Do you have a Self Managed Super Fund (SMSF)?

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If so, it is very important to ensure that your Super Fund is ATO compliant, as you can incur penalties if in breach thereof.

In order for an SMSF to be compliant the Trustee/s need to ensure and consider the following:

  • The Fund must be maintained for the sole purpose of providing benefits to any or all of the following:
    1. Fund members upon their retirement
    2. Fund members upon reaching a prescribed age
    3. The dependants of a Fund member in the case of a member’s death before retirement;
  • The Fund has an Investment Strategy that is regularly overviewed and ensuring that all investment decisions are consistent with it;
  • All Fund money and assets are held separately from money and assets held by Trustees or Directors personally or by a related employer;
  • All Fund investments comply with the super laws;
  • All contributions and rollovers received by the Fund are allowed under the super laws;
  • All benefit payments made by the Fund have been made in accordance with super laws;
  • The Trustees must not loan monies or provide financial assistance to any member or relative at any time during the financial year;
  • The Trustees must not acquire any assets (not listed as an exception) from any member or related party of the Fund;
  • The Trustees of the Fund must not borrow any money or maintain an existing borrowing (not listed as an exception);
  • The proper and accurate records have been maintained for required time frames;
  • Any changes to the SMSF’s details such as the bank account, electronic service addresses, contact details and member details are reported to the ATO;
  • Residency requirements;
  • Considering Member insurance needs;
  • Only accepting contributions from Fund Members;
  • Only making super benefit payments to Members who have met a condition of release;
  • Monitoring total super balance and transfer caps;
  • Administration, Reporting and Record-keeping requirements;
  • Appointing a registered Auditor;
  • Lodging the Fund’s Annual Return to the ATO and paying tax.

 

Author

Lynne Linton