October Budget Update & Important SMSF Matters

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After months of COVID19 restrictions, working from home, chasing pets & children we are now gradually moving back into our offices. From 1st December staff will be in attendance. We still recommend contacting our staff by email. Face to face meetings are available by appointment. See below some items that may be of interest.


Superannuation accounts will be ‘stapled’ to an employee when they change jobs

The Government has announced that, from 1 July 2021, they will implement a proposal to ‘staple’ an existing superannuation account to an individual as they move between jobs.

Underperforming funds will be prohibited from accepting new members

The Government has announced they will conduct benchmarking tests on superannuation funds and prohibit funds that underperform over two consecutive years from accepting new members until they cease underperforming. The measure will take effect from 1 July 2021.

Members will have access to a new interactive tool to compare superannuation funds

The Government has announced that individuals will have access to a new interactive online YourSuper comparison tool to compare superannuation funds from 1 July 2021. It is expected that employees who change jobs will also be able to select a superannuation fund from within the YourSuper portal.


Small fund membership increased from four to six members

The Government restated an intention to increase the maximum number of fund members that can participate in a self-managed superannuation fund (SMSF) and a small APRA fund to six members (up from four). This measure was originally announced in the 2018-19 Budget and amending legislation is currently before the Senate with a start date from Royal Assent.

An increase in permitted member numbers to six that should provide additional opportunities for families to pool wealth in a common superfund structure for investment and access investment opportunities that would not otherwise be available.

From an audit perspective, an increase in fund members may require an update to the fund’s existing trust deed. A number of deeds specifically limited the number of members to four.

Benefits payments

There were no changes or extensions to minimum withdrawal rates and temporary access to superannuation than those previously announced. Therefore:

  • The application for early release continues to end on 31 December 2020. For audit purposes we will require documentation from the ATO confirming eligibility to withdraw monies. This of course should be dated prior to the benefit being paid to the member.
  • The superannuation minimum drawdown requirements for account-based pensions and similar products is reduced by 50 per cent and continues for the 2019-20 and2020-21 income years.

The ATO has published some guidance in relation to the application of the reduced pension withdrawals. Essentially:

  • Pension payments made up to 24 March 2020 (the date of the Government’s announcement) in excess of the new reduced minimum annual payment will be treated as pension payments in 2019/20 and cannot be treated as lump sums.
  • Trustees should have appropriate documentation to support the payment of lump sums or partial commutations

BPR Audit provide a range of other audit services that require a registered company auditor.

Other audit services include:

  • Government Grant & Compliance Audits
  • Franchising Code of Conduct Audits
  • Marketing Fund Audits
  • Agreed Upon Procedures Audits

BPR Audit has for many years provided trust account audit services and is able to pass on our experience to clients. We have a systemised and seamless approach to trust account auditing.

Our Services include:

  • Solicitors Trust Accounts (Approved examiner reviews)
  • Real Estate Trust Accounts
  • Accountant’s Trust Accounts
  • Other Trust Accounts

BPR Audit are experienced in auditing not-for-profit entities. We understand that the not-for-profit sector often requires additional accounting expertise to assist in management and committees/directors in compliance and governance. We can assist as required.

Our audit services in the not-for-profit sector include:

  • Companies Limited by guarantee
  • Trusts & Foundations
  • Incorporated Associations
  • Private Ancillary Funds

As registered Company Auditors we provide company audit services, which involve a high level of Manager and Director engagement. This experience assists in providing a seamless audit process. Our experienced team includes ex Big 4 Accounting firm experience.

Our range of company audit services include the following:

  • Public companies
  • Private companies
  • Multinational subsidiaries
  • Australian Financial Services Licensees (AFSL)

In 2019, the ATO conducted a compliance review of 51 top 100 audit firms including BPR Audit Pty Ltd.

  • 2 firms were referred to ASIC due to failure to identify contraventions
  • 5 firms were identified as having exited audit services (voluntary cancellations)
  • Minor deficiencies were identified in 35 firms, including insufficient audit documentation and/or engagement letters not referencing specific SISA sections and SISR regulations, not signed or not updated
  • Just 10 firms were fully compliant. BPR Audit was one of these 10 firms.
  • BPR Audit also was fully compliant in our May 2012 ATO review.

This is a testament to the quality audits we undertake and provides assurance to you in terms of client and practice risk.

We are a Top 100 SMSF Audit Firm and our philosophy is as follows:

  • On-Shore – All audits completed in Australia. No off-shoring.
  • Truly Independent – Audit Firm only. We do not provide accounting or tax services. We do not operate as part of larger network or have any affiliation with a network group.
  • Adhere to Service Standards – We are known for our excellent turnaround times and responding to client requests for assistance in a timely manner. Service Standards is our key KPI.
  • Assist clients in providing solutions – We derive satisfaction in assisting clients and facilitating solutions for those superfunds that have issues from time to time.
  • Technical Excellence – There are three people in the firm with over twenty years each experience in SMSF Audit and Administration.
  • Second Tier SMSF Audit Firm – We wish to be fully engaged with all our clients as well as provide benefits of scale.
  • Technology – Our firm uses on-line audit software which facilitates the flow of information from our clients. We are proficient in Class Super (Class Audit Partner), BGL 360 and Supermate.

Our firm has been auditing self managed superannuation funds since 1999. We are registered with ASIC (two registered SMSF Auditors in the practice) and are members of the SMSF Association. We have the Auditor and Advisor designations.

We provide SMSF independent audit services for accounting firms, financial planning and self managed superannuation fund administrators. We are happy to provide references/testimonials upon request.