Category: Industry Update

Graeme’s Super News - November Edition

Graeme’s Super News – November Edition

Read the latest updates from Graeme Colley, a respected educator, policy advisor, and technical expert with over 30 years’ experience in taxation and superannuation.

Welcome to some of this month’s roundup of key developments with SMSFs. From ATO compliance initiatives to ASIC audit reviews, make sure you’re up to date.

ASIC Flags Auditor Independence Breaches

ASIC recently released Report 817 – Building trust: Auditor compliance with independence and conflict of interest obligations. The report followed ASIC enforcement action taken against several auditors and firms identified as not meeting the independence and conflict of interest requirements.

Nearly one-third of the 48 auditors reviewed breached the mandatory independence requirements. Nine auditors failed to meet rotation requirements for 14 listed clients, and five held prohibited relationships under the Corporations Act. These breaches were found across all sizes of audit firms reviewed.

The source of the breaches was due to poor systems, lack of policies, carelessness, and inadequate quality control. ASIC considered that many auditors adopted a narrow, “tick-box” approach to compliance and failed to consider threats to independence or changing circumstances during audits. Some relied on inappropriate safeguards and did not document how they assessed independence risks.

Examples of threats included excessive non-audit fees—sometimes five times higher than audit fees—and long-standing relationships between auditors and clients, some lasting up to 36 years. ASIC emphasised that independence is fundamental to audit quality and encouraged all auditors to strengthen their practices and policies.

ATO Cracks Down on Late SMSF Lodgements

The ATO is taking a tougher stance on late lodgement of SMSF annual returns. About 10% of 2022/23 returns remain outstanding, and similar figures are expected for 2024. The ATO’s experience is that late lodgement often signals illegal early access or other compliance issues.

Consequences for late lodgement include removal of the fund from Super Fund Lookup, which restricts contributions and rollovers, and potentially may result in trustee disqualification.

Continued non-lodgement may trigger harsher penalties. The ATO advises trustees to respond promptly to any ATO correspondence and avoid ignoring compliance letters.

Trustee Declaration Requirements Clarified

Since 2007, SMSF trustees have been required to complete the ATO trustee declaration within 21 days of appointment and retain it for at least 10 years. Auditors are required to sight the original declaration and keep a copy in their audit file, along with annual confirmations that trustees continue to retain it.

However, many auditors only review copies and request new declarations when originals are lost. The ATO has clarified that if the original cannot be sighted, a new declaration must be signed. A once-off breach can be rectified, but repeated failures require an Auditor Contravention Report (ACR).

Auditors should not be lodging ACRs annually for the same fund due to missing originals if the breach has been rectified.

Market Valuation Breaches Increasing

Breaches of regulation 8.02B of the SIS Regulations, which requires SMSF assets to be valued at market value, accounted for 12% of all reported breaches in 2024–25. Trustees must ensure that valuations for each income year are accurate, in line with the ATO’s valuation guidelines and provide supporting evidence to auditors.

The ATO is using data analytics to identify funds which have reported unchanged asset values year after year, raising concerns about compliance. Failure to meet valuation requirements can result in additional tax liabilities and administrative penalties.

Auditors must assess whether the valuation basis is appropriate and document their findings. Trustees are reminded to provide objective, supportable evidence, including all documents requested by auditors.

SMSFs Failing to Respond to Release Authorities

The ATO has seen a rise in SMSFs failing to respond correctly to release authorities—documents authorising the release of funds to pay liabilities such as excess contributions, Division 293 tax or possibly Division 296 tax in future. Trustees must release the requested amount and submit a release authority statement within 10 business days of receipt.

Non-compliance can lead to significant penalties. Trustees should regularly check secure mail channels, set reminders, and use SMSF software to track deadlines. Working closely with administrators or tax agents can help ensure timely and accurate responses.

Keeping fund contact details, including electronic service addresses, up to date is essential for receiving important correspondence.

Surge in Compassionate Release of Super

Applications for compassionate release of super (CRS) have surged, particularly for dental treatments. Requests rose from 56,400 in 2021–22 to 90,700 in 2024–25, with costs reaching $104.4 million. Most applicants were aged 34 to 60.

The ATO, in collaboration with AHPRA, is concerned about practitioners supporting inappropriate access, especially for cosmetic procedures. Release on compassionate grounds is only available in limited circumstances, such as treating acute pain or life-threatening conditions, and requires certification from two practitioners.

