SMSF annual return: the 31 October and 28 February due dates, the $259 levy, and what late lodgment costs

Lodging the annual return is the compliance task SMSF trustees can least afford to miss. The ATO calls it "the most essential compliance obligation trustees must meet". This article sets out when the SMSF annual return (SAR) is due, what the supervisory levy is, what happens to funds with no assets, and the consequences of lodging late, based on the ATO's page "Lodge SMSF annual returns" (last updated 24 August 2026), read on 8 October 2026.

You must lodge every year, even with nothing to pay

An SMSF must lodge a SAR each financial year "even if your fund does not have a tax liability". The SAR covers the income tax return, regulatory information and member contribution reporting, and it is also how the fund pays the supervisory levy. SMSFs do not receive a notice of assessment; the ATO issues a notice of amended assessment only if later amendments are made.

The due dates

The ATO says the due date depends on whether the fund is newly registered. If you lodge the SAR yourself:

• Newly registered funds, and funds with overdue returns for prior years (excluding deferrals): lodge by 31 October and pay any amount owing by 1 December.
• All other SARs: lodge and pay by 28 February, unless the ATO asks you to lodge on a different date.

If a tax agent lodges your SAR, check the due date with them. Where the ATO reviews your fund at registration, the first-year return is due on 31 October even if a tax agent prepares and lodges it, and the ATO will tell you if this applies. With 31 October three weeks away, trustees of a fund registered in the past year or with an overdue prior-year return should check their position now.

The supervisory levy

The fund pays the levy with the SAR. For a continuing fund, the ATO says it is paid in advance of the next financial year:

• not newly registered: $259, which goes towards the next financial year
• newly registered: $518, which covers the current financial year and the next financial year.

If the fund is winding up, no levy is required if it was paid in the previous financial year; a $259 levy applies if the SAR relates to the fund's first year of operating. See our article on winding up an SMSF.

What late lodgment can cost

The ATO says that if lodgment is overdue:

• the fund's Super Fund Lookup status may change to "regulation details removed", which can restrict the SMSF from receiving rollovers and employer contributions
• penalties can be applied
• SMSF tax concessions can be lost.

The ATO adds that failing to lodge by the due date "can result in penalties and the loss of your SMSF's tax concessions".

On the size of the penalty, the ATO's general failure to lodge on time (FTL) penalty page (last updated 22 June 2026) says the base penalty is one penalty unit for every 28 days, or part of 28 days, that the document is overdue, up to a maximum of 5 penalty units, with the base amount multiplied for larger entities. At the Commonwealth penalty unit of $364 from 1 July 2026, that is $364 for each 28 days, capped at $1,820. That page lists tax returns generally and does not name SMSF annual returns separately, so confirm how it applies to your fund. The ATO also says it generally does not apply penalties in isolated cases of late lodgment, warns by phone or in writing before applying one, and generally does not issue an FTL notice for a late tax return that results in a refund or nil result, with exceptions.

Funds with no assets

The ATO says an SMSF "is not legally established until the fund has assets set aside for the benefit of members". If a fund had no assets in the first year it was registered, no return is needed for that year, but you must ask the ATO in writing either to cancel the registration or to mark the record "return not necessary" (RNN). The ATO sets conditions for an RNN, including that the fund had no assets and received no contributions or rollovers in the first financial year, has documentary evidence of the date it first held assets, and will lodge future returns. RNNs for later years are granted only in limited circumstances.

Amending a return and zero balances

To amend a SAR you must resubmit the whole return and mark it as an amendment, including contributions information for all members, not only the one being changed. The ATO also says a member with a zero account balance at 30 June can indicate problems in running the fund, and gives limited situations where it is expected, such as a newly established fund or a member who rolled over just before year end. A zero opening or closing balance must be reported as zero on the SAR.

Practical checklist

1. Confirm whether your fund is "newly registered" or has any overdue prior-year return, because that decides 31 October versus 28 February.
2. Include the fund's ABN when lodging so members can see the SMSF account in ATO online services for processes such as early release or excess contribution elections.
3. Make sure the trustees' signed financial statements and records are ready; see our articles on SMSF record-keeping and on auditor independence.
4. If a member is in retirement phase, check your transfer balance account reporting.

Worked example

Illustrative only, not personal advice.

Nina and Tom registered their SMSF in February 2026 and rolled their super over in March. As a newly registered fund lodging the SAR themselves, their 2025-26 return is due on 31 October 2026 with any tax owing paid by 1 December. They also pay the $518 levy for a newly registered fund, covering 2025-26 and 2026-27. If they miss the date, their fund's Super Fund Lookup status could change to "regulation details removed", which can restrict the fund from receiving rollovers and employer contributions until it is resolved.

Sources

• ATO — Lodge SMSF annual returns
• ATO — Failure to lodge on time penalty
• ATO — SMSF record-keeping requirements