Are SMSF Audits Mandatory?
A self-managed super fund allows Australians to form groups of four and invest in their retirement. Several regulations oversee SMSFs. Mandatory audits are one regulation that cannot be skipped. A tax agent double-checks the audit information before they are allowed to record the tax return. That information then gets transferred to the Australian Taxation Office.
SMSFs trustees must have the fund audited by an approved SMSF auditor. The audit takes a look at the fund’s financials and compliance. These funds require a commitment that averages 100 hours a year. Australian agencies recommend that trustees employ the expertise of financial experts. Otherwise, it’s too easy for funds to be mismanaged or lost altogether.
A compliance audit takes a look at the fund against the superannuation rules. Funds that remain in good standing can see their audit extended from one year to three. The deadline for audits is the 28th of February 28.
The consequences for missing the audit deadline result in a mark against the SMSF. The mark prohibits the superannuation of employer contributions. This could lead to insufficient funds to service a loan. An SMSF in this standing must provide additional documents so a lender, such as Mortgage House, can find alternative financing and loans.
SMSF Audit Conclusion
An SMSF audit is required by law on an annual basis. Funds that do well in their audits may have it stretched out to three years. Mortgage House works with SMSFs interested in procuring additional financing or keeping up with market trends in the Australian housing market.