Practitioners have been warned against providing financial advice without a licence and must ensure medical reports are accurate. New guidance from AHPRA and the Dental and Medical Boards emphasises that treatments should only be certified if necessary.

Writing Off SMSF Loans Requires Documentation

Writing off loans in SMSFs is being scrutinised by the ATO for breaches of the sole purpose test. Trustees need to demonstrate reasonable efforts to recover funds, including legal advice or evidence of insolvency. Without proper documentation, the ATO may see the transaction as illegal early access.

SMSFs generally cannot claim bad debt deductions unless they are in the business of lending. A capital loss may be claimed if the loan was made with a reasonable expectation of repayment.

If a member illegally accesses super, the funds cannot be returned, and any repayment to the fund will be treated as a new contribution. Trustees may face section 65 penalties, civil and criminal sanctions, disqualification, and fund non-compliance. Early access also breaches preservation standards, making the amount assessable income for the member.

Thank you for reading this months’ update.

If you are looking for more SMSF insights, you can watch Graeme’s latest webinar on demand here.



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The Cloudoffis Pulse - Product Updates

Welcome to our first-ever Cloudoffis product newsletter – Cloudoffis Pulse, where we bring you the latest product updates across Tax Sorted, SMSF Auditomation and SMSF Sorted.

This month, we’ve some really exciting updates to share with you. Our incredible product team has been working hard to build the products you’ve asked for.

We hope you enjoy this update

From the product desk:

We are pleased to announce that Cloudoffis has successfully attained ISO 27001 certification. At Cloudoffis, safeguarding your data is our top priority. We are proud that we have achieved ISO 27001 certification, the internationally recognised standard for information security management systems (ISMS).

You can learn more about this here.



Book time with your Account Manager:

If you’re looking to elevate your Cloudoffis experience, book 30 minutes with Jocelyn or Dilnar today.

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Graeme’s Super News - October Edition

Read the latest updates from Graeme Colley, a respected educator, policy advisor, and technical expert with over 30 years' experience in taxation and superannuation.

Graeme’s Super News – October Edition

Read the latest updates from Graeme Colley, a respected educator, policy advisor, and technical expert with over 30 years’ experience in taxation and superannuation.

Update on Division 296

Division 296 amends the income tax law to introduce an additional tax of up to 15% on the increase in a person’s Total Superannuation Balance for the year on balances above $3 million. It was intended to take effect from 1 July 2025.

Based on recent media reports the government has paused progression of the tax. If the legislation does make it into to parliament it may not be in the same form as the original bill which lapsed on 21 July 2025. It may be better to wait until we see whether the legislation will go ahead and, if it does, whether any changes are made to the lapsed bills.

It is rumoured that the $3 million threshold may be indexed which may relieve one of the main issues with the legislation. However, the member’s total superannuation balance which is used to determine the threshold may still include unrealised capital gains in the calculation.

At the moment it’s just wait and see what the government proposes to do.

Amendments to superannuation contributions ruling finalised

Taxation Ruling TR 2010/1 Income tax: superannuation contributions has been amended by TR 2010/1A4 to provide the ATO’s view of the link between the non-arm’s length income provisions in section 295-550 of the ITAA ’97 and superannuation contributions. The amendments are relevant for trustees of super funds, particularly SMSFs, in determining whether the non-arm’s length income rules apply when making in specie contributions.

The amendments to TR 2010/1 also cover value shifting arrangements to exclude those occurring from 28 November 2024. But it covers the ATO’s approach to arrangements entered into prior to that date in Appendix 2 of the Ruling.

In relation to determining whether personal contributions are deductible the amended ruling covers the removal of the maximum earnings test which has applied since 1 July 2017.

Amended non-arm’s length income/expenditure ruling finalised

Law Companion Ruling LCR 2021/2 has been amended by LCR 2021/2A3 to clarify how amendments to section 295-550 of the ITAA ‘97 operate in a scheme where the parties do not deal with each other at arm’s length. It applies where the trustee of small complying superannuation funds, such as an SMSF or SAF incurs non-arm’s length expenditure (or does not incur relevant expenditure) in gaining or producing the fund’s ordinary or statutory income.

The revised ruling provides clarity to a range of NALI/E issues including the difference between services provided as a trustee and in a professional capacity.

ATO SMSF Stats for the June Quarter 2025

The latest SMSF quarterly statistics as at June 2025 were released in early September and highlights the continued growth of SMSFs. The ATO statistics show that there are 653,062 SMSFs which have a total of 1,203,127 members.

