{"id":15252,"date":"2024-02-02T16:40:32","date_gmt":"2024-02-02T05:40:32","guid":{"rendered":"https:\/\/www.dbalawyers.com.au\/?p=15252"},"modified":"2024-02-02T16:44:46","modified_gmt":"2024-02-02T05:44:46","slug":"penalties-on-smsf-trustees-to-increase-substantially-time-to-change-to-a-corporate-trustee","status":"publish","type":"post","link":"https:\/\/www.dbalawyers.com.au\/corporate-trustees\/penalties-on-smsf-trustees-to-increase-substantially-time-to-change-to-a-corporate-trustee\/","title":{"rendered":"Penalties on SMSF trustees to increase substantially: time to change to a corporate trustee"},"content":{"rendered":"<h2 class=\"western\">Introduction<img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-15192\" src=\"http:\/\/www.dbalawyers.com.au\/wp-content\/uploads\/2024\/01\/Balance-Sheet-A-261079219-300x200.jpg\" alt=\"Balance-Sheet\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.dbalawyers.com.au\/wp-content\/uploads\/2024\/01\/Balance-Sheet-A-261079219-300x200.jpg 300w, https:\/\/www.dbalawyers.com.au\/wp-content\/uploads\/2024\/01\/Balance-Sheet-A-261079219-768x512.jpg 768w, https:\/\/www.dbalawyers.com.au\/wp-content\/uploads\/2024\/01\/Balance-Sheet-A-261079219.jpg 900w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/h2>\n<p>With the penalty unit increasing from $313 to $330 in proposed legislation, SMSFs need to be extremely careful as this results in most administrative penalties increasing from $16,500 (ie, 60 penalty units x $275) to $19,800 (ie, 60 penalty units x $330). This follows the increase from $275 to $313 that already occurred on 1 July 2023.<\/p>\n<p>This article discusses administrative penalties under s\u00a0166 of the <em>Superannuation Industry (Supervision) Act 1993<\/em> (Cth) (<strong>SISA<\/strong>) and provides ways to minimise this risk.<\/p>\n<h2>Administrative penalties<\/h2>\n<p>Penalty units can be applied by the ATO under s\u00a0166 of SISA, for many reasons including:<\/p>\n<ul>\n<li>lending to members or relatives (with exceptions): 60 penalty units;<\/li>\n<li>borrowing (with exceptions): 60 penalty units;<\/li>\n<li>failing to comply with in-house asset rules: 60 penalty units;<\/li>\n<li>failing to keep minutes: 10 penalty units; and<\/li>\n<li>failing to keep records of changes of trustee: 10 penalty units.<\/li>\n<\/ul>\n<p>Administrative penalties are imposed on the trustees\/directors of an SMSF personally and should not be paid by the SMSF.<\/p>\n<p>It is interesting to note that the penalty unit has increased by 83% since 30 June 2017 as summarised below.<\/p>\n<table>\n<tbody>\n<tr valign=\"bottom\">\n<td width=\"65\" height=\"46\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\"><b>Date<\/b><\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\"><b>Penalty unit<\/b><\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\"><b>Increase<\/b><\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\"><b>Increase from 30-6-2017 penalty<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"77\" height=\"6\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">TBC<\/span><\/p>\n<\/td>\n<td width=\"77\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 330<\/span><\/p>\n<\/td>\n<td width=\"77\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\"> 5%<\/span><\/p>\n<\/td>\n<td width=\"77\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">83%<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"77\" height=\"6\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">1\/07\/2023<\/span><\/p>\n<\/td>\n<td width=\"77\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 313<\/span><\/p>\n<\/td>\n<td width=\"77\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">14%<\/span><\/p>\n<\/td>\n<td width=\"77\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">74%<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"77\" height=\"6\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">1\/01\/2023<\/span><\/p>\n<\/td>\n<td width=\"77\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 275<\/span><\/p>\n<\/td>\n<td width=\"77\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">24%<\/span><\/p>\n<\/td>\n<td width=\"77\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">53%<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"77\" height=\"6\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">1\/07\/2020<\/span><\/p>\n<\/td>\n<td width=\"77\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 222<\/span><\/p>\n<\/td>\n<td width=\"77\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\"> 6%<\/span><\/p>\n<\/td>\n<td width=\"77\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">23%<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"77\" height=\"6\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">1\/07\/2017<\/span><\/p>\n<\/td>\n<td