Saturday, 27 April 2013

SMSFs – administration requirements

SMSF trustees have numerous administrative and compliance obligations.  At a bare minimum, you need to:
  • Appoint an approved auditor to audit the fund
  • Lodge your SMSF annual return each year
  • Pay the ATO supervisory levy
  • Lodge a rollover benefits statement when rolling any member’s benefits into other funds
  • Notify the ATO if there is any change of details for the fund (e.g., a change in trustee or members)
  • Keep comprehensive records of all the dealings of the fund
And if you choose to outsource some of the workload, you need to ensure that the professional advisors you select are up to scratch.

I’ll focus on the first five points tomorrow.  Today I’ll cover recordkeeping and professional advice.

Recordkeeping requirements

The super and tax laws require SMSF trustees to maintain adequate records to demonstrate that you have:
  • Met your tax and audit obligations
  • Operated your fund efficiently
The best records:
  • Provide an accurate history of your fund
  • Support the decisions that the trustees made on the fund’s behalf
  • Assist your SMSF auditor (and the ATO if required) in ensuring that you have complied with the super and tax laws