The ATO has flagged it will issue education directions to SMSF trustees where gaps in their knowledge or understanding of their obligations lead to a breach of super law but repeat offenders are more likely to be hit with sterner compliance measures.
The regulator’s approach to addressing contraventions has been laid out in draft Practice Statement Law Administration (PSLA) 2025/D2 Self-managed superannuation funds – education directions for contraventions of the Superannuation Industry (Supervision) (SIS) Act 1993, which will provide guidance to ATO staff about when to use the directions, and has been released for consultation.
The draft PSLA states an education direction is a written notice which requires a trustee to complete an approved SMSF education course, provide evidence of completion, and re-sign the trustee declaration to confirm they understand their obligations and duties as a trustee.
The document added that “giving an education direction will play an essential role in cases where the person’s lack of knowledge or understanding of their obligations contributed to the contraventions”.
The draft PSLA also outlined when an education direction was unlikely to be useful highlighting the fact trustees who have been asked to comply in the past or are expected to have a greater awareness should not receive one with other actions to be taken instead.
“Case-specific factors which are likely to indicate it is not appropriate to give an education direction include the person has previously been given an SMSF education direction; the person would already be expected to have the necessary skills and knowledge, such as an experienced or accredited SMSF adviser; and the person already has a good level of knowledge of their obligations and were aware their conduct would be likely to result in a contravention,” the proposed guidance stated.
It also noted a person who had already undertaken an education course resulting from a contravention but before being issued with an ATO directive to do so, or a person who employees of the regulator believed should be disqualified would not be issued an education direction.
ATO staff were also reminded they could apply other compliance options alongside an education direction.
“The compliance options you might commonly use in combination with an education direction include imposing administrative penalties; giving a rectification direction; and accepting a written undertaking from the trustee to rectify the contravention.”
The consultation period for the draft guidance is open until 31 October 2025.
