While the administrative penalty regime has reduced the number of short-term loans to members, the penalties can be harsh where there are a large number of smaller transactions.
When the administration penalty regime commenced I never expected a client of mine would receive an administrative penalty notice totalling $616,200 for a $90,000 loan to a member. Now don’t get me wrong, they did the wrong thing and deserve some level of penalty, but does the punishment fit the crime?
As an auditor I was 100 percent behind the administrative penalty regime when it commenced in July 2014. For too long SMSF trustees had been getting away with breaching the Superannuation Industry (Supervision) Act 1993 (SISA) simply because the ATO had a big stick or nothing.
Click here to read the full article of Deanne Firth, director of Effective PD, on SMSF Adviser Magazine. To learn more about this topic, subscribe to Effective PD’s webinar. To subscribe, visit www.effectivepd.com.au. Effective PD offers an innovative way for busy accountants to be on top of their game with continuing professional development in a brief, flexible and easy way.
