The ATO has advised that it has three major focus areas for its SMSF trustee compliance program:
- non or late lodgements (not lodging can result in the fund being made non-complying or the trustees being prosecuted);
- compliance breaches without an auditor contravention report (ACR); and
- unrectified ACRs (i.e., where the auditor reports a breach of the superannuation law that the trustees fail to rectify), and SMSF trustees making the same breaches the ATO has previously addressed with them.
In addition, the ATO is focusing on:
- related-party investments including lending to members;
- breaches of the 5% in-house asset limit;
- exempt current pension income and non-arm’s length income;
- ACRs lodged for SMSFs that are under 15 months old; and
- funds breaching the borrowing restrictions.