Australian Tax Office turning its sights to super

The Australian Tax Office is targeting self-managed super funds.

Australian Tax Office turning its sights to super

The Australian Tax Office (ATO) is targeting tens of thousands of super funds in a bid to make them ‘compliant’.

Last October, non-lodgement rates for self-managed super funds (SMSF) reached critical levels. Around 40,000 SMSFs – which are required to lodge an annual return – were at risk of penalties

Since then, around 22,000 of the 40,000 non-compliant funds either lodged overdue returns or exited the system.

This year, around 27,000 non-compliant super funds are in the tax office’s sights, and fund holders who have not yet fulfilled their annual obligations can expect to be contacted by the ATO in the coming weeks.

“We will continue to look at funds that have not lodged a return since they registered where we can see that at least one of the members has rolled money out of an APRA super fund account,” said ATO deputy commissioner James O’Halloran.

The ATO is cracking down on SMSF lodgements because it’s an indicator of whether the fund is satisfying its obligations, as well as whether self-managed fund members actually understand the superannuation reforms introduced in 2016, which include new caps and reporting obligations.

Read more at www.nestegg.com.au

Are you completely savvy with new super laws? Are you aware of your tax obligations?

RELATED ARTICLES





    COMMENTS

    To make a comment, please register or login
    Fliss
    1st Oct 2018
    11:12am
    Have no issue with this at all. Non-compliant SMSFs should be penalised. There are great incentives for having a SMSF but they must be compliant & trustees must be held accountable.
    Old Geezer
    1st Oct 2018
    12:26pm
    It's about SMSFs failing to lodge tax returns that's all.
    Infinityoz
    1st Oct 2018
    11:40am
    This article is a bit of clickbait. Headline is along the lines of 'watch out for the ATO it's going to target all of us', then the article was about nothing except SMSFs!! Most of us retirees don't have one of those, we never had enough money to set one up.
    BrianP
    1st Oct 2018
    12:25pm
    It would have been more useful to highlight the dangers of starting SMSFs if you do not have enough money in super.

    Many people still are not aware of the huge sums of savings that can be lost. Also the stress caused by potentially massive problems costs and delays in trying to close some small funds. Worst of all we know of cases where accountants have given bad advice to start SMSFs yet they cannot be made to pay compensation unless you go to court. The accountants' governing bodies and the Ombudsman do not in most cases assist with such compensation claims. Beware!
    Old Geezer
    1st Oct 2018
    12:34pm
    I have a SMSF that costs less than $2000 per year to be managed. I looked up other super fund fees a few days ago and the fees charged were over $20,000 a year with a return of 5% at best. Me thinks I'll keep my SMSF.
    TREBOR
    1st Oct 2018
    1:03pm
    $20,000 a year? That's $384 a week, OG - are you sure about that? Is that to have someone manage it for you directly, not just put it into a fund???
    Old Geezer
    1st Oct 2018
    1:48pm
    Fees for a managed super fund.
    TREBOR
    1st Oct 2018
    1:53pm
    Wow - no wonder you wouldn't touch it...
    inextratime
    3rd Oct 2018
    10:04pm
    If you are paying over $2grand a year for your super to be managed you either have a very large amount in super or you should find another fund manager.
    TREBOR
    1st Oct 2018
    1:00pm
    27,000 non-compliant SMFs? This raises some questions.... such as why, of course. Plus what level of training do people have in handling their own super fund?

    I don't imagine that those with them would be deliberately upsetting Big Bro up there in the ATO, so what exactly is going on?

    Is this a move to force the smaller SFRs into a managed scheme?

    Every action generates an equal or greater number of questions.....
    Anonymous
    1st Oct 2018
    2:18pm
    Its smsf's not submitting returns.

    There are hundreds of thousands of individuals who are also late in their tax submissions

    Worse there are hundreds of thousands of tax dodgers who understate their income and not paying GST who operate in the cash economy
    TREBOR
    1st Oct 2018
    3:11pm
    True..... the only good thing about GST loss through the cash economy is that it begins to pay GST and taxes the moment the money is spent by the cash recipient. In the short term the cash economy only benefits those who take cash.

    How to enforce it though is a different matter... some said the cash economy has grown since the GST directly as a means of avoiding it.
    Old Geezer
    1st Oct 2018
    3:36pm
    Trebor a lot of cash never gets spent where it subject to GST especially around here.
    Anonymous
    1st Oct 2018
    3:44pm
    Its about tax evasion. These people not only are not only pocketing the GST, they are not paying ANY tax on the income
    Its absolutely disgusting and an insult to us hardworking taxpayers


    Join YOURLifeChoices, it’s free

    • Receive our daily enewsletter
    • Enter competitions
    • Comment on articles