June 2014 Super Update from the ATO
On 12 March 2014, new privacy laws came into effect and mainly relate to what we do when we collect personal information. These amendments affect how we collect, store, provide access to and disclose personal information. This includes information that is provided to us from third parties including superfunds, businesses, banks and other government agencies.
If a third party provides us with individuals’ personal information we will:
- ensure the information is stored in a secure manner
- when reasonable in circumstances, notify the individual of the collection of the information
- The law changes require us to be more open about what we do with personal information. We have made available our privacy policy which highlights how we collect, hold, use and disclose personal information.
High-risk SMSFs
These SMSFs will be selected for comprehensive audits that will scrutinise all regulatory and income tax risks displayed by the fund, with a particular focus on repeat offenders. This program will also involve an increasing number of field visits to engage high-risk SMSFs and their tax agents. SMSF administrative penalties will apply when the ATO confirms the breach is eligible for this penalty.
Medium-risk SMSFs
The ATO will take less intrusive action on SMSFs assessed as medium risk. As trustees are responsible for their fund’s behaviour, we will engage directly with trustees to discuss the reported contravention, remind trustees of their obligations and encourage compliance in future. This action will usually occur within 6-8 weeks of the ACR lodgment. In the majority of cases, if the trustee can assure the ATO that they understand their obligations, the issues reported in the ACR will be closed and no penalties applied. Through this treatment, we aim to intervene before the more serious comprehensive audit is required.
Lower-risk SMSFs
The ATO will issue tailored correspondence to SMSFs we assess as lower risk, reminding trustees of their obligations and encouraging compliance in future. The issue reported in the ACR will be closed with the issuing of a letter which will usually occur within 6-8 weeks of lodgment of the ACR.
The ATO will be running webinars during June to describe our new compliance approach to SMSFs including the use of our new powers from 1 July 2014.
For more information, please visit:- https://www.ato.gov.au/Super/APRA-regulated-funds/In-detail/News/2014-SuperUpdates/Super-Update-June-2014/?page=3
Or give us a call on 1300 788 491.
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