During the 2024/25 financial year there was an increase of 38,449 funds, which was a substantial increase over each of the previous three years. Nearly two-thirds of the increase in SMSF memberships has come from the younger age groups. Although over 50% of members are in the 60+ age group.

SMSFs now hold over $1 trillion in assets with the largest asset classes being listed shares and cash and term deposits.

The ATO’s SMSF quarterly statistical reports is available from the ATO website at June 2025 ATO SMSF statistics

Government Audit Office Review of SMSFs

The Australian National Audit Office (ANAO), has listed an audit of the ATO’s regulation of SMSFs for the 2025/26 financial year as well as a follow up audit of employer compliance with Superannuation Guarantee. The ANAO last examined the ATO’s management of SMSFs in 2007, and Superannuation Guarantee non-compliance in 2022.

The review of employer compliance with the Superannuation Guarantee requirements, compliments the introduction of the payday super which is due to commence on 1 July 2026.

Cancellation of Auditor Contravention Reports

If you are an SMSF auditor, the ATO must be notified if a reportable contravention under the SIS Act has occurred, is occurring or may occur. The contravention is made by lodging an Auditor Contravention Report (ACR) within 28 days of completing the audit.

However, if the ACR was sent to the ATO because of a genuine error then it can be cancelled. Genuine errors include:

  • lodging under the wrong fund ABN
  • providing incorrect information about the contravention based on the evidence you had in your possession at the time of reporting the contravention to us.

If the information received after lodging the ACR shows that the reported contravention was incorrect, didn’t occur, or has been rectified, a revised ACR should be lodged with the ATO. This can be done by using the ATO’s Online services for business to request a cancellation. If the ATO considers there are valid reasons for cancellation it will reply within 28 days of the request.

Issues with accountants’ wholesale investor certificates

In late June 2025 the Australian Financial Complaints Authority (AFCA) handed down a decision Case number: 12-00-1080719 concerning an SMSF which had invested in Contracts for Difference (CFDs) on the basis that it was a wholesale investor for purposes of the Corporations Act 2001.

AFCA came to the conclusion that the SMSF was a retail client because the financial services provided by the financial firms involved related to a beneficial interest in the SMSF, which was a superannuation product, and the SMSF held less than $10 million in net assets as required under the Corporations Act 2001.

The decision in this case changed a longstanding understanding on the basis of an ASIC Media Release 14-191MR Statement on wholesale and retail investors and SMSFs | ASIC . It indicated that if a superannuation fund held less than $10 million in net assets that ASIC would no action if the advice provider determined that the trustee was a wholesale client based on the general net assets test of $2.5 million applying to the individual. As a general rule this was taken to assume that the SMSF could be treated as a wholesale client.

However, in its decision AFCA pointed out that the Media Release 14-191MR is not a definitive statement by ASIC that the general wholesale client test applies to SMSF trustees in relation to financial services these trustees receive. In effect, the release relates to ASIC not taking action in the circumstances indicated in the Media Release.

The AFCA decision was recently confirmed by their lead ombudsman, Shail Singh, and in the AFCA newsletter dated 19 June 2025 that the Corporations Act treats everyone as a retail investor unless you fall into a category of wholesale.

Qualified accountants who have been asked to provide wholesale investor certificate for purposes of Chapter 7 of the Corporations Act must understand when it can be given for an SMSF and that the net value of the fund’s assets are calculated correctly.



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ATO SMSF Stats for the June Quarter 2025

ATO SMSF Stats for the June Quarter 2025

The latest SMSF quarterly statistics as at June 2025 were released in early September and highlight the continued growth of SMSFs. The ATO statistics show that there are 653,062 SMSFs which have a total of 1,203,127 members.

During the 2024/25 financial year, there was an increase of 38,449 funds, which was a substantial increase over each of the previous three years. Nearly two-thirds of the increase in SMSF memberships has come from the younger age groups. Although over 50% of members are in the 60+ age group.

SMSFs now hold over $1 trillion in assets, with the largest asset classes being listed shares, cash and term deposits.

The ATO’s SMSF quarterly statistical reports is available from the ATO website at
June 2025 ATO SMSF statistics

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Graeme’s Super News - September Edition

Read the latest updates from Graeme Colley, a respected educator, policy advisor, and technical expert with over 30 years' experience in taxation and superannuation.

ATO Auditor Compliance Program results for 2024–25

The ATO completed over 200 SMSF auditor reviews during the 2024–25 financial year.  They referred 41 auditors to ASIC for not complying with the audit and assurance standards and 36 auditors cancelled their registration.  

