When a Fund is newly established and before it is listed as ‘Complying’ on the Super Fund Lookup, the ATO may randomly select it for an audit as part of their initial review process. In our experience, during this audit, the ATO typically updates the Fund’s status to ‘Regulations Details Withheld.’ While this status is in place, the Fund will be unable to receive contributions or rollovers until the ATO completes its review.
An ATO officer will be assigned to the Fund and the Trustees will receive a letter from the ATO. You can see below for a sample of the letter sent by the ATO:
The ATO audit usually consists of two parts. Please see below for more details:
1. Source Document Review
The Tax Office will request a series of establishment documents from you as Trustee, which they must review to ensure are correct and accurate. The documents required typically include the following signed permanent files for the Fund, along with additional supporting documents related to the Fund’s operations:
- Trust Deed
- Investment Strategy
- Initial Minutes of Meeting
- Trustee Consent and Member Application
- ATO Trustee Declarations
If you are a client with us, we can assist you with the ATO audit process and submit the documents on your behalf. Please send us the ATO audit letter when you receive it.
2. ATO Interview
Once the ATO officer has received the requested documents mentioned above, they will conduct an interview with all the Trustees of the Fund. The ATO interview generally varies for each Trustee but mainly focuses on the rules and your responsibilities as a Trustee.
You may find it helpful to complete the education course provided by the ATO (details below). Upon completion, this course will assist you in answering the questions the ATO may ask.
This module helps you consider if an SMSF is right for you.
This module helps you understand your role and obligations as Trustees in managing the Fund effectively.
This module helps you prepare for when you decide to wind up your Fund.
You can access the three courses by clicking the headings above. If you sign in, you can track your progress. If you are unable to download the certificate upon completion, you can provide a screenshot as proof of completion if the ATO requests it.
Please note that it is important to highlight the Sole Purpose Test, clearly outline the investment you intend to make along with its associated risks, and demonstrate your intention to operate the Fund in full compliance with superannuation laws.
