“It’s not just trustees’ behaviour, attitude or knowledge that drives the behaviour of SMSFs. It’s also the attitude, behaviour and knowledge of the intermediaries involved, which is financial advisers, tax agents, accountants and approved auditors,” Mr Bambrick said.

“So what we do before we decide what funds to look at from a compliance point of view is we risk-rate the funds… what we’re starting to do now is also risk-rate the intermediaries from the knowledge we have about them, and feed that into our risk-rating [of] funds.

“If you’ve got a tax agent who’s got problems with their own income tax affairs, then they’re probably a higher risk and that probably feeds into the risk we give to their clients, but that’s not just about SMSFs.”

Mr Bambrick emphasised the independence of approved auditors remains a key area of focus for the ATO.

“If you have a firm and it’s got three partners and they’ve done the books and they’ve done the audit, then we’d say that’s pretty likely to have an independence issues. But if you’ve got [the audit] coming out of the same firm but there’s 30 partners, it might mean that the Chinese walls can work.”