[The Auditors Institute Ltd]

Hello Dipak

Thanks for the question.

The ATO takes the view that a fund without assets after it is created is not required to lodge a fund return.  Instead a Return Not Necessary (RNN) can be submitted.

https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/administering-and-reporting/lodge-smsf-annual-returns

Funds without assets

An SMSF is not legally established until the fund has assets set aside for the benefit of members. Our systems will not accept an annual return for an SMSF that has no assets or no closing member account balances, unless the return is for the year in which the fund is wound up.

If an SMSF does not have assets set aside for the benefit of members in the first year it was registered, you can ask us to either:

• cancel the fund’s registration
• flag the SMSF’s record as return not necessary (RNN) if the SMSF confirms in writing
  • that although registered, it had no assets and did not receive contributions or rollovers in the first financial year
  • that it has documentary evidence of the date the SMSF first held assets and commenced operating (for example the SMSF’s first bank statement)
  • that it will be lodging future returns.

If you’re a trustee your written request must include:

• the SMSF’s name, TFN or ABN
• confirmation that it meets all eligibility conditions
• documentary evidence of the date assets were first placed into the fund.

This request can be sent to us at:

Australian Taxation Office
GPO Box 9990
[insert the name and postcode of your capital city]

For example

Australian Taxation Office
GPO Box 9990
SYDNEY  NSW  2001

If you’re a tax agent you’ll need to use the Online services for agents mail option, select Superannuation as the topic, and choose from the following mail subjects:

• SMSF cancellation of registration – where a fund has not legally established
• SMSF new registrant – Return Not Necessary (RNN) request.

For RNN requests your submission must include:

• the SMSF’s name, TFN or ABN
• confirmation that it meets all eligibility conditions
• documentary evidence of the date assets were first placed into the fund.

An RNN is generally only allowed for a newly registered SMSF in its first year of registration.

RNNs for subsequent years will only be granted in limited circumstances and where the fund provides documentary evidence of the date assets were first held by the fund, for example the SMSF’s first bank statement.

When an SMSF that has previously advised a return was not necessary is legally established and needs to lodge a return for the first time, the due date of the first return lodged by a tax agent will be 28 February.

Where a fund’s status has been removed from Super Fund Lookup as a result of overdue tax returns, this does not mean the fund is a non-complying fund taxed at 45%, but rather, the fund is not able to accept employer contributions.

Best regards

The Auditors Institute