Trustee Obligations

For your fund to be a complying SMSF, it needs to meet several requirements in the SIS Act. Trustee can be an individual or a corporate.

For individual trustees, the following requirements apply:

  • Four or less members;
  • All members are trustees;
  • No member is an employee of another member, unless they are related;
  • For Corporate trustees, the following requirements apply:
  • Each member is a director of the company; and No member is an employee of another member, unless they are related;

Contributions

Trustee is required to ensure member is entitled to make contribution to the SMSF and has to allocate contributions to a member’s account within 28 days after the end of the month in which the contribution received.

See contributions for more details.

Pension Benefits

Trustee is required to ensure the members reach their preservation age prior to paying the benefits. Benefits can be paid as a lump sum or as an income stream.

See pension tab for more details

Investment Strategy

Trustee is required to implement an investment strategy, trustee should consider the followings when setting up an investment strategy:

  • Risk and return – Maximise member returns taking into account the risk associated with the investment;
  • Liquidity – Ensure there is enough fund to pay member benefits and other costs as and when they fall due;
  • Diversification of investment;
  • Outline the investment objectives and methods to achieve the objectives;
  • Review the strategy regularly.

There are certain investment rules, see investment restriction for more details.

Administering the SMSF

1) Each year trustee has to ensure annual return is lodged with ATO which comprises the following:

  • Income tax return;
  • Super regulatory information;
  • Member contribution statement;

2) Annual Financials has to be audited by the approved auditor;

3) Trustee has to ensure the following records are kept:

  • Trustee declaration – 10 years;
  • Minutes of trustee meetings – 10 years;
  • Records of all changes of trustees – 10 years
  • Member’s written consent to act as trustee – 10 years;
  • Copies of all reports given to members – 10 years
  • Annual financial statements – 5 years
  • Annual tax return – 5 years
  • Regulatory return – 5 years.

4) Trustee is required to notify ATO within 28 days if there is a change of the following:

  • trustees
  • directors of the corporate trustee
  • members
  • contact details (contact person, phone and fax numbers)
  • address (postal, registered or address for service of fund notices).

5) Record member’s TFN

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