From 1 July 2014 new penalties will apply for contraventions of specific sections of the SIS Act. The table below outlines the applicable sections and the penalty for each contravention.
This new penalty regime is designed to give the ATO greater options in dealing with breaches without having to go through the exhausting process of making a fund non-compliant.
Opinion seems to be that existing contraventions that are not rectified prior to 1 July 2014 will also be caught out.
The fines are levied on the Trustees personally and cannot be paid from the fund. There is however the ability to ask the Commissioner to use his discretion on a case by case basis to remit or reduce the penalty.
Please contact us if you have any questions or need help identifying existing clients who may be affected.
| Section | Penalty |
| s. 34 – operating standards | $3,400 |
| s.35B – failure to prepare Financial Statements | $1,700 |
| s.65 – lending | $10,200 |
| s.67 – prohibition on super fund borrowing, except as permitted | $10,200 |
| s.84 – contravention of In-House Asset rules | $10,200 |
| s.103 – keeping of minutes | $1,700 |
| s.104 – record keeping / trustee declarations | $1,700 |
| s.105 – member reports | $1,700 |
| s.106 – notification of significant events | $10,200 |
| s.106A – notification of entity status | $3,400 |
| s.124 – appointment of investment manager | $850 |
| s.160 – compliance with education direction | $850 |
| S.254 – provide information to regulator | $850 |
| s.347A – participation of statistics program | $850 |