This guide explains the process for lodging a Nil SMSF Annual Return (SMSFAR) when your Self-Managed Super Fund (SMSF) has had no income or transactions, except for preliminary expenses that were paid by a member.
Step 1: Record Preliminary Expenses as Member Contributions or Receivables
- In your SMSF records/system, classify the preliminary expenses paid by the member as member contributions or as a receivable/loan from the member to the fund.
- These amounts are not deductible expenses for the fund but represent money paid on behalf of the SMSF.
- Keep documentation (invoices, receipts) supporting these payments.
Step 3: Prepare the Nil Annual Return
- Income: Report zero or nil income, since the fund had no earnings.
- Expenses: Do not report the member-paid preliminary expenses as fund expenses. Instead, reflect them as outlined in Step 2.
- Assets and Liabilities: Report any minimal cash or asset balances. The value of the receivable from the member may be included as an asset/liability depending on your software’s setup.
- Member Details: Enter member information and correctly show the preliminary payment as a contribution or receivable.
- No Other Transactions: Confirm no other contributions, pensions, rollovers, or investment transactions occurred.