Super Sphere director Belinda Aisbett has announced that the SMSF Auditors Lobby Group has been established with the aim of protecting the integrity of the SMSF sector by supporting an annual audit of SMSFs.
“We are united in our attempt to present a collective voice to preserve the findings of the Super System Review, chaired by Jeremy Cooper,” said Ms Aisbett.
The Super System Review found that an “annual audit provides a high level of assurance to members, regulators, government and the community more generally”, she noted.
Ms Aisbett said a joint submission was sent to various parties last week voicing the collective concerns of the lobby group.
The submission estimates that approximately 90 per cent of SMSFs will fit the description of a fund with a good audit history.
It stated that while attempts to reduce costs for the industry are a positive goal, there are other ways in which this could be achieved.
One of the alternatives it suggested was removing the need for certain minor contraventions to be reported to the ATO, which would reduce audit time and ATO resources.
Some of the requirements for the auditor to review certain documentation and its retention could also be removed, it said.
It also suggested consultation with standard setters to design more relevant and efficient mandatory auditing standards applicable to SMSF audits.
The sector cannot expect generous tax concessions without accountability. An annual Compliance Audit is the best way to ensure SMSFs comply with the law and continue to benefit from very generous tax concessions available to superfunds.
Family Trusts are also available for wealth management, if you want to have a savings vehicle that is not audited however, the tax is not as manageable.
Most cost/benefit analysis, using only 2 variables- the extra tax versus the cost of an annual audit, would result in SMSFs representing good value comparatively.
I cannot find the lobby group, I must be blocked by the owner.
An SMSF audit is a valuable tool for the trustees and the community in general. Why change something that is working to ensure that superannuation savings are preserved for retirement and trustees and accountants guided through the SIS legislation maze.
ha ha ha….
Comments above from who really knows the sector and the relevant legislation
In my opinion the proposal is both odd and clumsy. I would propose that the requirement to have a fund audited be removed rather than have a three-yearly audit. Why audit superannuation funds? There is no mandatory audit requirement for any other taxpaying entity.
There is little or no value added with an audit and it is definitely an unnecessary cost.
This lobby group appears to have been founded to protect their revenue.
Hi James,
The audit is done to protect the retirement savings, and the Lobby Group has not been formed to protect our revenue. Our revenue will most likely increase under these measures, so this can hardly be our motivation.