The SMSF Association has welcomed the Australian National Audit Office’s (ANAO) announcement of a performance audit on the ATO’s regulation of the sector.
It will mark the first time an activity such as this has been carried out in nearly two decades.
“Since the ANAO’s previous SMSF audits in 2007, the sector has grown substantially, the regulatory environment has become more complex and the ATO’s role has evolved from a largely educative approach to a more active regulatory model,” SMSF Association chief executive Peter Burgess noted.
The review will examine whether the ATO effectively manages risks associated with the regulation of SMSFs, whether it ensures fund compliance and if non-compliance is effectively monitored and reported. It will also look at whether the regulator effectively investigates and sanctions SMSFs that do not comply with their obligations.
The ANAO is seeking contributions and input from members of the public regarding the exercise and will accept submissions up to 25 October 2026, with the final report due to be tabled in March 2027.
The SMSF Association pointed out the vast majority of trustees seek to comply with their obligations and one of the main challenges for the ATO in regulating the sector is to respond to genuine misconduct without unnecessarily increasing the administrative burden on compliant funds.
Burgess called for the audit to closely consider the regulator’s approach to SMSF establishments and described the need to get the balance right at establishment as being critical.
“Front-end controls have an important role to play in addressing inappropriate SMSF establishments and illegal early release schemes. But those controls must be risk based and administered efficiently so legitimate trustees are not caught in unnecessary delays,” he explained.
Further, the industry body would like the review to look at the role of SMSF auditors and whether ATO expectations remain clear, proportionate and appropriately targeted.
“Where tax and superannuation obligations intersect, trustees and the industry need clear, accessible and timely guidance,” Burgess said.
“Too often, certainty is sought through non-binding SIS (Superannuation Industry (Supervision)) Act-specific advice or lengthy private ruling processes. These mechanisms have their place, but they are not always efficient ways of giving the broader sector the guidance it needs.”
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