Sorry to sound like the Scrooge of Christmas, but…
The ATO are making up for time lost over Covid. Chasing tax debts, imposing Directors IDs (which could have been managed via your tax file number) and upping their compliance oversight in the world of SMSFs.
Auditors are now being de-registered for a failure to obtain sufficient documented evidence in the following areas:
- Assets being recorded at market value
- Assets complying with arm’s length provisions
- SMSF assets being held separately to those held personally by trustees
- The compliance requirements of:
✓ Fund structures
✓ Trustee declarations
✓ Authorised financial statements
✓ Proper minute keeping
✓ Clearly identified borrowings including all commercial terms
✓ Documented and signed investment strategies.
I realise that none of this is new, and I have raised this a few times this year, and yet I am still receiving audits with many of the above either missing or not clearly documented.
And as far as the ATO are concerned, this matters.
So, if there are shortfalls in this area, make sure the trustees are fulfilling their obligations.
It will only slow down the audit process otherwise. And naturally late audits are another area the ATO are cracking down on.
So endeth the sermon.
Now onto the cool stuff:
Lowering downsizer contributions to age 55
The bill has passed both Houses of Parliament and is set to become law from 1st January 2023, so you can start including that tactic your client’s retirement planning.
And if you have any SMSF queries, whether or not you are a client, please feel free to get in touch. We love what we do and we're happy to discuss your client's SMSF with you.