Swimming between the tax flags

Written on the 13 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, breaches 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

ACCC GIVES GO-AHEAD FOR NEWS CORP TO BUY ARM

NEWS Corporation (ASX: NWS) has been given the green light to acquire Australian Regional Media (ARM) from APN New...

ENTREPRENEUR'S NEW VENTURE SWEET AS 'HONEE'

A MELBOURNE entrepreneur hailing from the food tech scene has launched a new venture to change the face of beauty....

WATER VENTURE TAKES ON THE PLASTIC SCOURGE

DAMIEN Stone has a thirst to build the world's biggest social enterprise in a clean fight against the plastic ...

BUNNINGS BOSS JOHN GILLAM QUITS WESFARMERS

THE man behind Bunnings' home improvement domination has resigned from his role in charge of the retailer.

...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter