The dollar value of ATO penalty units has increased from 1st January so SMSF administrative penalties have increased accordingly.

Penalties have increased, over the years, as shown below.

This means that the maximum administrative penalty rises to $16,500. It applies to breaches of the lending, borrowings and in-house asset rules. Such penalties are issued against the trustees personally and cannot be paid by the fund. Furthermore, though they are levied on directors as a single penalty to be paid jointly and severally by all directors, they are issued to all individual trustees individually. Given that there may be up to 6 SMSF members/trustees the difference between a corporate trustee ($16,500 penalty) and individual trustees ($99,000 penalty) is eye watering and represents a compelling argument for SMSFs to utilise a corporate trustee.