May 11, 2018
by Duncan Melbin
So to be clear, for the skeptics out there, CapitalQ largely no longer perform SMSF audits except in rare circumstances as special favours to certain Clients, so the reduced compliance requirement has no bearing on our work, revenue or the like, so there is no incentive for us to say this, but …
Our very honest opinion, based on years of experience advising and assisting Clients with SMSFs, is that the proposal to reduce the audit requirement from annually to once every three years IS A VERY BAD IDEA!
It substantially increases the chances of wrong doing, both deliberate but also completely innocent. And it absolutely adds to the risk that Australians retirement savings could become compromised.
The average audit costs around $500 – $800 a year, often they can be less than that. It is a small price to pay for compliance and peace of mind (both at a member and societal level). And in any event, a three year audit we are sure will still cost at least $1,500, but there is every chance it could be higher, because of the difficulties that will be faced obtaining documentation and information from three years prior! Not to mention if compliance failures have occurred during that period, there will be additional audit costs, contravention reporting costs, remedial costs, it will all add up.
In our experience, it is cheaper to service a car regularly rather than wait for it to breakdown!
And just remember, the Global Financial Crisis was a direct result of reduced compliance and regulation, and while there of course always needs to be a balance when it comes to compliance and regulation, in this particular case, this is a BAD IDEA!
Read more about the proposal here.
If you want help getting the most our of your Super utilising an SMSF, reducing your tax burden and building genuine wealth, start by requesting our FREE Guide “The Savvy Business Owners and Investors Guide to Choosing the Right Accountant and adviser for Today’s Economic Climate (valued at $49)“
Download our FREE Report entitled the “Business Owners AND Investors Due Diligence Checklist – 7 Critically Important Questions You MUST Ask Before Hiring an Accountant if you Want to Pay Less Tax and Stay Out of Trouble with the ATO“. It reveals how Smart, Ambitious Business Owners and Investors Choose the RIGHT Accountant for Today’s Economic Climate! Follow the link above or click on the image below …