Powered by MOMENTUM MEDIA
subscribe to our newsletter

ATO urges trustees to consider SMSF ‘risk’

Katarina Taurian
04 February 2014 — 1 minute read

The ATO has issued a statement to trustees urging them to consider the responsibility and “risk” of an SMSF.

Late last week, the ATO outlined key areas of running a self-managed fund that prospective trustees should consider, including the risks and laws associated with SMSFs.

“All financial decisions carry risk, so it’s important to think carefully about your investment options to balance the level of risk against the level of financial return. You also need to be sure your super investments are legal,” the ATO stated.

Advertisement
Advertisement

“Super funds, including SMSFs, receive significant tax concessions as an incentive for members to save for their retirement. However, you need to follow the tax and super laws to receive these concessions.

“If you decide to set up an SMSF, you’re legally responsible for all the decisions made, even if you get professional advice.”

The ATO also said trustees should consider seeking professional advice before deciding whether to manage their own super.

“Deciding which way to go is an important decision and the best approach for you depends on your personal situation, so we recommend you see a qualified, licensed professional to help you decide,” the ATO stated.

“Licensed financial advisers, tax agents and accountants can help you understand what's involved and advise on your investment options.”

ATO urges trustees to consider SMSF ‘risk’
smsf logo
smsfadviser logo

Are you up to date with the legislative changes from 1 July? Contribution cap increases, super guarantees, age increases, SG rate increases. The budget announcement changes. Don’t be caught off guard by your clients’ questions. Prepare for any scenario with the SMSF Foundations course. 21 CPD hours available. Learn more

join the discussion

Latest poll

Do you have clients that are aged 65 or 66 planning to trigger the bring forward rules?

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

Get the latest news and opinions delivered to your inbox each morning

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.