SMSF auditor numbers continue to decline with the rate of new practitioners entering into this type of work falling far short of that needed to maintain current levels, according to data released by the Australian Securities and Investments Commission (ASIC).
The corporate regulator noted, in “Report 825 Licensing and professional registration activities: 2025 update”, that SMSF auditor numbers had declined by 280 from 4162 at 30 June 2024 to 3882 at 30 June this year. This fall continued an ongoing trend since 2014 when there were 7073 auditors registered with ASIC.
The report stated only 52 people applied to be registered as an SMSF auditor, of which 37 were actually registered, with seven applications withdrawn, two refused or rejected and 11 not finalised before the end of the financial year.
These new registrations represent a replacement rate of just 13 per cent and only slightly exceed the 31 practitioners that were disqualified or deregistered by ASIC.
The regulator stated it took action against 48 SMSF auditors in total for failing to maintain independence, non-compliance with auditing and assurance standards, non-compliance with continuing professional development requirements, failure to lodge annual statements, and not being a fit and proper person to remain an approved auditor.
“SMSF auditors are responsible for providing assurance on assets worth $1.05 trillion held in over 653,000 SMSFs. SMSF auditors are gatekeepers that contribute to the integrity and confidence in the SMSF regime,” the report added.
“ASIC regulates the conduct of SMSF auditors and we will continue to act where conduct falls short.”
The report, which provides a snapshot of licensing and registration activity undertaken by the regulator, stated that between 1 July 2024 and 30 June 2025, ASIC received 1531 licensing and registration applications, finalised 1176 applications for new and varied Australian financial services (AFS) and credit licences and granted 290 new AFS licences and 104 new credit licences.
ASIC commissioner Alan Kirkland pointed out more of those applications were now coming from digital asset providers.
“Applications from digital asset operators are on the rise, underscoring the growing interest in the crypto sector. Following our recent update of Information Sheet 225 confirming that a range of digital assets are financial products, we expect to see more digital asset providers apply for an AFS licence,” Kirkland said.
