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ATO scrutiny still focused on SMSFs
The Australian Tax Office (ATO) is continuing to keep up the pressure on the industry in regards to self managed super funds (SMSF) that breach rules by lending part of their SMSF resources to relatives or other members.
In an address to the Small Independent Superannuation Funds Association in Melbourne, ATO assistant commissioner of superannuation Stuart Forsyth said the ATO was still being disappointed that SMSF holders were still breaching SMSF laws by providing loans.
“The law is unambiguous, you cannot use the resources of an SMSF to lend money, provide direct or indirect financial assistance to a member or a relative of a member.
“We still find funds where within months of being set up, some of the money has gone to a member, it’s one of the things ... that we’re working on as we speak,” he said.
Investigations around the loans comprise a significant part of the ATO’s audit and contravention report, he said.
300 audits are being planned “for this year”, together with 1000 reviews, 1,200 mailouts for the ATO’s tailored advice programs, as well as a follow up program of the service from the last financial year, Forsyth said.
The ATO also found that super trustees have been using their retirement funds’ members to support their related businesses, and exceeding the five per cent limit, Forsyth said.
“We don’t intend to get to the cases that just exceed the five per cent limit, we favour those people who have used more than 50 per cent of the money in the fund for related businesses,” he said.
AUTHOR
Mike Taylor
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