Top SMSF Contraventions reported to the ATO

SMSF Law - Statistics - Top Contraventions reported to the ATO

Top ATO Contraventions

The ATO released “Self-managed super funds: A statistical overview 2009-10” earlier this year in April, and the report provides a warning of what trustees need to diligently avoid.

From the Contravention page

As part of an annual audit, approved auditors are required to submit to the ATO Auditor Contravention Reports (ACRs) disclosing any SMSF contraventions according to ATO reporting guidelines. These range from administrative contraventions to more serious contraventions, such as breaches in relation to investments in in-house assets.

Overall, the percentage of the SMSF population with ACRs for the audit years ended 30 June 2004 to 30 June 2009 remained relatively stable at approximately 2% of all SMSFs each year.24

There were 8,792 SMSFs that had ACRs lodged containing 21,357 contraventions in the year ended 30 June 2011. This is an increase from 30 June 2010 of just over 8% in the number of SMSFs with an ACR, but a rise of almost 20% in contraventions. To 30 June 2011, just under half of contraventions are reported as rectified.

SMSF Law - Statistics - Top Contraventions reported to the ATO

Top ATO Contraventions

The most commonly reported contraventions continued to be loans or financial assistance to members (almost 21%), while in-house assets and separation of assets constitute almost 18% and 13% respectively. In monetary terms, these two contraventions represent almost 27% and just over 27% respectively of the reported contraventions up to 30 June 2011 (see appendix 1, table 23).

The demographic of SMSFs with ACRs generally align with the SMSF population. Analysis shows there is no correlation between the receipt of an ACR and the SMSF asset size, SMSF income range, years since establishment or the structure of the SMSF.


About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
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