Make sure your SMSF is on track

Managing your own superannuation fund gives you the greatest flexibility over exactly how and where your super investments are made. But it also means that you are solely responsible for complying with super and tax laws.

With the self-managed superannuation funds (SMSF) reforms which came into effect on 1 July 2014 and the end of the financial year upon us, now is as good a time as any to make sure your SMSF is on track.

Penalty regime

A new penalty regime came into effect from 1 July 2014 for trustees of self-managed superannuation funds who are in breach of certain superannuation laws. Where breaches are identified, trustees will be personally liable for the penalty the ATO imposes. It is timely for SMSF trustees, in conjunction with the professional advisers, to rectify any outstanding breaches as quickly as possible.

Investment strategy
Each SMSF must have an investment strategy that reflects the high level investment strategy adopted by the trustees of the fund. As part of the investment strategy, trustees are also required to consider insurance for each member of the fund. In addition to formulating
and implementing an investment strategy, trustees are also required to regularly review the fund’s investment strategy.

Now is a good time for trustees to review their investment strategy and ensure that it continues to be appropriate for the fund, particularly where members’ circumstances may have changed.

Value assets
It’s a requirement that trustees of a SMSF value their fund’s assets at market value. This does not necessarily involve trustees obtaining formal valuations from a qualified valuer, however valuations must be provided by a person familiar with valuing such assets.

Find out more. Call us on 02 9533 7599

Disclaimer: The articles included on our website are for general information only and have not taken into account a clients’ personal circumstances, goals or objectives. Prior to making any investment decisions you should contact us to ensure that the advice is appropriate to your personal needs and objectives.

This article originally appeared in the InterPrac 2015 Winter Newsletter, June 2015. Re-published with permission.