ATO penalises super fund trustees

Running and being the trustees of a Self Managed Superannuation Fund (SMSF) has many responsibilities and requirements. The ATO has begun auditing and enforcing the rules as can be seen by a recent case in the Federal Court.

The trustees of an SMSF have been penalised $30,000 and ordered to pay $32,500 in costs for breaching the rules relating to their fund. The Federal Court declared that the trustees had breached the superannuation legislation by selling a property belonging to the fund and using the proceeds of nearly $150,000 to pay a private debt.

The couple had accessed assets in the super fund before meeting any conditions of release such as retirement or reaching preservation age.

A deputy commissioner for the ATO said that the action was part of an increased compliance focus on SMSFs.

This case is a timely reminder for people with SMSFs. They must be very careful when dealing with the assets of their super funds and should never draw funds out without checking with Saward Dawson as to the tax implications of the withdrawal.

Published : 02 January 2008