The main compliance issues included not obtaining sufficient and appropriate audit evidence for the auditor to form an opinion on the fund’s financial statements and whether the audited fund complied with the super laws.  There was also a lack of evidence that fund transactions were at arm’s length and not reporting the fund assets at their market value.

 

Separation of assets

The super law requires fund trustees to keep money and other assets of the fund separate from those held by the trustees individually or by a standard employer-sponsor or their associates.  

The ATO considers the fund assets must be held in the name of the trustee ‘as trustee for’ the fund.  This may not be possible in some cases where the law requires an asset to be held in the name of the legal owners rather than as trustees for the relevant fund.  In these cases, the auditor has an obligation to ensure the fund assets are legally owned by the fund, held by the trustees beneficially on behalf of the fund and are separate from the trustees’ personal or business assets.

Legal ownership can be evidenced by a declaration or acknowledgement of trust executed by the trustee over the fund’s asset.  Where this type of documentation is not available the trustees should seek legal advice.

If the fund does not separate its assets and comply with SIS regulations it is a reportable contravention.  The auditor should notify the trustees in writing of the breach and also the ATO via the SMSF Independent Audit Report if the contravention is material.  Also, the breach should be reported in an Audit Contravention Report if the ATO’s reporting criteria is met. 

 

What happens when a pension ceases?

The ATO’s opinion on when a pension commences and ceases is published in Taxation Ruling 2013/5.  While it is relatively clear when a pension commences it may cease suddenly for tax purposes when certain events occur. 

As a general rule a pension commences when all the capital with the purpose of supporting the income stream has been set aside in the fund.  The commencement day of the pension is the first day of the period to which it relates.

In contrast, the tax ruling points out that a pension ceases when there is no member or beneficiary entitled to receive it.  Examples include when:

  • the pension has a $nil balance, 
  • it has been converted (commuted) in full to a lump sum,
  • a person in receipt of a pension dies, and no one is entitled to automatically receive it,
  • the amount of the pension paid is less than the amount required under the SIS Act orthe  Commissioner’s General Powers of Administration, or
  • a child in receipt of a death benefit pension reaches age 25.

What the ruling does not tell you is that if a client has exceeded their Transfer Balance Cap and has received an excess transfer balance determination problems can arise.  In this situation the client has a number of options which include:

  • not commuting the excess amount notified in the determination in full by the due date, or
  • making an election for the ATO to send a commutation authority to the fund and have the excess commuted in full or in part. 

Where the:

  • income stream was commuted before the notice was received,
  • pensioner has died, or
  • notice was issued in relation to a capped defined benefit income stream (CDBIS)

the ATO is required to be notified of the event. 

 

If a member’s super fund has not commuted the excess amount as notified in the ATO’s commutation authority within 60 days of the issue date then the pension stops being in retirement phase.  This means the pension is treated as ceasing from the commencement of the relevant financial year.  Any income earned on the assets that were supporting the pension are taxed as though they are part of the fund’s accumulation phase assets. Any pension payments made to the member in the financial year are treated as lump sums.

It is possible to commence a new pension from the start of the next financial year.  However, the calculation of the new pension will be treated as if it has commenced from the fund’s accumulation phase assets.  This may result in the taxable and tax-free amounts being different from the previous pension. 

Accountants and auditors of SMSFs will need to be on the lookout for retirement phase pensions where the aggregate commencement values could be in excess of the member’s Transfer Balance Cap.  In these situations, they could expect the pensioner has been notified by the ATO that there is an excess amount which needs to be commuted.  If the fund has received a commutation authority then the accountant or auditor needs to confirm that the commutation has been made within 60 days of the issue date.  If this has not occurred then the fund will not be able to claim an earnings tax exemption for the relevant income stream in the income year or possibly for any later income years.

 

Crypto currency fact sheet

The value of crypto assets in SMSFs as at March 2025 was $1.675 billion.  As crypto assets are a relatively new asset class and increasing in popularity there are some fundamental issues that trustees and their professional advisers must become familiar with.  This includes accounting for the asset, it’s location, storage, ownership and access to the asset which may provide a challenge.

Because of the fluid and intangible nature of crypto assets proof of the existence may depend on getting access to relevant email accounts, mobile phones and other devices.  These store important asset information or are used as part of two-factor authentication or multi-factor authentication. Relying on these devices as information and storage sources creates a risk for the fund as investor.  There’s also the issue of whether the crypto assets can be located, accessed and accounted for including whether successor trustees or corporate trustees in the long term have a legal right and practical control to recover the crypto assets. 

