The ATO disqualified more than 140 SMSF trustees in the December quarter 2023, with an overall 374 trustees disqualified during the first half of the 2024 financial year, according to new data released by the regulator.
In an update to its Disqualified Trustees Register, the regulator stated it had disqualified 149 trustees for non-compliance with the Superannuation Industry (Supervision) (SIS) Act and in relation to concerns over their suitability to be a trustee.
The disqualification figures for the December quarter last year were slightly higher than those for the December quarter 2022, when the regulator banned 130 trustees from running an SMSF. Additionally, more than 380 trustees were banned from running an SMSF in the first two quarters of 2022/23.
However, there was a significant decrease in disqualified individuals in the December quarter 2023 in comparison to the September quarter when 223 trustees were added to the Disqualified Trustees Register.
The ATO noted it took cases of non-compliance seriously and warned trustees of the long-reaching impacts a disqualification could have for their professional lives.
“We continue to take firm action against trustees who persistently fail to comply with their obligations. Consequences for disqualified trustees include never being an SMSF trustee again and their name going on public record [and] details of the disqualification coming up in background checks, which can affect their personal and professional reputation,” the regulator stated.
“If you are a trustee who has breached the superannuation laws, we recommend you rectify the contravention as soon as possible. Otherwise, you are putting your retirement savings and fund’s complying status at risk.”
The ATO encouraged trustees to use its SMSF early engagement and voluntary disclosure service to report any potential breaches if they suspect they might be at risk of non-compliance as doing so will be considered when the regulator determines how to handle a trustee’s case.