Self-Managed Super Funds - Changes from 1st July 2014
Wed 18th Jun, 2014
From the 1st July 2014, changes to SMSF administration will be brought in. Please speak to your accountant regarding implementing changes as required.
- The biggest change is that from 1st July, SMSFs must be able to receive contributions electronically from employers. This means that SMSF trustees will need to obtain an electronic service address for the delivery of contribution messages. SMSFs will need to provide their ABN, bank account details, and electronic service address to all employers paying into the fund, by 31st May 2014. This is to comply with the new SuperStream data standards coming into force from 1st July 2014. Note that for SMSFs not receiving contributions from employers, this does not apply-- they do not need to register for electronic payments.
- Other changes address the powers that the ATO has to investigate non-compliance by the SMSFs with their obligations. The most common areas of non-compliance are to do with loans, borrowings, sole purpose breaches, in-house assets, arms-length and related party investments. The ATO has said that it will review every Auditor Contravention Report submitted. SMSFs are regulated directly by the ATO.
SMSF trustees can face personal liability for penalties of up to $10,200 if found to be in breach of compliance regulations.
For relevant information on record keeping and administration http://www.ato.gov.au/Super/Self-managed-super-funds/Reporting,-record-keeping-and-administration/
There is a dedicated email address to send SMSF queries to SuperP2PEnquiries@ato.gov.au.