The former government left 92 pieces of proposed but unlegislated tax and superannuation measures in the pipe line. Of these proposals, one measure that has passed and comes into effect on 1 July 2014, is the new penalty regime for Self-Managed Superannuation Funds.
Currently the ATO has limited options to penalise trustees for not abiding by the rules, including causing the fund to become non-complying, costing the fund up to 46.5% of its value, or imposing civil penalties on the trustee.
The new measures create a range of penalties that become incrementally more expensive depending upon the severity of the breach. These penalties are imposed on the trustee, not the fund, and cannot be reimbursed from the fund.
Some examples include;
$850 for failing to provide ATO with requested information
$1,700 for failing to prepare financial statements
$10,200 for lending money to relatives
REMEMBER, THERE ARE NO PENALTIES FOR DOING THE RIGHT THING.