ATO Audit Requirements

When auditing a self managed superannuation fund for compliance with the Superannuation Industry (Supervision) Act 1993 (SIS Act) and the Superannuation Industry (Supervision) Regulations 1994 (SIS regulations), the auditor should check that:

  1. the fund meets the definition of a self managed superannuation fund as defined under section 17A of the SIS Act and has made an election to be a regulated fund and governed by the rules of the SIS Act
  2. the fund is maintained for the sole purpose of providing benefits to fund members upon their retirement, or to their dependants in the case of the member’s death before retirement
  3. The trustees prepare and implement an investment strategy and comply with the investment restrictions imposed by the SIS Act and the SIS regulations. These include:
    • in-house assets rules
    • restrictions on lending and providing financial assistance
    • prohibition on acquiring assets from related parties
    • restrictions on borrowings
    • the fund’s investments be made and maintained on an arm’s length basis, and
    • the trustees must not give a charge over, or in relation to, an asset of the fund.
  4. the trustees adhere to contribution and benefit payment standards
  5. the trustees carry out the administrative obligations imposed under the SIS Act and the SIS regulations. These include:
    • meeting record keeping requirements
    • appointing an approved auditor and making available all documents relevant to the audit of accounts and statements, and
    • reporting superannuation surcharge and reasonable benefit limits information to the Tax Office.

For more information, refer to the ATO website www.ato.gov.au