In its Compliance in Focus briefing delivered to the industry this week, the ATO said it intended to increase audits of SMSF trustees for both their regulatory and income tax compliance.  The ATO expects to audit 1,100 funds for income tax compliance and 15,100 funds for regulatory compliance in 2013-14.

The SMSF Professionals Association of Australia (SPAA) Senior Manager, Technical & Policy, Jordan George, says:  “It is critical SMSF trustees are aware that their running of their SMSF will be under even greater scrutiny going forward.

“The ATO are specifically targeting prohibited loans, related party transactions, SMSF return lodgement and funds with a history of non-compliance.

“In this environment, SMSF trustees need to ask themselves are they getting the best possible advice and if they aren’t is it worth risking their fund’s complying status?  Being made non-complying can severely damage trustees’ retirement plans as their fund loses its superannuation tax concessions.”

George says the ATO Overview also highlighted the fact the SMSF sector is complying with the law, the decision to increase monitoring notwithstanding.

“The ATO reports that 98% of SMSFs complied with the law in the 2012-13 financial year.

“This confirms what SPAA has been saying – that the SMSF sector is a healthy, compliant and well-functioning sector of the superannuation industry, simply confirming what the Cooper Review stated in its final report in 2010.”

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