The National SMSF Conference 2010 is continuing today and I’ve been having a great time attending sessions and meeting members. Feedback has been really valuable – members really appreciate the opportunity to hear from experts and build up their skills in the SMSF sector.
Yesterday, I attended a panel session on auditor independence. Interestingly, during the Q&A session, panellists were asked why do we need to audit SMSFs at all? While the answer may seem obvious to members, it may not be for some of your clients.
The first and most apparent reason to audit SMSFs is that it is required by law. However, while not all laws appear to stem from sound policy principles, I believe this one does. There are some good reasons for auditing SMSFs, not least of which is that it is in the public interest.
As you know, an SMSF has access to significant tax concessions. It is therefore essential for the public (and the regulator) to be comfortable that each fund abides by the law to ensure paying tax remains a fair and equitable process for all. An independent audit is an important part of this process.
What many people don’t realise, however, is that many SMSF trustees find a lot of value in the audit function. An auditor can provide independent and beneficial advice for trustees, extending their service beyond the role of compliance to one which helps trustees keep their fund on track and address any areas of concern as they arise.
The SMSF sector continues to show strong growth. The audit function is central to ensuring SMSFs can be used (not abused) effectively to maximise retirement savings for many Australians.
What do you think? Do you find auditing SMSFs a positive process?
Friday, September 24, 2010
Thursday, September 23, 2010
National SMSF Conference - opening thoughts
What a great start to the National SMSF Conference this morning! It’s taking place at the beautiful Hilton Hotel in Sydney and over 300 members are participating.
Neil Olesen from the Australian Tax Office kicked the morning off with an update on the regulation of SMSFs. He pointed out that in 1999, there were 190,000 SMSFs in Australia and today that number has increased to 430,000. This suggests that Chartered Accountants will continue to work with more and more SMSF trustees and the opportunities in this sector are growing at a considerable pace.
David Shirlow, the Executive Director of Macquarie Bank gave us all an update on superannuation policy developments. Happily, he doesn’t think a change in government minister (from Bowen to Shorten) will slow down the implementation of the Future of Financial Advice reforms and expects it to be effective from 1 July, 2012. David said the Cooper Review recommendations around SMSFs were generally positive.
I don’t entirely agree with David – I think some of the Cooper recommendations need a lot more scrutiny. Let’s not forget there are different ways of achieving the objectives Jeremy Cooper is trying to achieve in the SMSF space. More on that later.
There are more exciting sessions to come today and tomorrow. I am enjoying the opportunity to meet with members and to hear their thoughts and ideas on superannuation. Please feel free to share your views about the conference or SMSFs in general, either in person, via this blog or by email.
Neil Olesen from the Australian Tax Office kicked the morning off with an update on the regulation of SMSFs. He pointed out that in 1999, there were 190,000 SMSFs in Australia and today that number has increased to 430,000. This suggests that Chartered Accountants will continue to work with more and more SMSF trustees and the opportunities in this sector are growing at a considerable pace.
David Shirlow, the Executive Director of Macquarie Bank gave us all an update on superannuation policy developments. Happily, he doesn’t think a change in government minister (from Bowen to Shorten) will slow down the implementation of the Future of Financial Advice reforms and expects it to be effective from 1 July, 2012. David said the Cooper Review recommendations around SMSFs were generally positive.
I don’t entirely agree with David – I think some of the Cooper recommendations need a lot more scrutiny. Let’s not forget there are different ways of achieving the objectives Jeremy Cooper is trying to achieve in the SMSF space. More on that later.
There are more exciting sessions to come today and tomorrow. I am enjoying the opportunity to meet with members and to hear their thoughts and ideas on superannuation. Please feel free to share your views about the conference or SMSFs in general, either in person, via this blog or by email.
Friday, September 10, 2010
Stepping up for the National SMSF Conference
The Institute is hosting its first National SMSF Conference on 23-24 September in Sydney. It’s a timely event given the announcement of our new federal government. Presumably, the Cooper review now remains on the government’s agenda and with it, the recommendations that may impact on many SMSF service providers.
Change is not new to the superannuation industry and it’s fair to say there will be more. This event will help arm practitioners with the right information so they can prepare for any changes on the horizon.
If you remember, Jeremy Cooper reported that the accounting profession is best placed to deal with competencies in the SMSF accounting and administration space – this conference illustrates the Institute’s willingness to provide quality training events for its members and the broader SMSF community.
I’m particularly looking forward to the panel discussion at the end of Day One of the conference. The panel, made up of luminaries from the audit world, are holding a session titled, Auditor independence – where do you draw the line of independence? This is topical because of Cooper’s suggestion that “true independence” is required in the SMSF sector.
As I have said before, competencies and independence are important in any audit – not just in the SMSF sector. But while Cooper’s objective to achieve high levels of competencies and independence is to be supported, the question is, will his recommendations meet the desired objectives?
The panel discussion promises to shed some light on this. There will also be opportunities for delegates to ask questions, so I am interested to hear what others think!
Other highlights from the Conference include ATO presentations on issues of concern to the regulator as well as some insights into “auditing the auditor”. Updates on major areas of interest for SMSF service providers including borrowing, deeds, tax and practical uses for SMSFs will be invaluable. Importantly, everyone will have opportunities to network with others working in the SMSF world.
So come along, this is an opportunity not to be missed.
Change is not new to the superannuation industry and it’s fair to say there will be more. This event will help arm practitioners with the right information so they can prepare for any changes on the horizon.
If you remember, Jeremy Cooper reported that the accounting profession is best placed to deal with competencies in the SMSF accounting and administration space – this conference illustrates the Institute’s willingness to provide quality training events for its members and the broader SMSF community.
I’m particularly looking forward to the panel discussion at the end of Day One of the conference. The panel, made up of luminaries from the audit world, are holding a session titled, Auditor independence – where do you draw the line of independence? This is topical because of Cooper’s suggestion that “true independence” is required in the SMSF sector.
As I have said before, competencies and independence are important in any audit – not just in the SMSF sector. But while Cooper’s objective to achieve high levels of competencies and independence is to be supported, the question is, will his recommendations meet the desired objectives?
The panel discussion promises to shed some light on this. There will also be opportunities for delegates to ask questions, so I am interested to hear what others think!
Other highlights from the Conference include ATO presentations on issues of concern to the regulator as well as some insights into “auditing the auditor”. Updates on major areas of interest for SMSF service providers including borrowing, deeds, tax and practical uses for SMSFs will be invaluable. Importantly, everyone will have opportunities to network with others working in the SMSF world.
So come along, this is an opportunity not to be missed.
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