Audits not an issue for SMSFs: SISFA
With only 2 per cent of self-managed super funds (SMSFs) breaching superannuation audit rules, there is no need for additional regulations in the sector, according to the Small Independent Superannuation Funds Association (SISFA).
"[SISFA] is very concerned about the questions [regarding] the validity of SMSF administration and operation that are swirling around at present," the association said in a statement.
Audit contravention reports were lodged with the Australian Taxation Office (ATO) against only 2 per cent of SMSFs in the 2008 year, SISFA stated.
According to ATO statistics there were 374,000 SMSFs at the end of the 2008 financial year, meaning roughly 7,500 of those funds would have experienced a compliance issue. There were 468,000 SMSFs at the end of the March quarter this year.
SMSFs are audited by trained professionals and there is no evidence to indicate the proportion of contraventions will have increased, according to SISFA director Rob Jeremiah, who added that according to anecdotal reports the proportion may actually have declined.
"This means that at least 98 per cent of SMSF funds are not contravening their governance requirements and that there is no argument to make for moving control from the ATO to [the Australian Prudential Regulation Authority] or to make any further regulatory adjustments to the law governing SMSFs than those which are the subject of proposed legislation to be effective from 1 July 2013," he said.
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