Australian Taxation Office (ATO) action against trustees of a self managed superannuation has been welcomed by a peak industry body.
Yesterday, the ATO ordered trustees for the Axent Group self-managed superannuation fund (SMSF) to pay over $60,000 in penalties and costs for breaching the Superannuation Industry (Supervision) Act (SIS Act).
ATO deputy commissioner Raelene Vivian said the action was part of an increased compliance focus on SMSFs by the tax office.
"We support the ATO's decision to penalise to the trustees for breaching the SIS Act. It is good to see that the ATO has moved from an educational phase to a compliance focus. Trustees now need to be aware of their roles and responsibilities," SMSF Professionals' Association of Australia (SPAA) chair Graeme Colley said.
The trustees had contravened the legislation because they had sold a property owned by the fund and used the money worth nearly $150,000 to pay off a private debt.
"The main purpose of SMSFs is to provide for retirement. Trustees who access their superannuation without meeting a condition of release are breaking the law and risking their retirement savings," Vivian said.
"The case serves as a good reminder to trustees of any SMSF that they can no longer breach the SIS Act and get away with it," Colley said.
