The Government on Mon 20.8.2012, released draft legislation aimed at implementing the following Stronger Super measures for the self-managed superannuation fund (SMSF) sector:
- – an administrative penalty regime is proposed for SMSF trustees for certain contraventions of the SIS Act. The Commissioner will also be given the Administrative penalties for SMSF trusteespower to issue SMSF trustees with “rectification” and “education” directions for contraventions of the SIS Act and SIS Regs. Any costs imposed under the proposed administrative penalty regime will be payable personally by the person who has committed the breach (and cannot be paid or reimbursed from assets of the SMSF). A person to whom a rectification direction is given will be required to comply with the direction before the end of the period specified in the direction. Failure to comply with a direction will be a strict liability offence (penalty $1,100). Date of effect: Applicable to contraventions that occur on or after 1 July 2013.
- Promoter penalties for illegal early release schemes– civil and criminal penalties are proposed for the promotion of illegal early release schemes involving unlawful payments from regulated superannuation funds. The Income Tax Rates Act 1986 will also be amended to tax the “unlawful early payment remainder” of superannuation benefits received in breach of the legislative requirements at 45% (instead of the individual’s marginal rate). Date of effect: From the 2013-14 income year.
- Roll-overs to SMSFs – will be captured as a designated service under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act). Accordingly, superannuation funds transferring benefits (roll-overs) to SMSFs will be required to comply with a range of AML/CTF obligations. Date of effect: 1 July 2013.
COMMENTS are due by 14 September 2012.
[LTN 160, 20/8]