SMSF tax return due dates
New self-managed super funds (SMSFs) generally need to lodge their first annual return by 28 February.
For the second and subsequent years, SMSF annual returns are generally due by 15 May.
SMSF financial statements and tax returns need specialist support
From a practical perspective, you can’t prepare and lodge your SMSF’s financial statements and tax return yourself unless you’re a registered tax agent with the specialist accounting knowledge required to complete the reporting accurately and compliantly.
Contributions tax isn’t deducted automatically
Unlike industry or retail super funds, an SMSF doesn’t automatically deduct 15% tax from employer contributions when they’re made.
Your SMSF still needs to pay 15% tax on these contributions. The amount is assessed when the annual tax return is prepared after the end of the financial year, with any allowable deductions applied.
Most SMSFs pay income tax annually
Most SMSFs only need to pay income tax once a year. Payment is generally due by the tax return lodgement date.
If an SMSF has tax payable for one financial year, it’s likely to be required to make pay as you go (PAYG) instalments in the following financial year. These are advance tax payments based on the Australian Taxation Office’s (ATO) estimate of the fund’s tax liability.
PAYG instalments are generally paid quarterly. If the estimated annual tax is $8,000 or less, you may be able to elect to pay annually by 21 October.
Paying annually means your SMSF can retain the cash in its account for longer.
Capital gains are generally taxed at 15%
Capital gains are generally taxed at 15%. If an investment has been held for at least 12 months, the one-third capital gains tax (CGT) discount may reduce the effective tax rate to 10%.
By default, our SMSF accounting system calculates capital gains using the available share or stock parcels that result in the lowest gain based on their specific cost bases.
GST registration may not be worthwhile
Stake Super SMSFs generally don’t pay enough goods and services tax (GST) for registration to be worthwhile.
However, this can be reviewed if your SMSF incurs a significant amount of GST on expenses or transactions.
You can elect to pay Division 293 tax from your SMSF
You have up to 60 days from the date of your Division 293 assessment to complete the election form through myGov or lodge a paper form.
To complete the election online, you’ll need a myGov account linked to ATO Online Services. Once your account is linked, the Australian Taxation Office should appear under your linked services when you log in to myGov.
To make an election:
- Log in to myGov and select the ATO service to access ATO Online Services
- Select the ‘Super’ tab from the top menu
- Scroll down and select ‘Manage’ to open the submenu
- Select ‘Division 293 election’
- View your available elections
- Choose the super fund you want to pay the Division 293 tax from. If your SMSF isn’t listed, contact us at smsf@hellostake.com
- Complete the declaration and lodge your election
Once the election form is lodged, we should receive a ‘Notice to pay’. Let us know if we should expect one.