The ATO has released a Tax and crypto asset investments factsheet to assist professionals and their clients when preparing fund accounts.  It includes the records that need to be kept for crypto assets including income tax and CGT

 

 

 

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The Cloudoffis Bulletin - May Edition

Welcome to this month’s Cloudoffis Bulletin! We’ve held off sending this edition until after the 15th May deadline, so we hope you’re reading this with a well-deserved cup of coffee in hand and your feet up after the sprint to the finish line.

This month, we’re excited to share two new webinars for our SMSF audit and accounting customers, updates on new features across all our products, and the latest from Graeme Colley’s Super News column.

We look forward to catching up with many of you in the coming weeks.

Upcoming events

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Product updates:


Graeme’s Super News

The May elections have passed and the EOFY year is upon us so we asked Graeme to reflect on some of the hottest topics such as Div 296, Pay Day Super and Financial Year End preparation.

Jump in to Graeme’s Super News from this month here and last month here.

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Graeme’s Super News – June

Division 296 – the $3 million super catch

With the May Federal election now out of the way, the first thing to raise its head was the previously announced change to increase the tax on super for anyone with a balance of more than $3 million. As the proposal is not law the sensible thing to do is wait until we see the final legislation before making a final decision.

In broad terms, the original proposal was intended to:

  • apply from 1 July 2025 on increases in a member’s adjusted total superannuation balance
    (TSB) where the balance at the end of the year is greater than $3 million,
  • levy a 15 per cent tax on the proportion of the growth in an individual's “superannuation
    earnings”, including unrealised capital gains,
  • not apply to reductions in the member’s TSB at the end of the financial year. Negative
    earnings above the $3 million cap are quarantined and used to offset future earnings in a
    later year of income, and
  • be levied directly on the member who has the option to elect that the tax is paid personally
    or paid from the balance in their superannuation fund.

The proposal has been criticised for a number of reasons. Two main concerns are:

  • the taxation of the ‘growth’ element in a member’s TSB over the year of income including
    the imposition of tax on unrealised capital gains on a year-by-year basis, and
  • the lack of indexation of the $3 million threshold.

It is difficult to predict when the impact of the proposed tax will become an issue as it depends on the final law when it is passed, the member’s circumstances, such as the amount they currently have in super, the investment performance of the fund and the level of super contributions made for the member.

Before alternative arrangements to superannuation are considered it may be worthwhile to take advantage of the current superannuation rules to reduce or possibly eliminate the effect of the proposed tax if it becomes law.

Payday Super – Wages and Super to be paid together

It is estimated that there is a significant short fall of about $5.2 billion in employers making SG contributions for their employees. This has led to the introduction of Payday Super which is due to start from 1 July 2026. Draft legislation was released by the government on 14 March for industry consultation and feedback.

SG contributions are required to be made at least each quarter, but the introduction of Payday Super will require that employers pay super contributions for employees within 7 days of paying their salary and wages. This is a much tighter regime as the current system allows employer contributions to be made up to 28 days after the end of each quarter. If Payday Super does commence on 1 July 2026 as proposed, employers should consider improving their systems and increase the frequency making SG contributions for employees. The legislation provides a transition period commencing from the time the legislation is passed to 1 July 2026 which is the commencement date for Payday super.

Employers are in a bind as they are faced with a choice of being early adopters and changing their systems in advance of the commencement day or waiting for the legislation to pass and adopting the start date set out in the law.

Anyone who engages an employee within the extended definition of the SG legislation should keep up-to-date with Payday Super developments and how they will meet the challenge of a new law.

Financial year end work – a last-minute reminder

It’s not long before the end of the financial year is here and clients and their advisers should be thinking about what needs to be done this financial year or wait until early in the next one. Of course, before 30 June this year minimum pension requirements must be met and any contributions are actually received by the fund’s bank account by 30 June.

Account based pensions

Anyone receiving an account-based pension must be paid at least the minimum amount which depends on their age and whether it commenced or ceased during the year. Remember, is not compulsory to pay the minimum amount of an account-based pension or TRIS for the financial year if it commences on or after 1 June.

Contributions

Super contributions must be received by the fund on or before 30 June 2025. Any contributions received after that time will count towards the 2025-26 year. This could result in excess contribution tax for that year if the concessional or non-concessional contribution thresholds are exceeded. If the contributions are made by the transfer of assets (in specie contributions) it is important to ensure they are valued at their market value as required by the ATO guidelines.

