If your auditor advises you of any breaches of the rules, you should rectify them as soon as possible.

Even if you terminated an auditor engagement or the auditor does not finish the audit, if they have identified a reportable breach of the rules, they are still obligated to report to the ATO.

The ATO encourages you to use their early engagement and voluntary disclosure service to disclose breaches of the regulations that remain unrectified. They expect that you will have a plan to correct the breach, which should be sent to the ATO with the SMSF regulatory contravention disclosure form.

The ATO will consider any voluntary disclosures made when they consider compliance actions they may need to take.

For more information, see the early engagement and voluntary disclosure service on the ATO website.