The ATO has published the top 10 compliance mistakes that SMSF trustees make when running their self-managed super funds. The list below is based on the general type of contraventions reported by SMSF auditors (approved auditors) since the start of contravention reporting in 2005 (and up to 30 June 2010).
I explain the rules mentioned in the top 10 list below, in my book DIY Super For Dummies 2nd edition (Wiley, publication date January 2012). You can order the book by clicking here or by clicking on the book link on the right-hand side of this page.
| Types of contraventions reported to the ATO | ||
| Contravention types | Number (%) | Value (%) |
| Loan to member/financial assistance | 19.8% | 14.1% |
| Administrative contraventions | 14.7% | 1.7% |
| In-house assets | 17.0% | 25.4% |
| Separation of assets | 13.6% | 28.3% |
| Operating standard contraventions | 8.4% | 7.0% |
| Sole purpose | 7.8% | 7.3% |
| Borrowing | 7.9% | 5.5% |
| Investment at arms length | 7.0% | 7.4% |
| Other | 2.3% | 0.5% |
| Acquisition of assets from related parties | 1.5% | 2.3% |
| Total | 100% | 100% |
Note: The column titled ‘number %’ means the percentage of contravention reports that involved the particular type of breach, while the column titled ‘value %’ relates to the value of assets involved in the particular type of breach.
Source: Page 35 of Self-managed superannuation funds: A statistical overview 2008–09
