The high risk of mixing business and super fund assets

Almost 60% of reported breaches by self-managed super funds involve illegal related-party transactions between a fund and its members. Another 25% of reported breaches involve a failure by Self Managed Super Funds trustees to separate super fund money from their business assets.

Too often SME’s have a genuine but ill-founded confidence that their troubled business will recover prompting them to illegally ‘borrow’ from their fund and keep trading in the belief they will repay the money. Little do they realise the cost of this breach when reported during a routine Audit will be a fine of up to $10,200 per trustee, potential disqualification as a trustee and potentially in extreme cases criminal charges and tax on the balance of the fund assets at the highest marginal tax rate.

If you have concerns about any transactions made from your self managed super fund or you are concerned about your SMSF's compliance, contact Segue Financial Services. We are experienced at dealing with all aspects of SMSFs.