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Guide to SMSF Audits 2021


If you have a self-managed super fund, it must be audited each year. You must immediately hire a professional auditor to complete this task. The auditor must finish the job professionally, involving both the administrator and accountant and the fund. The Australian Taxation Office provided a detailed guide for SMSF auditing in the past and next year. Below are the details.




Conviction by the Australian Taxation Office


You are probably aware that the Australian Taxation Office has created a comprehensive SMSF auditing guide. This guide is only for auditing your self-managed super funds. The ATO also stated that SMSF accountants shouldn't be restricted to only auditing SMSFs. They should also manage an SMSF's accounting department. This service will be mandatory starting 1 July 2021.


The actions of the ATO


The Australian Taxation Office encourages SMSF accounting by putting in a lot of effort. This allows them to implement the various types of roaming arrangements to outsource their SMSF audits. To avoid unexpected complexities or issues, all these tasks must be accomplished in an unbroken year. The 2020/2021 year is the critical year for auditors!

The core elements of SMSF operation are what the Australian SMSF auditors have chosen to focus on. They will also be considering certain important factors while doing so. These factors include floods, droughts, and the repercussions of the novel Corona. Below is a comprehensive list of all these aspects.


  • Investment techniques: SMSF trustees should periodically reevaluate their investment strategies and make changes. This is due to the Covid-19 crisis, which caused a plunge in equity markets. From January to March 2020, the calamity continued. To ensure a flawless completion of the task, make sure to provide all necessary documents to your auditor.

  • Private investments: If you have invested in private entities, your audit documentation has increased over time—for example, trusts or companies. The auditor will want to hear your opinion about the market value of these investments. If you do not have enough credentials to support your market value estimates, the auditor may need to qualify their audit report.

  • Property and rental relief: If you have provided rental relief to tenants in your capacity as trustee, the auditor will need documentation. These documents must be authenticated to prove that communication was made between the tenant and SMSF. To support their rental relief, the tenant must also provide supporting documents.

  • Property valuations: You can get a new appraisal or valuation if your property has been affected by Coronavirus. Even the Australian Taxation Office recommends that you obtain independent, competitive appraisals and valuations for any existing investments.
  • Several benefit payments: To effectively distinguish between two types of expenses, you will need to provide essential documents. These include pension payments and lump-sum payments. To maximize Early Access withdrawals related to Covid-19, it is necessary to sign the release authority.

The Australian Taxation Office will do its best to make SMSF auditing as easy as possible in Australia. Once you have hired a professional SMSF consultant, they won't ask for credentials. You may be wondering why. You and your trustees must have evaluated all potential transactions and investments at regular intervals.

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