Our ATO updates blog provides key tax updates and regulatory changes. Stay informed with the latest insights to ensure compliance and informed decision-making.
In-house Audit Review Results
Auditors conducting in-house audits are still on the radar.
The term ‘in-house audit’ refers to an auditor who works for a firm, or network firm, that also provides services like accounting or administration to the same Self-Managed Super Fund (SMSF) clients.
Since 1 January 2020, auditors have not been allowed to perform in-house audits unless:
- They don’t assume a management responsibility for the audit client
- The other services provided are routine and mechanical
- The firm addresses any independence issues.
It is hard for firms to meet these rules, demonstrating the ‘routine or mechanical’ test is difficult due to the professional judgment involved. When the ATO reviews auditors, the ATO contact SMSF trustees to check their role in preparing the funds accounts and statements.
In a recent review using data matching the ATO focused on auditors who still perform in-house audits. The ATO risk assessment shows around 800 auditors might still be doing in-house audits.
This financial year, the ATO reviewed 30 auditors suspected of doing in-house audits. As a result of these reviews:
- 14 auditors were referred to ASIC
- 6 auditors were deregistered voluntarily
- 8 auditors received education
- 2 auditors were compliant.
Since 1 July 2021, the ATO have referred 42 auditors to ASIC for various reasons including doing in-house audits, this was 32% of all referrals. In March 2024, ASIC released a statement detailing the actions taken against 15 of the 42 auditors the ATO referred.
Firms must follow independence requirements when planning their structure and their audit engagements. They should not rely on one referral source for their fees. ASIC suspended three high-volume SMSF auditors linked to an SMSF administration provider for not considering these factors.
Minimum Pension Drawdown Reminder
Don’t miss the deadline! Be sure to make your minimum payment from your pension account by 30 June.
A Self-Managed Super Fund (SMSF) must pay a minimum amount each year to a member who is receiving a pension that commenced on or after 20 September 2007. These are mainly account based pensions (also known as a super income stream).
If you haven’t already, then you’ll need to make sure all members receiving an account-based pension are paid their minimum pension amount by 30 June. This is calculated by applying the relevant percentage factor based on the member’s age by the member’s pension account balance calculated as of 1 July 2024 or on a pro-rata basis if the pension commenced part way through the 2024–25 financial year.
If the minimum payment is not made by 30 June, this could result in adverse taxation consequences for the member.
You can learn more about how to calculate your member’s minimum pension payment by visiting the ATO’s minimum pension standards.
Be Aware of SMSF Schemes
Protect your Self-Managed Super Fund (SMSF) from schemes.
The ATO has seen individuals be targeted by promoters to create an SMSF for inappropriate and illegal reasons. These promoters often promise high returns or early access to super.
These schemes can be illegal and result in severe penalties. It’s important to recognise these warning signs of unlawful tax and super schemes.
Stop, Check and Protect:
- Do your own research (check before investing)
- Don’t rush to make a quick decision
- Check ASIC’s financial advisers register to make sure your adviser is licensed, know who you are dealing with and confirm their registration
- If it sounds too good to be true, it usually is
- Request copies of all documents including such things as investment plans and read all documents before signing.
You should consider how any arrangements may impact your SMSF and whether they contravene the tax and super laws.
If you’ve been approached by a promoter or suspect a unlawful tax or super scheme, you can report it, by completing the tip off form or by contacting the ATO on 1800 060 062.
The ATO work with ASIC to investigate scams and promoters involved in illegal activities in the super environment.
For more information visit ATO’s SMSF schemes.
ASIC has released the following updates in its Newsroom section:
- 17 April 2025 – MEDIA RELEASE – ASIC fines Chapter Two Holdings for misrepresenting debt management outcomes offered to consumers – ASIC has issued infringement notices and fined debt management company Chapter Two Holdings Pty Ltd for alleged misleading statements. For several months spanning 2023 and 2024, its website included statements that the company had wiped $80 million in debt and saved consumers $30 million in interest, which ASIC alleges are misleading. Chapter Two was not able to substantiate the figures, nor was there a justification for the statements.
- 16 April 2025 – NEWS ITEM – ASIC releases guidance on requesting eligible applicant authorisation – ASIC has released Information Sheet 293 Requesting eligible applicant authorisation explaining the process for individuals or entities to be authorised as eligible applicants under the Corporations Act 2001 (Cth) to conduct or take part in public examinations regarding a company in external administration. INFO 293 explains who can be an eligible applicant, how to become one, and what ASIC considers when deciding whether to grant a request for eligible applicant authorisation.
- 16 April 2025 – NEWS ITEM – ASIC to launch new portal for Australian financial services licensees – ASIC will launch a new digital portal for licensing on 5 May 2025 to apply for, update and cancel Australian financial services licences. The aim is to streamline the licensing process. Additional resources will be made available when it is launched. In the meantime, the existing portal will remain active.
- 16 April 2025 – MEDIA RELEASE – Federal Court finds Green County and Max Funding engaged in unlicensed lending practices – In the Federal Court, Shariff J has found that business lender Green County Pty Ltd and introducer Max Funding Pty Ltd engaged in unlicensed credit activity regarding loans by Green County to consumers. The business loans were provided despite having no business purpose, which would have been apparent if the providers had made reasonable inquiries. The contraventions resulted in consumers not being protected by the Credit Code. The judgment is available.
- 14 April 2025 – MEDIA RELEASE – ASIC suspends AFS licence following change of ownership – ASIC has suspended the Australian financial services licence held by Beacon Wealth Pty Ltd until 7 April 2026. The ownership and control of the licensee changed in 2024 when the directors were replaced and all of the shares in the licensee were sold to a new owner, who has not been carrying on a financial services business. Beacon Wealth aims to commence a financial services business under the licence, but it will need to be approved by ASIC before that.
- 14 April 2025 – MEDIA RELEASE – ASIC sues WA gold mining company Wiluna Mining Corporation for continuous disclosure and directors’ duties breaches – ASIC has commenced proceedings against Wiluna Mining Corporation, as well as its former Chair and former Chief Commercial Officer. The company has entered administration and been delisted by ASX. ASIC alleges that they breached their continuous disclosure obligations by failing to accurately state the amount raised by a rights issue and seeks declarations of a contravention of the Corporations Act 2001 (Cth) against Wiluna and pecuniary penalties against both individuals.
APRA has released the following updates in its News and publications section this week:
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- 15 April 2025 – MEDIA RELEASES – APRA and ASIC publish latest data on life insurance claims and disputes – December 2024 – APRA has published its Life Insurance Claims and Disputes Statistics publication covering the 2024 calendar year.
Source: Australian Taxation Office & Institute of Public Accountants
