The ATO has released information on the most commonly reported contraventions this past financial year compared to the same time last financial year.
Interestingly, there has been a significant drop of around 10 per cent in the number of ACRs received.
It seems the same types of contraventions continue to be reported by SMSF auditors with the most common being loans to members and in-house assets.
Many of the in-house asset contraventions relate to investments in related unit trusts, loans to related companies or loans to related unit trusts, all of which should be closely scrutinised by auditors.
SMSF Adviser reports that of the SMSFs in Australia, around 2 per cent have ACRs reported to the ATO and 50% of those reported are rectified which is a pleasing result for the ATO.
Issues that will be focused on in the coming financial year include:
- Auditor independence - examining the referral sources of audits
- Discrepancies in the valuation of assets - critical in light of the recent superannuation changes
New SMSF valuation guidelines are outlined on the ATO website and will reflect the context of the recent superannuation changes.
To view superannuation changes click here.
