The ATO has added two new education courses to the approved list for SMSF education directions.
A course called SMSF Wisdom and the SPAA SMSF Education Program join the already approved CPA/ICAA SMSF Trustee education course.
The ATOs webinar Self-managed super funds for trustees – an overview is also an approved course for the education direction.
Read More »ATO approves new courses for SMSF education directions
According to the ATO the three Rs for SMSFs are Responsibility, Related party transactions and Rules. This was the topic of a speech given by Stuart Forsyth, ATO Assistant Deputy Commissioner for Compliance, Strategy, Risk and Delivery, Superannuation to the Australian Investors Association Annual National Conference 2014.
SMSFs mean taking responsibility for your retirement savings. As Mr Forsyth said in the speech “SMSFs are far from ‘do-it-yourself’ or ‘set and forget”, instead they “require significant time, attention and expertise”.
Mr Forsyth asked that people remember the ATO isn’t a prudential regulator. Prudential regulation “governs the conduct of people and institutions in a position of trust over other peoples’ money”, instead SMSF trustees must be “vigilant in protecting their fund’s assets”.
Mr Forsyth highlighted a number of things SMSF trustees need to consider as part of the responsibility of running an SMSF, the first was succession planning – including binding death benefit nominations, reversionary pensions and enduring powers of attorney.
The SMSF deed also needs to be checked, as it should “reflect the requirements of the fund and be tailored to meet the fund’s objectives and the members’ needs”.
Trustees were also encouraged to “consider the advantages of appointing a corporate trustee” as it would likely result in a “smoother succession”.
Read More »The 3 Rs of SMSFs: Responsibility, Related parties and Rules
The ATO has posted a video of the recent webinars for superannuation professionals covering the new powers the ATO has been given to punish non-compliance with the SIS Act.
The ATO has also published answers to some of the questions raised by participants in the webinars:
Read More »ATO Q&A: Admin Penalties, Rectification & Education Directions
The ATO has approved a second course as meeting the requirements of an Education Direction. This new power granted to the ATO allows notices to be issued to trustees requiring them to undertake a course of education about the obligations of an SMSF trustee and provide evidence of completion to the ATO. This power is one of several new options the ATO has to encourage compliance with the SIS act and regulations.
The course approved is one that was already freely available online to SMSF trustees to learn about their obligations – smsftrustee.com, which is a joint venture between the accounting bodies CPA and ICAA.
According to the smsftrustee website:
“At the completion of this program, trustees will be able to understand:
their roles and responsibilities within a SMSF
the investment restrictions imposed on trustees of a SMSF
the rules and limitations surrounding contributions and benefit payments within a SMSF
the administration involved with a SMSF
At the conclusion of the training program, on successful completion of a small quiz, a certificate of attainment will be provided”
The first course approved was the ATOs webinar Self-managed super funds for trustees – an overview.
The ATO has a number of options available to deal with SMSF compliance breaches:
As of the 18th of March 2014 the Tax and Superannuation Laws Amendment (2014 Measures No. 1) Act 2014 received Royal Assent, which gives the ATO new powers in it’s role as regulator of SMSFs to:
These new powers will apply from 1 July 2014. The act also sets penalties for Early Access Scheme promoters, which will apply from the date of Royal Assent, among other non-superannuation tax changes.