The SMSF Legacy Income Amnesty is now law, offering a limited-time opportunity for SMSF trustees to rectify past non-compliance without facing hefty penalties. As an SMSF expert, I’ll break down what this means for trustees, how to take advantage of the amnesty, and why professional SMSF services like audits, administration, and tax returns are crucial for compliance.
What Is the SMSF Legacy Income Amnesty?
The Australian Taxation Office (ATO) has introduced an amnesty allowing SMSF trustees to declare previously unreported legacy income (such as pensions or asset transfers) without penalties. This applies to income that should have been reported between July 1, 2018, and June 30, 2023.
Key Benefits of the Amnesty:
Reduced penalties – Avoid ATO fines for late or incorrect reporting.
Simplified compliance – Declare past income without complex disputes.
Peace of mind – Resolve legacy issues before audits or ATO investigations.
Who Should Act Now?
If your SMSF has:
- Unreported pension payments
- Undisclosed asset transfers
- Incorrectly reported income
you may qualify for the amnesty. However, the window is limited—trustees must act before the deadline.
Why You Need an SMSF Professional
Managing an SMSF involves strict compliance with ATO regulations. A qualified SMSF professional can help with:
1. SMSF Audit & Compliance
An SMSF audit ensures your fund meets legal requirements. The amnesty is a chance to fix past mistakes before an audit triggers penalties.
2. SMSF Administration
Proper SMSF administration keeps records accurate, ensuring all income (including legacy payments) is reported correctly.
3. SMSF Tax Returns
An expert can review past SMSF tax returns and amend any errors before the ATO takes action.
How to Apply for the Amnesty
- Review past income – Identify any unreported legacy payments.
- Consult an SMSF expert – Get professional advice on eligibility.
- Submit disclosures – Work with your advisor to lodge corrections with the ATO.
Don’t Miss This Opportunity
The SMSF Legacy Income Amnesty is a rare chance to fix compliance issues without harsh penalties. But time is limited—trustees must act fast.
