Protect your SMSF from cost of compliance with an ATO audit
The ATO can launch an audit of your SMSF at any time, either at random or because it believes you have made an error in the management of your fund.
The cost in both administration and accounting fees can run to thousands of dollars, having a significant impact on your superfund balance. Audit protection insurance covers your fund against both the cost of compliance with an audit, and any penalties you have to pay if an error is uncovered during the course of the audit.
The number of SMSFs in Australia is growing rapidly, and the ATO is conducting an increasing number of audits. High-value funds, with assets of over $1M, tend to be at greater risk of an audit, but regardless of the size of the fund there circumstances which can increase the likelihood that you will be targeted:
No matter how carefully you manage your SMSF and comply with ATO regulations, you could still be at risk of a random audit. Even if you have all your records and documentation in good order, an audit will be time-consuming and costly, since auditors will need to check every aspect of your administration, legal structure, decision-making process and investment strategy.
Should the ATO find any breach of the regulations your SMSF, or the Trustees personally, could be fined. Depending on the seriousness of the error, the additional tax and penalties you are required to pay may be extremely severe.
Audit protection insurance, in combination with SMSF Trustees insurance, provides comprehensive protection against the impact of an audit on your fund and Trustees. Contact SMSF Insurance today for a free quote.
Contact us today for an obligation-free quote for SMSF Audit Protection for your self-managed super fund.
Applications are handled completely online, and take only a few minutes to complete.