New ATO powers could expose advisers

The ATO’s new SMSF trustee penalty regime could leave some advisers “exposed”, according to The SMSF Academy.

Late last year, the Coalition announced it will proceed with proposed measures to give the ATO more flexibility and new penalty powers when dealing with non-compliance among SMSFs.

The measures originally proposed that the ATO have power to impose administration penalties on trustees for certain SIS Act breaches.

In addition, it proposed the ATO have power to direct SMSF trustees to fix a breach and direct trustees to undergo education in the event of a breach.


The proposed measures were originally a Cooper Review recommendation and have received widespread support from the SMSF sector, including from AMP SMSF.

However, Mr Dunn said practitioners may be faced with “unhappy” trustees looking to recover costs incurred under the new regime as a result of potentially inadequate advice.

“These new directive, education and administrative powers could potentially leave some professionals exposed, with certain individual trustees looking to point the finger at their advisers who haven’t appropriately discussed their trustee options in establishing and operating their fund,” Mr Dunn said.

New ATO powers could expose advisers
ifa logo

The must-attend event for financial advisers is back in 2022: the ESG Summit, coming to Sydney and Melbourne in February. Walk away with vital knowledge on a number of key ESG areas to help you make informed ESG strategy decisions and to better communicate and integrate the growing ESG space to clients. Visit the website to secure your place.

Subscribe to the ifa bulletin

Receive daily online news,analysis, reports and business strategies
By signing up you agree to our Terms of Use and Privacy Policy

Website Notifications

Get notifications in real time and stay up to date with content that matters to you.