Trustee disqualifications continue to surge in early 2023

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.