Questions & Answers - Return Not Necessary (RNN)

If an SMSF does not have assets set aside for the benefit of members in the first year it was registered, a Return Not Necessary (RNN) request needs to be submitted to the Australian Taxation Office (ATO). If the RNN is granted by the ATO, the SMSF is not required to lodge a tax return and the supervisory levy does not need to be paid for the year during which there were no assets or transactions.

In order to apply for the RNN with the ATO, the SMSF needs to provide documentation evidencing the SMSF has been activated (e.g. the SMSF's first bank statement detailing the first deposit).

More information can be found on the ATO website here.

Yes. You are still required to complete the Annual Online Checklist to confirm that your SMSF had no activities and no compliance issues (e.g. disqualified Trustees). To access the Online Checklist, please click here to visit your client portal.

You can activate the SMSF in any of the following ways (subject to conditions):

• Make a cash contribution into the SMSF;
• Rollover your current super benefits into the SMSF;
• Make a non-cash contribution into the SMSF.

You simply need to deposit the funds into your SMSF Bank Account. We caution that you need to comply with the contribution rules and caps which can be found here.

The rollover process can be found on our website here.

This is because your SMSF’s Australian Business Number (ABN) is withheld by the ATO due to the Initial Audit Process. You will not be able to initiate the rollover process to the SMSF until the Audit is finalised by the ATO. For more information on the ATO’s Initial Audit Process, please click here.

Yes. It is possible for members to make contributions of assets directly into the SMSF instead of cash. However, we caution that only certain assets listed in the super regulations can be transferred in specie by a member. For more information about in-specie contributions, please click here.

In this case, the ATO may cancel the SMSF. If the SMSF is cancelled, you will need to establish a New SMSF if you still wish to manage your Super in the future.

Moreover, ESUPERFUND will no longer be able to act as the Tax Agent for your SMSF or attend to your Fund’s Annual Compliance Requirements.

Please notify our office of your cancellation request via Inbox here. We will then provide further instructions to wind up your SMSF.

You will need to provide the associated bank statement detailing the first transaction date if the first deposit is made to your SMSF’s bank account OR the associated documentation evidencing the transfer of ownership if the first deposit is made in the form of assets instead of cash.

Yes. ESUPERFUND only has access to the electronic data of the transaction details of your SMSF’s bank account. However, the ATO requires the official documentation (e.g. Bank Statement in the name of the SMSF) evidencing the date the SMSF first held assets and commenced operating.

You may download the bank statement by following the steps detailed below:

1. Log into your CBA Netbank Account here.
2. Click on the menu tab “View Accounts” and then select “Statements”.
3. In the “Select Account” menu, select the CBA Accelerator Cash Account and then download the Bank Statement that includes the first transaction date.

Official Bank Statements for the CBA Accelerator Cash Account are issued on a quarterly basis. If the deposit was made within the past 3 months, alternative documentary evidence can be obtained via either of the following methods:

Option One: Download the Official Transaction List

You may download the official transaction list by following the steps detailed below:

1. Log into your CBA Netbank Account here.
2. Click on the menu tab “View Accounts” and then select “Statements”.
3. In the “Select Account” menu, select the CBA Accelerator Cash Account.
4. In the “Create Summary” section, enter the period from “01/07/” to “today’s date”. If the No. of transactions in the selected period exceeds 100 transactions, you may change the dates as long as the first transaction date is included in the selected period.
5. Click on “Download your summary” to download the statement.

Option Two: Contact CBA Directly

Please contact CBA directly on 1800 252 351 (option 2) quoting your account number to request for the Bank Statement that includes the first transaction date.

No further action is required by you. Once the documentary evidence is provided, we will send a notice to the ATO confirming that the SMSF is activated in the current Financial Year and does not need to lodge a tax return for the prior Financial Year and then notify you via inbox.

We advise that it will take up to at least 28 business days for the ATO to process the “Return Not Necessary” request.

Once the request has been approved by the ATO, the lodgement status will be changed to “Lodged” on your ESUPERFUND client portal – “Compliance” on the top navigation menu bar – “Compliance History” page. You will NOT receive a formal notification from the ATO or ESUPERUND.

If your Fund’s ABN has been withheld by the ATO because you failed the initial audit process, you can now request a review of the audit result by following the instructions detailed in the original Audit Finalisation Letter. Please contact the ATO directly if you did not receive or misplaced the Audit Finalisation Letter.

Once the SMSF has been activated, it must lodge its annual Income Tax Return every year. The process to prepare the annual compliance documentation for your SMSF can be found on our website here.