Not all SMSFs have the same lodgment due date. Failure to lodge by the due date can result in penalties and the loss of the fund’s tax concessions.
If a client’s SAR is more than two weeks overdue, and the ATO hasn’t been contacted, then the ATO may change the compliance status of the SMSF on Super Fund Lookup to ‘Regulation details removed’ until any overdue lodgments are brought up to date.
VARYING PAYG INSTALMENTS FOR YOUR SMSF
The ATO is reminding taxpayers that PAYG instalments are increased by the GDP adjustment factor, which is 4% for the 2025-2026 income year.
Taxpayers can vary their PAYG instalments if they think current instalments will be more or less than their expected tax liability for the year. The varied amount or rate will apply for the remainder of the income year or until the taxpayer makes another variation. You can lodge the variation through Online Services for Business.
NAVIGATING SMSF CRYPTO ASSETS
Be informed and protected when investing in crypto assets. With a growing number of self-managed super funds (SMSFs) investing in crypto assets it's important to be aware of the potential risks. The ATO has seen instances of SMSF trustees losing their crypto investments due to theft, lost passwords, and impersonation schemes.
Here are some essential tips to help you navigate crypto investments for your SMSF:
- Name your wallet correctly: Make sure your SMSF's crypto wallet is registered in the name of your SMSF.
- Separate investments: Keep your personal crypto investments separate from your SMSFs assets. Failing to do this can be a breach of the Superannuation Industry (Supervision) Act 1993.
- Use legitimate platforms: Always purchase and trade on reputable, well-established platforms. Check that they are a registered business or licensed by a relevant authority, look for independent reviews and user feedback, ensure the site uses secure HTTPS connections, understand their policies (e.g. refunds, dispute resolution).
- Maintain good records: Record all transactions, including purchases, sales, and transfers of crypto assets. Sales and transfers are classified as 'disposals' and may result in capital gains tax (CGT). Keeping good records is essential for calculating CGT. Also, keep information about your wallet and any changes made to it.
- Protect your wallet password: Never share your wallet password with anyone. Store it securely to prevent unauthorised access to your crypto assets.
- Avoid related party transactions: When transacting in crypto assets with related parties, all transactions must be done at arms-length.
- Valuation records: Make sure you have proper market valuation records for your auditor.
You should also be cautious of impersonators posing as ATO representatives, claiming you are involved in crypto tax evasion and asking for wallet details. If you have concerns or suspect a scheme, visit SMSF schemes for more information.
You can check out Loss or theft of crypto assets to better understand the evidence you'll need to claim a capital loss if your crypto is lost or stolen. It's also a good idea to visit the ASIC website for information on how to spot crypto scams and what to do if you are scammed. You can also visit ScamWatch for tips on recognising and reporting scams.
KEEPING GOOD RECORDS
If you are running a self-managed super fund (SMSF) it is important you keep good records. This may save you time and money later. As the end of the financial year approaches it is a suitable time to check if your record keeping is in order.
There are many benefits to maintaining good record keeping habits for your SMSF. It is also a legal requirement. The benefits of good record keeping include:
- making it easier for you to provide information to your SMSF professionals for independent audit and annual return preparation
- helping reduce audit and administration costs
- avoiding the risk of receiving administrative penalties which are personally payable by each individual trustee or the corporate trustee of the fund.
Remember, even if you use a super or tax professional to administer your SMSF, each trustee is still responsible for good record keeping.