The new choice of superannuation fund regime has failed to accelerate the growth of self-managed superannuation funds (SMSFs).
This much has been confirmed by the Australian Taxation Office (ATO) with assistant deputy commissioner, Ian Read using a recent address to reveal that while the ATO had expected choice might accelerate growth in the number of SMSFs, this had not eventuated.
“The anticipated growth has not eventuated,” he said. “In the quarter to September, growth rates have slightly declined in comparison to the same period last year [2004].”
Read said that the ATO’s approach to the number of self-managed funds had not changed with its major concern not being the actual number of funds which are created, but the ability of those funds to comply with the relevant regulations.
He said that during 2003 and 2004 there had been rapid growth in the number of self-managed superannuation funds being established in Australia with an average of 3,000 being established each month – a figure which had more recently declined to around 2,000 a month.
“And this figure is slowly trending down,” Read said.
“It could be that there is now more awareness in the community about the skills and commitment required to run your own fund,” he said.
Read said that the ATO would be adopting two main approaches with respect to its compliance program for self-managed funds – lodgement compliance and active compliance.
“We will be focussing on lodgement compliance. All superannuation funds must lodge a fund income tax and regulatory return and a superannuation member contribution statement every year until the fund is wound up,” he said.
Read said a significant number of funds would be contacted throughout the year about non-lodgement and that the ATO had upgraded its resources in this area.
With respect to active compliance, Read said that the ATO would be selecting either the trustees, the fund or approved auditors for its audit program which would include both field and desk audits.
