Not all SMSF trustees equal
The Australian Taxation Office (ATO) needs to recognise that all Self Managed Superannuation Fund (SMSF) trustees are equal, according to the Association of Superannuation Funds of Australia (ASFA).
In a submission to the ATO dealing with the SMSF Reform Working Group, ASFA has argued that the tax office should adopt a graduated approach to breaches by SMSF trustees.
"Generally speaking, ASFA believes the ATO should grade each breach, the levels of seriousness of the breach and whether the contravention occurred intentionally or accidentally based on a reasonably arguable position, in determining the appropriate compliance treatment," it said.
The ASFA submission said regard also needed to be given to the fact that many SMSFs had a combination of active and passive trustees.
It said this was no more apparent than when the active trustee died, generally leaving behind the passive trustees "who are then left to a great extent to flounder with the trusteeship of the fund".
"Notwithstanding the fact that trustees have a shared responsibility, the reality is that in many cases one trustee tends to make the decisions," the ASFA submission said. "For this reason any differentiated compliance treatment needs to recognise that a feature of SMSF trusteeship, be it proper or not, is that not all trustees are equal."
AUTHOR
Mike Taylor
Recommended for you
Unveiling its performance for the calendar year 2024, AMP has noted a “careful” investment in bitcoin futures proved beneficial for its superannuation members.
SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positive” returns.
The second tranche of DBFO reforms has received strong support from superannuation funds and insurers, with a new class of advisers aimed to support Australians with their retirement planning.
The financial services technology firm has officially launched its digital advice and education solution for superannuation funds and other industry players.
