Thursday, 25 April 2013

SMSFs – running an SMSF

In additional to managing your fund’s investments (which I discussed on 19 and 20 April), there are a number of aspects you need to consider in running an SMSF:
  • Your obligations, rules, and other requirements
  • Accepting contributions and rollovers
  • Taxation requirements
  • Paying benefits to members
  • Administration requirements
  • Compliance obligations
I’ll cover the first three today and the remaining three later in the week.

Your obligations, rules, and other requirements

As I highlighted yesterday’s post (http://www.millionaireonheels.com/2013/04/smsfs-rules.html), there are numerous rules and regulations you need to comply with in running an SMSF, including:
  • Superannuation Industry (Supervision) Act 1993 (SISA)
  • Superannuation Industry (Supervision) Regulations 1994 (SISR)
  • Income Tax Assessment Act 1997 (ITAA 1997)
  • Tax Administration Act 1953 (TAA 1953)
  • Corporations Act 2001
You also need to act in accordance with your fund’s trust deed.  And if there is a conflict between the super laws and the trust deed, the law overrides the trust deed.

The ATO publication Running a self-managed super fund (http://www.ato.gov.au/download.asp?file=/content/downloads/spr46427n11032.pdf) has a succinct summary of the rules you need to follow as a trustee of an SMSF.  Basically you need to:
  • Act honestly in all matters concerning your fund
  • Exercise skill and diligence in managing your fund