Written by Naomi Kewley SSA™ SSAud™, Managing Director, Peak Super Audits
Tips on how to prepare your self managed super fund for audit this financial year
Audit preparation 101:
Tips for SMSF audit preparation this year;
Key changes for pensions & contributions;
Special investments – what will the auditor need?
“Quality is never an accident. It is always the result of higher intention, sincere effort, intelligent direction and skilful execution. It represents the wise choice of many alternatives.” – William A. Foster
Keeping fund assets separate
The traps to watch out for include:
DON’T use personal monies to pay for fund expenses
DON’T let the fund ‘help out’ with personal expenses
DON’T let the SMSF engage in ‘payment in kind’
DON’T forward the SMSF money ‘to be paid back later’
Collectible and personal use assets
Fund checks to be considered:
Storage – DON’T keep the asset on your private property
Use – DON’T allow members or relatives to use the asset
Insurance – DO make sure the asset is insured in the SMSF’s name within 7 days of purchase
- Sale – if the asset is sold by the fund to a member or related party, selling price must be established by a qualified, independent valuer.
Property and the audit
Questions you should be asking in relation to property and your SMSF:
Is the property held in the appropriate name?
Is the property valued at current market value?
Is the property commercial premises, let to a related party?
Is the SMSF named on the property’s insurance policy?
Disclaimer: The information contained in this document is provided for educational purposes only, is general in nature and is prepared without taking into account particular objective, financial circumstances, legal and tax issues and needs. The information provided in this article is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should assess its relevance to your individual circumstances. While SMSF Association believes that the information provided in this article is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this bulletin is not considered financial product advice for the purposes of the Corporations Act 2001.
Naomi Kewley SSA™ SSAud™, Managing Director, Peak Super Audits
Naomi is the managing director at Peak Super Audits. She is a Tax Masters graduate from the University of NSW and is a member of the Chartered Accountants Australia and New Zealand (CAANZ). She is an active member of the SMSF Association, holding both accreditations of SMSF Specialist Auditor and SMSF Specialist Advisor.