Swimming between the flags

 

SELF managed super funds (SMSF) are now the largest sector in the $1 trillion plus superannuation market.
According to Carolyn Baker, principle of CJ Baker & Associates, the latest figures show SMSF are now the largest in the market, accounting for 30.4 per cent and totalling $326 billion.
“Especially in these times, the ATO has instigated a number of measures to ensure trustees are aware of their responsibilities and potential compliance issues are identified early,” says Baker.
“All SMSFs are required to be audited each year. One of the biggest issues is the quality and independence of audits.
“In an audit of auditors the ATO has found in 25 per cent of cases the same firm is still doing both the accounts and audit of SMSFs.
“This really doesn’t provide the arms length they’d like to see and is a wake-up call for both trustees of SMSFs and their auditors because the ATO really means business.”
With extra funding the ATO has had to employ more than 200 compliance staff, with audits expected to reach 11,000 or more, up from the 3600 conducted in the 2006-07 financial year.
“For example since 2004 when auditor’s contravention reports were first established by the ATO there have been over 24,000 reports lodged regarding breaches from SMSFs. Of these, beaches 19 per cent related to funds that had lent money to members,” says Baker.
Baker says the clear message from the ATO is awareness.
“ASIC is also embarking on a campaign to ensure trustees are ‘swimming between the flags’ and if they want to venture further should ensure they are either strong swimmers or have a helping hand,” she says.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

Board exodus gathers pace at The Star after O’Neill resigns as chairman

Board exodus gathers pace at The Star after O’Neill resigns as chairman

The Star Entertainment Group (ASX: SGR) is now on the hunt for a ne...

Woolworths adds controlling stake in MyDeal to cart for $218 million

Woolworths adds controlling stake in MyDeal to cart for $218 million

Woolworths (ASX: WOW) is looking to enhance its online marketplace ...

SNL’s Pete Davidson to star in QLD feature film ‘Wizards!’

SNL’s Pete Davidson to star in QLD feature film ‘Wizards!’

The Australian screen sector has bagged two major wins today, with ...

Scrap metal recycler Sims picks up Brisbane port site for $88 million

Scrap metal recycler Sims picks up Brisbane port site for $88 million

In order to acquire one of the few remaining Brisbane sites with de...