The ATO has advised that is has received a total of 16,909 regulatory contraventions in relation to 8,215 SMSF’s in the 2018 financial year.

The ATO has identified the most common contraventions are :

  • Related Party Loans;
  • Loans to Members;
  • In-House Assets;
  • Investing in related party assets; and
  • Separation of assets where members are not keeping their personal assets separate from the SMSF assets.

Other contravention categories listed by the ATO related to administrative errors, sole purpose breaches, borrowings, operating standards and acquisition of assets from related parties.

Enforcement action that can be taken by the ATO include a direction to rectify, enforceable undertakings and notice of non-compliance, which resulted in 275 trustees being disqualified to act as trustee, or a director of a trustee company, or a superannuation fund.

The duties and responsibilities of being trustee of a SMSF are not to be taken lightly, and penalties can be severe for intentional misconduct.