ATO sounds warning on SMSFs. But relax. Your SMSF is fine. In fact all our SMSFs are fine because we do things properly.

The Australian Taxation Office (ATO) has signalled its intention to significantly increase its compliance checks on self-managed superannuation funds, including the introduction of a compliance verification program similar to that used to administer the Goods and Services Tax (GST).

The Commissioner of Taxation, Michael D’Ascenio, told a Sydney conference that his office planned to increase its active compliance resources to 590 employees and increase compliance checks of self-managed superannuation funds and approved auditors.“For new self-managed superannuation funds, we will be introducing a compliance program along the lines of the GST advisory visits to establish positive behaviour early in the lifecycle of the fund,” he said.

The Tax Commissioner said the ATO had removed complying status from 12 funds last year and that four funds had lost their status this year.

The Taxation Commissioner, has warned that self-managed superannuation funds remain on the Australian Taxation Office (ATO) radar despite the changes announced in the Federal Budget.

Addressing a conference in Melbourne last December, the ATO said self-assessment extended to self-managed superannuation funds and the ATO would be tailoring its activities to the level of risk a fund might represent.“We are happy for trustees that do the right thing and are aware of their obligations to continue managing their own fund with minimal interference from us,” he said. “However, those that have difficulty keeping up with their responsibilities [given the assistance that is available to them from the ATO or their advisers] must ask themselves the question, ‘Is a self-managed fund right for me?’”

Mr D’Ascencio said that at the other end of the spectrum – trustees that intentionally refused to comply with the legislation and their responsibilities, or looked to withdraw their superannuation illegally, would be on the ATO’s radar.“Over the last few years our compliance activities around self-managed funds have been steadily increasing. In saying all this, the environment in which self-managed superannuation funds operate will be changing substantially,” he said.“The changes announced during the May Budget will allow us to focus our work on improving overall compliance for self-managed superannuation funds, and concentrate more effort towards the reporting and lodgement obligations of all superannuation funds,” D’Ascencio said.