Disqualified persons are not allowed to be the trustee of an SMSF, or to be the director of the corporate trustee of an SMSF. Continuing to be the trustee of an SMSF while being a disqualified person can result in fines or even jail time.
How does someone become a Disqualified Person?
There are four reasons a person may become a disqualified person:
- They have been convicted of an offence involving dishonesty
- They were subject to a civil penalty order
- They are ‘insolvent under administration’, including being:
- an undischarged bankrupt
- have executed a personal insolvency agreement
- They have been disqualified by the Commissioner of Taxation.