From 1 July 2014 the Australian Taxation Office (ATO) has the power to direct Self- Managed Superannuation Funds (SMSF) trustees to undertake education and/or to impose administrative penalties or fines.
The Tax and Superannuation Laws Amendment (2014 Measures No. 1) Act 2014 covers:
In particular, the new laws distinguish between the imposition of fines on individual and corporate trustees for an SMSF.
The Explanatory Memorandum provides examples of the varying treatment of individual and corporate trustees when a contravention has occurred and a penalty is imposed.
When a penalty is imposed on a trustee, where the trustee is a company, the penalty is imposed on that company but if there are individual trustees, the penalty is imposed on each trustee.
It is important to note that the penalty cannot be paid by the super fund but must be paid by the trustee company or the trustees personally.
For more information, please contact the office on (02) 9560 3777.