If so, it is very important to ensure that your Super Fund is ATO compliant, as you can incur penalties if in breach thereof.
In order for an SMSF to be compliant the Trustee/s need to ensure and consider the following:
- The Fund must be maintained for the sole purpose of providing benefits to any or all of the following:
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- Fund members upon their retirement
- Fund members upon reaching a prescribed age
- The dependants of a Fund member in the case of a member’s death before retirement;
- The Fund has an Investment Strategy that is regularly overviewed and ensuring that all investment decisions are consistent with it;
- All Fund money and assets are held separately from money and assets held by Trustees or Directors personally or by a related employer;
- All Fund investments comply with the super laws;
- All contributions and rollovers received by the Fund are allowed under the super laws;
- All benefit payments made by the Fund have been made in accordance with super laws;
- The Trustees must not loan monies or provide financial assistance to any member or relative at any time during the financial year;
- The Trustees must not acquire any assets (not listed as an exception) from any member or related party of the Fund;
- The Trustees of the Fund must not borrow any money or maintain an existing borrowing (not listed as an exception);
- The proper and accurate records have been maintained for required time frames;
- Any changes to the SMSF’s details such as the bank account, electronic service addresses, contact details and member details are reported to the ATO;
- Residency requirements;
- Considering Member insurance needs;
- Only accepting contributions from Fund Members;
- Only making super benefit payments to Members who have met a condition of release;
- Monitoring total super balance and transfer caps;
- Administration, Reporting and Record-keeping requirements;
- Appointing a registered Auditor;
- Lodging the Fund’s Annual Return to the ATO and paying tax.
Author
Lynne Linton
