The Government has claimed it is cutting red tape and reducing the compliance burden for self-managed superannuation funds (SMSFs), saying that it will release for public consultation a paper on the May Budget’s measure to audit some SMSFs three-yearly.
Minister for Financial Services and Revenue, Kelly O’Dwyer, said that the move would benefit funds which have “a history of good behaviour and have relatively simple affairs”.
“The objective is to incentivise good SMSF record-keeping and compliance by alleviating the regulatory burden whilst maintaining optimal system oversight and integrity,” O’Dwyer said.
She also said that the reforms were part of a wider slew of Government reforms applying to SMSFs, highlighting differences between the Government and Federal Opposition on the topic.
“Unlike Bill Shorten and the Labor party, who continue to unfairly target SMSFs, the Government recognises the valuable role SMSFs play in providing competition throughout the superannuation sector and the opportunity they provide Australians who want to take a more hands-on approach to their retirement,” she said.
The audit reform was originally criticised by stakeholders for not providing adequate information on who would be audited and why and for questioning the integrity of SMSFs.
Submissions would be open on the consultation paper until the end of August, this year.