SMSF Administration Practices

Australia’s Only SMSF Trustee Penalty Protection Has Changed the Industry!

Common belief is that the SMSF Trustee holds the accountant or financial advisor responsible for administrative errors and/or the fund’s performance. But the ATO holds the SMSF Trustees ultimately responsible for their SMSF. (This is not always obvious to the trustee). This, therefore, sets up a potential PI claim and a possible court case against the accounting firm, auditor or financial advisor. (We are in an era of blame and victimhood “It is not MY fault”).

One-of-a-kind SMSF Trustee Protection

To help mitigate legal argument and dissension the ATO introduced a new Section 166 of the SIS Act 1993 which has since been nicknamed “speeding fines for trustees”.  These are administrative penalties applied directly to the trustees whose SMSF have breached this Section of the SIS Act.

The administrative penalties range from around $1,200 up to $14,000 per trustee.  The fund cannot pay this penalty on behalf of the trustee.  It must come directly out of the trustee’s pocket.

With this in mind, we have now created an automatic “trustee’s benefit”, as part of our premium tax audit product, to help protect SMSF Trustees against these administrative penalties issued by the ATO.  This is the first and only policy in existence to offer this type of protection.

One group tax audit policy protecting 100% of clients

To make life simple, we provide a revolutionary tax audit insurance policy that is very unique at a very low cost.  The structure is this:

  • One group tax audit policy protecting 100% of clients
  • Pricing is over 90% discount (of what a stand alone tax audit policy would cost) per client
  • Superior wording with game changing benefits
  • No administration
  • No sharing of private client information
  • Easy online claims process
  • Great value add to existing services
  • Opportunity to make significant profit
  • Automatic protection for new clients throughout the term without any need for notification or payment

Game Changing Policy Benefits

Not only does our policy provide the most comprehensive protection on the market, but our policy is the first and only policy that provides protection for SMSF Trustees against administration penalties issue by the ATO (Section 166 of the SIS Act).  All other tax audit insurance policies DO NOT protect trustees.

We currently have strong interest from many SMSF specialist organisations taking out the group policy for all their clients.

This is a significant added value service for any SMSF Administration practice to their clients.

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Protecting your clients is Protecting your business.