The Federal Government has surprised many observers by flagging a range of changes to the self-managed superannuation funds (SMSFs) regulatory regime.
In doing so, the Government has provided extra Budget funding to both the Australian Taxation Office (ATO) and the Australian Securities and Investments Commission (ASIC) totalling $40.2 million to implement what it describes as “a range of measures relating to the self-managed superannuation fund sector”.
What is more, the Government expects SMSFs to help fund the changes, announcing that the “cost of this measure will be offset by a $30 increase to the SMSF levy with effect from the 2010-11 income year, raising $47 million over four years”.
It said it would also be introducing SMSF auditor registration fees from 1 July, 2012, raising $1.8 million over four years.
The Budget papers said the package of SMSF reforms were designed “to improve the operation, efficiency and integrity of this sector and increase community confidence”.
The Government said the reforms included the introduction of administrative penalties that the ATO could apply in cases of non compliance by SMSF trustees and the introduction of knowledge and competency requirements on SMSF service providers.
This included the registration of SMSF auditors and tightened legislative restrictions on SMSF investment in collectables and personal use assets.
The initiative also requires SMSFs to value their assets at net market value in the context of the ATO publishing valuation guidelines.
Commenting on the move, Assistant Treasurer and Minister for Finance Bill Shorten said in a statement that the reforms would “boost Government and public confidence in the SMSF sector”.
"The reforms will enhance trustees’ ability to manage their superannuation and will improve confidence in the sector,” he said.
