New ATO Penalty Regime - SMSFs must consider corporate trustees
New regulations have been put in place by the ATO to ensure that SMSF corporate trustees comply with their duties and obligations. These changes commence from 1 July 2014 and you can view a detailed summary of the changes here.
Under the new regime, where a SMSF has individual trustees, the ATO will impose any penalty on each individual trustee, meaning the penalty will be multiplied by the number of trustees. Corporate trustees, however, will incur only 1 penalty.
Though many professional advisers already recommend that their clients use corporate SMSF trustees, all SMSFs with individual trustees and those establishing new funds, should now consider the appointment of a trustee company to avoid the possibility of multiplying these substantial penalties.
If you're unsure about your situation or require some advice on this issue, please contact us to discuss what direction you should take.