POWERED BY MOMENTUM MEDIA
ATO issues final reminder: SMSFs told to get houses in order
THE Australian TaxationOffice (ATO) is making sure the trustees of self-managed superannuation funds (SMSFs) are left in no doubt about their obligations with respect to the ownership of assets.
The ATO has issued what it describes as a “final reminder” to SMSF trustees about keeping the benefits and other assets of their fund separate from personal assets.
The ATO’s warning comes ahead of what is expected to be a tougher enforcement approach in the new financial year, and the release of survey data indicating that the mixing of personal and fund assets has represented a problem area within the SMSF arena.
The Tax Commissioner, Michael Carmody, has publicly stated that under the terms of the Superannuation Industry (Supervision) Act, trustees are required to keep benefits and other assets of a fund separate from their personal assets and the assets held by employers who contribute to the fund.
He said the law was clear and the requirement existed to ensure a fund’s assets were protected for retirement.
“Self-managed superannuation funds in breach of the separation of assets rule must move to rectify the breach by June 30 this year,” Carmody said.
He said the ATO was aware of instances where a fund’s assets had been seized in debt proceedings because its assets were not clearly identified as belonging to the fund.
AUTHOR
Mike Taylor
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
