Since the Simpler Super changes were introduced in 2007 and the finalisation of the Cooper Review in June 2010, the SMSF environment has been drastically re-defined. Reforms to how and when members can access their entitlements, the taxation implications of withdrawing benefits, the limits placed on the dollar amounts and timing of contributions made, restrictions on the assets owned or acquired by a fund and numerous other compliance requirements make running your own SMSF a potential minefield if not managed correctly.
Simple problems such as registering assets in the wrong name, loaning money from the fund to certain parties and other related party transactions can turn into big problems if not dealt with quickly and effectively. More often than not it will trigger an ATO audit, expose the trustees to a range of administrative/monetary penalties and in extreme cases result in the fund being made non-complying which effectively means it will lose 46.5% of its assets as a ‘penalty tax’.
We routinely deal with the ATO on behalf of clients who have inadvertently breached the rules in order to reach a suitable outcome which satisfies both the client and ATO and allows the fund to keep its compliance status.