In an online update, the ATO said that while the Tax Office will send an email notification to SMSF auditors where one of their clients has been disqualified, this should not be relied on as the only source of information for disqualifications.

The ATO stated that where a trustee or director of a corporate trustee has been disqualified, the ATO will send an email notification to the SMSF auditor reported in the fund’s most recent SMSF annual return.

“If you find a disqualified person is continuing to act as a trustee (in contravention of section 126K of the Superannuation Industry (Supervision) Act 1993), you must report this contravention on an auditor/actuary contravention report (ACR),” said the Tax Office.

“Do not rely on our email notifications as the only source of information about disqualifications. To ensure the disqualification of your SMSF client is still active, check our disqualified trustees register.”

The ATO said auditors should verify all new trustees themselves using the disqualified trustee register and make periodic checks on their existing clients.

“Auditors should also check whether trustees have been disqualified for other reasons such as they are insolvent, under administration or have been convicted of an offence involving dishonesty,” the ATO stated.