Superannuation Charges – When is cheap really cheap?
And no… it has nothing to do with chickens. It’s all about the fact that SMSF Auditors have come under scrutiny from the ATO.
There’s always news a-plenty at Knox Taxation and Business Advisory, in Boronia.
We scour the universe to ensure you know what’s going on, and what potential pitfalls could raise themselves up to complicate your tax world.
So… watch out for the ATO! They’re clamping down on Self-Managed Super Fund Auditors this time.
The following information has been gained from the 33rd Governance at the Core, National Governance Conference Newsletter (as published by Katarina Taurian, 22nd September, 2016).
This Financial Year, the ATO has announced that they’ll be closely checking on SMSF quality and control, where Audits are conducted at a cheap rate, as opposed to average charges that might be charged by less unscrupulous professionals. Be wary of those cost-cutting deals that promise you’ll be protected (with hidden clauses that negate those guarantees). Things to look out for include guaranteed low fixed fees, quick turnaround services, and assurances that – even if your situation is ‘complex’ – their charges are still cheap!
Let’s face it, cheap usually means there’s a catch! Or the quality is lacking in some way. In the world of business, cut prices is an indicator that you’re dealing with someone either desperate for business, or they are possibly importing cheap labour from somewhere in the universe. Have we painted a clear enough picture?
In previous News Posts from Knox Tax, we’ve already warned you about the potential perils of using e-Tax to lodge your Tax Returns. Why? Because…
a. They’re cheaper, and
b. You’re likely to do yourself out of money you probably could have claimed due to do not being aware of the things you can legally claim.
Now it seems that automation processes are being regularly applied to SMSF Audits, and that means that a professional human may not be scanning your documentation closely with their beady little knowledgeable eyes! And that can’t be good. But for some, they may have been led to believe that it’s an efficient system that will maximise their potential – at a lower fee! If you’re thinking about going down the cheep road, talk to us first at Knox Tax. We’ll run our eyes over their ‘special deal’ and let you know what the hidden agenda is… before you get too far into the chicken coup where the nasty fox is lurking.
The ATO’s Deputy Commissioner, Kirsty Macfarlane coined it thus, “What would concern us is if we see SMSF auditors not necessarily providing their skill and judgement, just relying on the automated process to do the finance checks, and then not actually turning their mind to the regulatory issues.”
At Knox Tax, we may not be as cute looking as a bunch of feathered farmyard friends, but we’re notoriously meticulous. So, in the words of Elmer Fudd… “Be vewy vewy careful!” and talk to us at Knox Taxation and Business Advisory, in Boronia, whenever you have any concerns about ‘Special Audit or other Accountancy Deals’.
With us you can rest assured that you’re always in good hands. You can rely on us to give you the best possible advice, and thus save you from causing yourself to lose out on your best possible outcomes.
CONTACT US & MAKE AN APPOINTMENT WITH US TODAY ON (03) 9762 7344
Warm Regards,
Coral Page – Principal
