As the largest sector of the total superannuation pool in Australia, surveys show that self-managed super fund (SMSF) owners are more satisfied, which is good news, but trustees must remember that new ATO powers began from 1 July 2014.
Australians who manage their own superannuation are much more satisfied with how their retirement savings perform than those who leave it in the hands of funds. Results this week showed millions of super fund members were set to enjoy average returns of about 13 per cent, but those who take control of their own nest eggs are happier. “This is compared to industry funds with about 12 per cent with balances over this amount and retail funds with about 21 per cent.’’ SPAA chief Andrea Slattery said SMSF members were happier with their results because they had better involvement with their retirement savings, leading to stronger returns. “It’s about being engaged,’’ she said. Reported by Sophie Elsworth at The Advertiser.
It is a good time also to remember the new ATO powers began from 1 July 2014. As Jordan George of SMSF Adviser writes –
There are some important changes concerning SMSFs which came into effect yesterday that SMSF professionals and trustees alike should be aware of. The new ATO penalty powers apply from 1 July 2014. Under an education direction, the ATO may give an SMSF trustee a written direction to undertake an approved course of education where the ATO reasonably believes that the SMSF trustee has contravened the SIS Act or SIS Regulations. Under a rectification direction, the ATO may give an SMSF trustee a written direction to undertake a specified course of action to rectify a breach of the SIS Act or SIS Regulations. The administrative penalties apply to specific breaches listed in section 166 of the SIS Act. Read More HERE.
The importance of a team with experience is paramount – a self-managed super owner can be more happy about their superannuation, especially when administrators and advisors are proactive and assist with investments and potential pit-falls BEFORE unnecessary non-compliance is found by the auditor!
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