Tax office increases audits of small super funds
The Australian Taxation Office plans to increase compliance and audit activity within the self-managed superannuation fund sector, reducing its focus on education. The ATO said that starting a self-managed super fund was not as easy as some people think, and that anyone thinking about setting up their own fund should seek qualified advice. The ATO said many self-managed funds failed to meet their sole purpose of providing benefits for retirement. Some trustees spend notional retirement savings on golf club memberships and their children’s school fees, which is not allowed in order to qualify for tax concessions. Other common breaches of the rules include lending money to a member or a relative and borrowing, which is not allowed in most cases.