The regulator said the 2026 SMSF return and instructions include changes to labels used to report the annual SMSF audit.
The first change is that the SAR now makes the deductible and non-deductible auditor fee labels H1 and H2 mandatory. This means the fee paid to the auditor for completing the annual audit must be reported at these labels.
It can no longer be left blank or reported at another label in the SAR. If only H1 or H2 applies, report zero at the other label. This should improve visibility of audit fees reported in returns and support more consistent fee reporting across the sector.
The other change is that the SAR instructions for label six now make it clearer that all modified opinions in the independent auditor’s report (IAR) should be reported in the SAR, including qualified, adverse and disclaimer opinions.
If an auditor reviews return information or discusses SAR reporting with trustees or tax agents, they need to make sure they understand the 2026 SAR instructions and the changes that apply this year.
