The number of outstanding SMSF annual returns will be a key area of focus for the ATO in 2025/26, alongside its ongoing work to restrict the occurrence of illegal early access, according to one of the regulator’s most senior executives. ATO super and employer obligations deputy commissioner Emma Rosenzweig said the regulator had released its 2025/26 corporate plan, which outlined the key activities it would undertake across all its areas of responsibility, including the SMSF sector.

“We’ll be focusing on the significant number of outstanding SMSF annual returns. There is a growing number of SMSFs falling behind in their lodgement obligations and we know that lodgement is the most important compliance obligation trustees must meet,” Rosenzweig stated in comments released via the ATO’s website.

“If you fail to lodge your annual return on time, there may be penalties and interest applied and SMSF tax concessions can be lost.

If your fund’s lodgement is overdue, the Super Fund Lookup status may change to ‘regulation details removed’. This can restrict your SMSF’s ability to receive rollovers and employer contributions.”

She also highlighted the ATO would maintain its focus on illegal early access of superannuation via SMSFs.

“We’re continuing to tighten controls around SMSF registration and focusing on education and early intervention,” she added.

“We’ve seen an upward trend in accessing super early and our focus remains on those who illegally access SMSF funds.

It’s important you don’t fall victim to the temptation of illegal early access schemes. The consequences can include additional tax, penalties, loss of retirement savings and disqualification as an SMSF trustee, which goes on the public record.

She also reiterated the ATO will be working to improve compliance with authority statements received by SMSFs requiring trustees to carry out specific actions.

“We’re also concerned about SMSFs increasingly failing to comply with release authorities. This non-compliance involves not releasing money according to the authority or paying it but not complying with the requirements to notify us,” she said.

“We’ll also focus on SMSFs failing to respond to commissioner’s commutation authorities within 60 days using the correct reporting event and by lodging the transfer balance account report.

If an SMSF fails to respond to the commutation authority within 60 days of the notice, the member’s income stream ceases to be in retirement phase and the SMSF can’t claim an earnings tax exemption for this income stream in that income year or any later income years.”