Does your SMSFT comply?
Quite a few SMSF trustees and auditors don’t understand their official obligations, according to the Australian Tax Office.
The ATO said a “worrying number” of trustees had “little or no idea” about what they were required to do as the people accountable for the fund.
The tax office said it would scrutinise each fund reported to the ATO by approved SMSF auditors.
SMSF lodgement was a key requirement of a trustee because it reported on a fund’s regulatory and income tax obligations.
The ATO was concerned about SMSF being created so people could get early access to their retirement assets – which was illegal.
Approved auditors who did not audit funds in the correct manner or report breaches were also in the spotlight.
The number of auditors was in decline overall while the number of audits had increased, which indicated the existence of less experienced auditors who might not meet obligations.
The ATO said compliance was a key to the SMSF sector staying in good shape.
Under Australian law each fund had to be audited annually by an independent auditor.