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
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.
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
What happens to your SMSF when you go overseas?
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.It’s important for ... Read more
SMSF housekeeping: Trustee checklist for 2019/2020
The past few years have seen SMSF trustees kept busy implementing numerous legislative modifications to the super system, plus the major reform package commencing on 1 July 2017. Unfortunately, this financial year seems unlikely to be any different.With the new Morrison Government announcing plans for yet another ... Read more
How much super do you need to set up an SMSF?
How much super you need to set up an SMSF is very contentious issue. It has been the subject of considerable analysis from the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC) and the Productivity Commission. However, there are still no clear answers. In this article, we’ll ... Read more
SMSF compliance: A guide to trustee responsibilities
Self-managed super funds (SMSFs) are privately run superannuation trust structures that are managed by trustees. All of the members of an SMSF must be either an individual trustee of their fund, or a director of the corporate trustee of the fund (if the SMSF has been set up with a corporate trustee structure).All ... Read more
Guide to SMSF audits
Self-managed super fund (SMSF) audits are mandatory in Australia and must be conducted by an auditor who is registered with the Australian Securities and Investments Commission (ASIC). This auditor must be independent (i.e. not have any financial interest in the SMSF, nor have any personal or business relationships ... Read more
Making SMSF decisions at different life stages
Self-managed super funds (SMSFs) are not a set-and-forget proposition. They require constant tweaking at different life stages to ensure they still suit members’ retirement needs. Here, we explore some of the factors trustees should consider as members progress through their lives. Winding up a fund Decisions to wind ... Read more
Your SMSF financial year calendar
SMSF trustees have a lot to remember. Along with trustee meetings and minutes, trustees need to keep up to date with current superannuation legislation and review their investments regularly. There are annual returns to lodge, auditor reports to arrange and actuarial reports to book as well if your SMSF is paying a ... Read more
Quiz: SMSFs for beginners
Take the following 10 question quiz to test your knowledge on the fundamentals of self-managed super funds (SMSFs).Don't worry if you don’t know the answer to a question. Have a go anyway and we’ll let you know the correct answer, as well as providing you with a link to a relevant article.Note: When you pick an ... Read more
Real DIY SMSF: The ways that SMSFs can be ultra low-cost
Self-managed superannuation funds are often referred to as do it yourself funds or DIY Super. But how DIY can they really get? It it even possible to do everything yourself and if you were, how significant would the savings be?If you are seeking to start up and run an SMSF for the lowest cost possible you will have ... Read more
What are typical fees and costs for running an SMSF?
Many SMSF investors are in the dark about what are typical SMSF fees, and whether they are paying a fair price for SMSF advice and services.In an ASIC report from June 2018, 32% of SMSF members found setting up and running their SMSF to be more costly than expected, compared with just 9% of SMSF members who found it ... Read more
SMSFs: How to start a pension
One of the benefits of having a self-managed superannuation fund (SMSF) is its ability to pay members an income stream, or account-based pension. Of course any superannuation fund can do this, but paying a pension from an SMSF offers members more control and flexibility. The trustee can decide what assets will be ... Read more