The Australian Taxation Office (ATO) has targeted early release schemes and the activity of approved auditors as key areas of interest for its 2011/12 compliance program for the self-managed superannuation fund (SMSF) sector.
In regard to the issue of early release schemes, the ATO will be paying close attention to newly-registered funds to ensure they have not been set up simply to facilitate illegal early release of member benefits, and SMSFs that are lodging their initial annual returns to guarantee a notice of compliance can be legitimately issued.
"We will continue to review all registration applications for SMSFs to ensure that only people who are fit and proper are allowed to register and that funds are not established for the purpose of facilitating illegal early release schemes," the tax office said.
The SMSF audit function will also be facing greater ATO scrutiny in the coming year, with the regulator expanding its program of audits and reviews in this area.
The ATO has declared it will be performing 300 audits and 600 reviews, which marks an increase of close to 50 per cent from last year.
Other compliance activities covering the audit function have also been planned.
"In light of the key role SMSF auditors play in assuring the integrity of the SMSF system, we are extending the super professional-to-professional support service to the top 100 approved auditors (who complete over 30 per cent of SMSF audits)," it said.
"We will also help prepare auditors for the proposed new registration required under the federal government's Stronger Super program."
