SMSF Toolkit
Clicking on the links or videos below will take you to a variety of resources that we have compiled to assist you with either a) your decision to go into a SMSF or b) what you need to be aware of in managing your fund.
Should you wish to speak with one of our SMSF Specialists, please call John Tsolakis on 02 9410 6999 or email john@trumans.com.au
Seven things you need to know about Self-Managed Super FundsThe Benefits of a Self Manged Superannuation Fund7 Key Reasons to Have a Corprate Trustee in Your SMSF |
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Setting up your SMSFWhat are the key steps to take in setting up an SMSF?
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Can I do it all myself?No - watch this video to find out why not
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Annual obligationsThere are important obligations to be met before your annual return can be lodged.
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Developing your investment strategyHaving an investment strategy is a requirement under the superannuation laws.
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Want to buy property in your super?
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What type of property can a Self-Managed Super Fund buy?
You can use your SMSF to buy residential or commercial property. However, any property held by your SMSF must meet the sole-purpose test of providing retirement benefits to fund members, or a benefit to their dependants if a member dies before retirement. Residential property There is nothing to stop an SMSF from investing in residential property as long as you don’t buy the property from a related party of a member. For example, you can’t own the family home through your super fund. Nor can you rent a residential property owned by your SMSF to a fund member, or to their related parties. However, you can buy an investment property that you rent to tenants who are not fund members or relatives. Commercial property You can also hold commercial property, including your own business premises, through your SMSF. While the property still needs to meet the sole-purpose test of providing retirement benefits to its members, when dealing with commercial property, an SMSF can generally buy the property and lease it back to a member or a related party of the fund – including the member’s business. An arm’s length sale price and lease arrangement is especially important when acquiring and/or leasing property to a member or related party of the fund. |
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Legislation and RegulationsSome explanations to assist trustees with the meaning of important parts of the legislation and regulations. |
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Explanation |
Section or
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| The fund must meet the definition of an SMSF | S17A |
| The trustees must keep and maintain accouting records for a minimum of five years | S35AE |
| The trustees must prepare, sign and retain accounts and statements | S35B |
| The trustees must provide the auditor with the necessary documents to complete the audit in a timely and professional manner; and within 14 days of a written request from the auditor | S35(C)(2) |
| The trustee / director of a corporate trustee must not enter into a contract that would prevent / hinder them from exercising the powers of a trustee / corporate trustee | S52B(2)(e) |
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The fund must be maintained for the sole purpose of providing benefits to any or all of the following:
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S62 |
| The trustees must not loan monies or provide financial assistance to any member or relative at any time during the finacial year | S65 |
| The trustees must not acquire any assets (not listed as an exemption) from any member or related party of the fund | S66 |
| The trustees of the fund must not borrow any money or maintain existing borrowing (not listed as an exemption) | S67 |
| The fund must comply with the limited recourse borrowing arrangement rules when borrowing to purchase single acquirable asset or replacement assets (not listed as an exception of the borrowing rules) | S67A - 67B |
| The trustees must comply with the in-house asset rules (these relate to transactions of any kind with a related party of the fund) | S69-71E |
| The trustees must comply with the rules relating to the valuation of in-house assets (arms-length market value) | S73-75 |
| The trustees must comply with the in-house asset rules | S80-85 |
| The trustees must keep minutes of all meetings and retain the minutes for a minimum of 10 years | S103 |
| Trustees who became a trustee on or after 1 July 2007 must sign and retain a trustee declaration | S104A |
| All investment transactions must be made and maintained at arms- length – that is, purchase, sale price and income from an asset reflects a true market value/rate of return | S109 |
| A disqualified person cannot be a trustee, investment manager or custodian of a superannuation fund | S126K |
| Pension payments must be made at least annually, and must be at least the amount calculated under Schedule 7 of the compliance report | Sub Reg 1.06 (9A) |
| Trustees must formulate, regularly review and give effect to an investment strategy for the fund | Reg 4.09 |
| The assets of the SMSF must be held separately from any assets held by the trustee personally or by a standard employer sponsor or an associate of the standard employer sponsor | Reg 4.09A & S52B(2)(d) |
| Investment returns must be allocated to members in a manner that is fair and reasonable | Reg 5.03 |
| Member minimum benefits must be maintained in the fund until transferred, rolled over, allotted (to the member’s spouse) or cashed out in a permitted fashion | Reg 5.08 |
| Payments of member benefits must be made in accordance with Part 6 or Part 7A of the regulations and be permitted by the trust deed | Reg 6.17 |
| Contributions can only be accepted in accordance with the applicable rules for the year being audited | Reg 7.04 |
| When preparing accounts and statements required by subsection 35B(1) of SISA, an asset must be valued at its market value | Reg 8.02B |
| Trustees must not recognise an assignment of a super interest of a member or beneficiary | Reg 13.12 |
| Trustees must not recognise a charge over or in relation to a member’s benefits | Reg 13.13 |
| Trustees must not give a charge over, or in relation to, an asset of the fund | Reg 13.14 |
| Investments in collectables and personal use assets must be maintained in accordance with prescribed rules | Reg 13.18AA |
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Event-based reporting mistakes lead to more SMSF audits
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Penalty interest can be deductible, under specific conditions
... and more
Check out our SMSF Toolkit here
