• How Can We Help
    • FREE Business Health Check
    • Taxation Consulting
    • Accounting
    • Solo & Micro Business
    • Business Advisory
    • Medium Sized Businesses
    • SMSF
    • Single-Touch Payroll
  • Why Us
    • About Us
    • Testimonials
  • Xero
    • Why Xero
    • Free Xero Training
  • Client Tools
    • Xero Add-ons
    • Tax Facts
    • Links
  • Blog
  • Contact Us
  • Skip to primary navigation
  • Skip to content
  • Skip to primary sidebar
  • Skip to footer

RA Business Advisors

  • 07 3367 0852
  • How Can We Help
    • FREE Business Health Check
    • Taxation Consulting
    • Accounting
    • Solo & Micro Business
    • Business Advisory
    • Medium Sized Businesses
    • SMSF
    • Single-Touch Payroll
  • Why Us
    • About Us
    • Testimonials
  • Xero
    • Why Xero
    • Free Xero Training
  • Client Tools
    • Xero Add-ons
    • Tax Facts
    • Links
  • Blog
  • Contact Us
You are here: Home / Uncategorised / New Penalties for Self-Managed Super Funds

New Penalties for Self-Managed Super Funds

June 6, 2014 By admin@akturatech.com

The 1st of July 2014 will mark the commencement of a new regime of penalties for Self-Managed Super Funds (SMSFs). The information below aims to provide clarity for you in the organisation of your SMSF, so that you can be prepared for the future.

The new law initiates administrative directions and penalties for contravention in reference to SMSFs including:

  • Rectification directions
  • Education directions
  • Administrative penalties

The ATO has the ability to issue not just one, but two or more, of the above options and can issue a notice of non-compliance if SMSFs do not act in accordance with directives.

Funds that no longer meet the requirements of an SMSF may still be subject to directions and/or penalties, regardless to the fact that the new penalty regime applies only to SMSFs.

This new law voids any condition in the SMSF’s Trust Deed/Governing Rules that would have the effect of excusing a trustee of the SMSF from or indemnifying a trustee/director against:

  • Liability for the cost of undertaking a course of education in compliance with an education directive.
  • Liability for an administrative penalty imposed by the new administrative penalty regime.

The new SMSF Penalty Regime does not replace the current powers that the ATO has to take action against trustee(s), but provides an alternative. Providing a middle ground of the current option, for the ATO when dealing with a fund that contravened SIS, is one of the main reasons for the introduction of SMSF Penalty Regime.

ATO has developed a range of options to deal with breaches of the superannuation law, including:

  • Giving a fund a notice of non-compliance to make the fund a non-complying superannuation fund
  • Accept an undertaking from the trustee to rectify the contravention
  • Disqualifying individual trustees and prohibiting them from acting as a trustee of a superannuation fund or as a responsible officer of a corporate trustee of a superannuation fund
  • Suspend or remove the trustee
  • Freeze the assets of the fund if there is a risk of the member’s benefits being eroded
  • Seek civil and/or criminal penalties through courts

The ATO will continue to have these options available for SMSFs that contravene SIS, however, the new SMSF Penalty Regime will provide a more efficient way for the ATO to deal with SMSFs that have SIS breaches.

Credit to ‘New Penalty Regime for SMSFs’ by Mark Ellem of SuperMate.

Filed Under: Uncategorised

Reader Interactions

Primary Sidebar

Recent Posts

  • How New Tax and Super Changes Will Impact Australian Small Businesses in 2025–26 April 16, 2025
  • Financial Relief for Small Businesses Affected by Tropical Cyclone Alfred April 2, 2025
  • How Small Businesses Can Maximise the $20,000 Instant Asset Write-Off Before EOFY 2025 April 2, 2025
  • Beware of Tax Scams: A Guide for Australians March 31, 2025
  • 2025/26 Federal Budget: What It Means for You and Your Business March 28, 2025

Footer

Chartered Accountants

Follow us on social media:

  • Facebook
  • Twitter

Newsletter

Contact us:

  • 07 3367 0852
  • mail@raaccountants.com.au
  • 50 Musgrave Rd BRISBANE QLD 4059 PO Box 242 RED Hill QLD 4059
Tax Practitioners Board

Copyright © 2025 RA Business Advisors | Website by: Aktura Technology