Hi, we have a member in SMSF with negative balance in FY25 as the rollin only occurs in July 25 (FY26) but insurance has been paid for her in FY25 hence the negative balance. In this case, can i report negative member balance in Xero SMSF tax return or i need to do a paper lodgement for this?
Hi @kikilala,
You can report a negative member balance through Xero for your SMSF tax return. Paper lodgment isn't required for negative balances.
A negative balance can happen when insurance premiums are paid before contributions arrive. You'll need to report this zero or negative opening or closing account balance as it appears on 30 June in your SMSF annual return.
Keep in mind that if you lodge using the paper form, it may take up to 50 days to process which can cause delays. If you don't lodge your paper return with enough time for processing, your fund's Super Fund Lookup status may change to 'regulation details removed'.
The easiest way to lodge is through online services. Make sure your SMSF's audit has been finalised before you lodge.
Hi Polly,
Thanks for the response. How can i report the negative balance for the member as i cant seem to put a - sign on the balance when inputting the information in the xero tax return for the SMSF.
Thanks
Hi @kikilala,
You shouldn’t be trying to enter a negative value – the key question is whether a negative member balance is the correct position to report at 30 June.
The SMSF annual return needs to reflect the member balance based on the fund’s accounts at year end. If your software isn’t allowing a negative figure, it usually indicates the balance needs to be reviewed or presented differently, rather than reported as a simple negative amount.
In situations like this (for example, where insurance premiums are paid before contributions are received), you’ll need to make sure the balance is:
This is something that should be confirmed with your SMSF auditor or adviser before lodging, as they can determine:
51 views
3 replies