width=\"77\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 210<\/span><\/p>\n<\/td>\n<td width=\"77\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">17%<\/span><\/p>\n<\/td>\n<td valign=\"bottom\" width=\"77\"><\/td>\n<\/tr>\n<tr>\n<td width=\"77\" height=\"6\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">30\/06\/2017<\/span><\/p>\n<\/td>\n<td width=\"77\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 180<\/span><\/p>\n<\/td>\n<td valign=\"bottom\" width=\"77\"><\/td>\n<td width=\"77\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>*The increase to $330 was announced in the 2023-24 Mid-Year Economic and Fiscal Outlook (MYEFO) released on 13 December 2023 and will apply to offenses committed after the start date once the legislation is finalised. The penalty unit amount will then be indexed every three years in line with the consumer price index.<\/p>\n<h2>SMSFs without a corporate trustee risk passing on greater penalties to their trustees<\/h2>\n<p>It is definitely a good time to move away from individual trustees and move to a corporate trustee. The table below shows the substantial savings (when considering the trustee-group as a \u2018whole\u2019) that comes with having a corporate trustee.<\/p>\n<p>For each of the examples below, we use the example of a breach of the borrowing rules which attracts 60 penalty units at the proposed new rate of $330 (60 x $330=$19,800).<\/p>\n<p>Note:<\/p>\n<div style=\"margin-left: 40px;\">&#8211; An SMSF should have a minimum of two individual trustees.<br \/>\n&#8211; Some jurisdictions also impose a maximum of 4 individual trustees.<\/div>\n<div><\/div>\n<table width=\"643\" cellspacing=\"0\" cellpadding=\"7\">\n<tbody>\n<tr valign=\"bottom\">\n<td width=\"65\" height=\"46\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\"><b>Number of individual trustees\/ directors<\/b><\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\"><b>Total penalty with individual trustees<\/b><\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\"><b>Total penalty with a corporate trustee<\/b><\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\"><b>Total saving with company<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<tr valign=\"bottom\">\n<td width=\"65\" height=\"6\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">2<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 39,600<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 19,800<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 19,800<\/span><\/p>\n<\/td>\n<\/tr>\n<tr valign=\"bottom\">\n<td width=\"65\" height=\"6\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">3<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 59,400<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 19,800<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 39,600<\/span><\/p>\n<\/td>\n<\/tr>\n<tr valign=\"bottom\">\n<td width=\"65\" height=\"6\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">4<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 79,200<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 19,800<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 59,400<\/span><\/p>\n<\/td>\n<\/tr>\n<tr valign=\"bottom\">\n<td width=\"65\" height=\"6\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">5<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 99,000<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 19,800<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 79,200<\/span><\/p>\n<\/td>\n<\/tr>\n<tr valign=\"bottom\">\n<td width=\"65\" height=\"6\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">6<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 118,800<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 19,800<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 99,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>For a single administrative penalty to be imposed on a corporate trustee (differing from a penalty imposed on each individual trustee), the corporate trustee must have been appointed prior to any contravention. Thus, timely pro-active action is needed to obtain the benefit of the single application of one penalty on a corporate trustee (compared to a penalty being imposed for each individual trustee).<\/p>\n<h2>Does one or multiple penalties get imposed?<\/h2>\n<p>ATO records confirm that contraventions generally occur in multiplies rather than as once-off events as there were, for instance, around 3 auditor contravention reports (<strong>ACRs<\/strong>) for each SMSF for FY2022 with a total of around 40,000 ACRs for of the 13,558 funds (ie, around 2.95 per fund).