Axelo Thought Leadership Series
The regulatory demands of self-managed superannuation funds (SMSFs) and trust accounts continue to increase, placing mounting pressure on professional services firms. Whether it’s dealing with tighter ATO scrutiny, adapting to digital audit trails, or navigating shifting trustee obligations, compliance today is more complex than ever.
At the same time, firms are facing internal pressures: persistent skills shortages, increased wage costs, and the constant balancing act of scaling without stretching. In this environment, many Australian accounting and legal practices are turning to outsourcing. But this move raises a key question: how do you reduce workload without losing control?
The compliance burden is growing — and so are the risks
According to the Australian Taxation Office (ATO), over 600,000 SMSFs hold assets exceeding $900 billion, and the expectations around compliance are only becoming more stringent. Trust structures, similarly, face heightened scrutiny around distributions, reporting accuracy, and anti-avoidance measures — especially following recent changes stemming from case law such as the Guardian AIT Pty Ltd and BBlood decisions.
Firms are now spending more time on:
- Quarterly reporting and trustee minutes
- Ensuring audit readiness and document trails
- Keeping pace with tax law interpretations
- Managing administration in legacy trust deeds
The risk is clear: failing to meet obligations doesn’t just result in penalties, it can damage long-standing client relationships.
A strategic shift: decoupling execution from oversight
Rather than viewing outsourcing as a loss of control, progressive firms are rethinking it as an operational design strategy. The goal isn’t to delegate blindly, it’s to offload volume without diminishing accountability.
At Axelo, we often recommend a tiered delivery model for SMSF and trust compliance:
| Function | Location | Oversight |
| Fund/trust administration | Offshore team | Partner-led QA |
| Initial compliance review | Offshore team | Local review layer |
| Final sign-off & advisory | Onshore team | Direct client contact |
This framework allows onshore teams to retain all client-facing control while leveraging offshore teams for process-heavy tasks like document prep, reconciliations, and data entry. It’s about doing more of what matters.
Oversight isn’t optional — it’s the differentiator
Some firms hesitate to outsource due to concerns around audit quality and regulator perception. These concerns are valid but manageable with the right model.
Leading firms institute oversight layers such as:
- Automated document control and versioning
- Workflow approvals for each compliance stage
- Detailed file notes and review logs for ATO audit readiness
- Training cadences to align offshore teams with local standards
Technology also plays a role. Cloud accounting platforms like Class and BGL, and secure client portals, allow multi-location teams to work seamlessly without compromising data integrity or visibility.
The ROI: more than cost savings
Outsourcing often begins as a cost-reduction initiative, but its long-term value lies in strategic focus.
Firms that reallocate compliance hours report:
- Greater ability to deliver value-added advisory
- Reduced deadline stress during peak lodgement periods
- Higher staff satisfaction from focusing on technical work
- Improved client retention from faster response times
By reshaping compliance delivery, firms create capacity to grow — not just survive.
Designing compliance capacity for the future
In an industry where trust and technical accuracy are paramount, compliance can’t be compromised but neither can scalability. Outsourcing SMSF and trust-account tasks is no longer a binary decision between cost and control. It’s a strategic lever, provided it’s underpinned by strong oversight, clear governance, and local accountability.
By reimagining compliance workloads, firms can deliver faster, stay audit-ready, and focus their best people where it counts most: advising clients and growing the practice.