What happens if my SMSF breaches super laws?

What happens if my SMSF breaches super laws?

Rectifying the situation

If your SMSF does not comply with super laws, the Australian Tax Office (ATO) can take a number of actions to rectify your situation.

Their main focus in on encouraging trustees to comply with super laws through education and information.

If you have been approached by the ATO to rectify the breach, but still do not make the necessary changes, the ATO will take stronger actions where warranted.

Dealing with SMSF non-compliance

There are a number of ways the ATO deals with non-compliance including:

  • Requesting trustees to reverse the non-compliant action of the SMSF
  • Imposing fines of up to $10,200 on each of your trustees
  • Disqualifying trustees
  • Taking away your SMSF’s tax concessions

Depending on the seriousness of the breach, the ATO will take action to inform you of the non-compliance first.

Informal arrangements to rectify minor issues, within a short period of time, are also an option.

You can view more information here or else contact us if you’re unsure about your SMSF.