As part of the process of operating a SMSF Trustees must know the rules and legislation that administer their fund. Yet many trustees continue to make the same mistakes.
The ATO monitor these breaches closely and below are the ATO’s current ten most common compliance errors and the % they make up alongside value of assets.
- Loan to member / financial assistance %20.9%, value 14.4%.
- In-house assets 18.3%, value 27.2%.
- Administrative type contraventions 12.0%, value 1.8%
- Separation of assets 12.9%, value 26.2%.
- Operating standard contraventions 8.3%, value 6.5%.
- Borrowings 8.0%, value 7.8%.
- Sole purpose 7.8%, value 5.7%
- Investment at arms length 7.5%, value 7.4%.
- Other 2.8%, value 0.7%.
- Acquisition of assets from related party 1.5%, value 2.3%.
As an observation from the top 10 compliance mistakes is that 3 types of contraventions represent more than two thirds of the value of the value of assets 67.8%.
DISCLAIMER: The above is general advice only, you should not act on this advice without consulting a professional adviser to discuss your personal circumstances.