Responsibilities of SMSF trustees

Being involved in Self-Managed Super Fund (SMSF) allows the members and the trustee to be take control of their retirement funds and manage it for their own benefits.

Generally, being the trustee of an SMSF is accompanied with many responsibilities.

To ensure your SMSF and retirement funds are running under a compliant model, you are encouraged as a trustee to constantly review and update the SMSF’s investment strategy to ensure an adequate level of funds at retirement.

A financial adviser can assist you to help you manage your retirement and support the sole purpose test.

Regulations imposed on SMSFs by auditors and by extension the ATO include the requirement that asset values must be constantly evaluated and must reflect true market value. Property holders within an SMSF must revalue their property every year.

This is important as it will allow a true and fair view of your SMSF’s position each year, allowing it to be reported to the ATO.

The ATO encourages SMSF trustees to enrol and complete a program/course that enhance their understanding of their obligations and requirements. We strongly suggest that an SMSF Trustee completes the program if they have not already done so.

Please see end of this article for links.

As an SMSF trustee, you are ultimately responsible for running your SMSF. It is important you understand your duties, responsibilities and obligations. As a trustee of an SMSF, you
need to act according to the following regulations:

  • Your fund’s trust deed;
  • The provisions of super law, including:
    • Superannuation Industry (Supervision) Act 1993 (SISA);
    • Superannuation Industry (Supervision) Regulations 1994 (SISR);
  • The Income Tax Assessment Act 1997 (ITAA 1997);
  • The Tax Administration Act 1953 (TAA 1953);
  • The Corporations Act 2001; and
  • Other general rules, such as those imposed under other tax and trust law.

The above regulations include the requirement to:

  • Act honestly in all matters concerning your fund.
  • Exercise skill and diligence in managing your fund.
  • Act in the best interest of all members at all times.
  • Keep the money and assets of your fund separate from other money and assets (for
    example, your personal assets).
  • Retain control over your fund.
  • Develop, implement and regularly review an investment strategy.
  • Consider if the fund should hold insurance cover for its members.
  • Do not enter into contracts or behave in a way that hinders you or other trustees from performing or exercising functions or powers.
  • Do not access or allow others to access funds early.

Please note that, failure to comply with trustee obligations under superannuation taxation laws can have significant penalties such as loss of tax concessions.

If you have any further questions, call our reception on 02 9707 4470 and book in an appointment with either a financial planner or accountant to help you maintain, update and manage your SMSF in a way that complies with current regulations whilst at the same time beneficial to your retirement funds.

Simaco Partners and associated entities

Accountants, Tax Agents, Financial Planners and Mortgage Brokers

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Note: the above is current as at the date of this article and is of a general nature only and should not be relied upon. Please consider the above against your personal circumstances and if you have any questions, contact our office.
Simaco Financial Advice is the trading name of Direct Financial Advice Pty Ltd which is the trustee of the Simaco Financial Advice Unit Trust ABN 91 753 408 234. This company and Stephen George Nikolovski are Authorised Representatives of Lifespan Financial Planning Pty Ltd ABN 23 065 921 735 Australian Financial Services Licence 229892. Stephen Nikolovski is an accredited broker and operates through Simaco Finance, the trading name of Direct Finance Solutions Pty Ltd. Stephen George Nikolovski is a MFAA Approved Broker (number 386328) and is a credit representative (number 500383) of BLSSA Pty Ltd, ACN 117 651 760 (Australian Credit License 391237). Disclaimer: The above is merely general commentary and is not a statement of fact or assertion of expected outcomes. It does not consider your personal circumstances. Please consider whether any proposed credit contract and what structure of loan (e.g. fixed or variable etc.) is appropriate for you and read any relevant disclosure statements and/or speak to an appropriately qualified legal professional / seek financial advice before proceeding with any course of action. If you wish to discuss your personal circumstances further, please again feel free to contact this office.
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