SMSF members are likely to receive delayed Division 296 tax assessments in comparison to members of other superannuation funds given the different ways annual returns are filed, according to a technical specialist.
Institute of Financial Professionals Australia (IFPA) head of technical services Natasha Panagis said the convoluted process used to levy the proposed impost could see SMSFs sent tax bills more than 10 months after Australian Prudential Regulation Authority (APRA)-regulated funds.
In response to a question from an attendee at The Super Playbook 2025 event, recently co-hosted by IFPA and The Auditors Institute in Sydney, about when the ATO will issue Division 296 tax bills, Panagis noted it would depend on when an SMSF reported key information.
“The ATO would need to know what the member’s total super balance is first. Once that all gets reported, then [the process can begin],” she stated.
“[That reporting] could be delayed and the assessment could be a delayed process because the ATO has to wait for the fund to lodge its return.
“For SMSFs, we could be looking at a delayed process whereas for large APRA-regulated funds they report a lot quicker and it will be a much more seamless process, but for an SMSF the Division 296 tax liability will potentially be two years away.”
Vincents superannuation advisory director Mailene Wheeler, also speaking at the event, added individual tax returns for members disclosing any concessional contributions would also need to be lodged for those assessments to take place.
“The timing of concessional contributions made to an SMSF aren’t reported or received by the ATO or confirmed until the individual lodges their tax return, similar to how the Division 293 tax is applied, so that factor will also impact the timing,” Wheeler explained.
“SMSF members will also need to lodge their individual tax return, otherwise the ATO will usually default to the position that it’s an excess non-concessional contribution if they haven’t lodged their own tax return on time.
“So we might see that it’s going to be after 15 May 2027 before you will start to see Division 296 assessments issued.”
