APRA-regulated funds

Lost members statements

Penalties may apply if you:

• don't lodge your LMS on time
• provide an LMS that is false or misleading
• fail to keep records correctly.

The Superannuation (Unclaimed Money and Lost Members) Act 1999 and the Taxation Administration Act 1953 (TAA 1953) provide for offences and administrative penalties. As a super provider, you may be found guilty of an offence or liable to an administrative penalty if:

• you fail to give the ATO the statement by the due date:
• administrative penalty: base penalty amount ranging from one to five penalty units for each period of 28 days or part thereof that the statement is overdue, up to a maximum of five penalty units
• penalty for offence: 20 to 50 penalty points ($2,200-$5,500) and/or possible imprisonment for up to 12 months
• you give a statement to the ATO that is false or misleading in a material particular:
• penalty for offence: 20 to 40 penalty units ($2,200-$4,400)
• you give a statement to the ATO that is recklessly false or misleading in a material particular:
• penalty for offence: 30 to 50 penalty units ($3,300-$5,500) and/or possible imprisonment for up to 12 months
• you do not keep records that record and explain all transactions and other acts engaged in, or required to be engaged in, by the provider, in English or so that the records are easily accessible and convertible into English. The records must be kept for a period as defined in the tax laws:
• penalty for offence: maximum penalty 60 penalty units ($6,600)
• you incorrectly keep accounts or records and they do not correctly record and explain the matters, transactions, acts or operations to which they relate, or as they are required under taxation law:
• penalty for offence: 20 to 40 penalty units ($2,200-$4,400)
• you incorrectly keep accounts or records and you are reckless in the making of, or recording and explaining of matters, transactions, acts or operations as to whether the accounts or records are correctly recorded and explained:
• penalty for offence: 30 to 50 penalty units ($3,300-$5,500) and/or possible imprisonment for up to 12 months
• you incorrectly keep accounts or records with intent to deceive, mislead, hinder or obstruct the Commissioner or an ATO officer:
• penalty for offence: 50 to 100 penalty units ($5,500-$11,000) and/or possible imprisonment for up to 2 years.

APRA-regulated funds - home

Sections within Penalties

• False or misleading statements
• Unclaimed super money statements
• Lost members statements
• Member contributions statements
• Rollover benefits statements
• Release authorities