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
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
10 ways to reduce your tax bill
With the tax return deadline only one month away, these tips could help minimise your tax bill. ...Read more
Tax saving
Sustainable tax conditions only way forward: OECD
The Australian economy had been on a 28-year winning streak of uninterrupted growth before the pandemic. However, despite a return to lockdowns, the OECD has predicted that winning ways can return sh...Read more
Tax saving
ATO issues warning over new gift card scam
The Australian Taxation Office (ATO) is warning victims of a new phone scam, where scammers are pretending to be the tax man and demanding payments for unpaid tax liabilities. ...Read more
Tax saving
EV uptake set to stall following tax changes
Special EV taxes introduced by state governments are creating a disincentive for Aussies to choose cleaner vehicles and slowing Australia’s overall transition to net zero, new data has revealed. ...Read more
Tax saving
Rooftop solar avoids ‘sun tax’ but still faces caps
Power companies will soon be able to charge Australians with rooftop solar panels a tax for exporting electricity to the grid, albeit the regulators have walked back from the most controversial parts ...Read more
Tax saving
South Australians now eligible for COVID-19 Disaster Payment
South Australians under lockdown are set to be supported by the COVID-19 Disaster Payment, the state government has confirmed. ...Read more
Tax saving
Broken tax system costs economy $50bn
Australia’s tax laws are costing the nation about $50 billion in compliance costs, while inefficient taxes are slowing down economic growth, an industry expert has warned. ...Read more
APRA’s mortgage crackdown, the power of DeFi and last-minute tax tips
Listen now
What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?
Listen now
Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?
Listen now
What does the NSW regional permit mean for property investors? Who really wins from the BHP-Woodside merger?
Listen now
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
10 ways to reduce your tax bill
With the tax return deadline only one month away, these tips could help minimise your tax bill. ...Read more
Tax saving
Sustainable tax conditions only way forward: OECD
The Australian economy had been on a 28-year winning streak of uninterrupted growth before the pandemic. However, despite a return to lockdowns, the OECD has predicted that winning ways can return sh...Read more
Tax saving
ATO issues warning over new gift card scam
The Australian Taxation Office (ATO) is warning victims of a new phone scam, where scammers are pretending to be the tax man and demanding payments for unpaid tax liabilities. ...Read more
Tax saving
EV uptake set to stall following tax changes
Special EV taxes introduced by state governments are creating a disincentive for Aussies to choose cleaner vehicles and slowing Australia’s overall transition to net zero, new data has revealed. ...Read more
Tax saving
Rooftop solar avoids ‘sun tax’ but still faces caps
Power companies will soon be able to charge Australians with rooftop solar panels a tax for exporting electricity to the grid, albeit the regulators have walked back from the most controversial parts ...Read more
Tax saving
South Australians now eligible for COVID-19 Disaster Payment
South Australians under lockdown are set to be supported by the COVID-19 Disaster Payment, the state government has confirmed. ...Read more
Tax saving
Broken tax system costs economy $50bn
Australia’s tax laws are costing the nation about $50 billion in compliance costs, while inefficient taxes are slowing down economic growth, an industry expert has warned. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
