SMSFs that have added members and have failed to notify the ATO of such changes need to do so immediately as the SMSF annual return (SAR) will not automatically fulfil this obligation.
Since the additional members rule commenced on 1 July 2021, SMSFs are now able to report up to six members on their annual return from 2021/22 onwards, but the ATO has warned funds that reporting the presence of those members does not automatically update the fund’s member trustee information on the Australian Business Register.
Trustees have within 28 days to notify the regulator of any fund updates, including trustees, directors of the corporate trustee, members, contact details, address and fund status. Meanwhile, disqualified trustees or people who have ceased their trustee role must inform the ATO immediately.
“Sometimes when you add a new member or trustee we may initiate a review. We aim to complete these reviews within 56 days. This is one of the many steps we are taking to safeguard the retirement savings of Australians,” the ATO stated via an online update.
“While you can also update your SMSF’s address details by lodging a SMSF annual return, you will not be able to update any of the other details.”
Funds can notify the ATO of updates via an online website or services for business, through a registered agent, by phone or by lodging a paper form.
In the update, the regulator noted that if an SMSF’s annual lodgement due date falls on a weekend or public holiday, then it can be done on the next business day, but a failure to lodge by the appropriate due date can result in penalties and a loss of SMSF tax concessions.
If trustees need to amend their original SAR, the report will need to be submitted in its entirety and they need to ensure the correct information is filled out to notify the regulator that it is a revised SAR.
