Peter King, Zoe Griffiths and Kerri Reynolds discuss the ATO's Super Scheme Smart information pack with regard to retirement planning schemes.
In response to retirement planning schemes which appear to be super smart (pun intended) or “too good to be true”, the Australian Taxation Office (ATO) published the Super Scheme Smart information pack yesterday to warn of schemes for self-managed superannuation funds (SMSFs) that are on the ATO’s radar.
Six specific schemes are outlined in the ATO’s information pack:
Other arrangements for which the ATO are monitoring is the deliberate use of multiple SMSFs and the use of reserves to circumvent the balance cap restrictions limits.
The consequences from the above schemes include:
This may result in the funds received by the SMSF being subject to higher tax rates and potential penalties being imposed. Additionally, the SMSF may no longer be compliant and the individual may be disqualified from being a trustee of their own super fund (including as trustee of other SMSFs).Advisers may potentially be caught by the promoter penalty laws, or where they are a tax agent, face the risk of referral to the Tax Practitioners Board.
The ATO’s message is clear – retirement planning is prudent and makes sense, but make sure it is within the relevant law and if you as a taxpayer or an adviser are in doubt, check it out and get a second opinion, or engage with the ATO.