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Emma Rosenzweig says there is a growing number of SMSFs falling behind in their lodgment obligations, which she emphasised was one of the most important compliance obligations trustees must meet.

“If you fail to lodge your annual return on time, there may be penalties and interest applied and SMSF tax concessions can be lost,” she said.

“If your fund's lodgment is overdue, the super fund lookup status may change to 'regulation details removed'. This can restrict your SMSF’s ability to receive rollovers and employer contributions.”

Rosenzweig said the release of the ATO’s corporate plan for 2025–26 is a chance for the ATO to reaffirm its commitment to the integrity and sustainability of Australia’s super system.

“A key activity is to continue to regulate SMSFs and provide support and online services to trustees, professionals and other regulators.”

Another key area of concern, she said, was the increasing number of SMSFs that are failing to comply with release authorities.

“This non-compliance involves not releasing money according to the authority or paying it but not complying with the requirements to notify us.”

“We'll also focus on SMSFs failing to respond to the Commissioner's Commutation Authorities within 60 days using the correct reporting event and by lodging the transfer balance account report.”

She continued that if an SMSF fails to respond to the commutation authority within 60 days of the notice, the member's income stream ceases to be in retirement phase and the SMSF can't claim an earnings tax exemption for this income stream in that income year or any later income years.

Furthermore, Rosenzweig said the ATO will continue to tighten controls around SMSF registration and focus on education and early intervention.

“We’ve seen an upward trend in accessing super early and our focus remains on those who illegally access SMSF funds.”

“It's important you don't fall victim to the temptation of illegal early access schemes. The consequences can include additional tax, penalties, loss of retirement savings and disqualification as an SMSF trustee which goes on the public record.”

Additionally, she said that fraud remains a key risk for the super system and the ATO is working hard to stay ahead of emerging threats.

“Vigilance is essential, as the system grows, and fraudsters become more sophisticated.”

“We all play a vital role in safeguarding the retirement savings of millions of Australians. We'll continue to encourage everyone to operate transparently, securely, and in the best interests of members.”

Keeli Cambourne
August 27 2025
smsfadviser.com

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