Even before the Stronger Super changes affecting auditors servicing the self-managed superannuation fund (SMSF) sector have been implemented, the Australian Taxation Office (ATO) has observed some of the desired outcomes of the reforms are already occurring.
“We are seeing some trends, particularly a number of the low-volume auditors leaving the market. So over the last few years there’s been a 10 per cent decline in the number of auditors who audit less than five funds per year,” ATO superannuation business line approved auditor risk and strategy director Tony Xinis told the Institute of Chartered Accountants in Australia 2011 National SMSF Conference.
“With the current professional requirements and legislative requirements, a lot of them are finding there is too much for them to do and they’re getting out.”
This development shaping the SMSF audit sector was one of the expected consequences from the Stronger Super recommendations, in particular the requirement for SMSF auditors to have to register with ASIC.
On another positive note, Xinis said the tax office had noticed changes at the other end of the SMSF audit spectrum as well.
“At the same stage we’re also seeing auditors at the higher end, those auditors doing more than 250 audits per year, [increase and] there has actually been a doubling of numbers of auditors in this particular range and they’re having a very substantial effect on the SMSF market generally. So that’s growing in the right direction,” he said.
In addition to this development, he said there were fewer incidences of auditors auditing their own funds. However, despite this decrease, he said the ATO remained concerned this practice was still occurring.
