If you're an SMSF trustee, you'll need to lodge your annual return (SAR) with the Australian Taxation Office. Here's a look at what it is and how to get it done.
What is an SMSF?
An SMSF is an entity that combines the retirement savings of many people into one pooled fund. This can be a great way to save for your retirement as it offers tax advantages and flexibility. Here are some things you need to know about SMSFs tax return before setting one up:
- You must have at least $250,000 in total assets to set up an SMSF.
- The maximum contribution limit for an individual is $25,000 per year, but the limit for a couple is $50,000 per year.
- An SMSF must be registered with the ATO and you will need to provide information about your trustees and investment strategy.
Why should you lodge an annual return of your SMSF?
There are a number of reasons why you should lodge an annual return of your SMSF. Firstly, it will help you to keep track of your investments and ensure that they are performing as expected. Additionally, lodging an annual return will also ensure that you are compliant with tax laws. Finally, lodging an annual return will also allow you to access your SMSF funds in a timely manner if necessary.