There are definitely a few auditors who go about auditing a large number of SMSFs with paltry number of staffs. This and a lot more will be on the radar of the ATO as it begins to monitor the SMSF auditors.
Consider SMSF as a trust that is meant for the sole purpose of providing the members a decent source of income when they retire. Of course, family members and beneficiaries also reap benefits in case of demise of a member. Members in employment roles need to deflect their Superannuation contributions towards their allocated SMSF account. For the purpose, the SMSF need to possess an Australian Business Number (ABN), Tax File Number (TFN) and a bank account. Understanding how SMSF works is the first step to be able to take advantage of it.
SMSF audits are an integral part of managing the SMSF industry, but such audits also need to be a little more transparent and a great deal more understandable. There are a lot of myths surrounding SMSF audits. It is critical that they be quashed. Let us reveal the truth about SMSF audit myths below.
The SMSF industry runs without prudential regulation and this is the reason why annual independent audits become crucial to the cause of their goodwill amongst investors. After all, it is important to figure out whether SMSF deserves its tax concessional status. SMSF auditors assigned for the job know the importance of their task and give peace of mind to both; the trustees and the government.
On the website of the Inspector General of Taxation (IGT), a review in regards to the compliance required for excess contributions tax is being posted. Agreed that the concessional contributions corner a big pie of discussions but no one can deny that the exorbitant tax on non-concessional contribution is also a point of debate.
People take the mortality equation in right earnest. They fear they may die prematurely and thus try ensuring in advance that everything falls in place when they are no more there. Quite surprisingly, many of us fail to explore the other spectrum of this assumption. What if we survive beyond our expectations? Have we adequately considered the longevity risk?