New SMSF Penalty Regime
The new measures means ATO will now have greater flexibility on dealing with SMSF non-compliance by issuing:
– Rectification directions for contraventions of the superannuation law
– Education directions to trustees of the SMSF
– An Administrative penalty regime for SMSF trustees for certain contraventions of the SISA.
A rectification direction will require a trustee to undertake specified course of education within a specified time frame, and provide the ATO with evidence of successful completion of the course.
Where an administrative penalty is imposed it must be paid personally by the trustee or the director of the trustee company and cannot be paid or reimbursed by the SMSF. Where a SMSF has individual trustees, the ATO will impose any penalty on each individual trustee, meaning the penalty will be multiplied by the number of trustees. Corporate trustees, however, will incur only 1 penalty.
Summary of the proposed penalty:
SISA Section | Rule | Administrative Penalty |
| s35B | Failure to prepare Financial Statements | $1,700 |
| s65 | Lending or providing financial assistance to members & their relatives | $10,200 |
| s67 | Super fund borrowings, outside the permitted exemptions (e.g. limited recourse borrowing arrangement) | $10,200 |
| s84 | Trustees have not taken reasonable steps to comply with the In House Asset Restrictions | $10,200 |
| s.103(1) & (2) | Failing to keep trustee minutes for at least 10 years | $1,700 |
| s.104 | Failing to keep records of change of trustees for at least 10 years | $1,700 |
| s.104A | Failing to sign Trustee Declaration within 21 days of appointment and keeping for at least 10 years | $1,700 |
| s.105 | Failing to keep member reports for 10 years | $1,700 |
| s.106 | Failing to notify ATO of an event that has significant adverse effect on the super fund’s financial position | $10,200 |
| s.106A | Failing to notify ATO of change of status of SMSF, e.g. super fund ceasing to be a SMSF | $3,400 |
| s.160 | Failing to comply with ATO Education directive | $850 |
| s.254(1) | Failing to provide the Regulator with information on the approved form within the prescribed time upon establishment of the super fund | $850 |
| s.347A(5) | Failing to complete a form with requested information provided by the Regulator as part of the Regulator’s Statistical Program | $850 |
If you have any questions on SMSF, please contact us on 1300 736 453.
The information contained in the article may not be appropriate to your individual needs therefore you should seek personal financial advice before making any financial or investment decisions.
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Book your free consultation with me to find out if SMSF is right for you. If you have any other questions, we are happy to help!
Why is SMSF Set up free at SuperHelp?
SuperHelp have been servicing the SMSF market for over 15 years. We pride ourselves in being able to provide an affordable SMSF service without compromising on quality. One of these services are to provide new members with setting up their SMSF for free when they use our award winning service.
Do I need to use a specific bank, broker or provider?
Unlike other SMSF administrators and accountants we do not restrict you to what bank, broker or service provider you use. We are independent and do not take any commissions from other parties so that our clients can invest their super where they please.
How long has SuperHelp been around for?
SuperHelp have been around since 2002 - so over 15 years! While new SMSF administrators have come and gone, we are still around!
How much is your ongoing annual administration fees?
Our first year introductory offer for new SMSF or transferred SMSF are $899 + GST regardless of asset types. Subsequent years are dependent on the number of assets and asset types you have - please use our calculator to estimate your fee. You will find that our fees are very reasonable to the quality provided within the SMSF market.
Do you have an SMSF newsletter that I can sign up to?
Yes! We send out a quarterly SMSF newsletter to all of our clients and anyone interested in SMSF. You can sign up here :
Do you offer any other SMSF services?
Yes we do! You can see a full list of SMSF services on our services page.
Contact Us
SuperHelp is located in Macquarie Park, NSW however we work with clients all around Australia.