SMSF Non-Compliance with ATO Release Authorities
Understanding SMSF Release Authorities
A release authority is a formal document issued by the Australian Taxation Office (ATO) authorising a super fund to release money from a member’s super account to pay specific tax-related liabilities.
These may include:
- Excess concessional contributions
- Excess non-concessional contributions
- Division 293 tax assessments.
When an SMSF receives a release authority, it must:
- Release the requested amount, and
- Lodge a release authority statement with the ATO — all within 10 business days.
Failure to do so may result in significant penalties and impact the fund’s compliance status.
Rising Non-Compliance Among SMSFs
The ATO has reported a rise in non-compliance among SMSFs failing to act within required timeframes or submitting incorrect responses. In many cases, delays are caused by inadequate administrative processes, outdated contact details or poor communication between trustees and administrators.
Non-compliance can trigger:
- Administrative penalties
- ATO scrutiny or audits
- Reputational risk for the fund
- Delays in resolving member tax obligations.
How Trustees Can Stay Compliant
To maintain SMSF compliance and support members effectively, trustees should implement reliable systems and communication protocols.
Key tips for SMSF trustees:
- Check fund correspondence regularly
Release authorities are often sent via secure electronic channels, so timely access is essential. - Set reminders and automate deadlines
Use calendar tools or SMSF software to track key ATO response deadlines. - Collaborate with your SMSF administrator or tax agent
Professionals can help interpret ATO documents and ensure accurate, timely responses. - Keep your fund’s details current
Update your Electronic Service Address (ESA) and contact details with the ATO to prevent missed notifications. - Understand your obligations
Familiarise yourself with the ATO’s latest guidance on release authorities and review your internal processes regularly.
Why SMSF Compliance Matters
Prompt and accurate handling of ATO release authorities demonstrates your fund’s integrity, supports members’ tax compliance and avoids unnecessary penalties or delays.
Keeping your SMSF processes up to date ensures your fund remains compliant, efficient and trusted in the eyes of both members and regulators.
Need help managing SMSF compliance or responding to an ATO release authority? Speak with Omnis’ SMSF Specialists in Perth to ensure your fund meets all obligations on time.
