SMSF News and Strategies Podcast Show · Chris Reed: Certified Practicing Accountant (CPA), FPS and SMSF Specialist Advisor, Director of Business Concepts Group

SMSF NS 131: The latest ATO warnings on SMSF’s

·20 min·1 clip

Taking $20,000 out at age 30 could leave $90,000 less at retirement.

1. SMSF News and Strategies Podcast Show episode 131 focuses on the ATO’s latest warnings for self-managed super funds. 2. Chris Reid hosts with Sarah Power, who adds examples from SMSF compliance, member balances, and proposed tax changes. 3. The episode exists to help trustees check due dates, avoid breaches, and slow down before acting on Division 296. 4. Chris Reid says some SMSFs have a 31st of October lodgement date because of poor lodgement history. 5. He says a new fund lodging for the first time in 2025 has a 28th of February due date. 6. Sarah Power notes that most other funds will have a May 2026 due date, but only if the accounts and audit are completed on time. 7. The hosts say around 64,000 funds still had not lodged 2024 returns, which the ATO sees as a compliance warning sign. 8. They explain that late or incomplete records can slow the audit process and push trustees closer to a late lodgement outcome. 9. Sarah Power says the ATO is especially concerned about the marketing of compassionate release on LinkedIn, print media, and social media. 10. They mention examples such as dental work, whitening, and plastic surgery, while stressing that a formal ATO process and release authority are required. 11. Chris Reid and Sarah Power say compassionate release should not be treated as a simple cash withdrawal from an SMSF. 12. They cite an article saying that taking $20,000 at age 30 could leave a member with about $90,000 less at retirement. 13. Chris Reid adds that the withdrawal amount can be larger inside the fund because tax still has to be remitted to the ATO. 14. The hosts then move to loans to members, which they describe as a common breach and a possible pathway into illegal early release. 15. Sarah Power says repeated loans, slow repayment, or years of inaction can lead to higher interest, contravention reports, and heavier consequences. 16. They warn that illegal early access can trigger penalties and tax assessed to the individual, not just the fund. 17. The tone is practical and compliance-focused, with both hosts speaking in a direct advisory style. 18. The format is a two-host conversation that moves through several ATO warnings and short explanatory examples. 19. Trustees, SMSF accountants, and advisers tracking ATO compliance issues will get the most value. 20. Listeners looking for market commentary or investment strategy detail may skip it.

As heard by us

A clear warning on member loans, early release, and the SMSF mistakes that get expensive fast.

ATO warnings set the tone, and the episode is strongest when it separates ordinary compliance slips from the far more serious issue of illegal early release.

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Need a clear read on ATO SMSF warning signs?

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