Tax deductions for GIC and SIC not available from 1 July 2025

Tax deductions for General Interest Charge and Shortfall Interest Charge have been removed from 1 July 2025 for any charges claimed. This may impact if either charge is imposed on:

  • Employers making late SG payments,
  • SMSFs with late or amended returns, and
  • Members incorrectly claiming deductions for super contributions.

The information in this article is intended to be general in nature and is not personal financial (or financial product) advice. It does not take into account the objectives, financial situation or needs of you or your client. Before acting on any information, you should consider the appropriateness of the information provided having regard to the objectives, financial situation and needs of you or your client.

In particular, you should seek independent professional advice prior to making any decision based on the information provided in this blog.

You should consider the appropriateness of this information having regard to the individual situation and seek taxation advice from a registered tax agent before making any decision based on the content of this blog.

Any examples and calculations within this blog are provided for illustrative purposes only. They should not be relied on. Viewing the content provided, is considered as acknowledgement,
acceptance and agreement to this Disclaimer and the contents contained within.

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Graeme’s Super News – May Edition

Financial year end work

With the end of the financial year fast approaching clients and their advisers should check to make sure the minimum pension requirements have been met and that any contributions have been received by the fund by 30 June.

Account based pensions

Make sure anyone receiving an account-based pension from the fund is paid at least the minimum amount which depends on their age. If the pension commenced after 1 July in this financial year the minimum amount is pro-rated on a daily basis it commenced. It is not compulsory to pay the minimum amount for the financial year if it commences on or after 1 June.

Remember that anyone who stops receiving a pension during the year must receive a pro-rated minimum pension calculated on a daily basis up to the time it ceases.

Contributions

It’s important that super contributions are received by the fund on or before 30 June 2025. Any contributions received after that time will count towards the 2025-26 year. This could result in excess contribution tax for that year if the concessional or non-concessional contribution thresholds are exceeded.

If the contributions are made by the transfer of assets (in specie contributions) it is important to ensure they are valued at their market value as required by the ATO guidelines.

Tax deductions for GIC and SIC not available from 1 July 2025

Tax deductions for General Interest Charge and Shortfall Interest Charge have been removed from 1 July 2025 for any charges claimed. This may impact if either charge is imposed on:

  • Employers making late SG payments,
  • SMSFs with late or amended returns, and
  • Members incorrectly claiming deductions for super contributions.

Changes to the Auditor Contravention Report

The ATO has made amendments to the ACR which relate to:

  • The auditor’s exercise of professional judgement which has been updated to clarify when auditors can exercise their professional judgement and whether an ACR is required for market value contraventions for assets held by service organisations.
  • Test 4 where breaches have occurred in one year but have not been corrected Example, section 66 breaches are only required to be reported in the year in which the breach occurred and not in subsequent years.
  • Section E – contraventions which are only required to be reported once compared to those that are ongoing and are required to be reported in subsequent years.

ATO Audit Compliance Focus for 2025

The ATO auditor compliance focus for 2025 will concentrate on:

Market Valuations

  • Insufficient evidence to support the market value of the fund’s assets
  • ATO contacted funds where there is no or little change in value over several years

High Volume audits

  • Auditors who audit at least 1000 audits each year or a sudden increase in the number of funds audited

Disqualified trustees

  • Trustees continue to act while disqualified

High Risk Auditors

  • Referrals to ASIC when not complying with fund audit requirements

Independence

  • Undertaking in-house audits, back-to-back audit arrangements, long associations with clients and concentration of audits from a single referral source.
  • Not meeting Code of Ethics requirements with APES 110

The 2025-26 Federal Budget

The Budget had no new announcements on superannuation except to reconfirm the payment of superannuation from 1 July 2025 on paid parental leave.

Any further changes to super will depend on the outcome of the Federal Election and the priorities of the new parliament.

The information in this article is intended to be general in nature and is not personal financial (or financial product) advice. It does not take into account the objectives, financial situation or needs of you or your client. Before acting on any information, you should consider the appropriateness of the information provided having regard to the objectives, financial situation and needs of you or your client.

In particular, you should seek independent professional advice prior to making any decision based on the information provided in this blog.

You should consider the appropriateness of this information having regard to the individual situation and seek taxation advice from a registered tax agent before making any decision based on the content of this blog.

Any examples and calculations within this blog are provided for illustrative purposes only. They should not be relied on. Viewing the content provided, is considered as acknowledgement, acceptance and agreement to this Disclaimer and the contents contained within.

