The ATO has also advised the association that it will regularly be referring to the organization any member that should be sanctioned with disciplinary actions. It will also require require these auditors to take the SMSF Audit Workshop the soonest possible time. 

Of the most recent inquiries done, the ATMA has verified that the auditor is, in fact, not listed as member. Thus, the ATO will be taking action. 

Calls to the ATMA by ATO involve the following questions:

• If the auditor is a certified member of the ATMA.

• If the auditor is a voting member or a retire member.

• If the auditor has completed ATMA requirements qualifying him or her as ATMA SMSF Auditor.

• If the auditor has completed ATMA requirements to hold PPC.

• If the auditor has undergone and completed an SMSF Audit Workshop.

The ATO strictly requires SMSF Auditors to be a member of an approved accounting organization, with PPC certification and have completed an SMSF Auditor Program. The auditor must also have PI Insurance.

Reports say that the government agency is going after these property investors who have been claiming deductions for interest expenses and which have been applied to some loans. 

The ATO said those who will be closely checked are property owners, who have structured their negative gearing from rentals to pay off home loans faster. The interest from investment loans are added to the principal, allowing the deductible debt to compound whilst the non deductible debt is paid off. 

The ATO has been rejecting any arrangements like this since last month, and the ruling will apply to any tax return lodged in prior years and still in the period of review. 

Tax expert Max Newham said loans that are absorbed or have incorporated other features will be hugely affected by the new ruling. These features include those that effectively increased a property owner’s capitalization of interest in their investment loans. 

As a result, many investors will feel a crunch, especially if they have been relying on large tax deductions in order to help reduce costs and expenses. 

The bad news for property investors is that the new ruling may become retroactive and can affect incomes and deductions from past payments.  

Newham also said that property owners must learn to avoid making claims for deductions on interest in investment loans. The ATO does not have the exact figures as to how many investors are going to be hit by this new ruling. 

The figures were estimated to be at about $393 million only a year earlier. These funds belong to those people the ATO have not yet been contacted. The ATO is currently handling some 2.3 million accounts.

It used to be customary process for lost super to be transferred to rollover funds in the previous years. But in the last quarter of 2010, some changes were made allowing ATO to control the accounts. These covered superannuation funds, which carry less than $200 in the balance and where owners have not been in contact for over five years.

In light of the changes, eligible rollover funds (ERF) have dropped membership to some 22.6 percent. But its funds remain unaffected, falling just below 1 percent or some 1.39 million accounts. This small change comprises those accounts with below $200 in its balance, which the ATO is now handling.

The average ERF account balance also increased to 18 percent or about $1,224 per account. According to SuperRating, this is a significant figure and is expected to continue to increase.

SuperRatings has projected funds will continue to decrease by 2014 with the introduction of a new process requiring “automatic consolidation,” where account owners will be tracked using their tax file numbers.

Super fund accounts are also expected to decrease in the next two years. Those who need to inquire may visit the ATO website.