The ATO revealed that as much as 75,000 SMSF trustees are non compliant to regulations. This amounts to $50 billion in assets, leading organizations in the industry to call for tighter measures.
The ATO reminds investors in SMSFs that trustees should be responsible in complying with regulations, as SMSFs are do it yourself funds. The ATO is only contravening at a rate of 2% for non compliant SMSFs in a year.
Certain measures are in place to empower trustees regarding proper SMSFs operations, such as the Future of Financial Advice (FoFA) and Super Stream yet there is no data that shows any improvements in SMSF compliance. Appropriate financial advice is needed for trustees as there are already calls for penalties for violators if this continues.
Read more about this on the Financial Standard website.