SMSF COVID-19 RELIEF ENDED 30 JUNE 2022
Titian Rosati – September 15, 2022
WHAT YOU NEED TO KNOW
The ATO has reminded SMSF trustees that the COVID-19 relief and support offered to SMSFs ended on 30 June 2022.
BACKGROUND
At the peak of the COVID-19 pandemic, the ATO granted relief to SMSF trustees that were financially or otherwise impacted by the recurring and prolonged lockdown periods.
The relief was offered initially to SMSFs for 2019-20, 2020-21 and 2021-22 financial years where certain situations beyond their control may have caused SMSF trustees to contravene superannuation law.
For example, an SMSF trustee may have given tenant/s (including a related party tenant) a reduction in rent if they were financially impacted due to COVID-19. As charging a price less than market value will usually give rise to contraventions under the superannuation laws, the relief measures avoided this outcome if the arrangement met specific criteria (i.e., the relief was offered on commercial terms, the arrangement was documented, etc.).
The available relief measures were
ACTIONS REQUIRED FOR SMSF TRUSTEES
As the ATO’s COVID-19 support has ended, the ATO expects:
SMSF trustees are to now comply with their obligation under the income tax and superannuation laws previously covered by the relief.
Approved SMSF auditors are to report contraventions to the ATO via the Auditor/actuary contravention report (ACR), where the reporting criteria are met.
The ATO has also reminded SMSF trustees to ensure they document any relief they accessed and to provide their approved SMSF auditor with evidence to support their case for their annual SMSF audit.
SMSF trustees have also been encouraged to take advantage of the ATO voluntary disclosure service and formulate a rectification plan should any contraventions occur.
Source: ATO website QC 70084, 15 Jul 2022
We encourage you to contact the team at ROSATI WANG Super with any queries or comments you may have regarding this or any other audit issue.