In August 2023, the ATO issued QC 73156, setting out clearer expectations for SMSF auditors when it comes to verifying whether trustees have given a charge over fund assets. In the case of real property, this specifically requires reviewing the property title each year to confirm there are no encumbrances.

The ATO highlighted that compliance reviews over the past 12 months found instances where auditors failed to obtain sufficient evidence to confirm that fund assets were free from charges. In some cases, auditors were also referred to ASIC for not identifying or reporting breaches of regulation 13.14 of the Superannuation Industry (Supervision) Regulations (SISR).

In practical terms, this means SMSF auditors are now expected to obtain a title search for every real property title on an annual basis.

Up until now, we have absorbed the cost of title searches when they were not provided to us. However, moving forward, a disbursement fee of $44 (including GST) will apply for each title search we obtain on behalf of clients. This change applies specifically to Australian real property.

Our fees page has been updated to reflect this adjustment, and you can view the details here: https://justsmsfaudits.com.au/fees