Once again you demonstrate the dangers of little knowledge. You...

Once again you demonstrate the dangers of little knowledge. You don’t seem to realise what the audit of an SMSF involves. One aspect is confirmation from the auditors that the fund is fully compliant with all the regulations, and that thus there are no issues to report. Which isn’t a surprise, because I read the Act and Regulations to try to ensure that it was compliant, rather than relying on Google for what’s required.

Also note that a cash fund is not the same as a cash account. Cash funds can include bonds, for example, which can incur losses or profits on the capital.

We agree on one point, that an SMSF probably isn’t a good idea if you’ve only got cash invested. Best of luck with your investing too, but just remember that if the Govt say they’ve got a great idea for your best interests - they’re almost certainly lying.