An assessment of the interpretive assistance function of the Australian Taxation Office (ATO) as the regulator of self-managed superannuation funds (SMSFs) has found the timeliness of the service to be wanting.
The ATO's interpretive assistance role is to provide information to help SMSF trustees understand their rights and obligations and is seen as one of the regulator's core responsibilities.
In reviewing this function from inception in 2009 the Australian National Audit Office (ANAO) found while the ATO's interpretative assistance was useful work was needed to improve the speed at which the assisting material was delivered to SMSF trustees.
"One area requiring a stronger focus is the timeliness of delivery, which has been inconsistent over time; fewer than half of the SMSF public rulings and determinations have been delivered within the ATO's standard timeframe 7 since 2008," the ANAO said in its Performance Audit Report No.40 2011-12 tabled last Friday.
In particular, the ANAO has suggested the ATO attempt to bring its interpretive assistance material timeframe into line with that of its taxation public rulings.
This would in effect mean the average interpretive assistance information would be delivered within a 12 month period as opposed to the current 16 month lead time.
The ANAO also found the method of delivery, mainly online via the ATO website, needed improvement too.
"Most of these products are posted on the ATO website, which is an essential gateway. Navigating through this information, however, is difficult, which may impact on the useability of the information, especially by non-professionals," the report said.
"Improving access to the ATO information about SMSFs and about interpretative assistance products may, in turn, increase the level of demand for these products."
Furthermore, the ANAO recommended more emphasis be put on the fact SMSF assistance, unlike tax assistance, is not legally or administratively binding on the commissioner as the audit office feared trustees did not fully understand this situation.
Finally, it was suggested the ATO collect more feedback from SMSF trustees themselves to get a better appreciation as to whether or not its interpretive assistance service was meeting the expectations of the greater SMSF market.