<\/p>\n<p>Thus, assuming there were three separate breaches per SMSF (<strong>3<\/strong> events x <strong>60<\/strong> penalty units <strong>x $330<\/strong> for each unit <strong>= $59,400<\/strong> would be payable with a corporate trustee), the amount saved with a corporate trustee would be as follows:<\/p>\n<table width=\"643\" cellspacing=\"0\" cellpadding=\"7\">\n<tbody>\n<tr valign=\"bottom\">\n<td width=\"65\" height=\"46\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\"><b>Number of individual trustees\/ directors<\/b><\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\"><b>Total penalty with individual trustees<\/b><\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\"><b>Total penalty with a corporate trustee<\/b><\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\"><b>Total saving with company<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n<tr valign=\"bottom\">\n<td width=\"65\" height=\"6\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">2<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 118,800<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 59,400<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 59,400<\/span><\/p>\n<\/td>\n<\/tr>\n<tr valign=\"bottom\">\n<td width=\"65\" height=\"6\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">3<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 178,200<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 59,400<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 118,800<\/span><\/p>\n<\/td>\n<\/tr>\n<tr valign=\"bottom\">\n<td width=\"65\" height=\"6\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">4<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 237,600<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 59,400<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 117,200<\/span><\/p>\n<\/td>\n<\/tr>\n<tr valign=\"bottom\">\n<td width=\"65\" height=\"6\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">5<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 297,000<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 59,400<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 237,600<\/span><\/p>\n<\/td>\n<\/tr>\n<tr valign=\"bottom\">\n<td width=\"65\" height=\"6\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">6<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 356,400<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 59,400<\/span><\/p>\n<\/td>\n<td width=\"84\">\n<p class=\"western\" align=\"left\"><span style=\"color: #000000;\">$ 297,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><strong>Remission of administrative penalties<\/strong><\/h2>\n<p>The ATO\u2019s Practice Statement PS LA 2020\/3 outlines grounds for remission of administrative penalties imposed via s 166 of the SISA. Remission may be sought, for example, where there is a series of contraventions relating to the same matter.<\/p>\n<h2>Even funds who think they are safe may not be; contravention probability and stakes are rising<\/h2>\n<p>Many trustees put off moving to the corporate trustee model because they do not expect to contravene the law. This can be a risky gamble as it is our experience that even trustees that consider their fund management to be diligent and honest can face hefty penalties due to contraventions linked to human error. As the saying goes, to err is to be human and a common example of human error resulting in unsuspecting trustees facing penalties is the making of an unauthorised withdrawal or a failure to immediately reimburse the member for an expense paid on behalf of a fund.<\/p>\n<p>In addition to the increased severity of a contravention, trustees now also face an increased probability of being caught with the ATO increasing its pressure on SMSF auditors; resulting in SMSF auditors being more inclined to issue ACRs for actual or potential contraventions.<\/p>\n<h2>Can advisers be liable?<\/h2>\n<p>Given that advisers may be implicated in contraventions, especially if they give incorrect advice, advisers should be proactive in assisting clients move to a corporate trustee. Advisers can inform clients of the increased risks and the substantial increase in penalties for individual trustees and the fact that mistakes may arise along the way. An adviser who has not been proactive in recommending a corporate trustee may be asked to pay the additional penalty if the adviser has not brought the different treatment to the client\u2019s attention.<\/p>\n<h2>Conclusions<\/h2>\n<p>With the substantial increase in the penalty of 83% in six years, query whether the penalty unit regime should be reviewed especially, as prior to any remission, we have seen some administrative penalties on SMSFs exceed several hundreds of thousands of dollars. Regardless, the different treatment in the application of administrative penalties on corporate trustees compared to individual trustees creates a compelling reason for every SMSF to have a corporate trustee.