In this guide
For self-managed super fund (SMSF) trustees, an annual audit is not only mandatory but must be conducted by an auditor who is registered with the Australian Securities and Investments Commission (ASIC).
This auditor must be independent, that is, not have any financial interest in the SMSF, nor have any personal or business relationships with fund members or trustees.
An SMSF auditor is responsible for analysing a fund’s financial statements and assessing its compliance with superannuation law. They must report any non-compliance issues to all fund trustees and the Australian Taxation Office (ATO).
Good to know
Because of the vital role auditors play in administrating more than 600,000 funds with $865 billion in assets, they too must comply with their regulatory obligations.
According to ASIC commissioner Danielle Press: “SMSF auditors play a fundamental role in promoting confidence and instilling trust in the SMSF sector.” Auditors who breach their obligations can be deregistered.
How often does your SMSF need to be audited?
All SMSFs must be audited annually, and their trustees must appoint an approved auditor at least 45 days before their fund’s annual return to the ATO is due.
An audit is required even if no contributions have been made to the fund and no benefits have been paid in a financial year.
What are the average fees for an SMSF audit?
The table below shows the average and median fees for an SMSF audit in 2021–22 (the most recent figures available). These figures have been calculated by the ATO based on audit fees and expenses reported on SMSF annual returns.
Remarkably, the median audit fee has remained at or near $550 for almost a decade. What’s more, the average fee has fallen from $760 in 2015 to $628.
| SMSF auditor fees | 2021-22 | 2020–21 | 2019–20 | 2018–19 | 2017–18 |
|---|---|---|---|---|---|
| Average auditor fees | $628 | $661 | $674 | $687 | $685 |
| Median auditor fees | $549 | $550 | $550 | $550 | $550 |
Source: Australian Taxation Office
The following table shows the proportion of SMSFs that fall within a variety of auditing fee ranges. As you can see, over 90% of funds have annual audit fees of less than $1,000.
| Audit fee range | 2021–22 | 2020–21 | 2019–20 | 2018–19 | 2017–18 |
|---|---|---|---|---|---|
| >$0 to $499 | 42.6% | 40.2% | 38.3% | 37.9% | 38.4% |
| $500 to $999 | 48.2% | 48.5% | 49.9% | 49.5% | 49.5% |
| $1,000 to $1,999 | 8.0% | 9.7% | 9.9% | 10.5% | 9.9% |
| $2,000 and above | 1.2% | 1.7% | 1.9% | 2.2% | 2.2% |
| Total | 100% | 100% | 100% | 100% | 100% |
Source: Australian Taxation Office
What factors affect the cost of an SMSF audit?
There are many factors than can affect the cost of an SMSF audit, including:
- The complexity of the fund’s operations. For example, whether key events have occurred during an audit year.
- The number of members of the fund. As of 1 July 2021, SMSFs can have a maximum of six members, up from four previously.
- The number and frequency of the fund’s investment transactions.
- Whether any fund members are in the retirement phase.
- The effectiveness of fund trustee record-keeping systems and processes.
- How long the fund has been operating. For example, there may be more auditing work in the fund’s first year of operation to ensure that it has been set up correctly.
How to find an SMSF auditor
You can search for an SMSF auditor online via ASIC’s register. These auditors have a valid SMSF auditor number (SAN) that they are required to supply on any SMSF returns that they submit to the ATO.
According to the ATO, the number of SMSF auditors has decreased from 6,285 in 2015 to 3,444 in 2022. This is despite the number of SMSFs increasing during that period and reflects the fact that the SMSF audit industry is consolidating and concentrating in the hands of a select few. Over 70% of SMSF audits were conducted by just 9.3% of auditors who each performed 250 audits or more.
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