New SMSF returns are due 28th February.
As most of the industry will be aware, the annual return for new SMSFs is due on the 28th February 2017.
If you’re in the process of arranging an annual return for a new SMSF, there are plenty of things to keep in mind.
Considerations such as whether the SMSF needs to lodge, any establishment costs and the status of the fund should be reviewed ahead of this deadline.
How do you know whether you need to do an annual return for a new SMSF?
Due to the fact that SMSFs are a type of trust and deposits of cash are made into a super fund bank account, a new SMSF will require financial statements and tax returns regardless of the size of the fund.
All SMSFs need their financial statements audited annually by a registered super fund auditor for compliance and with the 28th February deadline looming it’s important that any new fund gets their return organised to ensure no red flags are raised.
Information trustees need to provide for new SMSFs include:
⁃ Signed and dated super fund deed
⁃ Signed and dated member applications
⁃ Signed and dated trustee consents to act
⁃ Signed and dated super fund establishment minute
⁃ Signed and dated investment strategy including insurance
⁃ Signed and dated ATO declaration
⁃ Rollover statements for the fund
Tax agents can no longer lodge a 'return not necessary' form for an SMSF and if an SMSF is not holding assets it could be worth considering cancelling the SMSF registration.
How should auditors be accounting for establishment costs?
While the new funds look up status will say ‘status not determined’ it will still be eligible to receive rollovers and transfers. The ATO will issue a notice of compliance after its first annual tax return and update the status accordingly. A fund that displays this status still qualifies for concessional tax rates.
For more information on new SMSF audits or to discuss a fund you’re working on, speak with the team from SAAS Audit today.
See original article here.