SMSF Audit Services in Nelson Bay & Port Stephens

If you have a self-managed superannuation fund (SMSF), you are required by law to have it independently audited every year. At Port Stephens Accountants & Business Advisors, based in Nelson Bay, we provide thorough, independent SMSF audits for trustees across Port Stephens, Salamander Bay, Anna Bay, Medowie, and the broader Hunter region. Our audits are ATO-compliant, completed efficiently, and explained in plain language — so you can focus on your retirement savings, not the paperwork.

With more than 20 years of professional accounting and audit experience, we understand the responsibility that comes with running your own super fund. Our role is to make the annual audit process straightforward, reliable, and as low-stress as possible for trustees.

Why Your SMSF Must Be Audited Every Year

An annual SMSF audit is not optional — it is a legal requirement under the Superannuation Industry (Supervision) Act 1993 (SIS Act). Every SMSF must be audited by an approved SMSF auditor before lodging its annual return with the ATO. The audit has two components:

  • Financial audit — verifying that the fund’s financial statements are accurate and prepared in accordance with accounting standards
  • Compliance audit — confirming that the fund has operated in accordance with superannuation and tax laws throughout the year

Beyond meeting the legal obligation, a proper annual audit protects your fund by identifying compliance issues early — before they become costly problems. It also gives trustees confidence that their fund is on the right track.

ATO Penalties for Missed or Non-Compliant SMSF Audits

Failing to arrange an annual audit — or submitting a non-compliant audit — can expose trustees to serious ATO penalties. This is one of the most important areas of SMSF compliance, and one that the ATO monitors closely. The consequences of non-compliance can include:

Failure to lodge penalty

If your SMSF annual return is not lodged on time — which requires a completed audit — the ATO can issue a Failure to Lodge (FTL) penalty. As a general guide, FTL penalties are calculated per day and can accumulate quickly for late lodgements. You should verify current penalty unit values with us or on the ATO website, as these are updated regularly.

Administrative penalties

Under the SIS Act, individual trustees and directors of corporate trustees can be personally liable for administrative penalties where contraventions are identified. These penalties apply to each individual trustee, not the fund as a whole — meaning a fund with four individual trustees could face the penalty multiplied by four. You should verify current penalty amounts with our team or the ATO, as they are subject to change.

Non-complying fund status

In serious or repeated cases of non-compliance, the ATO has the power to make an SMSF a non-complying fund. This is the most severe penalty available and results in the fund’s assets — less any non-concessional contributions — being taxed at the highest marginal rate (currently 45%, though you should verify this with us). In practical terms, this can destroy the tax-exempt status that makes an SMSF worthwhile.

Disqualification of trustees

The ATO can disqualify a trustee who has contravened the SIS Act, which prevents them from acting as a trustee of any SMSF in the future. Disqualification is publicly listed on the ATO’s register.

What Our SMSF Audit Covers

Our SMSF audit service covers both the financial and compliance components required by the ATO. For each fund we audit, we:

  • Review and verify the fund’s annual financial statements, including the statement of financial position and operating statement
  • Check that the fund’s investment strategy is documented, current, and being followed
  • Verify member contributions, benefit payments, and pension commencements against ATO limits
  • Confirm compliance with the SIS Act, including the sole purpose test, arm’s length rules, and in-house asset restrictions
  • Check the separation of fund assets from trustee personal and business assets
  • Review any limited recourse borrowing arrangements (LRBAs) for compliance
  • Prepare and provide a clear audit report (the Auditor’s Report) for lodgement with the SMSF annual return
  • Notify the ATO via an Auditor Contravention Report (ACR) if a reportable compliance breach is identified

We work alongside your SMSF accountant and financial adviser — our role is strictly independent, as required by law. If your accountant also prepares your fund’s financial statements, the audit must be performed by a separate, approved auditor. This is where our Nelson Bay team comes in.

Why Choose PSABA for Your SMSF Audit

Experience you can trust

With over 20 years of accounting and audit expertise, our team has the depth of knowledge to handle a wide range of fund structures, investment types, and compliance situations.

Independent & Compliant

Our SMSF audits are conducted by an approved SMSF auditor, meeting the ATO’s independence requirements. You can lodge your annual return with confidence.

Clear communication

We explain our findings in plain language. If we identify an issue, we tell you what it means, what the ATO requires, and what steps you can take to address it — not just flag it and move on.

Efficient service

We respect your time. Once we have received your records, we complete audits promptly with minimal back-and-forth. We will tell you exactly what we need upfront so the process moves smoothly.

Local knowledge

We are based on Donald Street in Nelson Bay, serving SMSF trustees across Port Stephens and the Hunter region. We are easy to reach, easy to talk to, and available when you need us.

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