Mercer actuary David Knox says the data used to determine the old age dependency ratio is “totally out of date” and overstates the severity of the problem.
From their inception, SMSFs have always attracted more than their fair share of criticism. Now it’s an ageing membership that’s being used to restrict their numbers.
ATO bars 753 SMSF trustees, blasting early-access schemes
The Australian Taxation Office disqualified a record 753 self-managed superannuation fund (SMSF) trustees in the year though June, issuing $29 million in income tax liabilities and penalties, for running afoul of preservation and audit requirements.
Noting that the penalties and disqualifications issued in 2023 dwarf numbers from prior years, the regulator said it would be increasing its scrutiny of SMSF trustees’ compliance over the next year and warned trustees to get their houses in order.
“An important obligation a trustee has is to preserve their superannuation benefits until they meet a condition of release,” the ATO said in a statement announcing a ramp-up of its compliance activity. Trustees are also required to have their fund audited and lodge annual returns.
“During the 2023 income year we identified an increasing number of funds who did not comply with these obligations, which resulted in us imposing a higher number of sanctions as compared to previous years.”
The $29 million in penalties against trustees and members, covering income tax liabilities, administrative and tax shortfalls, and interest, was double the amount of tax and penalties imposed in the 2022 income year, the ATO said. The 753 disqualified trustees are triple the number from the previous year.
The largest source of sanctions “by far” was SMSF members illegally accessing their super benefits before meeting a condition of release, the ATO said.
“If you are a trustee who has breached the superannuation laws, we recommend you rectify the contravention as soon as possible,” it said. “Otherwise, you are putting your retirement savings and fund’s complying status at risk.”
The regulator recommended trustees use the ATO’s SMSF early engagement and voluntary disclosure service to disclose any contraventions prior to an audit.
“Throughout the 2024 income year we will continue to take firm action against trustees who persistently fail to comply with their obligations and seriously breach the superannuation laws,” it said.
