Loans and in-house assets remain most common SMSF contraventions

Loans and financial assistance to members and related parties continues to be the single most reported SMSF contravention.

Contravening loans and financial assistance represented 21.5% of the reported contraventions in 2015/16, the most recent period available from the recently released ATO statistics.

However in-house assets represented the greatest proportion of the value of contraventions (28.80%), followed by ‘separation of assets’ (24.60%).

Combined loans and financial assistance, in-house assets and separation of assets account for over 50% of the number of reported contraventions and almost 70% of the value of contraventions.

SMSF contraventions in 2015/16, ATO statistics

Data source: Self-managed superannuation funds: A statistical overview 2014-2015, Table 26: Types of contraventions reported to the ATO

There was little change in the proportions of the value and number of contraventions in the 2015/16 statistics compared to earlier years, with some not changing at all and the biggest change a drop of 0.20% for operating standard contraventions.

These ATO statistics are sourced from the auditor contravention reports (ACRs) lodged by SMSF auditors.

The ATO says that the percentage of SMSFs with ACRs remains “relatively stable” at around 2% of all SMSFs. In the 2015/16 financial year 7,900 SMSFs had ACRs lodged in regards to 20,500 contraventions – a decrease of 4% in the number of SMSFs and 7% less in terms of the number of contraventions.

The ATO says that up to 30 June 2016 “just under half” of all contraventions were reported as rectified.

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