Time extension granted for annual returns

SMSF; pension; exemption

A specialist lawyer has suggested June is the best time for SMSF members to start a pension, using an exemption related to minimum yearly draw-down amounts.

The ATO has announced it will extend the due date for lodgement of SMSF annual returns for 2016/17 to 30 June 2018.

“We recognised there are some major new considerations and decisions for SMSFs and their advisers to make in this first financial year of operation of the super reforms that came into effect from 1 July 2017,” ATO deputy commissioner James O’Halloran said today.

“We have therefore decided to extend the lodgement date for 2016/17 SMSF annual returns so that SMSF trustees and their advisers can focus on these important matters.

“We have heard from many professionals that their current focus is on providing important advisory services to their SMSF clients to ensure they are in the best position to make decisions to take into account some of the recent super reforms, including eligibility for transitional capital gains tax (CGT) relief.”

O’Halloran acknowledged that because the extended due date of 30 June 2018 falls on a Saturday, in accordance with relevant administrative provisions of the tax laws, lodgement of 2016/17 SMSF annual returns can be made on the next business day, Monday 2 July, without penalty.

He said accountants, tax agents and SMSF advisers play a key role in ensuring SMSFs are best placed to make informed financial decisions following the recent reforms.

“Recognising the crucial considerations and decisions that SMSFs and their advisers need to make in this first year we have sought to reduce some of the burden of SMSF compliance work by extending the due date for 2016/17 SMSF annual returns,” he noted.

“We acknowledge this and appreciate the ongoing support tax professionals and SMSF advisers provide in facilitating change, especially at this important time for the sector and the broader super industry.”

The extended lodgement time frame also means all SMSFs that are eligible for transitional CGT relief as a result of the $1.6 million transfer balance cap will have additional time to consider and make relevant elections before the due date for lodgement of their 2016/17 annual return.

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