WealthGuru

WealthGuru We are a full service advisory firm, specialising in Wealth management, Personal Insurance, and Retirement planning including Super accumulation strategies.

Please feel free to enquire about our services and offers by calling us on 08 72252261.

05/08/2026

🧩 Here’s a Real World Example for your understanding

Scenario: A client is encouraged by a property promoter to set up an SMSF. The accountant, unlicensed, asks the client to sign an ex*****on only declaration. The client signs it despite having received advice from the promoter.

Outcome:
• The property investment fails
• The client loses $220,000
• The ATO audits the fund
• The client is disqualified and fined
• The accountant is investigated for facilitating a false declaration

Both parties suffer significant consequences.

đź“ť Final Thoughts

False statutory declarations in SMSF setups are not “paperwork shortcuts”—they are criminal offences with life changing consequences.

If you’re unsure about:
• Your SMSF setup
• A declaration you’ve been asked to sign
• An accountant’s obligations
• A property promoter’s involvement

Seek licensed, professional advice before signing anything.

05/08/2026

👨‍💼 Implications for Accountants

A signed declaration does not automatically protect the accountant.

If ASIC or the TPB believes the accountant knew the declaration was false, they may face:

• Loss of professional registration
• Civil penalties
• Prosecution for facilitating misleading statements
• Unlicensed advice or anti hawking breaches

05/08/2026

🚨 5. Increased Exposure to SMSF Scams

Clients who sign false declarations are often coached by unlicensed property spruikers or cold callers.

By declaring they did not receive advice, clients forfeit ASIC consumer protections.

If the investment collapses:
• No access to AFCA compensation
• No recourse against unlicensed promoters
• No protection under financial services law

Example: A client is coached to set up an SMSF to buy a “guaranteed return” property. The developer collapses. Loss: $180,000

Legal recourse: None, because the client declared they acted independently.

05/08/2026

🧾 4. Personal ATO Penalties and Mandatory Education

SMSF trustees are personally responsible for compliance breaches.
Penalties include:

• $313 to $15,000+ fines per breach
• Fines must be paid personally, not from the SMSF
• Mandatory ATO directed education courses (self funded)

Example: A trustee breaches three compliance rules. Total fines: $8,000, paid from their personal bank account.

05/08/2026

đź’¸ 3. Massive Tax Penalties if the Fund Becomes Non Complying

If the ATO determines the SMSF was set up under false pretences or managed incompetently, they may declare it non complying.
The result:

• The fund loses its concessional 15% tax rate
• A 45% tax rate is applied to the entire market value of the fund’s assets in the year of non compliance

Example: An SMSF worth $700,000 becomes non complying. The ATO issues a $315,000 tax bill—instantly wiping out nearly half the member’s retirement savings.

05/08/2026

🛑 2. Automatic Disqualification as an SMSF Trustee

Under the Superannuation Industry (Supervision) Act 1993 (SISA), anyone convicted of a dishonesty offence is automatically disqualified from acting as an SMSF trustee.

What happens next:

• Your name is added to the ATO’s public disqualified trustee register
• Your SMSF must be wound up or transferred to a retail/industry fund
• Forced liquidation of assets may trigger large capital gains tax events and losses

Example: A client with a $900,000 SMSF portfolio is forced to liquidate property during a downturn. They lose $150,000 in value and incur CGT—purely because they became disqualified.

05/08/2026

⚖️ 1. Criminal Penalties for False Statutory Declarations

Signing a false statutory declaration is a criminal offence.
Penalties include:

• Up to 4 years imprisonment under the Commonwealth Statutory Declarations Act 1959
• Up to 3–5 years’ imprisonment under various state laws (e.g., NSW Oaths Act 1900)
This is treated as a dishonesty offence—similar in seriousness to fraud.

05/08/2026

❗️ The Hidden Dangers of Signing a False SMSF Statutory Declaration

Why clients and accountants must understand the serious consequences

📌 If you work with SMSFs—or you’re thinking about setting one up—this is essential reading.

🧭 Why This Issue Matters
Since the repeal of the accountants’ exemption, accountants can no longer recommend setting up a Self Managed Super Fund (SMSF) unless they hold an Australian Financial Services (AFS) licence.

To avoid giving unlicensed financial advice, some accountants ask clients to sign an “ex*****on only” statutory declaration,

stating: “I made the decision to establish an SMSF independently and did not receive financial advice.”

If a client knowingly signs this declaration falsely, the consequences are severe—criminal, financial, regulatory, and personal.

Inflation falls to 6.3%Inflation remains high, but has now fallen for the third consecutive month, strengthening the cas...
26/04/2023

Inflation falls to 6.3%

Inflation remains high, but has now fallen for the third consecutive month, strengthening the case for the Reserve Bank to stop increasing the cash rate.

After inflation peaked at 8.4% in December, it fell to 7.4% in January and 6.8% in February – and then 6.3% in March, according to new data from the Australian Bureau of Statistics.

The Reserve Bank is trying to reduce inflation to between 2% and 3%, and has said it will keep raising the cash rate until it achieves its goal. So the sooner the Reserve Bank believes inflation has been tamed, the sooner it will stop increasing the cash rate.

A higher cash rate generally means higher interest rates; which, in turn, generally means less economic activity and less inflation.

Inflation is measured by the consumer price index or CPI.

Household wealth has doubled over the past decadeThe average Australian had $546,128 in net wealth at the end of 2022, b...
23/03/2023

Household wealth has doubled over the past decade

The average Australian had $546,128 in net wealth at the end of 2022, based on the latest data from the Australian Bureau of Statistics.

Wealth per person has declined from a peak of $577,588 in the March 2022 quarter. However, the average Australian is still:

* Twice as wealthy as in 2012
* Three times as wealthy as in 2003
* Four times as wealthy as in 2000
* Five times as wealthy as in 1998
* Six times as wealthy as in 1994

Average net wealth is calculated by adding up all our household assets (such as properties), subtracting all our liabilities (such as home loans) and dividing that figure by the number of people in Australia.

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