Self-managed super fund trustees should be under no illusions, the Australian Taxation Office takes a very dim view of prohibited loans. Not only because they breach the law, but also because they often mask illegal early access to superannuation benefits.

The numbers speak volumes. In his recent address to the SMSF Association national conference, ATO Commissioner Rob Heferen revealed that there were $206.2 million in prohibited loans in 2020-21, a figure that only worsened the following financial year, rising to $231.7 million.