The number of SMSF trustees disqualified so far by the ATO in 2024/25 is tracking to be lower than the previous financial year, according to new figures released by the regulator.
An update to its Disqualified Trustee Register for the March quarter 2025 shows 142 people were barred from acting as SMSF trustees between 1 January and 31 March, with 416 people banned since 1 July 2024.
While the ATO will release its next update on disqualifications for the full financial year in August, an additional 60 individuals have also been recorded on the Federal Register of Legislation as being barred from being trustees between 1 April and 26 May.
This brings the total number of disqualifications for the financial year to date to 474, which is around 25 per cent lower than the 656 recorded at the end of 2023/24.
The bulk of those restricted from acting as a trustee were from New South Wales (50) and Victoria (26), while a further 30 lived in Queensland and 17 in Western Australia.
An examination of the data indicates at least 18 couples who were acting as trustees were disqualified together, while the trustees of four funds appeared to be relatives.
The SMSF Association told its members that “while tracking slightly down from the disqualifications in 2023/24, these figures continue to underscore the ATO’s firm approach to trustee compliance”.
Since the ATO began registering the disqualification of trustees in October 2012, more than 5400 individuals have been barred by the tax commissioner for non-compliance with superannuation laws or being deemed unsuitable to act as trustees.
Recently, the regulator reiterated the reasons it may ban someone from acting as a trustee, pointing out an offence related to dishonest conduct was only one criterion it considered.
The ATO has also highlighted criminal offences that led to a ban had no statute of limitations, but some grounds for a disqualification to act as a trustee may be waived or overturned under very specific circumstances.
