As the name implies, an SMSF (also known as DIY super) is a private super fund that you manage yourself. So it’s no surprise that control is the number one reason people give when asked why they chose to fly solo. SMSFs give their members control over how their retirement savings are invested. Other reasons for ... Read more
SMSF administration
SMSF trustees have a number of administrative obligations to ensure their fund’s compliance with superannuation legislation, including:
- signing and submitting their trustee declaration to the ATO when the fund is set up to indicate they are aware of all their responsibilities,
- ensuring the fund is set up with a trust deed,
- appointing an independent auditor who is licensed by ASIC,
- valuing fund assets at market value,
- paying the ATO supervisory levy,
- event-based reporting,
- reporting any fund member or trustee changes, and
- maintaining general and financial fund records.
The ATO can impose a range of penalties on SMSF trustees who fail to meet their administrative obligations, depending on the severity of the non-compliance. It may be worthwhile for some trustees to obtain professional advice to help ensure their administrative compliance.
Learn about the key aspects about SMSF administration in the following SuperGuide articles:
Set out below are all SuperGuide articles that relate to SMSF administration.
How to wind up an SMSF
There are many reasons why you might choose to wind up your self-managed superannuation fund (SMSF) – you’ve retired and you’re not taking a pension, you don’t have the time to manage it efficiently anymore, or a trustee might have passed away – but, just like starting a SMSF, there is a proper process to go ... Read more
What is the sole purpose test, and how does it work?
As superannuation goes under the microscope once again in the government’s Retirement Income Review, it’s worth pausing to reflect on the reason super exists. At the heart of all the super rules is the sole purpose test. All super funds must satisfy the sole purpose test to be eligible to receive the tax concessions ... Read more
How much time does it really take to run an SMSF… and what are the real costs?
There’s a fight happening in the self-managed super fund (SMSF) sector as industry stalwarts question figures published by the Australian Securities and Investments Commission (ASIC) that suggest it costs $13,900 a year to run a DIY fund. The SMSF Association (SMSFA) asked SMSF administrators BGL and Class to crunch ... Read more
Can you be your own accountant for your SMSF?
Many readers of SuperGuide like to manage as much of their self-managed superannuation fund (SMSF) themselves as possible. We’ve written before about how to find low-cost services but if you’ve got a head for numbers and accounting you might be able to go one step further. Just like you don’t need an accountant to ... Read more
Guide to SMSFs and insurance
If you’ve elected to run your own SMSF, chances are you’ve also taken a proactive and responsible approach to insurance. Regardless of whether you already have life insurance outside super or in a pre-existing super fund, when you start an SMSF you need to jump through a few hoops regarding your insurance ... Read more
How to record SMSF minutes
Part of the responsibilities of being a trustee for your self-managed superannuation fund include taking and keeping trustee minutes that keep a record of all major decisions made by the fund. So, what exactly needs to be minuted and what should it look like? Minutes and resolutions Like most minutes at any kind of ... Read more
SMSF options: Should you remain invested or wind it up?
Running a self-managed super fund (SMSF) isn’t for the faint-hearted. Sometimes, an SMSF may make sense at one point, only to find it’s not the best option down the track. For instance, the flexibility an SMSF offers in terms of the types of investments it can hold may be valuable if you once ran your own business and ... Read more
What happens to an SMSF in the event of divorce?
The breakdown of a marriage has wide-sweeping financial implications, including for the members of a DIY fund. We look at what needs to happen if assets are to be split. ... Read more
The advantages of using MDAs in an SMSF
Managed discretionary accounts (MDAs) have become an increasingly popular option for self-managed super fund (SMSF) investors. This is because, unlike managed funds, the SMSF members remain the beneficial owners of the underlying assets in the structure. They also offer considerable tax benefits. There are lots of ... Read more
Find out about the new contribution rules that help bump up SMSF balances and reduce tax
New rules mean self-managed super fund (SMSF) members can make additional contributions to their SMSF, which can bump up their balance and at the same time offset their tax bill. There are two contribution strategies that could provide SMSF members with up to $50,000 in deductions against their income in a financial ... Read more
How do the ipso facto rules apply to SMSFs?
Australia’s ipso facto laws have changed. This has relevance for self-managed super fund (SMSF) trustees. In simple terms, the ipso facto provisions relate to what happens when one of the parties that are signatory to a contract goes into administration or similar. DBA Lawyer Joseph Cheung explains changes to the law ... Read more
Single touch payroll (STP): What are the implications for SMSF trustees?
Single touch payroll (STP) reporting is a streamlined way for employers to provide the Australian Taxation Office (ATO) with payroll information, that is, pay as you go (PAYG) withholding and superannuation guarantee information. The STP reporting regime was introduced as an integrity measure to hold employers ... Read more
What to do if a member wants to leave an SMSF
Self-managed superannuation funds (SMSFs) offer members lots of benefits, including a great degree of control over investments and some tax advantages. Many members love them, however some also realise after a number of years that maybe an SMSF isn’t the right superannuation solution for them. Getting closure There’s a ... Read more
Legal case a lesson in proper SMSF admin and record keeping
A recent court case, known as the Narumon case, demonstrates how important it is for self-managed super fund (SMSF) trustees to ensure their documentation is up-to-date, and that binding death benefit nominations are valid. Power of attorney The case involved the SMSF of one Mr Giles, deceased, and a company of which ... Read more