Ongoing Management
Once an SMSF is established the ongoing tasks commence. The number of tasks required
will depend on the circumstances of the fund, however there are certain tasks that must
be completed by every fund, every year
Administration tasks
Many of the annual administration tasks may be managed by an SMSF administrator
or accountant. However given the procedural nature of these tasks some trustees choose
to perform a number of the tasks themselves.
Fund income tax and regulatory returns
All SMSFs must lodge a combined fund income tax and regulatory return called the
Self-managed superannuation fund annual return (the annual return) with the ATO each
year (see also NAT 71226 at ato.gov.au). SMSF trustees are required to lodge the annual
return with the ATO to report fund information including:
- income tax position of the fund
- superannuation regulatory information
- member contributions (to assist the ATO measure the value and type of contributions
against the various contribution cap limits).
Next, the SMSF’s approved auditor will conduct a financial audit of the fund. The auditor
must also complete a compliance audit which will determine whether the superannuation
laws are being followed. The findings from the audit are then relayed back to the trustee
and accountant for comment and potential amendment. The accounts may go back and
forth between the trustee, accountant and auditor a number of times.
Once the audit is finalised, the fund income tax and regulatory return can be lodged.
Apart from the above the ongoing responsibilities of a trustee of an SMSF are to:
- accept contributions
- notify the ATO of any change in details (eg. Contact details)
- make benefit payments
- Withhold tax where necessary
- Etc. Etc…
As you can see there are numerous important responsibilities for a trustee of an SMSF. Many people choose to engage the services of an administrator to help them with these details however it is important to remember that the responsibility for these tasks still remains with the trustees.