SMSFs in audit spotlight

The Commissioner for Taxation Michael D’Ascenzo has issued a new heads-up to people running self-managed superannuation funds, warning of increased compliance activities and closer scrutiny of auditor contravention reports.

The warning was contained in an address to a small business forum, and D’Ascenzo made clear that firms undertaking a large number of audits without then making auditor contravention reports would be subject to examination.

“The number of self-managed superannuation funds is continuing to grow from around 320,000 at the end of June 2006 to almost 360,000 at the end of June 2007,” he said. “We are developing support tools for trustees and auditors while increasing reviews and audits and pursuing outstanding lodgements. We will conduct compliance checks on any reported issues with new registrants.

“A key change this year is a significant increase in compliance activities focusing on regulatory issues such as in-house assets and loans to members,” D’Ascenzo said. “Auditor contravention reports will continue to be examined, as will firms undertaking a large number of audits without any auditor contravention reports.”

He said that where funds did not meet the definition of a self-managed superannuation fund, the Australian Taxation Office would work with the trustees to restructure the fund so that it could meet the definition.