News

ATO, Technology

Super Fund Lookup error surfaces

super fund lookup error

A malfunction of the ATO’s Super Fund Lookup register has resulted in some SMSFs erroneously losing their complying status on the system.

The ATO is currently experiencing a glitch in its Super Fund Lookup facility, resulting in the removal of some SMSFs’ complying status for overdue annual returns in error.

The problem with the service has seen SMSF trustees have the complying status of their funds removed despite satisfying their lodgement obligations, having furnished their annual returns between 1 June and 7 June this year.

A concessional extension of the annual return lodgement date had been granted to SMSFs, with the new deadline falling on 7 June.

The SMSF Association alerted the sector to the error with the Super Fund Lookup register via a series of Twitter messages and explained the processing time frame involved that is contributing to the situation.

“Even though trustees may have lodged between 1 June 2021 and 7 June 2021 & have met their lodgement obligations, regulation details won’t be updated on Superfund Lookup until the first business day of the following month [that is] 1 July 2021,” it said on Twitter.

According to the industry body, the ATO is aware of the anomaly, with the Super Fund Lookup system and is working to restore the correct status of all SMSFs in the system as soon as it possibly can.

In the meantime, the association assured the sector it will also be doing what it can to rectify the situation.

“We will continue to liaise with the ATO as we understand the flow-on impact this has to rollovers, employer contributions, salary sacrificing agreements, entitlements to tax deductions and impact on members’ contribution caps and update you accordingly,” it said.

The removal of an SMSF’s Super Fund Lookup complying status means the fund cannot receive any contributions from employers or members and cannot accept any balance rollovers from other funds.

The timely lodgement of SMSF annual returns continues to be one of the main compliance issues causing regulator angst.

As a result, on 1 October 2019 the ATO adopted a harder line on late lodgers and “never lodgers” via the Super Fund Lookup register.

Copyright © SMS Magazine 2021

ABN 43 564 725 109

Benchmark Media

Site design Red Cloud Digital