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The Cloudoffis Bulletin - March Edition

Welcome to our first bulletin of the year! 2025 is already in full swing, and we’re excited about what’s ahead.
Welcome to our first bulletin of the year! 2025 is already in full swing, and we’re excited about what’s ahead.

We’ve been busy hosting events, launching new features, and connecting with our customers – and there’s plenty more to come from Cloudoffis in 2025.

Read on for all the latest updates!

Tax Sorted – now live!

Did you know Cloudoffis has expanded beyond SMSF?

Tax Sorted is our new tax workpaper product, designed to help accountants standardise business and individual workpapers, driving efficiency and giving more control back to practices nationwide.

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We’re thrilled to announce that Tax Sorted took home first prize in the Tech Pitch Competition!

Our Head of Sales, Kresant, went head-to-head with 16 other accounting tech products and came out on top. The judges were particularly excited about how Tax Sorted tackles major challenges for accountants by delivering efficiency, standardisation and control and loved the AI-powered features built into our workpaper solution.

Want to see what all the hype is about? Request a demo today!

Refer a friend – Get $500!

Refer another business or even another department within your own company to Cloudoffis, and you’ll receive a $500 account credit when they sign up!

Here’s how it works:

  • Refer a peer in your accounting or audit network
  • If they sign up, your company receives a $500 credit
  • The offer applies to all Cloudoffis audit and accounting products – SMSF Sorted, Tax Sorted or Auditomation.

Know someone who could benefit from greater efficiency, standardisation, and a more compliant workflow? Refer them today and start saving!

Refer Now

What our customers are saying!

“Cloudoffis is undoubtedly one of the best SMSF admin platforms on the market! Its powerful workpaper system enables instant document referencing, streamlines end-of-year preparation, and eliminates wasteful workarounds. We especially love features like AI Run, Dashboard, and Observation, which enhance efficiency and accuracy. Plus, the regular training sessions ensure our team stays up to date with the latest features – keeping us ahead of the game!”

Pearly Li S Yap, Assistant Manager

Ask Graeme webinar

A big thank you to everyone who attended our February Ask Graeme webinar! As always, Graeme Colley, our Independent Industry Advisor, provided valuable insights into the challenges accountants and auditors face daily.

Missed it? No worries! Watch the recording and read the blog summary.

Due to overwhelming demand, we’ll be hosting another webinar soon, so stay tuned! And don’t forget to check out Graeme’s Super News below for more industry updates.

Sydney roundtable: Auditors leaders breakfast

A huge thank you to our incredible Sydney auditing community for joining us at the Cloudoffis Leaders Breakfast earlier this month.

Hosted by Dilnar Tangri and Graeme Colley, with expert insights from Matina Moffitt from BDO, Tony Negline from Chartered Accountants Australia and NZ, and Tracey Besters from mySMSFjourney, the room was buzzing with discussion.

From the Grattan Institute report and the latest ATO speech at the SMSF conference to the critical role of peer reviews, there was no topic off the table.

A special shoutout to our esteemed guests, Larry, Jason, Philip, Peter, and Geoff, for your valuable contributions to the conversation. Events like these wouldn’t be the same without you!

Stay tuned for more Cloudoffis events coming soon!

Graeme’s Super news

We asked Graeme Colley to bring us up to speed on the latest in superannuation.

This month’s update covers:

  • Lifetime pensions – what’s changed?
  • The proposed $3 million super balance tax
  • Transfer Balance Cap increase
  • A review of NALI tax rulings

Plans to merge accounting and assurance standards bodies

Read the full article here

Product updates

Have you seen the Tax Sorted review summary?

Designed for improved efficiency and simplified workflows, the Tax Sorted Review Summary includes a Financial Summary with a 5-year trend analysis and enhanced Review Notes for seamless collaboration between preparers and reviewers.

Want more?

  • Track Workpaper progress, download files, and update job status.
  • Reply to timestamped review notes in organised threads.
  • Categorise review notes with predefined labels for quick navigation.
  • Notify team members, track progress with Open/Closed statuses, and ensure clear resolution.

Book a Demo

Observation tolerance in SMSF Sorted Pro & Auditomation

We’ve made it easier to manage observations in Sorted Pro and Auditomation!

Previously, minor discrepancies—like rounding differences in market values and incomes—were automatically flagged under Warnings, requiring manual review. But not anymore!

Now, you can set a tolerance level at the company level, allowing small variances to be automatically marked as Good To Go, eliminating unnecessary manual work. New info icons provide instant context too, simply hover over an observation to see its basis, ensuring quick and informed decision-making.

