Save
A word from the ATO: What we expect from you
As regulator of the SMSF sector, the ATO has several expectations for SMSF trustees – and it’s best to meet those expectations to avoid potentially severe consequences.
A word from the ATO: What we expect from you
As regulator of the SMSF sector, the ATO has several expectations for SMSF trustees – and it’s best to meet those expectations to avoid potentially severe consequences.
The SMSF sector is dynamic and growing, comprising over one million Australians from all walks of life. The ATO understands that the majority of trustees willingly comply with their obligations and are trying to do the right thing, but individual circumstances and varying levels of expertise mean that some trustees will occasionally make mistakes managing their fund.
However, we expect all trustees to take their role seriously and seek assistance from accredited professionals or the ATO when they need help. As a minimum trustees should understand the obligations in the SMSF New Trustee Declaration.
This financial year will see a range of important events, from the implementation of SuperStream to the change to the preservation age for those born on or after 1 July 1960 (from 55 to 56) and the launch of new services and initiatives under the ATO’s ‘Reinvention’ program. You can expect to see us taking stronger compliance action against serial non-compliers, in particular SMSF trustees who don’t deliver on agreements in enforceable undertakings. In these circumstances, the powers we gained on 1 July 2014 (direction to rectify, education and SMSF administrative penalties) will increasingly come into play.
A number of issues will be on our radar in 2015-16, including:
- individuals who enter the sector with poor personal taxation lodgment histories and no or limited income
- SMSFs with overdue annual returns
- breaches reported in auditor contravention reports that have not been rectified
- SMSFs that have significant changes in assets and income, outside the previous pattern of the fund and without obvious reason
- possible non-commercial related-party investments or transactions
- non-compliance with pension rules
- inappropriately claimed tax deductions when a fund is in pension phase.
As always, we’re continuing our focus on the critical SMSF auditor role and will look to strengthen the regime by taking action where necessary, for instance:
- where we’re concerned about auditor independence in relation to audits performed
- where we have reviewed an SMSF and detected significant regulatory breaches that were not identified by the auditor.
As the regulator, our goal is to ensure the industry works and achieves its intended purpose – building and protecting retirement incomes. To this end, we work with colleagues in the Australian Securities and Investment Commission to detect and take action against individuals and organisations promoting unacceptable arrangements and schemes. In particular, those people spruiking arrangements via cold calling or high-pressure sales environments when the promoters have little to no understanding of, or regard for, superannuation rules.
We’re all custodians of the super system; if you become aware of suspicious arrangements or tax avoidance schemes, be in touch.
The ATO is always appreciative of the support of associations, organisations and individuals who share our aim to improve and protect the SMSF sector. We rely on their insights, warnings and assistance to maintain its integrity and ensure the industry remains compliant and healthy.
Kasey MacFarlane, assistant commissioner, ATO
RELATED ARTICLES
Tax saving
Navigating tax laws for capital gains in 2023
The landscape of Australian tax laws surrounding capital gains is ever-changing, with 2023 being no exception. Read more
Tax saving
What you need to know about the tax implications of crypto
One million Aussies are now invested in crypto, but many have not thought about how these investments will affect them at tax time. Read more
Tax saving
Welfare overhaul could give recipients a leg-up
Australia’s Centrelink recipients who’ve been doing it tough are in for a potentially easier time if the federal government pursues ambitious reforms that could provide sturdier safety nets. Read more
Tax saving
Students should think twice before tapping into their super
Former students might want to think carefully before they look to take advantage of the federal government’s biggest first home buyer incentive. Read more
Tax saving
Advocates call for an end to tax cuts
Social services sector advocates have warned that further tax cuts may make solving Australia’s biggest challenges much harder. Read more
Tax saving
ATO and AUSTRAC may gain new phone-tapping powers
A proposed update to electronic surveillance legislation could see the ATO armed with new powers that would allow the agency to bug phones and intercept online communications. Read more
Tax saving
Over 2m Aussies asked the TPB for help during the last year
As the economy recovers, Australia’s tax regulator says it’s planning to put unregistered practitioners under the microscope. Read more
Tax saving
Will you pay higher taxes due to bracket creep?
Bracket creep will see Australians paying more tax on average, unless further cuts are introduced in the future. Read more
Tax saving
Navigating tax laws for capital gains in 2023
The landscape of Australian tax laws surrounding capital gains is ever-changing, with 2023 being no exception. Read more
Tax saving
What you need to know about the tax implications of crypto
One million Aussies are now invested in crypto, but many have not thought about how these investments will affect them at tax time. Read more
Tax saving
Welfare overhaul could give recipients a leg-up
Australia’s Centrelink recipients who’ve been doing it tough are in for a potentially easier time if the federal government pursues ambitious reforms that could provide sturdier safety nets. Read more
Tax saving
Students should think twice before tapping into their super
Former students might want to think carefully before they look to take advantage of the federal government’s biggest first home buyer incentive. Read more
Tax saving
Advocates call for an end to tax cuts
Social services sector advocates have warned that further tax cuts may make solving Australia’s biggest challenges much harder. Read more
Tax saving
ATO and AUSTRAC may gain new phone-tapping powers
A proposed update to electronic surveillance legislation could see the ATO armed with new powers that would allow the agency to bug phones and intercept online communications. Read more
Tax saving
Over 2m Aussies asked the TPB for help during the last year
As the economy recovers, Australia’s tax regulator says it’s planning to put unregistered practitioners under the microscope. Read more
Tax saving
Will you pay higher taxes due to bracket creep?
Bracket creep will see Australians paying more tax on average, unless further cuts are introduced in the future. Read more
More articles
OUR PLATFORMS AND BRANDS
- Accountants Daily
- Accounting Times
- Adviser Innovation
- Australian Aviation
- Broker Daily
- Cyber Daily
- Defence Connect
- Fintech Business
- HR Leader
- Independent Financial Adviser
- Investment Centre
- Investor Daily
- Lawyers Weekly
- Money Management
- Nestegg
- Property Buzz
- Real Estate Business
- Smart Property Investment
- SMSF Adviser
- Space Connect
- Super Review
- The Adviser
- Wellness Daily
- World of Aviation
EVENTS AND SUMMITS
- Accountants Daily 30 Under 30 Awards
- ACE25
- Adviser Innovation Summit
- Australian Accounting Awards
- Australian Aviation Awards
- Australian Broking Awards
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Space Awards
- Australian Space Summit
- Better Business Summit & Awards
- Broker Daily Business Awards
- Corporate Counsel Summit & Awards
- Cyber Security Summit & Awards
- Defence Connect Budget Lunch
- Defence Connect DSR Summit
- Fund Manager of the Year Awards
- ifa Excellence Awards
- ifa Future Forum
- Investor Daily ESG Summit
- Lawyers Weekly 30 Under 30 Awards
- Lawyers Weekly Women in Law Forum
- New Broker Academy
- Partner of the Year Awards
- REB Awards
- Reinnovate
- SME Broker Bootcamp
- SMSF Adviser Technical Day
- Super Fund of the Year Awards
- Women in Finance Awards
- Women in Law Awards
- Accountants Daily Podcast Network
- Australian Aviation Podcast Network
- Broker Daily Podcast Network
- Defence Connect Podcast Network
- HR Leader Podcast Network
- REB Podcast Network
- Relative Return
- Space Connect Podcast
- The Adviser Podcast Network
- The ifa Show
- The Lawyers Weekly Show
- The Smart Property Investment Show
PODCASTS
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
LINKS
STAY CONNECTED
Make your nest egg grow. Register now for nestegg updates.