Penalty Units now $364 - previously $330
Effective from 1 July 2026, the Australian Taxation Office (ATO) has increased the financial penalties associated with compliance breaches for Self-Managed Superannuation Funds (SMSFs). The dollar value of a single penalty unit has been officially raised from $330 to $364.
Being in control of a superannuation fund is a significant privilege, but it does not come without strict regulatory responsibilities and obligations. The ATO is actively empowered to penalise trustees financially if they fail to uphold these standards. It is vital to understand that if a compliance breach occurs, the ATO can impose a fine that is payable by all individual trustees (even those who claim they were passive or did not directly participate in the breach). Furthermore, these fines must be paid out of the trustees' own pockets, not from the assets of the superannuation fund itself.
A Breakdown of Common SMSF Breaches and Penalties
Understanding the severity of these penalties highlights the critical importance of meticulous fund administration and adherence to the Superannuation Industry (Supervision) Act (SISA). Below is a summary of maximum administrative penalties for common contraventions, calculated at the new rate of $364 per unit:
Failure to prepare accounts and statements (s35B): 10 Penalty Units. New Fine: $3,640.
Failure to keep minutes, records of changes of trustees, and trustee declarations (s103, 104, 104A): 10 Penalty Units each. New Fine: $3,640 per missing record type.
Failure to retain reports (s105): 10 Penalty Units. New Fine: $3,640.
Non-compliance with an education direction (s160): 5 Penalty Units. New Fine: $1,820.
Failure to notify the regulator of significant adverse events (s106): 60 Penalty Units. New Fine: $21,840.
Breach of lending to members rules (s65): 60 Penalty Units. New Fine: $21,840.
Contravention of borrowing standards, including LRBAs (s67): 60 Penalty Units. New Fine: $21,840.
Failure to take reasonable steps to correct in-house asset rule breaches (s84): 60 Penalty Units. New Fine: $21,840.
These figures represent the maximum administrative penalties that can be levied. The substantial increase serves as a timely reminder that ignoring SMSF administration, failing to sign documents promptly, or treating SMSF compliance as an afterthought can result in severe personal financial consequences for trustees.
For further information, or to book an appointment to ensure your business/trust affairs are in order, give Humble Goode Financial a call on 08 7477 8252 or email planning@hgfp.com.au.
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