Trick or Tax? ATO guidance for new SMSFs - 31 October deadline requirements

The Australian Taxation Office (ATO) has issued updated guidance for trustees who have recently established a self-managed super fund (SMSF), highlighting key actions that must be completed by 31 October. This guidance serves as a timely reminder of the legal and compliance obligations that SMSF trustees must meet in their first year, including statutory duties under superannuation law and administrative responsibilities to ensure the fund remains compliant.

Trustees must also understand their legal obligations and complete all required tasks to avoid penalties or delays. The ATO’s guidance aims to support new trustees in navigating these early-stage requirements effectively.

This article provides an overview of some of the key trustee responsibilities including understanding statutory obligations, preparing accurate and timely financial statements, ensuring fund assets are properly valued in accordance with ATO standards, and appointing an approved SMSF auditor to review the fund’s financials and compliance status.

Statutory Duties: Honesty, Care, Skill and Diligence

SMSF trustees are legally required to act with honesty and apply the same level of care, skill, and diligence as a prudent superannuation trustee. These duties are embedded in superannuation law[1] and automatically form part of every SMSF’s governing rules.

The sections below outline key compliance obligations and offer practical guidance to help trustees meet these core responsibilities and ensure they manage the fund with integrity and in line with legal expectations.

Lodging SMSF Annual Return

Each year, SMSF trustees must lodge an SMSF Annual Return (SAR) with the ATO. This return combines key information about the fund’s income, member contributions, assets, and audit details. Lodging the SAR is a legal requirement and helps the ATO check the fund’s compliance and financial health.

Trustees can get help from a registered tax agent to prepare and lodge the SAR. If they engage an agent early, they may qualify for an extended lodgement deadline of 28 February 2026. However, some funds may still need to lodge by 31 October 2025, so it’s important to check the SMSF registration letter for the correct date. Acting early helps avoid penalties and ensures everything is submitted on time.

Financial Accounts and Asset Valuations

 Each year, SMSF trustees must prepare financial statements for the fund, including a statement of financial position and a profit and loss statement (Financial Accounts). These are legal requirements under superannuation law, with some exceptions for specific fund types such as defined benefit funds and accumulation funds.

When preparing these financial statements, all fund assets must be valued at market value – being the price a willing buyer would reasonably pay a willing seller assuming both parties act at arm’s length and with full knowledge of the asset.

Trustees must keep objective and reliable evidence to support these valuations. While trustees can do the valuations themselves, it’s often best to use a qualified valuer for complex or high-value assets.

SMSF auditors will check that asset values are appropriate and may ask for supporting documents. Trustees must provide this information within 14 days, so it is imperative to keep accurate records and relevant evidence to provide at the request of an auditor in accordance with the SIS Act.

Appointment of SMSF Auditor

Each year, SMSF trustees must appoint an approved auditor to review the fund. The auditor must be registered with ASIC, independent, and have no financial or personal ties to the fund, its members, or trustees. Trustees must provide the auditor with the fund’s financial statements.

The auditor must be appointed at least 45 days before the SMSF Annual Return (SAR) is lodged, as the audit report is needed to complete the SAR. This requirement applies even if the fund had no contributions or payments during the year.

The auditor’s role is to review the fund’s financials, check compliance with superannuation laws, and report any breaches to the ATO. If a breach is found, trustees are expected to act quickly to fix the issue.

Conclusion

Managing an SMSF comes with important legal and compliance responsibilities, especially in the first year. Trustees must stay on top of key obligations like preparing financial statements, valuing assets correctly, appointing an independent auditor, and lodging the SAR on time.

By understanding and meeting these duties—such as acting with honesty, care, and diligence - trustees can help ensure their fund remains compliant and avoids unnecessary penalties. Seeking early support from professionals like tax agents or auditors can make the process smoother and more manageable.

What are the Cleardocs products available?

Cleardocs offer the following relevant products:

• SMSF Set up + Register Corporate Trustee
• SMSF Trustee Bundle
• Superannuation Trust (SMSF)
• Update to SMSF
• SMSF Change of Trustee

Please read the Product Benefits, Product Information and Frequently Asked Legal Questions carefully and consider if it is appropriate in your circumstances before purchasing any Cleardocs product.

More information from Maddocks

For more information, contact Maddocks on (03) 9288 0555 and ask to speak to a member of the Commercial team.

More Cleardocs information on related topics

• Update for SMSF Trustees: ATO Enforcement Actions for Non-Compliance
• Necessary safeguard for SMSFs and Trusts: Why you should have an Enduring Power of Attorney in place
• Reminder for SMSF trustees: be aware of legal requirements for accessing superannuation early
• SMSF trustees, when things go wrong, don't shy away from voluntary disclosure
  
  
  

[1] Section 52(2) of Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act).