Increased responsibilities for SMSF trustees
1 September 2012
The Australian Taxation Office (ATO) introduced measures on 7 August 2012 that are intended to address potential risks and strengthen the regulatory framework in which self-managed super funds (SMSFs) operate.
These measures (announced as part of the Stronger Superannuation legislation), mean that as trustee of an SMSF you are required to:
- conduct a review of the fund's investment strategy on a regular basis
- consider insurance for fund members as part of the fund's investment strategy
- value the fund's assets at market value for the purposes of preparing financial accounts and statements
The obligation that as a trustee of an SMSF you are required to keep money and other assets of the fund separate from any money or assets held by you personally or by a standard employer-sponsor or an associated standard employer-sponsor, is now a prescribed operating standard for the fund.
You must ensure the SMSF operating standards are complied with at all times. The ATO has the power to enforce compliance.
What this means for trustees
During each income year from 2012-13, you should review your fund's investment strategy to ensure that it continues to reflect the purpose and circumstances of your fund and its members. These reviews should occur on a regular basis and could be evidenced by documenting decisions made in the minutes of meetings held during the income year. You should also consider insurance for members.
Each of the SMSF's assets must be valued at their market value when preparing accounts and statements for the 2012-13 income year and later years. SMSF financial accounts and statements prepared by Boyce Chartered Accountants already meet this operating standard.
How can we help?
We can assist you with a review of your current investment strategy to ensure that it continues to meet the needs of your changing circumstances and life-stages, and where appropriate we can advise on whether you should be considering insurance for the fund members as part of your investment strategy.
Please contact Elizabeth Timmins, Boyce Financial Services Superannuation Strategist, on 02 6452 3344 or your local Boyce Director to discuss your particular circumstances.
Elizabeth Timmins and Boyce Financial Services Pty Limited are Authorised Representatives of Lonsdale Financial Group Limited, ABN 76 006 637 225, AFS Licence No. 246934.