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ATO warns of SMSF pitfalls
The Australian Taxation Office (ATO) has expressed concern at the continuing use of the term “do-it-yourself super” when referring to self-managed superannuation arguing that it can serve to conjure up inappropriate images.
The ATO’s deputy commissioner responsible for superannuation, Mark Jackson told an accountancy seminar last week that the term “do-it-yourself super” tended to conjure up the image of “a product you can buy off the shelf, follow the directions the back of the pack and a well-funded retirement will be yours.”
“I think we all know that this is not the case,” he said. “We see enough examples of non-compliance to suggest that a lot more care, understanding of responsibilities and attention to detail is required than some trustees seem to appreciate.”
Jackson pointed to the continuing growth in the number of self-managed superannuation funds saying they were still being established at a rate in excess of 2,000 a month - something that represented a significant business opportunity for accountants.
“However, I would put it to you that along with the benefits such a burgeoning business sector offers you and your colleagues, there is a responsibility to ensure your clients are aware of their regulatory and legislative obligations,” he said.
Jackson said that full regulatory compliance did not of itself ensure that a self-managed fund would be a profitable exercise.
“It is therefore equally important that members carefully consider whether they have the skills and expertise to profitability invest their fund’s assets and if not, whether professional advice in this regard is also needed,” he said.
AUTHOR
Mike Taylor
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