers will be unable to make any super guarantee contribution payments for members of the SMSF.
It is also paramount that the investment strategy within your SMSF is also reviewed and updated regularly.
The Auditor of the Fund will be looking to ensure that it reflects the purpose and circumstances of the fund and its members. If the members do not adhere to the Investment Strategy in place and/or the strategy is outdated, the Fund may not pass the Audit!
An investment strategy must include:
- The Fund’s profile & Member Profile/s
- The Fund’s investment objectives- General & Specific
- Risk Tolerance and Statement of Risk
- Diversification, investing across a broad range of assets and sectors
- Liquidity, ensuring the fund has the ability to pay expenses, taxes and members’ benefits
- Anticipated Contributions and transfers in
- Insurance considerations
- Reserves Management Strategy
The days of the “one page” Investment Strategy are now in the past and Auditors will be checking that the above needs are covered in the Funds’ Strategy.
The SMSF Trust Deed should also be reviewed annually to incorporate any changes in income tax and Super Industry law.
Please contact us today to ensure your SMSF Deed & Documents are up to date to avoid your SMSF becoming Non-Compliant!