POWERED BY MOMENTUM MEDIA
Caution urged on tax penalties
|
Monetary penalties imposed against self-managed superannuation funds (SMSFs) that fail to meet their legal compliance requirements should not be so high as to wipe them out, according to the Taxation Institute of Australia.
In a submission to the Cooper Review, the institute has recommended a review of the penalty regime applying to SMSFs, including the manner in which the top marginal tax rate is applied.
It said this regime should be changed so that the top marginal rate was applied only during the financial years that a fund remains non-complying.
"If an extra monetary penalty above this needs to be imposed, then the Taxation Institute has suggested that it be in line with having a deterrent effect, but not a punishment so large that it wipes out almost half of a taxpayer's retirement savings," the submission said.
The Institute said the monetary amount could be in the order of around $10,000 to $20,000 or based on a scale of the assets in the fund.
AUTHOR
Mike Taylor
Recommended for you
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
Big business has joined the chorus of opposition against the proposed Division 296 tax.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
