Royal Commission, market volatility: Is now really the time to move away from annual independent audits?

 

SMSF trustees still seem to be digesting the yet-to-be enacted proposal to move SMSFs to a three-year audit cycle.

Tax & Super Australia (TSA) is highly concerned about the impact of this proposal on the integrity of the superannuation system in Australia. During a period of volatility where the financial services sector is facing the Royal Commission for inappropriate behaviour pertaining to self-managed superannuation funds, now is not the time to be moving away from annual, independent audits.

TSA voiced its concerns in the form of a submission to Treasury regarding the budget proposal to amend the annual audit for self- managed superannuation funds to a three yearly audit cycle.

Auditors play an integral role in ensuring SMSF trustees comply with the rules and regulations required to be eligible for the tax concessions granted to superannuation funds. To remove the independent audit process for two out of three years will have a significant impact on the compliance rates of trustees and undermine the ability of the system to function effectively. To remove the process of annual independent audit check appears to be unreasonable.

Tax & Super Australia is keen to stress the importance of the financial services industry to the Australian public going forward and the importance of ensuring that the resulting economic costs of regulation and the cumbersome processes of compliance do not stifle competition.

Download our submission from here.

Ross Hamilton from Wamberal in NSW comments: I also note with concern that ASIC fees for SMSF auditors in 2019 are going to rise very steeply. For very small practitioners such as myself this will make my business uneconomic. (There is also a massive charge for de-registration should I decide to exit). Why couldn’t ASIC base their fees on a per audit basis for each auditor, rather than a flat fee? While I understand that ASIC want to recover their actual costs from industry, I feel their approach is entirely wrong, and will drive many small practitioners out of business.

Tax & Super Australia (TSA) is highly concerned about the impact of this proposal on the integrity of the superannuation system in Australia. During a period of volatility where the financial services sector is facing the Royal Commission for inappropriate behaviour pertaining to self- managed superannuation funds, now is not the time to be moving away from annual, independent audits.

TSA voiced its concerns in the form of a submission to Treasury regarding the budget proposal to amend the annual audit for self- managed superannuation funds to a three yearly audit cycle.

Auditors play an integral role in ensuring SMSF trustees comply with the rules and regulations required to be eligible for the tax concessions granted to superannuation funds. To remove the independent audit process for two out of three years will have a significant impact on the compliance rates of trustees and undermine the ability of the system to function effectively. To remove the process of annual independent audit check appears to be unreasonable.

Tax & Super Australia is keen to stress the importance of the financial services industry to the Australian public going forward and the importance of ensuring that the resulting economic costs of regulation and the cumbersome processes of compliance do not stifle competition.

Is now really the time to move away from annual independent audits? Is now really the time to move away from annual independent audits? Is now really the time to move away from annual independent audits? Is now really the time to move away from annual independent audits? Is now really the time to move away from annual independent audits? Is now really the time to move away from annual independent audits?