The number of Australians managing their superannuation through self-managed superannuation funds (SMSFs) is steadily increasing. SMSF assets now total approximately $884.6 billion—about 25% of all superannuation investments. This growing trend has intensified demand for accounting firms, financial planners, and auditors to meet the broad range of compliance and reporting standards set by the ATO, particularly during the busy year-end tax period.
Strict ATO Compliance Requirements for SMSFs
SMSFs benefit from tax concessions on their investment income but only by maintaining compliance with ATO regulations. Annually, SMSFs must submit an accurate tax return by 28 February, or by 31 October for newly registered funds. Failure to lodge on time results in a fine of $313 for every 28 days the lodgement is delayed, capped at $1,565.
Each SMSF must also undergo an audit by an ASIC-registered independent auditor no later than 45 days before submitting its annual return. The auditor’s responsibilities include:
- Reviewing the accuracy and validity of the SMSF’s financial records.
- Ensuring compliance with superannuation regulations, including contribution limits, investment restrictions, and reporting requirements.
Moreover, SMSF administrators must stay informed about the ongoing legislative changes to ensure effective fund management and compliance.
Benefits of Outsourcing SMSF Administration and Auditing
To manage the increased workload during tax season and adhere to compliance requirements, many accounting firms, financial planners, fund managers, and auditors are opting to outsource SMSF administration and auditing. Outsourcing offers cost savings and helps avoid the expenses associated with in-house wages, training, and office costs. Additionally, it reduces the risk of financial penalties due to late or inaccurate lodgements, while maximizing tax benefits for SMSF members.
Beyond financial advantages, outsourcing provides flexible staffing capacity during peak periods without the need to recruit or train additional staff. This enables in-house teams to focus on core, growth-oriented activities.
Choosing the Right SMSF Outsourcing Partner
While SMSF outsourcing has clear advantages, selecting a partner who integrates smoothly with your existing team is essential to maintaining control and efficiency. Here are key factors to consider:
- Experience: Rivkin SMSF Partners has extensive experience as an offshore provider of SMSF administration and auditing services since 2004.
- Expertise: Rivkin SMSF Partners brings specialized knowledge in SMSF administration and audit services, covering a range of activities from new fund setup in reporting software to comprehensive compliance reviews.
- Track Record: With over 20 years in the field, Rivkin SMSF Partners’ team of over 70 professionals manages approximately 5,000 super funds each year.
- Location: India and the Philippines are popular outsourcing destinations due to their large talent pools and cost-effectiveness. Both locations offer unique benefits to meet various business needs.
- Data Security: Given recent record data breaches, selecting a secure outsourcing partner is crucial. Rivkin SMSF Partners maintains certifications in ISO 9001 for quality management and ISO 27001 for information security, ensuring stringent data protection.
Case Study: Reducing SMSF Workload by 80%
One of our clients, an accounting and advisory firm focused on wealth management and SMSF compliance, faced challenges in recruiting and training staff while meeting demanding SMSF deadlines. Partnering with Rivkin SMSF Partners, the firm gained access to:
- A dedicated SMSF administration and audit team.
- A skilled back-office team based in India.
- Qualified onsite staff for short-term engagements.
- An expert team deployed during peak periods.
With Rivkin SMSF Partners’ support, this client reduced its SMSF workload by 80%, allowing their team to prioritize high-value tasks and doubling the number of funds under management.
If you’re interested in how Rivkin SMSF Partners can help your company optimize SMSF processes, speak with one of our expert advisors today to discover the strategic advantages of outsourcing SMSF administration and auditing.