Self-managed super warning from ATO
Trustees of self-manager superannuation funds should be aware that the Australian Taxation Office is getting tough on funds' administration. The ATO says many such funds are continuing to break basic rules with the highest non-compliance in funds with trustees under 50, funds with over half their assets in unlisted shares, funds more than five years old and funds with linked trusts. The ATO said the area of most concern is trustees who fail to keep their super funds at arm's length from personal assets and they will be especially targeted. Also of concern are funds that lend money to related parties at non-commercial rates, despite strict rules prohibiting this practice.