Prepare to lodge your SAR by 28 February
Some SMSFs will need to lodge their SMSF Annual Return (SAR) by 28 February 2025. Check to see if you need to lodge.
You may need to lodge your SMSF Annual Return (SAR) by 28 February 2025.
Failing to lodge your SAR on time can result in the compliance status of your SMSF on Super Fund being changed to ‘regulation details removed’ which may result in rollovers and employer contributions not being made to the fund.
If your SMSF had assets, such as super contributions or other investments as of 30 June 2024, you will need to lodge a SMSF Annual Return for the 2023-24 financial year.
You should refer to the ATO 2024 SAR instructions or contact a registered tax professional as soon as possible if you need help lodging your SAR.
If your fund does not have any assets, you need to either make a return not necessary request or cancel your fund’s registration if you no longer wish to have a SMSF.
You can review the ATO’s Trustee reporting obligations checklist or visit ATO SMSF support services for help.
Prepare to lodge your quarterly January TBAR
If you have had Transfer Balance Account events in the last quarter you must lodge a TBAR by 28 January 2025.
Self-Managed Super Funds (SMSFs) must report certain events that affect members Transfer Balance Account quarterly using Transfer Aalance Account Reporting (TBAR). These events must be reported even if the member’s total superannuation balance is less than $1 million.
TBARs for the December quarter are due on 28 January 2025. If you do not report on time, you may be subject to compliance action and penalties and your member’s Transfer Balance Account may be adversely affected. The member may need to commute any amounts more than their cap and pay more in excess Transfer Balance Tax.
You are not required to lodge if there were no Transfer Balance Account events during the quarter.
Refer to ATO’s Event-based reporting for SMSFs and the TBAR instructions when preparing your TBAR.
The easiest way to lodge is through Online Services for Business.
Understanding Qualified Audit Reports
Find out why auditors may issue a Qualified Audit Report when SMSFs use an investment management service organisation.
SMSFs may hold investments where a service organisation maintains responsibility for managing the underlying assets. Examples of these investments include WRAP accounts, individually managed portfolio services or platform investments.
Under these arrangements, generally the SMSF does not hold the assets directly, they’re held by a custodian on behalf of the SMSF.
When it comes time for the annual SMSF audit, SMSF auditors will request evidence to confirm the assets in the SMSF’s financial statements. For assets managed by a service organisation, it can be difficult for auditors to confirm ownership of the asset. This may be the case even when an annual investment statement and other audit documents are provided.
Where it’s the auditor’s opinion there is insufficient evidence to verify ownership of the asset, they will qualify Part A of the Independent Auditor’s Report (IAR). Part A of the IAR relates to the financial side of the audit. In this scenario, a Part A qualification may be unavoidable even though the SMSF trustees may have complied with all their obligations.
If your SMSF auditor has qualified Part A of the IAR, you should discuss this with your auditor to understand the reasons why and what it means for your SMSF.
Information for Auditors
The Guidance Statement GS009 Auditing Self-Managed Super Funds provides guidance on audit considerations when SMSFs use investment management service organisations. Auditors may avoid a Part A qualification where sufficient evidence obtained is in accordance with ASA 402.
The Joint Accounting Bodies (JAB) have issued a FAQ Audit considerations relating to an SMSF using an investment management service organisation. This explains that in some cases, it’s possible to obtain sufficient appropriate audit evidence, but there is no one-size-fits-all approach.
Aged care reform passes both Houses
The Government’s Aged Care Bill 2024 has finally passed both Houses, implementing once-in-a-generation reforms to aged care.
Starting from 1 July 2025, the new Act will deliver a range of improvements, including a tougher regulatory model, strengthened Aged Care Quality Standards, and a Statement of Rights to ensure older people and their needs are at the centre of the new aged care system.
The complexity of the changes and speed of the passage of the Bill was reflected in the extraordinary number of amendments – 68 amendments in the House and a further 99 amendments agreed to in the Senate.
Related bills are still before Parliament:
A common complaint during the passage of the Bill was that much of the detail is still to be released in the new Aged Care Rules. This is delegated legislation that can be tabled and commence at very short notice. Requests were made by Senators to release drafts of the delegated legislation for stakeholder feedback prior to being tabled.
With 594 pages of legislation and no Rules yet released it will take some time for stakeholders to digest and understand the full impact of the reforms.
APRA survey reveals mixed progress on climate risk management in financial sector
APRA has released findings from its second climate risk self-assessment survey. The survey findings are available on APRA’s website at: Climate Risk Self-Assessment Survey 2024.
The voluntary survey, open to all APRA-regulated banks, insurers and superannuation trustees, aimed to assess management of climate change-related financial risks and how entities align their practices with the Prudential Practice Guide CPG 229 Climate Change Financial Risks.
Key insights include:
- Most large entities improved climate risk maturity since 2022
- Large banks showed improvement, while insurers and superannuation trustees remained stable
- Smaller entities generally reported lower climate risk maturity
- Strengths were in “governance and strategy” and “risk management”
- Areas needing improvement included “disclosure” and “metrics and targets
APRA Member Suzanne Smith urged all regulated entities to consider the findings and implement leading practices for managing climate risk. APRA plans to increase expectations for entities to consider climate risks in decision-making and will consult on amending Prudential Standards CPS 220 and SPS 220 Risk Management to include climate risk in 2025.
Source: Australian Taxation Office & Institute of Public Accountants
