POWERED BY MOMENTUM MEDIA
ATO launches program to protect SMSF trustees
The Australian Taxation Office (ATO) has launched the Super Scheme Smart program to help protect self managed superannuation fund (SMSF) trustees from risky retirement plan arrangements.
The program would increase awareness in SMSF trustees and retirees about identifying and getting assistance regarding risky and illegitimate retirement plans.
Super Scheme Smart would give users relevant case studies and information packs. It would help educate taxpayers about illegal arrangements and the risks associated with them, what warning signs to look for, and where to seek help.
ATO deputy commissioner, James O’Halloran warned that risky retirement proposals can take a variety of forms.
“The arrangements may be cleverly designed to look legitimate, involve a lot of paper shuffling and framed as being designed to give a taxpayer a minimal or zero amount of tax or even a tax refund or concession,” O’Halloran said.
Examples of possible illegitimate risky retirement plans include arrangements that involve stripping dividends, diverting personal services income to an SMSF, granting legal life interests over commercial property to an SMSF, and artificial arrangements involving SMSDs and related-party property development ventures.
Entering such a scheme, even if an individual is unaware of its illegitimacy, could have negative consequences for SMSF trustees.
“If a taxpayer becomes involved in any illegal arrangement, even by accident, they may incur severe penalties, jeopardise their retirement savings and risk losing their rights as a trustee to manage their own fund,” O’Halloran said.
“We are working hard to shut down illegal arrangements quickly, but the best defence for taxpayers and their advisers is to be aware.”
The SMSF Association today confirmed its support for the Australian Taxation Office’s Super Scheme Smart material.
SMSF Association chief executive, John Maroney said the material, which also aims to educate SMSF trustees around avoiding paying illegal tax on superannuation income, was a positive step.
“We are highly supportive of the clarity that the ATO material provides on issues and risk areas that are causing concern for SMSF advisers and trustees alike,” he said.
Maroney said the initiative would continue to build awareness which in turn would work to curb illegal happenings within the wider sector.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
