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||$1,700|
|s.65 – prohibition on lending or providing financial assistance to members & their relatives||$10,200|
|s.67 – prohibition on super fund borrowing, except as permitted, eg limited recourse borrowing arrangement||$10,200|
|s.84 – contravention of In-House Asset rules||$10,200|
|s.103(1) & (2) – failing to keep trustee minutes for at least 10 years||$1,700|
|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||$1,700|
|s.104 – failing to keep records of change of trustees for at least 10 years||$1,700|
|s.104A – failing to sign Trustee Declaration within 21 days of appointment and keeping for at least 10 years||$1,700|
|s.105 – failing to keep member reports for 10 years||$1,700|
|s.106 – failing to notify ATO of an event that has significant adverse effect on the fund’s financial position||$10,200|
|s.106A – failing to notify ATO of change of status of SMSF, eg fund ceasing to be a SMSF||$3,400|
|s.124 – where an Investment Manager is appointed, failing to make the appointment in writing||$850|
|s.160 – failing to comply with ATO Education directive||$850|
|s.254(1) – Failing to provide the Regulator with information on the approved form within the prescribed time upon establishment of the fund||$850|
|s.347A(5) – Failing to complete a form with requested information provided by the Regulator as part of the Regulator’s Statistical Program||$850|