Trustees who don't meet new super obligations may be liable for fines or higher taxes, or may have the tax-advantaged status of their SMSF removed, wealth management partner Jonathan Philpot told SMSF Adviser.
“The regulator has signalled that it is taking any breaches of the rules very seriously, and claiming ignorance of them is not considered an adequate reason,” he said.
“It is very important that SMSF trustees understand the [impacts of] the changes introduced for SMSFs – in particular, using an approved auditor, separating assets, and revaluing assets.”
Mr Philpot also said that while there are pitfalls to be wary of, a number of the recent changes are positive, and fund members should make sure they are taking advantage of them.
For example, Mr Philpot drew attention to the “very welcome” increase in concessional contribution caps after consecutive reductions. The concessional contribution cap for those over age 60 has increased from 1 July 2013.
“Those who make personal deductible super contributions should consider maximising the $35,000 deduction if their gross income is $80,000 or more,” Mr Philpot said.
Anyone in salary sacrifice arrangements with an employer should review their current arrangements to factor in the $10,000 increase, he added.