Almost one million Australians have opted for self-managed super funds, and many more are considering the option, however there are regulatory changes coming, according to ATO Deputy Commissioner Superannuation, Alison Lendon.
Lendon said that they are looking to work with trustees and advisors to help prepare them for several regulatory changes to be rolled out over the next year, and would be providing YouTube videos for trustees at the SMSF Professionals Association of Australia (SPAA) national conference this week as a result of the sector’s growth.
“With the popularity of SMSFs continuing to grow, we want to work with trustees and their advisors to improve compliance and make sure they are prepared for several regulatory changes that will be rolled out over the next year,” she said.
Proposed legislation giving the ATO new powers to address non-compliance by SMSF trustees will be a hot button topic at the conference.
Should this legislation be introduced, administrative penalties will apply to breaches of super law from July 1 this year. This will see trustees breaching this law potentially liable for penalties from $850 to $10,200 depending on which provision has been contravened.
“SMSF trustees should rectify any contraventions as soon as possible or they may face a penalty,” said Lendon.
“In some cases these changes will impact the way SMSFs operate so for the ATO our focus will continue to be on education and support to ensure trustees understand the rules,” she said.
The most common contraventions being reported to auditors are related to:
- Sole purpose breaches
- Arms-length and related party investments
Arms-length and related party breaches could include renting out a property in your SMSF to yourself or a friend or family member of a trustee.
Every Auditor Contravention Report will be reviewed by the ATO this year.
New data and payment standard reporting rules have also been changed.
By Jennifer Duke