What Trustees Should Prioritise in 2026
- Ensure all returns are up to date.
- Strengthen internal documentation and governance.
- Review pension processes and authority response timeframes.
- Plan for the new high-balance tax rules.
- Recheck contribution strategies ahead of 30 June 2026.
Common Audit Issues This Month
1. Missing Documentation for New Pensions
Many funds are starting pensions without minutes, commutation requests, or updated member statements. Ensure all required documentation is in place before commencing a pension.
2. Property Expenses Paid from Personal Accounts
Trustees sometimes forget to pay SMSF property expenses from the fund’s bank account, causing compliance issues. All fund expenses must be paid directly from the SMSF’s dedicated account.
3. Crypto Investments with No Audit Trail
If your fund holds cryptocurrency, auditors require wallet addresses, full transaction history, and valuation evidence. Ensure this documentation is maintained and readily available.
ATO Updates & Compliance Watch
ATO Focus on Valuations for 2025 Audits
The ATO continues to emphasise the importance of documented, market-based valuations — particularly for property, unlisted assets, and collectible items. Trustees should ensure independent evidence supports every valuation.
Increased Scrutiny Over Related Party Loans and LRBAs
The ATO is paying closer attention to limited recourse borrowing arrangements involving related parties, with a specific focus on safe harbour guidelines, repayments, and security documentation.
Meeting ATO Expectations: Asset Ownership & Separation
Review & Update Ownership
- Review all asset titles and ensure they are correctly recorded.
- Update or prepare declarations of trust where direct titling isn’t possible.
- Fix any titling inconsistencies immediately.
Documentation & Separation
- Maintain clear and separate bank accounts.
- Request updated ownership evidence for each asset annually.
- Document the separation of assets as part of annual workpapers.
- Keep digital copies of all asset documentation.
Team & Trustee Education
- Ensure accountants understand they may now be required to produce ownership evidence.
- Educate trustees on the legal requirement for clear ownership.
- Proactively correct legacy issues.
A Message from Rick Welsh, Senior Audit Manager
What truly excites me is conducting thorough, professional SMSF audits that give trustees complete peace of mind about their superannuation compliance and financial security. With over a decade of dedicated experience in superannuation auditing, I focus on delivering high-quality audits in a timely manner — identifying issues early, providing clear corrective guidance, and prioritising positive, stress-free outcomes for trustees every time.
I take real pride in building lasting trust through open communication, meticulous attention to detail, and an unwavering commitment to regulatory excellence. I look forward to connecting with you.
— Rick Welsh | rick@connectsmsfaudit.com.au
Connect SMSF Audit Pty Ltd — Authorised Audit Company
ABN 78 167 481 834 | PO Box 267 Brighton VIC 3186
www.connectsmsfaudit.com.au