Auditing an SMSF and the trustee(s) are advising that the SMSF is share trading. Researching the ATO and referencing S62 of SISA and NALI.

The ATO website states:

Self-managed super funds (SMSFs) are not prohibited from carrying on a business, but the business must be:

• allowed under the trust deed

• operated for the sole purpose of providing retirement benefits for fund members.

Further :

Cases that attract our attention include those where:

• the trustee employs a family member (we look at things such as, the stated rationale for employing the family member and the salary or wages paid)

• the 'business' is an activity commonly carried out as a hobby or pastime

• the business carried on by the fund has links to associated trading entities

• there are indications the fund's business assets are available for the private use and benefit of the trustee or related parties.

Assuming the SMSF meets the deed and investment strategy requirements and does not fall into the "cases that attract our attention" categories, with the caveat of who is to say that the ATO in time considers that the SMSF is not in the business of share trading should I be qualifying my audit report at Part B?