Recently the ATO has been making changes which reduce the severity of the response to reports of contraventions against the SIS Act and regulations by SMSF auditors. This includes a determination of the risk of a contravention as either low, medium or high risk. If the risk is low the response is likely to be only a phone call to the trustees. The ATO is also considering changing the thresholds at which contraventions are reported to the ATO.
However this is not the only, or the first, change by the ATO to limit the reporting of contraventions by SMSFs.