Speeding ticket legislation for SMSFs: A snapshot

Key Points Current penalty regime for SMSFs has only harsh penalties for breaches New regime allows ATO to impose monetary penalties or issue orders to trustees Structure of financial penalties benefits corporate trustees  The current penalty regime for superannuation funds, including SMSFs, is brutal and complicated. The Tax Office can make a fund non-complying (resulting in a massive tax bill), apply to the court for financial penalties to be imposed on a trustee, disqualify a trustee or accept an enforceable undertaking from them. For many breaches, these penalties (and the processes to be followed) are out of proportion with...

The current penalty regime for superannuation funds, including SMSFs, is brutal and complicated. The Tax Office can make a fund non-complying (resulting in a massive tax bill), apply to the court for financial penalties to be imposed on a trustee, disqualify a trustee or accept an enforceable undertaking from them.

For many breaches, these penalties (and the processes to be followed) are out of proportion with the crime committed. So either the trustee gets whacked with an excessive penalty, or doesn’t get penalised at all.

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