ATO Deputy Commissioner Superannuation, Alison Lendon, has noted the Government’s proposed legislation giving the ATO new powers to address non-compliance by SMSF trustees. If the legislation is adopted, administrative penalties will apply to breaches of super law from 1 July 2014. This means SMSF trustees will be personally liable for penalties between $850 and $10,200 depending on the provision contravened.

“SMSF trustees should rectify any contraventions as soon as possible or they may face a penalty,” Deputy Commissioner Lendon said.

Loans, borrowings, sole purpose breaches, in-house assets, arm’s-length and related party investments are the most common contraventions auditors are reporting, according to the ATO. This year, the ATO said it will review every Auditor Contravention Report.

The ATO also called on trustees to be aware of changes to SMSF administration and SuperStream, the new data and payment standard reporting rules. Starting from 1 July 2014, SMSFs will be required to receive contributions electronically from employers. 

Note: that Deputy Commissioner Lendon spoke at the SMSF Professionals Association of Australia (SPAA) national conference on Fri 21.2.2014.

Source: ATO media release 2014/06, ATO media article 2014/03, 19 February 2014

[LTN 34, 20/2/14]