The ATO has issued reminders to trustees that switching to paperless lodgement of activity statements for their fund will give them an extended period in which to do so, while also pointing out those receiving pensions must draw down the minimum before the end of the financial year.
In an update on its website, the regulator stated it had recently emailed SMSFs that were still receiving or lodging activity statements by paper encouraging them to go paperless by signing up for the ATO’s Online Services for Business portal.
“If you’re still using paper and not lodging online, make the switch now and go digital,” it said.
“Preparing and lodging online is secure and convenient and provides additional benefits, including having more time to lodge – an extra 2 weeks, reducing errors, faster refunds and easier record-keeping.”
The reminder comes as the ATO also called on trustees and members to ensure minimum pension payments are made by the end of the current financial year.
“A SMSF must pay a minimum amount each year to a member who is receiving a pension that commenced on or after 20 September 2007. These are mainly account-based pensions,” it said.
“If you haven’t already, then you’ll need to make sure all members receiving an account-based pension are paid their minimum pension amount by 30 June.
“This is calculated by applying the relevant percentage factor based on the member’s age by the member’s pension account balance calculated as of 1 July 2024 or on a pro-rata basis if the pension commenced part way through the 2024/25 financial year.
“If the minimum payment is not made by 30 June, this could result in adverse taxation consequences for the member.”
It added instructions on how to calculate a member’s minimum pension payment were available on its website, which stated a failure to pay the minimum amount will mean the income stream will be taken to have ceased at the start of the income year for income tax purposes.
Additionally, payments for the income year and subsequent income years will not be treated as super income stream benefits and the SMSF will be unable to claim exempt current pension income for the income year or subsequent income years.
This guidance, updated at the start of April, also reflected changes to Taxation Ruling 2013/5 and stated for a member to receive a super income stream for income tax purposes in future years, the ceased income stream had to be commuted and a new super income stream started.
