Self-managed superannuation fund regulation and governance

In a speech to the SMSF Professionals Association of Australia conference, Senator the Hon Nick Sherry, Minister for Superannuation and Corporate Law, discussed the Government's priorities over the coming year for the whole sector and highlighted the Government’s concern that some SMSF trustees are unaware of their legal obligations.

He referred to a recent Australian Taxation Office (ATO) survey which found that 21 per cent of participating SMSF trustees had ‘low’ or ‘low to medium’ knowledge of their obligations and 30 per cent could not explain what the ‘sole purpose test’ was. The survey also found that 15 per cent of trustees did not have an investment strategy, while another 25 per cent were unaware of the restrictions on the type of assets that could be acquired from related parties.

He called on industry for submissions by the end of April on how best to address the issue.