The ATO has released two important reminders for SMSF trustees, emphasising the significance of ensuring compliance for their funds as the end of the financial year approaches.
In the first instance, the regulator advised members to ensure the timely acknowledgment of a valid Notice of Intent (NOI) when individuals seek to claim deductions on personal superannuation contributions.
“When you receive a valid notice of intent to deduct contributions from a member, you must, without delay, give an acknowledgment of that notice unless the NOI can be refused,” the ATO said.
“You must also report the acknowledgement of the NOI within 10 business days. Where a member lodges a subsequent notice for a separate amount, this should be reported as a separate NOI transaction.
“You can only refuse to give members an acknowledgement of a valid NOI if there are insufficient funds in the super account to pay the tax payable if an acknowledgement were given,” it said.
The advice comes after the ATO recently took action to rectify a discrepancy between the Income Tax Assessment Act 1997 (ITAA) and the Superannuation Industry (Supervision) (SIS) Regulations (SISR) regarding the work test requirement.
Additionally, the ATO reminded trustees to promptly notify the regulator of any changes to their SMSFs, including updates to contact details, modifications to the SMSF structure, or changes in bank account information.
“Whether the changes are small or big, it’s important to notify us of changes to your SMSF within 28 days. If you change your contact details, but you haven’t notified us, then you run the risk of missing out on any important correspondence from us,” the ATO said.
The ATO confirmed that trustees will receive a notification via text or email after providing any changes to details such as financial institution account information, electronic service addresses, authorized contacts, and eligible members.