• Self-managed superannuation funds

    The self-managed superannuation fund (SMSF) sector continues to grow, with around 510,000 SMSFs with assets exceeding $505.5 billion now under regulation.

    Independent SMSF audits and our compliance monitoring indicate that most trustees met their regulatory obligations, with breaches reported for around 2.3% of all SMSFs. Our compliance actions included making 150 funds non-complying, an increase from 83 in 2011–12.

    By limiting illegal access to superannuation, we prevented 191 funds from entering the system and removed 438 suspect funds in 2012–13. Use of our online SMSF validation tools has also increased 9.0% on 2011–13.

    We implemented tighter controls over investments in collectables and personal-use assets, ensuring funds apply market valuations to their assets and imposed stronger measures to keep fund assets separate from money or assets held personally.

    The registration of approved SMSF auditors with Australian Securities and Investments Commission and the decreasing number of auditors who only audit a small number of funds is expected to lead to an increase in professionalism in the industry.

    Table 2.18 Self-managed superannuation funds compliance actions, 2011–12 to 2012–13
      2011–12
    No.
    2012–13
    No.
    Change
    %

    Funds made non-complying

    83

    150

    80.7

    Individuals disqualified from being a trustee

    295

    440

    49.2

    Funds wound up

    28

    70

    150.0

    Enforceable undertakings

    505

    513

    1.6

      Last modified: 02 Mar 2015QC 42724