Changes to SMSF regime from July 1, 2014

There are some new rules being introduced after July 1 this year that will affect SMSF trustees:

  • the SMSF registration and rollover process will be amended to reduce the instances of funds being illegally released from SMSFs
  • proof of identity checks will be required for all people joining an SMSF, whether they are establishing a new fund or joining an existing fund – although note that identification measures will not apply retrospectively except for existing SMSFs wishing to organise rollovers from an APRA-regulated fund
  • new penalties will be introduced to prevent illegal early release
  • criminal and civil sanctions will be introduced for illegal early release scheme promoters, and
  • amounts illegally released early will be taxed at the superannuation non-complying tax rate, with an additional penalty that takes into account the individual circumstances.