Swimming between the flags

Written on the 12 May 2009

 

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.

Latest News

ASSET SALES ON THE CARDS FOR E-TAILER SURFSTITCH AS LEGAL COSTS LOOM

EMBATTLED online sport clothing retailer Surfstitch (ASX: SRF) is looking at selling some of its assets as it faces c...

CROC INDUSTRY WORTH MORE THAN $100M TO AUSTRALIAN ECONOMY

CROCODILE farming is big business in Australia's top end, with the industry contributing over $100 million to ...

HOW A YOUNG ENTREPRENEUR 'FELL' INTO A BUSINESS THAT TURNS OVER $50M A YEAR

IN his first year of business as a 26-year-old, he built 18 homes which delivered a turnover of just under $4 million...

SKYCITY INJECTS $330 MILLION INTO FESTIVAL PLAZA REDEVELOPMENT

THE long-neglected and much maligned Festival Plaza in Adelaide has received a hero in the form of long-time neigh...

Related News

ASSET SALES ON THE CARDS FOR E-TAILER SURFSTITCH AS LEGAL COSTS LOOM

EMBATTLED online sport clothing retailer Surfstitch (ASX: SRF) is looking at selling some of its assets as it faces c...

CROC INDUSTRY WORTH MORE THAN $100M TO AUSTRALIAN ECONOMY

CROCODILE farming is big business in Australia's top end, with the industry contributing over $100 million to ...

HOW A YOUNG ENTREPRENEUR 'FELL' INTO A BUSINESS THAT TURNS OVER $50M A YEAR

IN his first year of business as a 26-year-old, he built 18 homes which delivered a turnover of just under $4 million...

SKYCITY INJECTS $330 MILLION INTO FESTIVAL PLAZA REDEVELOPMENT

THE long-neglected and much maligned Festival Plaza in Adelaide has received a hero in the form of long-time neigh...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter