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Superannuation and retirement planning information

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Home / SMSFs / SMSF compliance

SMSF compliance

Self-managed super funds (SMSFs) must comply with Australian superannuation legislation to be eligible for tax concessions. All super funds (including SMSFs) must be set up for the sole purpose of providing retirement benefits to members (or their dependants if fund members die before retiring). This objective should be outlined in the fund’s trust deed.

Fund trustees are responsible for ensuring that their fund passes the sole purpose test and that it complies with other superannuation legislative obligations, such as:

  • residency requirements,
  • developing an investment strategy and ensuring that all investment decisions are consistent with it,
  • 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, and
  • lodging the fund’s annual return to the Australian Taxation Office (ATO) and paying tax.

The ATO can impose a range of penalties on SMSF trustees who fail to meet their compliance obligations, depending on the severity of the non-compliance. It may be worthwhile for some trustees to obtain professional advice to help ensure their legal compliance.

Learn about the key aspects of SMSF compliance in the following SuperGuide articles:

Guide to SMSFs and insurance

January 14, 2021

What are the SMSF residency requirements?

June 1, 2020

Guide to SMSF trust deeds

June 1, 2020

SMSF compliance: What are trustees’ responsibilities?

May 1, 2020

SMSFs: What to do if you get a breach notification from the ATO

April 1, 2020

What is the sole purpose test, and how does it work?

December 1, 2019

Total Superannuation Balance: When it applies and what is included

May 7, 2019

SMSF investment rules: What every trustee should know

February 15, 2019

Set out below are all SuperGuide articles that relate to SMSF compliance.

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What are the SMSF residency requirements?

June 1, 2020 by Barbara Drury Leave a Comment

SMSFs must pass residency requirements at all time to be eligible for the tax concessions that are available under Australian superannuation legislation.

SMSF Q&As with the ATO: COVID-19 special

May 19, 2020 by SuperGuide Leave a Comment

Dana Fleming, Assistant Commissioner of the SMSF Segment at the ATO, provides useful insights for SMSF trustees about current issues such as the early release of super process, providing rental concessions for tenants and the change to the minimum pension drawdown rates.

SMSF compliance: What are trustees’ responsibilities?

May 1, 2020 by Barbara Drury Leave a Comment

SMSF trustees are legally obliged to ensure their fund’s compliance with superannuation legislation in Australia. The ATO imposes a range of penalties for non-compliance, depending on the seriousness of the breach.

SMSFs: What to do if you get a breach notification from the ATO

April 1, 2020 by Penny Pryor Leave a Comment

Working with the ATO might be the best course of action if your SMSF receives a breach notice.

Can my SMSF loan money to me or my business?

April 1, 2020 by Kris Kitto Leave a Comment

There are a number of ways of legally accessing super early via an SMSF. These strategies are useful in times of economic disruption such as the current disruption relating to the coronavirus pandemic.

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What laws do SMSFs need to adhere to?

March 6, 2020 by Penny Pryor Leave a Comment

SMSF trustees have a lot of laws they need to be aware of if they don’t want to cop a thousand-dollar fine. Here, we go over the main Acts that mention superannuation and SMSFs.

What SMSF trustees need to know about non-arm’s length expenditure (NALE)

February 1, 2020 by Penny Pryor Leave a Comment

Trustees who conduct services for their fund for free could find the income of their SMSFs is taxed at a much higher rate under proposed changes to the interpretation of NALE.

The arm’s length rule for SMSFs

January 16, 2020 by Barbara Drury Leave a Comment

The concept of ‘arm’s length’ is familiar to businesses the world over. To ensure business transactions are conducted at commercial market values buyers and sellers must act independently, without colluding and without one party influencing the other. So how does this concept apply to your SMSF?

What are the penalties for SMSF non-compliance?

January 1, 2020 by Barbara Drury Leave a Comment

It’s a rare person who enjoys paperwork. But for trustees of a self-managed super fund, it’s a necessary evil. Find out what penalties apply if your fund isn’t set up and managed to comply with superannuation and taxation legislation.

SMSFs: What advice can your accountant provide?

December 14, 2019 by Janine Mace 6 Comments

While many SMSF trustees turn to their accountant for assistance, they can only provide advice on some SMSF-related matters. To help SMSF trustees navigate this tricky area we’ve compiled a checklist to help you work out if your accountant is the right person to ask for help.

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What is the sole purpose test, and how does it work?

December 1, 2019 by Barbara Drury Leave a Comment

All super funds (including SMSFs) must satisfy the sole purpose test to be eligible to receive the tax concessions available under Australian superannuation legislation. We take a look at how the sole purpose test is administered and how you can ensure your SMSF meets the requirements.

What happens to your SMSF when you go overseas?

July 12, 2019 by Alexandra Cain Leave a Comment

Self-managed super fund (SMSF) members have a number of options in terms of how to treat their fund when they head overseas. The time they intend to be away is a key factor to consider, as is how many of the SMSF’s members are moving overseas and their percentage of the beneficial interests.

Is it possible to have two SMSFs at the same time?

February 5, 2019 by SuperGuide Leave a Comment

Australian super legislation allows you to establish and run a second SMSF, but it’s important to understand the potential for downsides as well as benefits.

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How super works
Super for beginners
Super rules
Employers guide to super
Super contributions
Super and tax
Accessing super
Super news
Women and super
Super tips and strategies
How-to guides
Super quizzes
Superannuation Q&As
Superannuation glossary
Super funds
Best performing super funds
Super fund rankings
Best performing pension funds
Pension fund rankings
Super fund average returns
Super investing strategies
Comparing super funds
Choosing a super fund
Choosing an investment option
Super fund fees
Insurance and super
Super fund profiles
SMSFs
SMSFs for beginners
SMSF administration
SMSF checklists
SMSF compliance
SMSF investing
SMSF pensions
SMSF strategies
SMSF Q&As
Plan your retirement
Retirement planning for beginners
When should I retire?
How long will I live?
How much super do I need?
Will I get the Age Pension?
How much will I spend in retirement?
Financial advice
Retiring overseas
Preparing for retirement
Retirement planning strategies
Retirement calculators and reckoners
In retirement
Income in retirement
Super lump sums
Super pensions
Age Pension
Working in retirement
Life in retirement
Senior concessions and services
Aged care
Estate planning
Super death benefits
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