<\/p>\n<p>As a general rule, SMSFs with individual trustees should make the move as soon as practicable or be exposed to the risks of suffering the higher penalties.<\/p>\n<p>Advisers need to be proactive in notifying clients with individual trustees of the above risks and minimise risk. As noted above, timely action must be taken to minimise any adverse impact.<\/p>\n<p>Naturally, expert advice should be obtained if there is any doubt. DBA Lawyers has also assisted SMSFs in seeking a full or partial remission of penalties. We also regularly assist SMSFs in relation to the ATO\u2019s early engagement and voluntary disclosure service (<a href=\"https:\/\/www.dbalawyers.com.au\/smsf-compliance\/smsfs-and-voluntary-disclosure-to-the-ato\/\">click here<\/a> for our article on this topic).<\/p>\n<p style=\"text-align: center;\">*\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 *\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 *<\/p>\n<p>This article is for general information only and should not be relied upon without first seeking advice from an appropriately qualified professional.<\/p>\n<h2>Related articles<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.dbalawyers.com.au\/smsf-compliance\/smsfs-and-voluntary-disclosure-to-the-ato\/\">SMSFs and voluntary disclosure to the ATO<\/a><\/li>\n<li><a href=\"https:\/\/www.dbalawyers.com.au\/announcements\/the-best-time-for-an-smsf-to-make-a-voluntary-disclosure-to-the-ato-is-now\/\">The best time for an SMSF to make a voluntary disclosure to the ATO is now<\/a><\/li>\n<li><a href=\"https:\/\/www.dbalawyers.com.au\/ato\/ato-compliance-action-penalties-smsfs\/\">ATO Compliance action penalties for SMSFs<\/a><\/li>\n<li><a href=\"https:\/\/www.dbalawyers.com.au\/smsf-compliance\/a-new-federal-court-case-on-civil-penalties\/\">A new Federal Court case on civil penalties<\/a><\/li>\n<li><a href=\"https:\/\/www.dbalawyers.com.au\/ato\/ato-disqualifies-increasing-number-smsf-trustees-adverse-consequences\/\">ATO disqualifies an increasing number of SMSF trustees with adverse consequences<\/a><\/li>\n<\/ul>\n<p style=\"text-align: center;\">*\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 *\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 *<\/p>\n<p>This article is for general information only and should not be relied upon without first seeking advice from an appropriately qualified professional. The above does not constitute financial product advice. Financial product advice can only be obtained from a licenced financial adviser under the <em>Corporations Act 2001<\/em> (Cth).<\/p>\n<p>Note: DBA Lawyers presents monthly SMSF training online. For more details or to register, visit <a href=\"https:\/\/www.dbanetwork.com.au\/dbalawyers\/seminars3\/1119\/1683\/SMSF-Online-Updates.html\">https:\/\/www.dbanetwork.com.au\/dbalawyers\/seminars3\/1119\/1683\/SMSF-Online-Updates.html<\/a><\/p>\n<p>For more information regarding how DBA Lawyers can assist in your SMSF practice, visit <a href=\"http:\/\/www.dbalawyers.com.au\">www.dbalawyers.com.au<\/a>.<\/p>\n<p><em>By Daniel Butler, Director (<\/em><a href=\"mailto:dbutler@dbalawyers.com.au\"><em>dbutler@dbalawyers.com.au<\/em><\/a><em>) and Cassandra Hurley, Lawyer (<\/em><a href=\"mailto:churley@dbalawyers.com.au\"><em>churley@dbalawyers.com.au<\/em><\/a><em>) <\/em>DBA Lawyers<\/p>\n<p><strong>DBA LAWYERS<\/strong><\/p>\n<p>31 January 2024<\/p>\n<div class=\"printfriendly pf-button  pf-alignleft\"><a href=\"https:\/\/www.dbalawyers.com.au\/corporate-trustees\/penalties-on-smsf-trustees-to-increase-substantially-time-to-change-to-a-corporate-trustee\/?pfstyle=wp\" rel=\"nofollow\"  title=\"Printer Friendly, PDF & Email\"><img decoding=\"async\" class=\"pf-button-img\" src=\"https:\/\/cdn.printfriendly.com\/buttons\/printfriendly-pdf-button.png\" alt=\"Print Friendly, PDF & Email\" style=\"width: 112px;height: 24px;\"  \/><\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Introduction With the penalty unit increasing from $313 to $330 in proposed legislation, SMSFs need to be extremely careful as this results in most administrative penalties increasing from $16,500 (ie, 60 penalty units x $275) to $19,800 (ie, 60 penalty units x $330). This follows the increase from $275 to $313 that already occurred on [<a class=\"read-more\" href=\"https:\/\/www.dbalawyers.com.au\/corporate-trustees\/penalties-on-smsf-trustees-to-increase-substantially-time-to-change-to-a-corporate-trustee\/\">read more<\/a>]<\/p>\n","protected":false},"author":22,"featured_media":15192,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[96,33,35,37,38],"tags":[],"ppma_author":[138],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Penalties on SMSF trustees to increase substantially: time to change to a corporate trustee | Leading SMSF Law Firm<\/title>\n<meta name=\"description\" content=\"With the penalty unit increasing from $313 to $330 in proposed legislation, SMSFs need to be extremely careful as this results in most administrative penalties increasing from $16,500 (ie, 60 penalty units x $275) to $19,800 (ie, 60 penalty units x $330). This follows the increase from $275 to $313 that already occurred on 1 July 2023.