Auto-Tagging & New Rreports in SMSF Sorted

We’re making reviews faster and easier with new reports and auto-tagging for Annual Return schedules!

New reports in the reports section:

  • Unrealised Capital Gains Report
  • Member Transaction Detail Report

Auto-Tagging for annual return schedules

Annual Return schedules will now be automatically linked to the Income Tax Line Item in the following reports, reducing manual work and improving efficiency:

  • Annual Return – SMSF
  • Annual Return CGT Schedule – SMSF
  • Annual Return Losses Schedule – SMSF
  • Annual Return Trust Income Schedule – SMSF

Auditomation: Tip of the month

Did you know that in Auditomation, you have full control over the notifications you receive? You can customize your settings to choose which email and portal notifications you’d like to enable or disable.

Simply head to “Preferences” under your profile to tailor your notifications to suit your workflow. Stay informed without the clutter!

If you have any questions or need more information, feel free to reach out to Jocelyn, your Account Manager, at jocelyn@cloudoffis.com.au, and schedule a meeting. She’ll be happy to help!

Security & Compliance: ISO Certified

If your practice is looking to upgrade its tech systems with better security, Cloudoffis has you covered.

We’re proud to be ISO 27001 certified, ensuring the highest standards in data security and compliance. Plus, all our products include built-in tools to help keep your end-to-end processes secure and in check.

Find out more about how Cloudoffis securely manages your data.

That’s a wrap for this month! Stay tuned for more exciting updates, and as always, reach out if you have any questions or want to learn more about our latest features.

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Graeme’s Super News - March edition

The start of the year is now gathering pace and there are a few interesting snippets which have popped up in the news that you may like to consider.

Lifetime and life expectancy pensions

Just prior to the Christmas break the tax and super laws were amended to relax the commutation restrictions for anyone receiving a defined benefit pension from SMSFs and other small funds. Defined benefit pensions include lifetime pensions, life expectancy pensions and market-linked income streams. It will be possible for anyone receiving one of these pensions to transfer the balance of the pension to their accumulation phase account to commence a new account-based pension, leave it in accumulation phase or withdraw it as a lump sum as they wish. The relaxed rules apply for five years and end in December 2029.

The $3 million super balance tax

Late last year Division 296 tax legislation was debated in the House of Reps to impose an additional tax on annual increases in a person’s superannuation balance above $3 Billion. This is controversial as the proposed law taxes unrealised capital gains in superannuation on a year-by-year basis. The proposed legislation is now on hold in the Senate, so it will be interesting to see what happens.

Review of NALI Tax Rulings

In November 2024 the ATO issued proposed changes to Tax Ruling 2010/DC2 which is about superannuation contributions and Law Companion Ruling 2021/2DC about non-arm’s length income and expenses in superannuation funds. Submissions on the proposed changes were required by 24 January this year and have been made by the major accounting, financial planning and superannuation associations.

Increase in the Transfer Balance Cap from 1 July 2025

The increase in the CPI figure to 139.4 for the December 2024 quarter means that from 1 July 2025 the Transfer Balance Cap will be $2 million. This will allow anyone to use up to $2 million of their superannuation if they are commencing a pension for the first time. There will also be an increase in the Total Superannuation Balance which will increase the threshold for purposes of the bring forward three-year non-concessional contributions rule. It should be noted that there is no increase in the current concessional and non-concessions contributions caps for the 2025-26 financial year.

Plan to combine accounting and assurance standards bodies

Treasury has released its plans to combine the Australian Accounting Standards Board (AASB), Auditing and Assurance Standards Board (AUASB) and the Financial Reporting Council (FRC) into a single organisation.

The proposed change is to recognise a wider range of environmental, social and governance risks due to shifts in global financial reporting practices relating to accounting, auditing and assurance, and sustainability.

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The information in this presentation is intended to be general in nature and is not personal financial (or financial product) advice. It does not take into account the objectives, financial situation or needs of you or your client. Before acting on any information, you should consider the appropriateness of the information provided having regard to the objectives, financial situation and needs of you or your client.

In particular, you should seek independent professional advice prior to making any decision based on the information provided in this blog.

You should consider the appropriateness of this information having regard to the individual situation and seek taxation advice from a registered tax agent before making any decision based on the content of this blog.

Any examples and calculations within this blog are provided for illustrative purposes only. They should not be relied on. Viewing the content provided, is considered as acknowledgement, acceptance and agreement to this Disclaimer and the contents contained within.

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