The proposal in the 2018 Budget that SMSFs with a good compliance history only have audits every three years has been welcomed by the SMSF Association.
Under the measure, if it is legislated, SMSFs with three years of clear audit reports and timely lodgement of the SMSF Annual Return will go from an annual audit cycle to a three year audit cycle.
SMSF Association CEO John Maroney said the proposal was a fitting reward for SMSF trustees that adhere to the rules, and will cut red tape for the sector. But it is still the position of the Association that an independent audit is essential to the integrity of SMSFs.
“We keenly await the implementation details of the proposal,” he said.
Maroney said the 2018/19 Budget largely left superannuation alone, and this would be an “enormous relief” to SMSF trustees and advisors.
“This continued regulatory stability for SMSFs is welcomed by the Association and is sorely needed as trustees still come to grips with the superannuation tax changes that took effect on 1 July 2017.”
“We look forward to a much-needed period of stability for superannuation and working through the implementation of the superannuation changes with the Government and regulators.”
The SMSF Association also welcomed 2018 Budget changes to super fund fees and insurance.
“Capping fees on low balance superannuation accounts and introducing opt-in requirements for insurance in superannuation for certain fund members are positive measures that will ensure younger superannuation fund members do not have their account balances eroded unnecessarily,” Maroney said.