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Home / SMSFs / SMSF compliance

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:

Premium What are the penalties for SMSF non-compliance?

What are the penalties for SMSF non-compliance?

Premium Guide to SMSF trust deeds

Guide to SMSF trust deeds

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

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

Premium Total Superannuation Balance: When it applies and what is included

Total Superannuation Balance: When it applies and what is included

Premium SMSFs: Legacy pension relief at long last

SMSFs: Legacy pension relief at long last

Premium What are the SMSF residency requirements?

What are the SMSF residency requirements?

Premium SMSF investment rules: What every trustee should know

SMSF investment rules: What every trustee should know

Premium Guide to SMSFs and insurance

Guide to SMSFs and insurance

Premium SMSF compliance: What are trustees’ responsibilities?

SMSF compliance: What are trustees’ responsibilities?

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

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

Set out below are the latest articles that relate to smsf compliance.

PremiumWhat are the penalties for SMSF non-compliance?

What are the penalties for SMSF non-compliance?

April 13, 2022

We all make mistakes, but when it comes to your SMSF it’s important to work with the ATO to rectify mistakes or stiff penalties can apply.

PremiumLosing capacity: The issues for SMSF trustees and what you need to do

Losing capacity: The issues for SMSF trustees and what you need to do

March 15, 2022

None of us likes to think about losing mental capacity, but failure to plan for the possibility can have a major impact on the running of your SMSF and its other members.

PremiumDirector Identification Numbers: What is required for SMSFs

Director Identification Numbers: What is required for SMSFs

January 27, 2022

If you have a self-managed super fund (SMSF) with a corporate trustee, then you need to be aware of the new requirement to apply for and obtain a Director Identification Number (Director ID).

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

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

November 10, 2021

For all its complexity, super boils down to one simple goal. Lose sight of that goal, and the ATO will come knocking.

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

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

August 26, 2021

The ATO has clarified its position on non-arm’s length income and expenditure, and the cost of getting it wrong.

PremiumRunning multiple SMSFs: What are the pros and cons?

Running multiple SMSFs: What are the pros and cons?

July 1, 2021

Although it’s legal to have more than one SMSF, there are important pros and cons you need to consider before taking the plunge.

PremiumSMSFs: Legacy pension relief at long last

SMSFs: Legacy pension relief at long last

May 18, 2021

SMSF members will be able to exit old-style pensions for new if this Budget measure comes to pass.

PremiumWhat are the SMSF residency requirements?

What are the SMSF residency requirements?

May 18, 2021

Proposed changes in the 2021 Budget will level the playing field for SMSFs with members who move overseas.

PremiumHow not to get caught in the in-house asset trap

How not to get caught in the in-house asset trap

April 5, 2021

Breaking the rules regarding In-house assets can be costly, so it pays SMSF trustees to understand what they are and how to avoid costly penalties.

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

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

May 19, 2020

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.

PremiumSMSF compliance: What are trustees’ responsibilities?

SMSF compliance: What are trustees’ responsibilities?

May 1, 2020

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.

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

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

April 1, 2020

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?

Can my SMSF loan money to me or my business?

April 1, 2020

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.

PremiumWhat laws do SMSFs need to adhere to?

What laws do SMSFs need to adhere to?

March 6, 2020

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.

PremiumThe arm’s length rule for SMSFs

The arm’s length rule for SMSFs

January 16, 2020

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?

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