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Home / SMSFs / SMSF administration / SMSF annual admin checklist

SMSF annual admin checklist

April 22, 2020 by Penny Pryor Leave a Comment

Reading time: 4 minutes

On this page

  • 1. Review investment strategy and document it
  • 2. Hold regular trustee meetings and keep trustee minutes
  • 3. Keep all documents for the required timeframe
  • 4. Do the accounts and prepare annual return
  • 5. Appoint an auditor
  • 6. Get an actuarial certificate if required
  • 7. Make transfer balance reports for members if necessary
  • 8. Make minimum pensions payments for the year if member in pension phase

Trustees have a lot on their to-do list, not least of which is to keep on top of administration. But remembering to keep up to date with paperwork and other requirements is an important legal responsibility for an SMSF trustee.

We know life often gets in the way, so we’ve created a checklist to help you make sure there isn’t anything you’ve forgotten. 


You can download and print the checklist and keep it as a regular reminder of what needs to be done, and tick off each task as you get to it.

Download

Continue reading for explanations of each item on the list.

1. Review investment strategy and document it

The ATO requires you to review your investment strategy at least once a year and we think it’s a good idea to give it a once over at least twice a year. You need to check things like whether or not your objectives are still current; whether all members are still happy with asset allocations and if you’re considering other types of investments – such as property – why you think they will help retirement outcomes of members.

You can find our SMSF health checklist here.

2. Hold regular trustee meetings and keep trustee minutes

If there is more than one member of your fund you need to hold trustee meetings around each major decision you make for your fund at least once a year when doing the fund’s accounts. You still need to have regular meetings for single member funds (and you may need to have non-member trustees or directors of trustee companies present depending on your trust deed).

You don’t have to talk to yourself in these single person meetings but you do need to keep a minute around each major decision you make for the fund (see our article on trustee minutes here and keep them for at least ten years.

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3. Keep all documents for the required timeframe

The Australian Taxation Office is quite specific around keeping documents for at least five years, and in many cases ten years, depending on the type of document (see below). If at any point your fund is audited you are going to want to have the relevant documents to back up your decisions and choices.

You need to keep the following records for a minimum of five years:


  • Accurate and accessible accounting records that explain the transactions and financial position of your SMSF
  • An annual operating statement and an annual statement of your SMSF’s financial position
  • Copies of all SMSF annual returns lodged
  • Copies of transfer balance account reports lodged
  • Copies of any other statements you are required to lodge with us or provide to other super funds.

You need to keep the following records for a minimum of ten years:


  • Minutes of trustee meetings and decisions (if matters affecting your fund were discussed, for example you reviewed the fund’s investment strategy)
  • Records of all changes of trustees
  • Trustee declarations recognising the obligations and responsibilities for any trustee, or director of a corporate trustee, appointed after 30 June 2007
  • Members’ written consent to be appointed as trustees
  • Copies of all reports given to members
  • Documented decisions about storage of collectables and personal use assets.

4. Do the accounts and prepare annual return

You need to do your fund’s accounts and lodge your SMSF’s annual return each year. You may use an accountant for this but ultimately, as trustee, it will be your responsibility if anything is incorrect, so examine documents prepared for your fund carefully. For your annual returns, you will need your assets valued as at 30 June each year.

For listed assets, such as equities, this will be reasonably easy but for other assets, such as property (if you feel the value has changed materially in the last 12 months), you may need to get an independent valuation. You also need to pay the annual supervisory levy when you lodge your annual return.

5. Appoint an auditor

You need to appoint an independent auditor at least 45 days before your fund’s annual return is required to be lodged with the ATO. You also need to take on board any suggestions the auditor makes about your fund.

The auditor will put together a report and are required to return that to you within 28 days of receiving all documentation required to audit your fund. Auditors are also required to report any breaches to the ATO.

Learn more in our guide to SMSF audits.

6. Get an actuarial certificate if required

If your fund has both members in pension and accumulation you may need an actuarial certificate as part of your annual accounts. You will always need the certificate when a member first starts up a pension and there are other members in accumulation phase.

If your actuary is using the proportionate method to calculate the fund’s exempt current pension income, you will need a certificate annually.

Learn more about actuarial certificates.

7. Make transfer balance reports for members if necessary

A relatively new requirement for SMSF trustees is to make transfer balance reports whenever a transfer balance event occurs, if there are members in retirement phase. This is because there is now a limit on how much can be supporting a pension and for which income is tax-free.

The kind of events the ATO wants reported are basically anything that could impact the balance and are detailed in our guide to TBAR.

The frequency of the reports will depend on the balance of the SMSF. If total member balances are less than $1 million, reports only need to be made annually with the fund’s tax return. However, for funds with member balances of more than $1 million, reporting must be done within 28 days of the end of the quarter the event occurred in.

8. Make minimum pensions payments for the year if member in pension phase

It’s also important you make the minimum required pension payment each year if you have members in pension phase. The percentage will depend on your age, as per the ATO’s table below. There is no requirement as to when or how often you make the payment, just that you need to do it by the end of the financial year.

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Note: On 22 March 2020 the federal government announced that the minimum pension drawdown rates would be halved for the 2019/20 and 2020/21 financial years. The rates below show the temporary rates for 2019/20 and 2020/21, and the normal rates for preceding years.


Age of beneficiaryTemporary percentage factor
(2019/20 and 2020/21)
Normal percentage factor
(2013/14 to 2018/19)
Under 652%4%
65 to 742.5%5%
75 to 793%6%
80 to 843.5%7%
85 to 894.5%9%
90 to 945.5%11%
95 or more7%14%

Source: SIS Act

Learn more about SMSF pensions.

The bottom line

Ultimately there are significant penalties for SMSF trustees if you fail to comply with all your administration requirements, so we hope this checklist serves as a useful tool to make sure you stay on top of the law.

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Learn more about SMSF administration in the following SuperGuide articles:

Your SMSF calendar

January 4, 2021

What you need to know about six member SMSFs

December 1, 2020

SMSF trustee housekeeping checklist for 2020/21

June 29, 2020

Guide to the ATO SMSF supervisory levy

June 1, 2020

The SMSF trustee declaration explained

June 1, 2020

Guide to SMSF trust deeds

June 1, 2020

Top 5 mistakes SMSF trustees make with their annual returns

April 22, 2020

Guide to SMSF administration, reporting and record-keeping

January 1, 2020

SMSFs: What advice can your accountant provide?

December 14, 2019

How to wind up an SMSF

December 4, 2019

How to set up an SMSF correctly

December 3, 2019

How to record SMSF minutes

November 3, 2019

Guide to SMSF audits

June 14, 2019

Real DIY super: Ways that SMSFs can be ultra low-cost

May 2, 2019

Estate planning, super and SMSFs: Getting your house in order

February 11, 2019

Learn more about SMSF checklists in the following SuperGuide articles:

Your SMSF calendar

January 4, 2021

SMSF trustee housekeeping checklist for 2020/21

June 29, 2020

Starting an SMSF pension checklist

March 23, 2020

SMSF investment strategy health checklist

February 14, 2020

SMSF trustee meeting event checklist

February 13, 2020

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SMSF administration SMSFs

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SMSF checklists

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All information on SuperGuide is general in nature only and does not take into account your personal objectives, financial situation or needs.

You should consider whether any information on SuperGuide is appropriate to you before acting on it.

If SuperGuide refers to a financial product you should obtain the relevant product disclosure statement (PDS) or seek personal financial advice before making any investment decisions.

Learn more

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