POWERED BY MOMENTUM MEDIA
Illegal release of super top ATO concern
The illegal release of superannuation is one of the top risks that the Australian Taxation Office (ATO) is concerned with as it stopped $126 million in retirement savings from being rolled out of Australian Prudential Regulation Authority (APRA) regulated accounts and into self-managed superannuation funds (SMSFs) in 2020.
Speaking at the SMSF Association National Conference, ATO assistant commissioner, Justin Micale, said the issues along with non-lodgement of SMSF annual returns, regulatory contraventions, approved auditor independence and adequacy, and SMSF auditor number (SAN) misuse were ATO’s top concerns.
On the illegal release of super, Micale said the two behaviours constantly monitored by the ATO were:
- Individuals accessing their own super before a condition of release has been; and
- Criminals using stolen identities to illegally access another individual’s super.
“In 2020 new [SMSF] registrations jumped by 7% to 22,000 compared to 20,400 in 2019. Of these 22,000 newly registered SMSFs, 20% were picked up by our risk models and reviewed by our teams. Of those, a number were deemed to be too high risk and stopped from registering an SMSF,” he said.
“This resulted in an estimated $126 million in retirement savings being stopped from being rolled out of an APRA regulated account and rolled into an SMSF where potentially it could have been illegally accessed.”
Micale noted that in the first six months of this financial year, the ATO identified 18 stolen identities being used to try and set up 12 SMSFs targeting nearly $2 million dollars of super.
“I ask that you pay particular attention to three key elements of the operating system. Firstly, it is critical that you safeguard your clients’ personal details and let us know immediately if you become aware of a breach,” he said.
“Secondly, it is important that you thoroughly check the identity of any new clients before helping them set up a new SMSF.
“Finally, pay close attention to ATO issued alerts/notifications advising of changes to the SMSF account. If you or your clients are not aware of the reasons for these changes take immediate action and contact us.”
Recommended for you
As the Australian financial landscape faces increasing scrutiny from regulators, superannuation fund leaders are doubling down on their support for private markets, arguing these investments are not just necessary but critical for long-term financial stability.
Australian Retirement Trust (ART) is leaning on its private asset allocation to help shield members from ongoing market volatility, as its chief economist stresses the importance of long-term thinking and diversification.
AustralianSuper is poised to cement its leadership in the superannuation landscape over the next five years, with fresh research forecasting a sharp shift in the sector’s power dynamics.
The Reserve Bank of Australia (RBA) has warned that significant liquidity pressures could arise in the superannuation sector if multiple risks materialise at once, potentially amplifying shocks in the financial system.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.63 3 y p.a(%)
3
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
5
Plato Global Alpha A
27.76 3 y p.a(%)
