POWERED BY MOMENTUM MEDIA
Super trustees could be hit with $4k penalty
Superannuation fund trustees could be hit by a $4,200 penalty as the Australian Taxation Office (ATO) focuses on auditing investment strategies, the SMSF Alliance warns.
The ATO has requested over 17,000 funds provide evidence their investment strategy meets the retirement objectives and cashflow requirements of the fund, especially those with 90% of more of its funds invested in a single asset class.
SMSF Alliance principal and SMSF specialist mentor, David Busoli, said this would give auditors a reason to pay more attention to the investment strategies of all other funds as well.
“The ATO seem to be prepared to overlook breaches where funds have already been audited as the letter specifically states ‘Have your investment strategy ready to provide to your SMSF's approved auditor as part of your next audit’,” he said.
Busoli warned that if the auditor identified the fund had failed to rectify any non-compliance with the requirements it could result in a penalty.
However, Busoli has previously said that diversification had to be “considered” but did not mean it must be “achieved”.
“If it has been properly considered, and its absence justified, the rules are satisfied,” he said.
“The problem with some investment strategies is that they are little more than a regurgitation of the requirements, a statement that they have been considered and an asset allocation that is meaningless, such as 0% to 100% in any asset.”
Recommended for you
Future Group is set to take on nearly $1 billion in funds under management (FUM) and welcome more than 100,000 new members following two significant successor fund transfers.
Insignia’s Master Trust business suffered a 1.9 per cent dip in FUA in the third quarter, amid total net outflows of $1.8 billion.
While the Liberal senator has accused super funds of locking everyday Australians out of the housing market, industry advocates say the Coalition’s policy would only push home ownership further out of reach.
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
