The Tax Office continued that the SMSF registration process helps safeguard retirement savings by preventing the inappropriate establishment of SMSFs. It can take up to 56 days before an SMSF is shown on SFLU as a regulated fund.

Once a new SMSF is displayed on SFLU, it will initially be given the status of 'registered'. This status is allocated to all SMSFs on registration and will be updated within seven days to 'complying' when the SMSF receives its notice of compliance.

An Australian business number for the fund will be issued before the election to be regulated is processed which can be used to establish a bank account for the SMSF.

If the ATO identifies a problem with a new registration, it will immediately contact the SMSF's authorised contact.

The SFLU has been updated to provide clearer information about the compliance and regulatory status of SMSFs and identify funds that have raised concerns.

If a request to rollover a member’s super balance to an SMSF is made, trustees must use the SMSF verification service (SVS) to confirm:

· The ABN in the request is registered as an SMSF.

· SMSF status (complying or regulated).

· The tax file number (TFN) of the member requesting the rollover is associated with the SMSF.

· The TFN of the member requesting the rollover is not compromised.

· No verified date of death exists for that member.

· SMSF bank details in the rollover request match those held by the ATO.

· Electronic Service Address (ESA) in the rollover request matches that held by the ATO.

If a fund suspects fraud or illegal early access it should be reported to either Making a tip-off or on 1800 060 062.

Depending on the suspicious transaction, a trustee may also have obligations to report to the Australian Transaction Reports and Analysis Centre (AUSTRAC) and relevant law enforcement agencies.

The ATO said trustees should keep their details updated to help reduce the risk of fraud and illegal early access.

It stated this is also important because when someone initiates a rollover request into an SMSF, the SVS will verify the fund and member details. If the SVS indicates the SMSF doesn't have a 'registered' or 'complying' status, they will not be able to receive a rollover.

If the transferring fund suspects any illegal activity, they will report it to the ATO and may also be required to report it to relevant law enforcement agencies.

Trustees need to ensure their SMSF membership details are recorded correctly and notify the ATO of any changes including:

· Bank account

· Electronic service address

· Trustees

· Directors of the corporate trustee

· Members

· Contact details (contact person, phone, email address and fax numbers)

· Address (postal, registered or address for service of fund notices)

· Fund status

To safeguard retirement savings and reduce the risk of fraud, the ATO will send an email or text alert (or both) when there is a change to the SMSF's:

· Financial institution account details.

· ESA.

· Authorised contact.

· Members.

If trustees have received an alert and did not authorise or know about the changes outlined, they should act immediately.

 

 

 

Keeli Cambourne
October 28 2024
smsfadviser.com