SMSF Independent Auditor’s Report Updated
The ATO Self-Managed Superannuation Fund (SMSF) Independent Auditor’s Report has now been updated.
ATO has made an important change to the SMSF Independent Auditor’s Report.
The reference to Auditing Standard ASQC has been removed from Part B of the report and replaced with reference to Auditing Standard ASQM. None of the sections or regulations at Appendix of the report requiring compliance assurance have been changed.
You can download the Self-Managed Super Fund Independent Auditor’s Report (IAR) which is to be used for reporting periods starting on or after 1 July 2024. When using this report for earlier reporting periods, make sure you comply with the auditing standards and legislation that applied to the earlier period.
When lodging the report you must give all SMSF trustees a signed copy of the report within 28 days after the trustee has provided your all documents relevant in preparing the report.
You should then retain a copy for yourself. Do not send ATO a copy of the report.
To find out more information on lodging your IAR go to Self-Managed Super Fund Independent Auditor’s Report on ATO site, where you can also download the updated form.
Has your member received a Division 293 assessment?
There are a number of steps you and your member need to take before you can release any payments.
Individuals may receive an additional tax on their super contributions, known as Division 293 tax, if their combined income and contributions are greater than the threshold during a financial year. This threshold is currently $250,000.
ATO determine if there is a Division 293 liability once your member has lodged their tax return, and your SMSF has lodged its annual return.
If your member has a liability ATO will send them a Division 293 notice of assessment. One of their options is to pay it by electing to release some of their contributions from their super. Payment of this liability is the responsibility of the individual who received it and it must be paid by the due date on the assessment. Individuals have 60 days to elect to release money from super to pay the Division 293 liability however this does not change the actual due date for payment.
Your SMSF can’t release any amounts until:
- Your member has made an election to release money from their super, and
- Your SMSF has received a release authority from ATO.
Once your member has made their election, ATO will send you a release authority through your SMSF messaging provider. If you don’t have a messaging provider, you will receive a paper form.
Once you have actioned the release authority, you are required to pay ATO the amount. ATO will then use this amount to pay the Division 293 liability. Any remaining amount is offset against other debts before being paid to your member.
If you release funds prior to receiving a release authority, a contravention will occur and you may be liable for penalties. In this event you should consider submitting a voluntary disclosure form.
Draft regulations – Delivering Better Financial Outcomes
Treasury has released Treasury Laws Amendment (Delivering Better Financial Outcomes) Regulations 2024 (“draft regulations”) for consultation. These are consequential amendments to support the implementation of the Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Bill 2024 (“the Amending Bill”) and delivery of the first tranche of the government’s response to the Quality of Advice Review.
The Draft Regulations:
- Support written information or documentation requirements for the purposes of section 99FA of the Superannuation Industry (Supervision) Act 1993 to continue to be met electronically;
- Remove requirements related to Fee Disclosure Statements, update record keeping obligations for new consent requirements and remove references to civil penalties which are removed in the Amending Bill;
- Align requirements for Financial Services Guides and Website Disclosure Information and make other consequential amendments; streamline the regulations for conflicted remuneration in line with the changes to the Amending Bill;
- And ensure the informed consent requirements apply for benefits given in relation to a general insurance product where personal advice is provided.
Source: Australian Taxation Office
