The ATO has stated the most common problems that occur in relation to SMSF annual returns (SAR) are often related to simple administrative errors that lead to invalid or missing information in submitted documents.
In a recent update on its website, the regulator stated the errors, which can lead to delays in processing a SAR, were easily avoidable by checking all fields before a return was lodged.
“Ensure all mandatory fields are completed, even if nothing has changed from last year,” it said, noting auditor information was an area where mistakes were often made.
“Pay particular attention to auditor details. Incomplete auditor details are another common issue.
“Returns are sometimes submitted without a valid [SMSF] auditor registration number (SAN) or before the audit has been fully finalised.
“To prevent this, make sure the audit process is complete and the trustees have received a copy of the signed and dated audit report prior to lodgement.
“Also, make sure the correct SAN, auditor’s name and date the audit was completed is entered on the return.”
The ATO also observed incorrect member information and dates attached to events were a recurring issue each year.
“Missing or invalid tax file numbers (TFN) can lead to processing delays. Always verify TFNs directly against your client records rather than relying on pre-filled or previously lodged data,” it said.
“Dates may be entered incorrectly or in the wrong format. Reviewing key dates, such as the financial year end and audit completion date, can help catch these errors early.”
SMSF practitioners and trustees were also encouraged to correctly fill out sections where the ATO prompted them to make a choice.
“We also see instances where values entered don’t align with approved options. Where dropdown menus are available, use them instead of manually entering values to avoid mismatches with approved lists,” it said.
“In addition, ‘yes’ or ‘no’ boxes are sometimes missing or invalid. A quick scan of all such questions before submission can confirm each one has been answered appropriately, streamline the lodgement process and reduce the likelihood of delays or rejections.”
In a separate update, the ATO also noted there were common issues with SuperStream release authority lodgements that could lead to processing delays.
It reminded superannuation practitioners they should lodge a release authority statement (RAS) within 10 business days of receiving a release authority from the regulator via SuperStream, and failing to do so may lead to penalties.
Additionally, it emphasised only the amount requested in a release authority should be paid as overpayments or duplicate payments can lead to member refunds and illegal early access to super, and a RAS should be sent to the ATO with each payment so it can allocate payments to the member.
Jason Spits
SENIOR JOURNALIST
Jason is a senior journalist with Benchmark Media and writes for the selfmanagedsuper website and magazine and smstrusteenews website. He has covered financial services since 1999 and has written about life insurance, superannuation, investment management and financial advice, in both a freelance and in-house capacity, and also did a brief stint as a media manager for an industry association. He has been the editor of trade titles Money Management and Financial Standard, and was most recently senior journalist with life insurance title Riskinfo.
Articles by Jason