ATO buys time to assess all new SMSFs

Further changes to the self managed super fund (SMSF) registration process will enable more time to assess SMSF trustees and prevent fraudulent activity, according to the Self Managed Super Fund Professionals’ Association (SPAA).

SPAA noted that the Australian Taxation Office (ATO) has updated the SMSF registration process, which involves the ATO completing a risk assessment on all new SMSF trustees and the use of a new ‘registered’ status as opposed to ‘determined’ status in the Super Fund Lookup register. As such it will take up to seven days before an SMSF’s details appear on the register, enabling the ATO to complete the risk assessments and identify and prevent illegitimate SMSFs from operating, SPAA stated.

SPAA welcomed these changes among a number of initiatives being rolled out by the ATO to improve the integrity of the SMSF registration and super rollover process, including the implementation of an SMSF member verification service, which will be launched later this year.

“SPAA takes a very dim view of SMSFs being used as a way to access superannuation illegally so we welcome initiatives that seek to improve the transparency and integrity of the SMSF registration and rollover process,” said SPAA chief executive, Andrea Slattery.

“Improvement to the SMSF registration and rollover processes will also provide a more secure process for investors who want to enjoy the flexibility and control that an SMSF offers and maintain confidence in the entire superannuation system.”