This is the second of 2 audit reports concerning the ATO’s administration of self-managed superannuation funds (SMSFs) pursuant to the provisions of the Superannuation Industry (Supervision) Act 1993. The first audit report, tabled in June 2007 (see ANAO Report No.52 2006-07 “The Australian Tax Office’s Approach to Regulating and Registering Self Managed Superannuation Funds”) examined the efficiency and effectiveness of the ATO’s approach to regulating and registering self-managed superannuation funds: see 2007 TAXVINE No 26 (22) (6 July 2007).
In its summary, the ANAO states:
"Since 2003-04 the Tax Office has sought to resolve SMSF non compliance through a combination of educational strategies and increased active compliance activity. However, low Tax Office compliance audit coverage and the Tax Office’s discretionary use of the SMSF penalty regime has resulted in few funds in breach of the SISA being subjected to remedial measures."
The ANAO made 6 recommendations aimed at improving the ATO’s approach to managing SMSF compliance risks. The ATO agreed to all of the 6 recommendations made.
For a copy of the ANAO report, Audit Report No13 2007-08, go here
For a copy of the ANAO Brochure, go here