Trustee disqualifications see fourfold increase

For the 2022–23 financial year so far, the ATO has disqualified a total of 330 individuals from acting as a trustee or director of a corporate trustee for contravening super laws, based on published notices in the Government Notices Gazette.

In the September quarter alone there were 251 individuals disqualified. This is almost the total number of disqualifications for the 2021–22 income year which saw 252 individuals disqualified.

This also represents more than a fourfold increase from the previous September 2021 quarter which saw 54 trustees disqualified.

There has been 79 individuals disqualified this quarter so far.

Last month, ATO assistant commissioner, SMSF risk and strategy, Justin Micale warned that there would be an increase in the number of trustee disqualifications due to trustees illegally accessing their super.

Non-lodgment also remains a big focus for the regulator, he said, with the ATO continuing to deploy its three strikes letter campaign.

“We have just disqualified 104 trustees who failed to respond to our first batch letters,” he cautioned.

“We also have a specific focus on tax agents and auditors who have their own personal SMSF lodgment obligations outstanding.

I realise it is a busy industry, but we do hold professionals to a higher standard when it comes to meeting their tax and regulatory obligations.”

Mr Micale said the ATO has issued red warning letters to this group and will soon be acting on those who have failed to respond