Self-managed super fund (SMSF) trustees who were using Dixon Advisory will need to transfer to a new provider as soon as possible, especially if they have outstanding tax returns.
Dixon Advisory and Superannuation Services (DASS) went into administration yesterday after its directors determined that mounting actual and potential liabilities meant it was likely to become insolvent in the future.
In its statement, it said the firm would facilitate the transfer of clients to “a replacement provider of the client’s choice”, indicating this was up to the client to seek a replacement rather than DASS.
Peter Burgess, deputy chief executive at the SMSF Association, said: “It is uncommon to see a firm of this size go through these events. It is unsettling from an administration point of view but clients should try to act as quickly as possible, particularly at this time of year”.
The deadline for SMSFs returns to be submitted by the Australian Taxation Office was 15 May although Burgess suggested SMSFs could apply for an exemption if they had made legitimate attempts to source a replacement but still felt they would be unable to meet the deadline.
“Those who haven’t lodged their return yet shouldn’t delay and be taking steps to find a new administrator so there can be a smooth transition,” he said.
“Fund records should be up to date, a new auditor is needed, a new letter of engagement signed by the SMSF trustees is needed, any missing information from previous tax years should be found and any requests from the new administrator should be dealt with promptly.
“Failure to lodge is a serious breach and it is the responsibility of the trustees to do it on time.”