ClearLaw has over the past two years charted the ATO's evolving approach to SMSF regulation. The most distinctive aspect of this approach has been the shift from an approach grounded in educating SMSF trustees, to an approach which is increasingly grounded in active monitoring and auditing.
With the introduction of the new borrowing rules, the ATO's regulatory impetus has a new sense of urgency. Here's why‚?¶
The reason is simple. Although SMSFs may only borrow money under limited recourse lending arrangements, there is still increased risk to people's retirement income. Compliance with the basics of superannuation law becomes all the more important when the stakes are raised in this way.
Accordingly, the Minister for Superannuation and Corporate Law, the Honourable Nick Sherry, is pushing the ATO's compliance barrow.
In a speech on 10 April 2008, Senator Sherry expressed his concern:
All of these comments indicate:
The imperative to make sure SMSFs comply and trustees are informed and responsible increases.
If you have any questions in relation to this article, or trusts, superannuation or tax generally, please call Maddocks in Melbourne on (03) 9288 055 or in Sydney on (02) 8223 4100 and ask for a member of the Maddocks Commercial Team.
Julian Smith is a partner in the Maddocks Commercial team.
Julian advises extensively in the following areas:
Julian advises clients ranging from public companies servicing the wholesale financial services market to high net worth individuals and their advisers.
Julian has been with Maddocks since undertaking articles in 2001.
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