New ATO Penalties for SMSFs

The ATO have a new arsenal of weapons for SMSFs that fail to follow the rules.

For contraventions that occur after 1 July 2013, the table below shows the (massive) fines applicable PER trustee. That is if you have two individuals as trustees you can double the amounts shown.

A huge incentive to get your paperwork up to scratch, and avoid accidental payments into or out of your SMSF bank account.


Section & Rule

Administrative Penalty

s.35B – failure to prepare Financial Statements


s.65 – prohibition on lending or providing financial assistance to members & their relatives


s.67 – prohibition on super fund borrowing, except as permitted, eg limited recourse borrowing arrangement


s.84 – contravention of In-House Asset rules


s.103(1) & (2) – failing to keep trustee minutes for at least 10 years


s.103(2A) – failure to maintain a s.71E election, where applicable, in relation to a fund with an investment in a pre 11/8/99 related unit trust


s.104 – failing to keep records of change of trustees for at least 10 years


s.104A – failing to sign Trustee Declaration within 21 days of appointment and keeping for at least 10 years


s.105 – failing to keep member reports for 10 years


s.106 – failing to notify ATO of an event that has significant adverse effect on the fund’s financial position


s.106A – failing to notify ATO of change of status of SMSF, eg fund ceasing to be a SMSF


s.124 – where an Investment Manager is appointed, failing to make the appointment in writing


s.160 – failing to comply with ATO Education directive


s.254(1) – Failing to provide the Regulator with information on the approved form within the prescribed time upon establishment of the fund


s.347A(5) – Failing to complete a form with requested information provided by the Regulator as part of the Regulator’s Statistical Program



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s