Self-Managed Superannuation Funds: Popularity means increased scrutiny
The Australian Taxation Office (“ATO”) have reported that nearly one (1) million Australians have now taken control of their superannuation through the establishment of self managed superannuation funds (“SMSFs”)!
Accordingly, ATO Deputy Commissioner Superannuation, Alison Lendon, has indicated that as a reaction to the industries growth, the ATO is looking to improve it’s management of the sector.
While the ATO have indicated they are keen to work with fund Trustees and their advisers to help ensure the industry prospers, they have also advised non-compliance will be at the forefront of their activity with the Governments proposed legislation expected to give the ATO new powers in this area.
New Trustee Penalties for Contraventions
If the new laws are passed, Trustees will face potential personal penalties of between $850 and $10,200 in the event of contraventions!
While these new penalties may sound harsh, we actually welcome them. We are great believers in self managed superannuation funds. We believe they are the best tool available to build long term wealth if Trustees and Members use them for their proper purpose. However those who don’t put the entire industry at risk and accordingly we are happy to see them weeded out.
Don’t put it off any longer
If you have ever considered the idea of a self managed superannuation fund we would encourage you to get in touch and have a chat about how they work and the flexibility and opportunities they provide. Direct property investment, flexible handling of contributions, control over investment decisions, reduced administration costs and improved insurance management are just some of the benefits. But ultimately what it all adds up to is an opportunity for increased long term wealth creation.
And if you never consider your super at all, now is the time to act because every day is a lost opportunity to achieve a bigger, better future!
You can check out the Deputy Commissioners Media Release here.