SMSF trust deed
It has been said if you don’t know where you are going, any road will take you there, but you don’t want the trustees of your Self Managed Super Fund wandering aimlessly. You want the guardians of your investments to have a clear destination in mind—your well funded retirement.
To get there, trustees will need solid investment options, knowledgeable investment advice and a road map. The map for SMSF is called a trust deed.
Each trust deed is somewhat unique, but the documents contain some basic components. To fully enjoy the benefits of SMSF the trust deed will explain who the trustees are, how they are appointed and what steps are needed to replace them, what power do they have, who the members can be, and guidelines for making contributions. Don’t forget the document must have the all important explanation of how and when you’ll receive benefits. The trust deed should also predetermine how the Self Managed Super will wind up.
SMSF legislation and Regulation
You may wonder, how did we get Self Managed Super Funds? They’re a result of several legislative Acts listed below. The SIS Act of 1993 places administration of SMSF rules will be handled by the Australian Tax Office (ATO). Several other government agencies are involved including The Australian Prudential Regulation Authority (APRA) and Australian Securities and Investments Commission (ASIC) also have a regulatory role.
- Superannuation Industry (Supervision) Act 1993 (‘SISA’)Superannuation Industry (Supervision) Regulations 1994
- Income Tax Assessment Act 1997, and
- Corporations Act 2001.
Annual SMSF requirements
The administrative rules require Trustees to maintain records of the Self Managed Super. They must prepare financial statements, prepare and in a timely manner lodge an annual return with the ATO. Trustees advisory role extends to appointing an approved Auditor. They must supervise review of all financial statements and determine financial year end compliance. Trustees are responsible for payment of supervisory levies and tax liability for the Self Managed Super Fund. If the trustees fail, there are penalties and fines.
SMSF record keeping
Trustees are expected to keep the record keepers for the SMSF. Some data must be stored as long as 10 years. This includes minutes of trustee meetings, and change in trustee records, or director records if the SMSF has a corporate trustee. Trustees appointed since 30 June 2007 is also required to maintain their declarations. All need written consent by members of trustee appointment along with copies of all reports to members.
There’s another group of records that must be kept for at least 5 years. This group includes accounting records with details about the SMSF’s transaction and financial position. Trustees must also have copies of annual reports lodged with the ATO and copies of any other documents lodged or provided to other super funds.
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