SMSF set-up is the easy part!

SMSF Administration and Reporting

An SMSF trustee(s) has obligations to prepare an annual financial report, arrange an annual audit, report the fund’s operations to the ATO through an annual return and keep appropriate records.

SMSF Record-keeping

An SMSF trustee must keep all documentation relating to financial and trustee matters, securely and in an organised manner. Good record-keeping ensures that the trustee is meeting its requirements under the superannuation laws and allows for easy preparation of annual financial report, completion of an annual audit and lodgement of SMSF annual return.

Firstly, an SMSF trustee must keep financial records of an SMSF for a minimum of 5 years, these include:

·        The financial statements, including annual statement of financial position and operating statement

·        Documentation that supports transactions and financial position of the SMSF, such as a purchase contract for an SMSF asset or an invoice that supports a capital expense.

·        Copies of the SMSF’s annual returns, along with supporting documentation of the SMSF’s income, such as dividend statements or lease agreements and of the SMSF’s expenses, such as invoices for property or investment expenses.

·        Documentation that supports any withdrawals of benefits/superannuation balances, such as rollover benefit statements, condition of release met or ATO release authorities.

·        Copies of transfer balance accounts reports lodged with the ATO.

Secondly, an SMSF trustee must keep trustee records for a minimum of 10 years, these include:

·        The SMSF’s trust deed and any amending trust deed(s)

·        The SMSF’s investment strategy and evidence of its regular review

·        Records relating to appointment or resignation of SMSF members and trustees

·        ATO Trustee Declaration form for each individual trustee or director of the corporate trustee

·        Minutes of meetings or trustee resolutions

·        Consent to act as trustee or director of corporate trustee

Appointment of an SMSF Auditor

An SMSF trustee must appoint an approved SMSF auditor no later than 45 days prior to the lodgement deadline of the SMSF annual return. A completed and signed audit report is required before you lodge the SMSF annual return and information from this report is required in the SMSF annual return.

The SMSF auditor must be registered with ASIC and independent, meaning that the SMSF auditor should not have a personal or business relationship with any of the members or trustees.

Appointment of Tax Agent and SMSF Administrator

An SMSF can appoint a tax agent/SMSF administrator to help in the preparation of the annual financial report, preparation and lodgement of the SMSF annual return and help you understand how your SMSF is taxed. They can be recorded with the ATO as your tax agent and this will enable them to undertake work on behalf of your SMSF.