Trustee disqualifications continue to surge in early 2023
Despite only being six weeks into 2023, over 100 SMSF trustees have already been disqualified this year.
The ATO has disqualified a total of 115 individuals from acting as a trustee or director of a corporate trustee this calendar year so far.
These latest figures based on the published notices in the Government Notices Gazette brings the total number of trustee disqualifications for the 2022–23 financial year up to 504.
Disqualifications for this financial year have already doubled the number of trustees that were disqualified during the entire 2021–22 income year.
In a recent release, the ATO stated that it will disqualify an individual from being a trustee or director of a corporate trustee of an SMSF if they don’t comply with the super law or it is concerned about their suitability to be a trustee.
“Disqualification is just one of the actions available to us and should serve as a reminder to all SMSFs on what can happen if they don’t comply with the super laws,” it warned.
“If you are worried a contravention of a super law has occurred, you should contact us as soon as possible.”
The ATO noted that disqualified trustees are added to the disqualified trustees register.
“This register is publicly available and includes the individual’s name, location, date of disqualification and details of the formal notice of disqualification that was published in the Commonwealth Government Gazette,” it said.
“This means SMSF auditors and other professionals can check to see if a trustee has been disqualified.”
The Tax Office previously warned that with the ATO scaling up its compliance actions, the SMSF industry should expect to see an increase in trustee disqualification.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.