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.dbalawyers.com.au\/corporate-trustees\/penalties-on-smsf-trustees-to-increase-substantially-time-to-change-to-a-corporate-trustee\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Daniel Butler\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.dbalawyers.com.au\/corporate-trustees\/penalties-on-smsf-trustees-to-increase-substantially-time-to-change-to-a-corporate-trustee\/\",\"url\":\"https:\/\/www.dbalawyers.com.au\/corporate-trustees\/penalties-on-smsf-trustees-to-increase-substantially-time-to-change-to-a-corporate-trustee\/\",\"name\":\"Penalties on SMSF trustees to increase substantially: time to change to a corporate trustee | Leading SMSF Law Firm\",\"isPartOf\":{\"@id\":\"https:\/\/www.dbalawyers.com.au\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.dbalawyers.com.au\/corporate-trustees\/penalties-on-smsf-trustees-to-increase-substantially-time-to-change-to-a-corporate-trustee\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.dbalawyers.com.au\/corporate-trustees\/penalties-on-smsf-trustees-to-increase-substantially-time-to-change-to-a-corporate-trustee\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.dbalawyers.com.au\/wp-content\/uploads\/2024\/01\/Balance-Sheet-A-261079219.jpg\",\"datePublished\":\"2024-02-02T05:40:32+00:00\",\"dateModified\":\"2024-02-02T05:44:46+00:00\",\"author\":{\"@id\":\"https:\/\/www.dbalawyers.com.au\/#\/schema\/person\/51e17c75fbc6987d17bcc7c68f6879c3\"},\"description\":\"With the penalty unit increasing from $313 to $330 in proposed legislation, SMSFs need to be extremely careful as this results in most administrative penalties increasing from $16,500 (ie, 60 penalty units x $275) to $19,800 (ie, 60 penalty units x $330). 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He has worked predominantly in the fields of tax and superannuation over the past 36 years, is a qualified Chartered Tax Adviser, Chartered Accountant and has an MBA from the University of Melbourne. Dan is a regular seminar presenter on tax and SMSF topics and has published extensively in these areas. Dan regularly presents for the major professional bodies including the SMSF Association, The Tax Institute, Chartered Accountants Australia and New Zealand and DBA Network. Dan is a member of the ATO's Super &amp; Employment Change Committee, The Tax Institute's National Superannuation Committee, the Law Institute of Victoria's Tax Committee and is involved with a number of other tax and SMSF committees. Dan presents on the subject of Taxation of Superannuation at the University of Melbourne's Master of Laws\/Tax program. 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He has worked predominantly in the fields of tax and superannuation over the past 36 years, is a qualified Chartered Tax Adviser, Chartered Accountant and has an MBA from the University of Melbourne. Dan is a regular seminar presenter on tax and SMSF topics and has published extensively in these areas. Dan regularly presents for the major professional bodies including the SMSF Association, The Tax Institute, Chartered Accountants Australia and New Zealand and DBA Network. Dan is a member of the ATO's Super &amp; Employment Change Committee, The Tax Institute's National Superannuation Committee, the Law Institute of Victoria's Tax Committee and is involved with a number of other tax and SMSF committees. Dan presents on the subject of Taxation of Superannuation at the University of Melbourne's Master of Laws\/Tax program. 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Dan is also a Specialist SMSF Advisor\u2122."}],"_links":{"self":[{"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/posts\/15252"}],"collection":[{"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/comments?post=15252"}],"version-history":[{"count":10,"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/posts\/15252\/revisions"}],"predecessor-version":[{"id":15269,"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/posts\/15252\/revisions\/15269"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/media\/15192"}],"wp:attachment":[{"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/media?parent=15252"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/categories?post=15252"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/tags?post=15252"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.dbalawyers.com.au\/wp-json\/wp\/v2\/ppma_author?post=15252"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}