Superannuation Made Simpler? Or More Difficult

From 1st  July 2007, the Australian Taxation Office (ATO) started the implementation of Super Simplification Program. For the superannuation industry this has significant meaning. However for you as a trustee of your own superannuation fund, the main change will be that benefits paid by a fund to persons 60 years and over will now be completely tax free (with some small provisios). Superannuation has always been taxed lower than any other structure, and has for many years presented real benefits in structuring your assets and income.

However for us the new program will bring with it an increased focus by the Taxation Office on our working practices. This will mean a more detailed approach to auditing each fund and high quality control of our working papers. This can translate to higher audit fees, particularly if our clients choose to put all of the burden to us.

Broadview is one of the few practices on the Central Coast that are qualified to audit superannuation funds. We have already have in place very stringent audit programs and systems to maintain this high level of compliance. The Taxation office have released guidelines on the types of things it will focus on when reviewing the work files of a Superannuation Fund. These compliance issues are the responsibility of the trustee with the auditor responsible for checking and reporting that they have been complied with. matters fall both the trustee and the auditor. These are listed as :

• Loans made to fund members, the trustee or family members.
• Having an investment strategy
• Assets not being in the name of fund.
• Breach of any in-house asset rules