The SMSF Association has given its support to a proposed performance audit of the ATO’s oversight of the sector, noting guidance in recent years has been slow and often lacked clarity.
The initiative was announced by the Australian National Audit Office (ANAO), which noted it was a “potential audit” slated for 2025/26 and would examine the effectiveness of the ATO’s regulation of SMSFs, adding the latter’s corporate plan for 2024/25 identified the maintenance of high levels of compliance and avoiding any deterioration in performance as core priorities.
SMSF Association chief executive Peter Burgess said the timing of the proposed audit would test if the current regulatory settings provided for the protection members, while also maintaining the integrity of the sector.
“Notably, the ANAO last examined the ATO’s regulation of SMSFs in 2007; close to 20 years on, and now with expanded ATO compliance powers, a fresh, balanced assessment is warranted,” Burgess said.
“The ATO has a dual role with SMSFs in that it is both the regulator and the administrator of Australia’s tax and super laws. That dual mandate should translate into timely, practical, whole-of-sector guidance, especially where super and tax intersect.
“Instead, trustees and professionals are too often left with non-binding ‘SMSF-specific advice’ and slow, case-by-case private rulings – an approach that doesn’t deliver clarity at scale.”
He pointed out the ANAO had given directions to the ATO in the past and in 2012 recommended it measure trustee satisfaction and improve access to SMSF guidance.
“We hope a new review will test what’s changed and whether the ATO’s current guidance model meets the needs of trustees and SMSF professionals,” he added.
“We look forward to engaging with members and contributing to this review to ensure practical, industry-supporting recommendations emerge.”
The ANAO audit will also examine employer compliance with superannuation guarantee requirements, which will be an important part of the payday super regime that is due to commence on 1 July 2026.
