As a trustee for a self managed super fund, your duties and responsibilities include:
- making sure the fund’s sole purpose is to pay retirement benefits to members
- accepting contributions and paying benefits (pension and lump sum) according to the super and tax laws
- making investment decisions and complying with any restrictions
- ensuring an approved auditor is appointed for each income year
- completing administrative tasks, such as lodging annual returns and record-keeping
- reviewing and updating the super fund’s trust deed and investment strategy
include any of the following:
- trustees
- directors of the corporate trustees
- members
- contact details (contact person, phone and fax numbers)
- address (postal, registered or address for service of super fund notices)
- impose administrative penalties
- make an agreement with you to rectify the problem
- make your super fund non complying (which means your super fund loses its tax concessions)
- disqualify you as a trustee
- prosecute in the most serious of cases.
Investing your fund’s money
Being a trustee of an SMSF gives you more flexibility when it comes to investing your super fund’s money. Unlike some other super funds, you can choose the investments for your fund, so long as you invest according to the following:
- the super fund’s trust deed
- the investment strategy
- the super laws
For example, unless an exception applies, trustees generally can’t:
- lend the fund’s money or provide financial assistance to members and their relatives
- acquire assets from related parties of the fund including – fund members and their associates – all the fund’s standard employer-sponsors and their associates
- borrow money on the super fund’s behalf (certain instalment warrant arrangements are allowed) lend to, invest in or lease to a related party of the fund (including related trusts), more than 5% of the fund’s total assets
- enter into investments on the fund’s behalf that are not made or maintained on an arm’s length (commercial) basis
You need to appoint an approved auditor to audit the super fund each year. An approved auditor will:
- examine your fund’s financial statements
- assess your overall compliance with the super laws.
Once the approved auditor has completed your super fund’s audit, they will provide you with the following:
- an audit report
- a management letter, which summarises the findings of the audit and any action taken or proposed by the trustees
The auditor will also notify the ATO if one of the following occurs:
- find you’ve breached certain super laws
- have concerns about your fund’s financial position.
Your annual responsibilities
As a trustee there are some things you need to do each year under the super and tax laws. There are also some things you need to do to make sure your super fund complies with the law and it operates effectively.
Use the following checklist each year to make sure you meet your annual responsibilities.