An Institute of Chartered Accounts in Australia (ICAA) forum has called for a broader range of penalties to be implemented for breaches committed by the self managed superannuation (SMSF) sector.
Delegates at the forum considered the current regime to be too extreme, describing it as either a "feather or sledgehammer" approach.
Current penalties the Australian Taxation Office (ATO) can apply in regard to strict liability and fault liability include the removal of a fund's compliance status, disqualification of a trustee and litigation against the trustee.
Forum participants agreed that a more efficient and equitable penalty framework would help improve the governance of SMSFs in general.
In reference to the regulator itself, delegates felt the ATO was the most appropriate body to take on the role, due to the fact the tax office is seen as a high volume processor.
SMSF investment strategies were also discussed with the overall view being they need improvement.
"The Institute feels very strongly about how current SMSF investment strategies do not detail all the requirements of the Superannuation Investments Supervision 1993 Act," ICAA head of financial planning and superannuation Hugh Elvy said.
