New penalty regime prompts ATO review

 

The ATO has announced it is going to review the contravention reporting thresholds for SMSFs in light of the new penalty regime which is set to begin in July.

     

 

Speaking via a webinar yesterday, the ATO’s director for SMSF regulatory and income tax products, Nathan Burgess, said there have been changes in the sector since the thresholds were initially introduced, including the introduction of the penalty regime.

“This is a new regime. When the auditor contravention report thresholds were brought in, we didn’t know necessarily who the auditors were,” Mr Burgess said.

“Now that they’re actually registered by a Commonwealth agency and we know who these people are we can actually have much more faith in them.”

Mr Burgess said if new standards were created, they would likely take effect from July next year.

Speaking to SMSF Adviser, AMP SMSF’s head of policy, technical and educational services Peter Burgess explained that currently, if a fund is less than 15 months old and the value of the contravention is less than $2000, it doesn’t have to be reported.

For other funds, if the total value of all contraventions is less than five per cent of the value of fund assets and is also less than $30,000, the contravention doesn’t need to be reported, he added.

“[The thresholds] were set some time ago and given recent changes to the ATO’s compliance approach and the pending introduction of new penalties, it’s a good time to review those thresholds and it makes sense to consult with industry as to what the thresholds should be,” Mr Burgess said.

Also speaking to SMSF Adviser, the Institute of Public Accountants’ Tony Greco said this announcement from the ATO follows the focus on an auditor’s role “picking up speed” within the SMSF sector.

 

Written by Katarina Taurian
Thursday, 12 June 2014
Source:  www.smsfadviseronline.com.au

 

 

Any advice contained in this website is of a general nature only and does not take into account your circumstances or needs. You must decide if this information is suitable to your personal situation or seek advice.

Rolanda has been my financial adviser for 20 years. I have always found her to be highly intelligent, knowledgeable and professional in her career. Rolanda is accessible at all times and patiently explains terms that I do not fully understand. I can highly recommend Rolanda and it is a pleasure to do so. I do this with the utmost confidence. Marcia Montgomery (Retiree – home duties and ex-clerk with Water Board)
I retired Oct 2012, and seeking Financial Advice for my retirement funds, I decided to have Rolanda look after my financial affairs, and so happy I did. Since my retirement I am extremely comfortable with Rolanda’s advice, experience and strategies and the returns on my investments. Rolanda is my "Breath of Fresh Air" at this stage of my life and she makes herself available 24/7 should you need to talk with her. Steve Hoad (Ground Engineer, Qantas)
In 1997 I left Energy Australia and decided to join Rolanda Adams Financial Services for the financial support and advice that I would need into the future. That decision has proved a very good one and I am still with Rolanda who has given me advice and friendship over those many years. The advice given has ensured that my investments have been protected and the major losses, of some, during the GFC was not felt by me unduly. Rolanda and her team are very easy to contact at any time and one is always received in a most professional manner. I would be most happy to recommend Rolanda Adams Financial Services to all who need financial services. Graham Fleeton (Manager, Property Insurance Group Energy Australia (Ausgrid))
Rolanda has been my Adviser for the past 18 years. Through her wide industry experience and professional expertise she has ensured the sound development and ongoing management of my investments. Her advice has invariably been sound, timely and entirely tuned to meet my personal needs in retirement. She has a friendly, engaging manner and is always readily available to address any of my concerns. I have no hesitation in recommending her. Neil O'Keeffe (Chief Inspector (retired), Australian Customs Service)

© 2020 Rolanda Adams Financial Services Pty Ltd. All rights reserved. Site by PlannerWeb.