SMSF Admin Info

Completing your SMSF annual administration
A key element of being a trustee of a SMSF is the regulatory requirement to keep accurate accounting records and explain the transactions and financial position of your SMSF each year.

This is to ensure that you have complied with the rules of the SIS Act, and that you can remain a "complying" superannuation fund, and continue to enjoy the tax concessions of superannuation.

 

The keeping of records generally includes:

- An annual operating statement, and a statement of the financial position of your SMSF, which must be kept for at least 5 years.

 

- Accurate and accessible accounting records explaining the financial position and transactions of your SMSF, which must be kept for at least 5 years.


- A statement of the net assets of the fund and any changes to the net assets of the fund during that period

 

- Trustee documents, such as the minutes of trustee meetings and decisions, change of trustee records, trustee declarations of understanding of duties and solvency, and consent to be appointed as a trustee, which all must be kept for at least 10 years.

 

- All copies of annual returns that have been lodged with the ATO, which must be kept for at least 10 years.

 

- All copies of any reports given to members, which must be kept for at least 10 years.

 

Further to this is the requirement to lodge annual income tax and superannuation regulatory information with the ATO, via the "Fund income tax and regulatory return", and to have the Fund independantly audited each year.

There are a few ways in which you, as trustee, can accomplish this, either:

 

- use a personal accountant

- use a SMSF administration company

- do it all yourself

 

Very few trustees do it themselves (unless your an accountant) given what's involved, although there are a few software packages out there that cater to DIY admin, with most trustees either using a personal accountant, or a specialist SMSF administration company. For those who use a financial planner, the planner generally outsource's to an accountant or SMSF administration company.

 

Now, whilst this all sounds fairly straight forward, there is actually some significant differences in how SMSF admin can be completed, and there are a number of things for you to be aware of to make sure you are with an administrator that fits how you run your fund. See our next page Important items to note on SMSF admin.

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