Powered by MOMENTUM MEDIA
SMSF adviser logo
subscribe to our newsletter

ATO reveals jump in contraventions reported for FY20

ATO
By Miranda Brownlee
11 September 2020 — 1 minute read

The number of contraventions reported in auditor contravention reports for the 2019–20 financial year jumped by 31 per cent from the previous year, according to recent ATO figures.

ATO director Kellie Grant stated that during the 2018-19 financial year, the ATO received auditor contravention reports (ACRs) reporting 27,925 contraventions for around 10,361 SMSFs. 

“As of 30 June 2020, we actually received ACRs reporting 36,716 regulatory contraventions by 12,664 SMSFs, so it really has jumped there,” Ms Grant stated at the Tax Institute National Superannuation Conference. 

“On average, the most common contraventions reported in the ACRs received up until 30 June 2020 involved loans at 24.4 per cent, in-house assets at 17.9 per cent of the ACRs lodged and separation of assets at 12.7 per cent.”

Ms Grant said these contraventions also accounted for the highest proportion of total dollar value of contraventions reported.

For the 2019–20 financial year, the ATO imposed $4.1 million in administrative penalties, compared with $3.1 million the previous financial year and $1.7 million for the 2017–18 financial year. 

The ATO also imposed 79 enforceable undertakings, issued 133 education directions, 87 rectification directions, 25 notices of non-compliance and disqualified 221 trustees. 

“[These figures] show that we’ve been a lot more proactive also in imposing administrative penalties and issuing directions to trustees to rectify and receive education so that they can be remediated and remain in the system,” she said.

In this current environment, Ms Grant said the ATOs focus is to provide support and assistance to trustees. 

“We recognise that now is not the time to continue our usual audit programs, so were only engaging with clients who initiate contact with us and thats mainly through our voluntary disclosure program,” she said.

“If [SMSF professionals] have any clients with unresolved compliance issues, the best advice I can offer them is to reach out to us and take advantage of our voluntary disclosure service. 

“Where SMSF trustees whove made genuine errors come forward and engage with us through this service, we will endeavour to resolve the issues reported, and that will minimise the financial penalties that might otherwise apply if we commence an audit on these funds at some point in the future.”

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

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