The Australian Taxation Office, in its latest update, released the statistical overview to depict the top contraventions reported for the SMSFs during the financial year 2020-21. To much surprise, a total of 40,200 self-managed super fund contraventions were released. The most common ones reported were relating to loans or financial assistance to members based on annual returns.
Not only this, but to conduct an overview, the ATO also included the data for the 2020-21 financial year related to SMSF demographics and assets data in the report, along with Auditor Contravention Reports (ACRs).
All About Contraventions Reported
The ACRs reported for the financial income year 2020-21 account for 2.6 per cent of the total SMSFs lodged by the members. As per the statistical overview, a total of 40,200 contraventions were reported last year for 13,900 SMSF member accounts.
Under half of all the contraventions, approximately 45% were reported as rectified by the ATO. Out of the most commonly reported contraventions, around 20% goes for the loans or financial assistance to members. Followed by 17 per cent and 13 per cent respectively for in-house assets and separation of assets.
A Significant Decrease In SMSF Auditors Witnessed
Also, the statistical report showed a significant decrease in the number of SMSF auditors performing SMSF audits. The number has dropped from 6,035 in 2015-16 down to 4,628 auditors in the income year 2019-20.
This means around 5- 50 audits per auditor were performed by approximately 47 per cent of them, while 51-250 audits per auditor were performed by approximately 27 per cent of them. Whereas 7 per cent of auditors performed more than 250 audits.
If you are looking for a registered tax accountant to assist you with SMSF audits and rollovers, feel free to schedule a consultation with our team at KPG Taxation.