News.com.au has an article on an ATO "blitz" on self-managed superannuation funds that fail to meet regulations.
THE Australian Taxation Office has launched a blitz on unlawful self-managed superannuation funds, with almost 100 funds shut down last year.
According to the latest ATO data, it made 99 self-managed funds non-compliant in 2009, compared with 24 the previous year and only five in 2007.
After a self-managed super fund is banned, the market value of assets can be taxed at up to 45 per cent, leaving members with little more than half their savings.
The rise in penalty activity is a result of a tougher line by the ATO, rather than a rise in dodgy DIY funds, says superannuation lawyer Bryce Figot of law firm DBA.
When a fund is tagged as non-compliant it loses its discounted tax benefits, is slugged with penalty interest charges and is hit with the highest marginal rate, going back many years in some cases to the first breach of the laws.
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