SMSF Return Not Necessary?
- georgia3841
- May 19
- 2 min read
If you're running a Self Managed Super Fund (SMSF), you might be wondering if there are situations where lodging a return isn’t required. Whether your SMSF hasn’t started investing yet, has no members, or is in the process of being wound up, it’s crucial to understand your obligations. Misunderstandings in this area can lead to compliance issues, ATO scrutiny, or unexpected penalties.
We often see trustees mistakenly assume that “doing nothing” means “lodging nothing.” That’s not always true and knowing when you're exempt (and when you're not) can save time, money, and legal headaches.
When Is an SMSF Return Not Necessary?
Let’s break down a few common scenarios where you may not need to lodge an SMSF return:
1. The SMSF Hasn’t Been Registered Yet
If you’ve set up a trust deed but haven’t completed ATO registration via the ABN process, your SMSF is not officially established.
No lodgement is required until the ATO recognises your fund.
Tip: Don’t start lodging until your ABN and TFN are confirmed, and the fund is operational.
2. The Fund Is in Wind-Up Mode
If the SMSF has been formally wound up and all assets have been distributed, you only need to lodge a final return.
After the final return, no further lodgements are necessary provided everything has been properly closed out.
Don’t: Assume your responsibilities are over without an ATO acknowledgment of the wind-up.
3. Zero Activity or Dormant Fund
If your SMSF is registered but has had no contributions, no income, and no assets throughout the financial year, the ATO may allow a “return not necessary” (RNN) status.
You must notify the ATO, it’s not automatic!
Best practice: Apply for a Return Not Necessary (RNN) via the ATO portal or through your SMSF tax agent.
4. The ATO Has Granted an RNN Exemption
The ATO sometimes proactively grants RNN status if it has determined your fund isn’t active.
You’ll usually receive a letter confirming this. Without it, assume you're still required to lodge.
Do: Keep a copy of the RNN confirmation for your compliance records.
What You Must Still Do
Even when you don’t need to lodge a return, you may still have other obligations, such as:
Keeping records (trust deed, investment strategy, minutes of meetings)
Notifying the ATO of changes
Ensuring fund assets are separated from personal assets
Remember: The ATO keeps a close eye on SMSFs. Staying compliant, even during inactive periods, shows that you're managing your responsibilities seriously.
Not sure whether your SMSF needs to lodge a return this year? We can help. Book a free 15-minute discovery call with our SMSF specialists and get the clarity you need without the jargon.