POWERED BY MOMENTUM MEDIA
Three-yearly audits won’t produce savings
Amid continued debate over the worth of the Government’s triennial auditing proposal for self-managed superannuation funds (SMSFs), the SMSF Association has warned that the change would not produce significant cost savings for trustees.
A survey of Association members found that 86 per cent believed that three-yearly audits would not reduce costs and 84 per cent said they would recommend their clients continue having annual audits regardless of the proposal. Unsurprisingly given these results, 89 per cent said they opposed triennial audits.
“Our analysis leads us to believe that the costs and complexity of creating and implementing the proposed triennial audit for eligible SMSFs would outweigh the benefits provided to the SMSF sector, as well as pose potential integrity risks,” SMSF Association chief executive, John Maroney, said.
“We believe any cost reductions for SMSFs trustees would not be substantial and would not justify the increased complexity and potential integrity risks for individual SMSFs as well as the broader sector.”
Maroney said that members were aware that triennial audits could lead to auditors and trustees becoming unfamiliar with the fund, adding further complexity to the audits.
The Association had previously told the Treasury, in its submission regarding the proposal, that the change would impact SMSF audit businesses and may reduce the quality of the audit workforce, which could affect the quality of independent oversight of the SMSF sector.
It also expressed concern to Treasury that the eligibility criteria for triennial audits, which would involve “triggers” for annual audits for some funds, could actually make the SMSF compliance system more complicated, outweighing any red tape reduced by the proposal.
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
