SMSF trustee penalties going up

 

In last night’s Budget, the government announced an increase in the penalties that can be applied to SMSF trustees.

 

The increase in the penalty unit, from $170 to $180, has ramifications for SMSF trustees both with late lodgement penalties for the SMSF annual return and with the SMSF administrative penalties regime, according to The SMSF Academy’s managing director, Aaron Dunn.

“For example, a trustee who breaches the requirements of section 65(1) – lending to members, will see a penalty increase of from $10,200 to $10,800 (60 penalty units),” Mr Dunn said.

The increase is expected to take effect from 31 July 2015 this year.

“Whilst it has been a quiet night from the federal Budget, it is likely that the government will ‘ramp-up’ debate on various superannuation tax concessions when they respond to the FSI final report (which is expected to include changes around limited recourse borrowing arrangements) and its tax white paper,” Mr Dunn said.

 

Written by Katarina Taurian
Wednesday, 13 May 2015
smsfadviseronline.com.au

  • The real value of advice

    The right words of advice - whether it be from friends or family, business mentor, sports coach - can have lasting impact on the way we lead our lives, manage our businesses. The same holds true for financial advice.

  • Taking a deeper dive into indexation of the transfer balance cap

    With the recent indexation of the general transfer balance cap causing discussion around its complexities, technical experts take a deeper look into what will happen on 1 July.

  • ASIC sounds warning around high-yield bond scams

    The corporate regulator has warned of a rise in scammers targeting Australian investors by pretending to be associated with well-known domestic and international financial service firms.

  • How to pass the diversification test

    Diversification, spreading your money across a range of different assets rather than putting it all into one place, is one of the core principles of investment risk management. That's because investment returns from different assets are never consistent.

IT Financial Services, ABN 48 097 884 976, is an Authorised Representative of Apogee Financial Planning. Apogee Financial Planning Limited ABN 28 056 426 932 is an Australian Financial Services Licensee and has its registered office at 105 - 153 Miller Street North Sydney NSW 2060. A member of the National group of companies.