The ATO has its sight set on individuals participating in an increasing number of aggressive tax avoidance and retirement planning schemes in self-managed superannuation funds (SMSF).
The Tax Office has launched Super Scheme Smart, an initiative designed to help inform individuals and advisers about illegal retirement planning schemes. The program is a result of an increase in schemes designed specifically to target those approaching retirement.
Individuals approaching retirement are most at risk, in particular, those aged 50 or over, looking to put significant amounts of money into retirement. SMSF trustees, self-funded retirees, small business owners, company directors and individuals involved in property investment are particularly at risk.
In addition to severe penalties, individuals caught using an illegal scheme may risk losing some of their retirement nest egg and their rights as a trustee to manage and operate a self-managed superannuation fund.