SMSF compliance: Rules and regulations for SMSFs

With the right partner, much of the reporting and annual admin headaches can be handled for you.

SMSF regulators

SMSFs are regulated by the Australian Taxation Office (ATO).

ASIC also regulates SMSF auditors and corporate trustee companies.

Rules SMSFs need to follow

SMSFs must comply with superannuation and tax laws, including the Superannuation Industry (Supervision) Act 1993.

If your SMSF has a corporate trustee, company law obligations also apply.

As a trustee, you’re legally responsible for ensuring the fund stays compliant, even if you use an administrator to help.

SMSF compliance tasks

SMSF compliance includes a range of annual tasks, including:

• Reconciling transactions

• Preparing annual accounts and member statements

• Arranging an independent audit

• Preparing and lodging the SMSF annual return

• Reviewing the fund’s investment strategy

• Monitoring contribution caps

• Keeping proper records

• Ensuring assets are held correctly

• Valuing certain assets, such as property or unlisted investments

Sole purpose test

The sole purpose test means your SMSF must be run for members’ retirement benefits.

SMSF money generally can’t be used to provide personal benefits before a member meets a condition of release.

Meeting the sole purpose test is essential for keeping the fund compliant and retaining access to super tax concessions.

What happens if an SMSF doesn’t comply

The ATO can take action if an SMSF breaches the rules.

This may include:

• Requiring trustees to complete education

• Directing trustees to fix the breach

• Issuing administrative penalties

• Disqualifying trustees

• Making the fund non-complying in serious cases

It’s best to address issues early and seek professional help if you’re unsure.

How Stake Super helps with compliance

Stake Super helps reduce the admin load off SMSF trustees.

We help with annual accounts, audit coordination, tax return preparation, lodgement and ongoing admin. This makes it easier for you to stay on top of your SMSF obligations.

You stay in control. We help with the paperwork.

Take the stress out of SMSF admin

Stay across your SMSF admin without handling the monotonous paperwork all yourself.

Get started online today or speak to a Stake Super specialist.

Ciara Conway

Commercial Manager - Stake Super

Ciara is a Commercial Manager at Stake Super, with over 10 years of experience in the SMSF industry and an MA in Accountancy and Finance from Heriot-Watt University in Edinburgh, United Kingdom. Having previously worked at a chartered accounting firm and one of the largest SMSF administrators in Australia, Ciara has extensive knowledge of SMSF compliance. She is also a current member of the SMSF Association.