Firstly I wanted to make it clear that I believe audits are essential for the integrity of the SMSF sector. In the recent federal budget the Government announced they have proposed to change the annual requirement of an audit to three yearly for complying funds. For SMSF trustees that do the right thing this is positive news.

Whilst there is a lot of detail and clarification to follow I believe this will not reduce the integrity of the SMSF sector. As an experienced SMSF administrator all of my clients want to do the right thing and they employ my services to help them keep compliant. I have not had a client that intentionally abuses the rules governing the SMSF sector and if I became aware of one of these I would rescind the engagement.
For trustees that intentionally abuse the system, even monthly audits will not deter their dishonesty. It is understood these clients with a poor history will and should continue to be audited on a monthly basis.

If this proposed legislation in passed, trustees with a clean compliance record will be rewarded with a costs saving of only requiring an audit every three years. It then becomes even more important to engage an experienced SMSF administrator to help keep your fund complaint.