This edition of Technically Speaking, written by the Association’s Head of Technical, Mary Simmons will look closely at who is a ‘disqualified’ person and as a result prohibited from acting as a trustee of an SMSF under s120 of the Superannuation Industry (Supervision) Act 1993 (Cth) (SIS Act). The discussion below applies to both individual trustees of an SMSF and directors of SMSF corporate trustees.
It is important to understand who a disqualified person is to ensure that once someone becomes disqualified, they do not establish an SMSF or continue to act as trustee of an SMSF. Given the scope of issues to cover, this issue will focus on the main ways under the law that a person becomes a disqualified person and whether anything can be done.
Part 2 will focus on the Commissioner of Taxation’s powers to disqualify a trustee under s126A of the SIS Act.
The contents of this resource are taken to be correct at the time of publication.
Disclaimer: Technical Papers contain factual information only and are prepared without considering particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. The information contained in this document does not constitute advice given by the SMSF Association to you. If you rely on this information yourself or to provide advice to other persons, then you do so at your own risk. The SMSF Association is not licensed to provide financial product advice, legal advice or taxation advice. We recommend that you seek appropriate professional advice before relying upon the information in this technical paper. While the SMSF Association believes that the information provided is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this paper is not considered financial advice for the purposes of the Corporations Act 2001. © SMSF Association