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MJE Business Services

Your First SMSF Tax Return: What New Trustees Need to Know

Last reviewed: 2026-06-15Trust & SMSF

Your First SMSF Tax Return: What New Trustees Need to Know

In short: your first SMSF "tax return" is the SMSF annual return (SAR). Before you can lodge it, your fund must be independently audited - and you need to appoint that auditor at least 45 days before the SAR is due. You also pay the SMSF supervisory levy with the return ($518 in the first year because it is partly collected in advance, $259 in later years). The due date depends on your fund and who lodges, so confirm yours early.

Setting up a self-managed super fund means taking direct control of your retirement savings - but that control comes with real responsibilities, and the first to surprise many new trustees is the annual reporting. An SMSF is not "set and forget": each year your fund must be audited and lodge a return with the ATO.

If you have just set up a fund around Mortdale, Hurstville or the wider St George area, here is a plain-English guide to what your first SMSF return involves. SMSFs are a high-stakes, technical area, so treat this as a map of the landscape - not a substitute for advice on your own fund.

The SMSF annual return (SAR) - more than just a tax return

Your fund does not lodge an ordinary income tax return. Instead it lodges the SMSF annual return (SAR), which is a single combined document that covers three jobs at once:

  • reporting the fund's income tax
  • meeting the fund's regulatory (compliance) reporting obligations as a super fund, and
  • reporting member contributions for each member.

You cannot lodge the SAR until two things are done first: your accounts and financial statements are prepared, and the fund has been independently audited. The audit is not optional and must come first - never after lodging.

The mandatory independent audit

Every SMSF must be audited each year by an approved SMSF auditor, even if the fund did little or no investing. The auditor is independent of you and checks both the fund's financial statements and its compliance with super law.

A key timing point: you must appoint your approved SMSF auditor no later than 45 days before the SAR is due, and the auditor must give you the independent audit report before you lodge. In practice this means you cannot leave everything to the last week - the audit needs time, and so do you.

The SMSF supervisory levy

The SAR also collects the SMSF supervisory levy, which you pay along with the return. For a newly registered SMSF the amount payable is $518, because it covers both the current financial year and the next one (the levy is collected partly in advance). In later years, an ongoing fund pays $259, which goes towards the following year. (These are the amounts published by the ATO - we will confirm the current figure when we prepare your return.)

Lodgment due dates

Due dates trip up a lot of new trustees, and the first year is not as simple as a single fixed date. According to the ATO:

  • A newly registered SMSF lodging its first SAR through a tax agent generally has a due date of 28 February (the new-registrant due date). This catches a lot of people who assume it is the same as ordinary returns.
  • However, if the ATO reviewed your fund at registration and told you so, your first-year due date can be 31 October instead - even when a tax agent lodges. So you cannot assume; you have to check the date that applies to your fund.
  • SMSFs that prepare their own return (rather than using a tax agent) are generally due 31 October.
  • Established funds lodging through a registered tax agent like us often have a later date (commonly 15 May), but this does not automatically apply in your first year.

The safest approach is to confirm your fund's actual due date with the ATO or with us, then work backwards. Remember the audit must be finished before you lodge, and your auditor must be appointed at least 45 days before the SAR is due - so getting your auditor and accountant lined up early makes all the difference.

Your responsibilities as a trustee

Beyond the paperwork, being a trustee carries ongoing duties. In broad terms you are expected to:

  • keep the fund's money and assets separate from your personal and business affairs
  • run the fund to provide retirement benefits (the sole purpose test)
  • keep proper records, prepare financial statements, and arrange the annual audit
  • value the fund's assets at market value each year, and
  • lodge the SAR and pay the levy on time.

These duties are personal - the regulator holds trustees accountable, and breaches can have serious consequences. That is why most trustees work with a specialist rather than going it alone. Our trust and SMSF service helps with the accounts, coordinating the independent audit and lodging your SAR correctly. If your fund interacts with a family trust, our guide to trust distributions is worth a read too.

FAQ

Does my SMSF still need to lodge if it did nothing this year? In most cases yes. Once your fund is registered and holds assets, it generally needs to be audited and lodge a SAR each year, even with little or no activity. Check your situation with us.

Can my accountant also be my SMSF auditor? No. The auditor must be independent and approved. We prepare the financials and coordinate with a separate approved SMSF auditor so the independence requirement is met.

What happens if I lodge late? Late lodgment can lead to penalties and can affect your fund's compliance status, which has flow-on tax consequences. The safest approach is to start early and lodge on time - we will keep you on track.

Getting your first SAR right

The first SMSF return sets the pattern for every year after it, so it is worth getting right. If you have set up a fund anywhere around Mortdale or the St George area and want a clear run at your first lodgment - accounts, audit and SAR handled properly - get in touch or call us on (02) 9580 1167 and we will walk you through what your fund needs.

Written by the team at MJE Business Services, a registered tax agent (No. 26313222) serving the St George area since 2000.

This is general information, not personal advice. Tax rules and dates change - please check your situation with us or at ato.gov.au.

Sources (ATO)

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