Press Release

Poorly run self-managed superannuation funds (SMSFs) risk losing tax concessions as the Australian Taxation Office boosts its compliances teams to almost 500 staff, leading SMSF administrator Super Concepts has warned.

The ATO's decision to increase resources to its compliance teams coincides with a record surge in DIY superannuation funds ahead of a June 30 deadline to allow a one-off maximum contribution $1 million ahead of lower limits.

"The ATO has recognised the massive growth in self-managed funds and is directing more resources to this area with the expectation it will triple its casework over the next two years," Super Concepts national sales and marketing manager Justin Sadler said.

"The concern for many people taking out DIY superannuation without professional assistance to administer the fund is that minor infractions could see them penalised."

Some minor infractions could include:

• failure to keep minutes;
• an inappropriate asset mix;
• neglecting to lodge returns; and
• reporting on time.

Mr Sadler said SMSFs were a fantastic way to control your assets, and in turn, your financial future.

"But they do require time and commitment, though, and investors should always ensure they seek the advice of a professional for guidance," he said.

Mr Sadler said there were now more than 330,000 self-managed funds in Australia with total assets of $234 billion.

"This is set to be a record period for DIY superannuation with a 30 per cent increase in people applying to set up their own fund so far this financial year," he said.

END.