The ATO is a key regulator for SMSFs. They’re responsible for administering the super and tax laws and ensuring compliance. They make it as easy as possible for you to comply with your obligations and protect the future benefits of fund members.

The majority of SMSF trustees do the right thing but sometimes things just go wrong. When that happens, the ATO’s primary focus is to guide and support trustees who want to get themselves back on track and willingly comply with the super laws. But there are occasions when strong enforcement responses are necessary.

The treatment the ATO applies will depend on the nature of the breach and the trustee’s attitude to their obligations. In serious cases, they can make a fund non-complying. This has a significant tax consequence where the fund assets and income are taxed at 45%, rather than the 15% that applies for complying funds.

If the ATO believes a trustee is unable or unwilling to perform their role adequately, they will disqualify them. This prevents them from acting as a trustee of any super fund.

The ATO may take these actions in conjunction with other enforcement options. For example, in instances where there are severe breaches of the law, the ATO can also move to prosecute the trustees.

Visit the ATO website for more information about SMSFs and how they deal with non-compliance.