A total of R131 million is available to fill the 84 slots remaining for the six franchises to complete their 19-player squads.
Two-time champions Sunrisers Eastern Cape still hold the record for the biggest auction purchase of Proteas batter Tristan Stubbs for R9.2 million in season 1.
"I think there's going to be a lot of attention on a few players," Smith told reporters. "It's going to be interesting to see how the teams and franchises go about building their squads.
"I think they understand their conditions, their home conditions and the South African player piece in particular, a lot more than in season 1.
"When you start looking at the first two or three sets that are coming up, there's some really exciting players that are going to be bid for. So, I think, absolutely, R10 million could be broken for the first time."
It is not only high-profile South African players along with the overseas internationals that could benefit from the season 4 auction with young players set to be involved.
SA20 has introduced a new under-23 category - replacing the previous rookie system- which could potentially be career-changing for an entire generation of young South African cricketers.
Smith added: "It's always about keeping the League as equally competitive as possible, putting the standard of cricket at the highest level, attracting the best international players to be alongside the best South African players and then looking at where we can tweak and improve the system for youngsters.
"I think this year for us we've moved away from the Rookie player and gone for the under-23 players and the reason for that is that we felt that we didn't want to have a turnover of a young player every year.
"We wanted them to be able to be picked up young and then developed in the system over a three-year period as well. Hopefully, that will create some consistency for youngsters; to allow them to grow and build and hopefully start playing and contributing over this cycle."
Tristan Stubbs says he is excited to have an opportunity to play and work on one format of the game as he eyes hitting prime form for the Proteas at the T20 World Cup early next year.
Thomas Kaber has rejoined MI Cape Town ahead of the fourth season of SA20 after Tabraiz Shamsi withdrew from the squad due to personal reasons.
Kane Williamson has rejoined Durban's Super Giants ahead of the fourth season of SA20, the New Zealand batter replacing Bangladesh spinner Taijul Islam, who is not available.
Jason Smith is relishing the prospect of returning to Newlands after being purchased by MI Cape Town at the player auction ahead of the fourth season of the SA20.
