.

The regulator said that some advisers will look for new ways to exploit the law or changes in the law and will promote schemes to people and promise benefits that aren’t legally available.

“Some tax advisers may attempt to promote tax and super schemes by inappropriately claiming their schemes are supported by ATO rulings,” it stated.

“Schemes may target Australians planning for their retirement by advising them to send money inappropriately through their self-managed super funds (SMSFs).”

It continued that other schemes promise access to superannuation assets even though a condition of release hasn’t been met.

Tax and super schemes range from mass-marketed schemes advertised to the public, to boutique or specialised schemes tailored for specific taxpayer circumstances. Some are marketed to individuals and others to large private groups and public companies.

They include tax avoidance, tax evasion and super schemes, and typically involve one or more of the following:

· reducing a participant’s taxable income

· increasing their deductions against their income

· increasing offsets

· inflating refunds

· avoiding tax and other obligations entirely

· accessing super benefits before meeting a condition of release.

Tax and super schemes may include complex transactions or may distort the way funds are used to avoid tax or other obligations. They may also structure arrangements to:

· incorrectly classify revenue as capital

· exploit concessional tax rates

· obscure the source of funds or the relationships between parties

· illegally release super funds early

· inappropriately move funds through several entities, such as a series of trusts including SMSFs, to avoid or minimise tax that would otherwise be payable.

The ATO stated when it identifies an arrangement that represents a high risk to the tax or superannuation systems, it may issue a taxpayer alert to provide an early warning that an activity or arrangement is of concern and set out what it is currently doing about the arrangement. The alert will also assist those affected to make informed decisions about their tax affairs.

Some of the tax alerts issued in regard to superannuation and SMSF include:

· TA 2023/2 Diverting profits of a property development project to a self-managed superannuation fund, through use of a special purpose vehicle, involving non-arm’s length arrangements

· TA 2016/6 Diverting personal services income to self-managed superannuation funds

· TA 2015/1 Dividend stripping arrangements involving the transfer of private company shares to a self-managed superannuation fund

· TA 2010/5 The use of an unrelated trust to circumvent superannuation lending restrictions.

Find more information about when the ATO issues taxpayer alerts on Practice Statement Law Administration PS LA 2008/15 Taxpayer Alerts and the taxpayer alerts page or see the full list of taxpayer alerts.

Keeli Cambourne
November 24, 2025
smsfadviser.com