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SPAA backs SMSF educational penalties
The ATO’s new power to dole out alternative penalties such as education programs to SMSF trustees who accidentally breach laws will improve the industry landscape, the SMSF Professionals’ Association of Australia (SPAA) believes.
The changes, proposed by the former government and implemented from 1 July this year, mean the ATO has more flexibility in its penalty regime and does not have to default to disqualification or enforceable undertakings, according to SPAA.
“Our organisation supported the concept of administrative penalties for SMSFs when they were first proposed by the previous Government responding to the Cooper Review, and we are pleased to see the Coalition Government push the legislation through Parliament,” SPAA CEO Andrea Slattery said.
“SPAA believes that the education direction, where the ATO can ask a trustee to undertake a specified course of education within a certain time frame, is a good solution for SMSF trustees that have inadvertently breached the superannuation laws because of a lack of understanding,” she added.
“The possibility of being penalised for breaching the SIS Act reinforces SPAA’s message that SMSF trustees should be seeking specialist SMSF advice to ensure that their superannuation fund is complying with the necessary laws.”
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