Tax time 2015 - changes affecting SMSF tax returns | Accurium

The ATO has made some key changes affecting the 2014-15 tax returns for self-managed superannuation funds (SMSF).

The ATO will start full processing of 2014-15 tax returns on 7 July. As you move to complete the 2014-15 annual returns, ensure that your SMSF trustees are aware of these changes and how they might affect their SMSF.

The key changes affecting SMSFs are:

Bank accounts provided in annual return

Trustees can now provide different back accounts for tax refunds and superannuation payments (e.g. super co-contributions).

Electronic service address

The annual return will request the electronic service address (ESA) of the SMSF to receive messages containing contributions data. Trustees were required to have a valid ESA from 1 July 2014. Make sure to have this information on hand when completing the fund’s tax return.

Supervisory levy

A single levy amount of $259 relating to 2015-16 income year will need to be paid on lodgement of the 2015 tax return. The transitional provisions which made the 2013-14 supervisory levy payable in two installments have now ended.

Tax rate changes

Several tax rates relating to SMSFs have changed in 2014-15 due to the temporary budget repair levy and increased Medicare levy. These rates are shown in the table below:

Rate for tax on: Rate in 2013–14 Rate in 2014–15
No-TFN-quoted contributions of a complying SMSF 31.5% additional tax 34% additional tax
No-TFN-quoted contributions of a non-complying SMSF 1.5% additional tax 2% additional tax
Non-arm's-length income 45% 47%
Income of non-complying SMSFs 45% 47%
Penalty units

Coming into effect from 31 July 2015 the value of Commonwealth penalty units will increase from $170 to $180. When fines are payable under Commonwealth laws they are generally expressed as a number of penalty units. Administrative penalties for SMSF trustees range from 5 to 60 penalty units. The increase of $10 per penalty unit means that the maximum administrative penalty for a single breach is $10,800, this is a $600 increase from the previous year.

In addition to these changes discussed for SMSF annual returns, there were a number of changes affecting individuals.  For information on all changes to the 2014-15 tax return please refer to the ATO website here.

The information in this document is provided by Accurium Pty Limited ABN 13 009 492 219 (Accurium). It is factual information only and is not intended to be financial product advice, tax advice or legal advice and should not be relied upon as such. The information is general in nature and may omit detail that could be significant to your particular circumstances.  While all care has been taken to ensure the information is correct at the time of publishing, superannuation and tax legislation can change from time to time and Accurium is not liable for any loss arising from reliance on this information, including reliance on information that is no longer current. Tax is only one consideration when making a financial decision. We recommend that you seek appropriate professional advice before making any financial decisions.