In last night’s Budget, the government announced an increase in the penalties that can be applied to SMSF trustees.
The increase in the penalty unit, from $170 to $180, has ramifications for SMSF trustees both with late lodgement penalties for the SMSF annual return and with the SMSF administrative penalties regime, according to The SMSF Academy’s managing director, Aaron Dunn.
“For example, a trustee who breaches the requirements of section 65(1) – lending to members, will see a penalty increase of from $10,200 to $10,800 (60 penalty units),” Mr Dunn said.
The increase is expected to take effect from 31 July 2015 this year.
“Whilst it has been a quiet night from the federal Budget, it is likely that the government will ‘ramp-up’ debate on various superannuation tax concessions when they respond to the FSI final report (which is expected to include changes around limited recourse borrowing arrangements) and its tax white paper,” Mr Dunn said.
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